Everyone is asking around Lancaster County and Central Pennsylvania – what’s going to happen with home prices, and when will we see the “good times” for sellers? It all comes down to, would you believe it, economics…

Supply and demand. Demand and supply.

Let’s pretend the home market is at a certain level of activity – prices and supply of homes for sale. Now, something happens to change the level of buyer activity (rates dropping for mortgages, silly tax credits, etc) and homes begin to sell. Now, buyers become a bit frantic and sellers (and realtors) sense this and price start rising. Multiple offers, same-day sales, overall a sense of craziness. Sound familiar? That was 2003 -2007 in a nutshell.

Now, something happens to the market (say, a crash?) that puts a damper on buyer activity. All of a sudden there are “too many” homes on the market and the prices are still trying to go up, but the buyers are not playing that game (neither are the appraisers for the banks, BTW). As the number of signs in yards grows, the sellers are the ones who get frantic.

Finally, sellers give up and start lowering their prices to get the home sold and move on. Or, they default for whatever reason and the distressed property sells for a cut rate. Now the “race to the bottom” of the real estate cycle has begun.

Lancaster PA home sales are in this last phase now. Where is the bottom? No one can say for sure but I predict prices will have to fall another 10% to get close to a “reset” point in the market here (prices have already fallen about 8-10% on average). Obviously, good economic news and job creation through small business expansions will be a huge factor in resetting the market.

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(c) 2011 Jeff Geoghan

Today we’re going to talk about the Arts & Crafts movement (also known as Craftsman Style homes) in Lancaster County and Central PA. Homes for sale that were built in the 1920’s and 1930’s can either be all Craftsman or use bits and pieces of the architectural style that was extremely popular at the time.

I shot this episode at my listing at 67 Valley Road in Neffsville, next door to Manheim Township Middle and High Schools. You can see the bright, big photos of this home at http://www.67valley.com

Craftsman homes in Lancaster PA or throughout Central PA were largely constructed out of masonry – that was the common base material at the time and while there are examples of stick-built Arts & Crafts homes in Lancaster County I would say they are few and far between. A major component of the style is the large covered front porch, allowing people to spend time outside in the environment. You can spot a craftsman home by the porch and also by the integrated square columns… no round columns. The column in this home I’m at are perfect craftsman columns.

Also, simplicity and staying true to the original materials (wood, block etc) was key to the craftsman home style. You’ll notice that this porch is very clean, with no extra details in the flooring or millwork. Arts & Crafts homes arose as a response to the overbearing european styling that was heavy on “fluff” in the design – therefore it follows that craftsman period home designers would keep it simple.

You can read more about the period online – it’s a favorite home style of mine and, interestingly, since these homes are a)older and b)smaller than most homes for sale in Lancaster, the price to buy a decent craftsman home can be very affordable! This home in Neffsvile is only $149,000. Keep an eye out for those big porches and square columns…

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(c) 2011 Jeff Geoghan

This flexible commercial building in Lancaster PA includes two office spaces plus a separate, free- standing flex building.  Listed for $600,000 with the following features:

• Only 2 blocks from Lancaster General Hospital
• 8 one-bedroom apartments; 1 two-bedroom apartment, 2 office spaces, and 1 flex space
• Apartments and office space are basic but well maintained
• Newer air conditioning units;  newer boiler, recent exterior paint and roof/chimney work.
• Separate flex building to rear of property could be used for commercial or offices, or convert to laundromat
• Two first floor office spaces
• Mix of heat pumps and oil fired steam heat
• Plenty of onsite parking!
• Potential net income easily over $60k a year.

For more information, call Lancaster Commercial Realtor Christine Sable, CCIM, at 717-399-9361

The last reassessment was in 2005, when the real estate market runup was in full swing.  Since the assessor uses prior year values as a key determinant, most owners got increases.  Appeals of these continue today (yes, you can appeal your assessment).  It was clear to everyone in the room at the commissioners meeting that a reassessment in 2013, which would use sales figures from 2008-2010, would likely result in many owners getting assessment increases – precisely when market values are falling here (Since the last assessment in 2005, the assessed values have run about 70% of market value).

According to sales data, home prices peaked in Lancaster County in 2007.  It’s my observation that that last 12 months (late 2010 and into 2011) have seen the most precipitous drops in price as buyers get ever more insistent about the issue.

Since county law requires an eight-year assessment cycle, commissioners will repeal that requirement with the intention of reinstating it after 2017.

Today we examine what price brackets are selling better than others…

The biggest increase was in homes priced under $100,000, a whopping 36% increase over last year!  The “meat & potatoes” bracket of $100,000-$199,999 was essentially flat (4% up to be exact).  The losers?  Everything over $200,000…

Whether it’s your first foray into Real Estate or you’ve owned your home for many years, you’ll need to know some basics in order to make a successful offer on a home.

There are four key components of any offer, and as a homebuyer of real estate in Lancaster County PA or beyond you’ll need each of them to place an offer (it’s not called a “bid”, by the way).

1 – Mortgage Prequalificaton. If you are not paying cash you’ll likely need a mortgage. It’s critical to your budgeting that you have a clear picture of your mortgage situation. I did an episode with a top local lender you can watch here (http://www.youtube.com/watch?v=w6scZTljsHg ) to learn more. You’ll need a letter from the bank showing your credit worthiness to include with your offer.

2 – PA State Agreement of Sale with Addendums. This is the meat of the offer packet and the agreement details the terms – price, timing, conditions of sale, etc. Special contingencies or conditions will be covered in addendums to the agreement, which are submitted with the agreement to the seller at the same time.

3 – Signed PA Seller Disclosure. This 5 page form must be completed by the seller and available to you to review (in the event of a bank sale or estate sale the disclosure may be signed but blank). Use this form to see what property issues there are that might affect your offer terms. You’ll need to sign the form and include with your offer.

4 – Deposit check. Also known as Good Faith, Escrow, Earnest Money, this check will be made out to the listing brokerage in most cases and sit in their state-regulated “escrow account” until you close, at which time it is returned to you as a credit. If you don’t close, well….talk to your buyer agent about that.

There are some other items that may be needed in presenting an offer to buy homes for sale in Lancaster PA or in your location for that matter, but these four are the key components.

Any questions – love to hear them at jeff@yourlancasterhome.com.

Thanks for watching! Please take a moment to subscribe here at http://tv.yourlancasterhome.com and pop over to our facebook page to “like” it at http://www.facebook.com/lancasterhomes

Choose Jeff Geoghan for your next home sale or purchase in Lancaster PA! Thanks.

(c) 2011 Jeff Geoghan

Governor Tom Corbett recently named Katie True, of Lancaster County, to lead the Bureau of Professional and Occupational Affairs within the Pennsylvania Department of State.

Secretary of the Commonwealth Carol Aichele administers the oath of office to acting Commissioner Katie True. (photo from PA Dept Of State Newsletter)

As commissioner, True will oversee the state’s professional and occupational hearing boards. The bureau provides administrative and legal support for all of the state’s licensing boards – which oversees professionals from medical doctors to accountants and funeral directors – while protecting the health, safety and welfare of the public from fraudulent and unethical practitioners.

True served 16 years in the state House of Representatives, earning a reputation as a strong advocate for children and families across Pennsylvania. She served on numerous House committees, including the professional licensure, judiciary, consumer affairs, plus health and human services.

“Katie True’s familiarity with the licensing boards as a state representative combined with her reputation for good government oversight make her an excellent choice for this role,’’ Corbett said.

True also served as executive director of the Pennsylvania Commission for Women and was youth director for a statewide drug and alcohol prevention coalition, Pennsylvania AWARE. She began her career in public service when she founded Kids Saving Kids, a nationally recognized drug-education program for elementary students.

She and her husband, Peter, have six children, including three sons and three stepsons.

Governor Tom Corbett today signed his first bill, House Bill 377 which removes the sprinkler mandate on all newly constructed one- and two-family homes. The new law is Act 1 of 2011.

Now that sprinklers are a consumer choice, builders must offer a buyer the option of installing sprinklers. Builders must also provide the buyer with information made available by the State Fire Commissioner on the possible benefits of installing a sprinkler system.

Among other things House Bill 377 will also change the codes adoption process in Pennsylvania and require increased standards for fire protection of flooring.

As of January 1, 2010, sprinklers are mandated in newly constructed townhomes. Act 1 will not change this requirement.

Over the past three years, PAR members have sent over 5,000 emails and placed countless calls to the legislature asking them to take action and repeal the sprinkler mandate.

While in virtually every category 2011 is looking worse than last year, interestingly the numbers look almost exactly like 2009.  Sold homes were not too far off last year at 4%, but pending sales fell 11% and that I’m not happy about.

New listings fell by almost 20% but the amount of inventory carrying over from December plus fewer homes going under agreement kept the total inventory almost exactly the same as first quarter 2010, from 3,930 to 3,943 respectively.

Pending and sold home numbers mirror 2009, interestingly

Home prices in Lancaster (median, which irons out any super high or low-priced properties) fell by 5%.  I’m not complaining… could have been a lot worse.

Average Days on Market (DOM) climbed 17% over last year, which is also not a surprise to sellers.

Takeaways?   PRICE, PRICE, PRICE.   Get those list prices down and the property will sell.  Get ready to rumble with tougher buyers than ever, too.

I show a lot of homes to a lot of people every year, and see all kinds of things. Today I’m talking about 5 simple rules for touring homes for sale based on my experiences:

1) Treat the home like your own – don’t do things you wouldn’t do at your house, for example pushing or pulling things to see if they bend or are weak, tracking muddy shoes through the house, etc.

2) Hands off – this is a great general rule. If you do nothing else, make a point not to touch anything except door handles and most things will work out.

3) Keep kids under control – this is a major problem when more than 2 kids are involved. Make arrangements to stagger the showing so one parent and then the other go inside with your agent while the other watches the kids in the car.

4) Avoid using bathrooms in the house if at all possible – plan ahead. Yes, I know, I know…but nope.

5) Leave the house the way it was when you walked in – close and lock windows and doors and put anything you needed to touch back in place. Report any issues to your buyer’s agent! Trust me, the sellers will find out.

Thanks, and if you have any questions please feel free to reach me at jeff@yourlancasterhome.com!

Thanks for watching! Please take a moment to subscribe here athttp://tv.yourlancasterhome.com and pop over to our facebook page to “like” it at http://www.facebook.com/lancasterhomes

Choose Jeff Geoghan for you next home sale or purchase in Lancaster! Thanks.

(c) 2011 Jeff Geoghan