lcar

Unlocking Your Home's Water Secrets: Know Before You Settle In

Mon, 20 Oct 2025 15:41:15 GMT

The excitement of a new home is undeniable. Unpacking, decorating, making it your own – it's a fresh start. But amidst the joy, a crucial question often lingers: what's the real story with the water? Whether you've inherited an existing water treatment system or are starting with a clean slate, understanding your water quality is key to a comfortable and confident transition. Think of it as a comprehensive home inspection, but for the water you and your family interact with every day.

Beyond the Tap: Understanding Your Water's Potential

It's easy to assume your water is fine. But just like any complex system in your home, water quality can vary significantly. Understanding it allows you to make informed decisions. We often encounter situations where:

System Efficiency is Questionable: Older or poorly maintained systems might not be performing as expected, leading to less-than-optimal results.
Water Composition Varies: Local water sources can contain unique minerals or contaminants that require specific treatment.
System Suitability is Unclear: The existing system might not be perfectly matched to your home's needs or your family's preferences.
Proactive Maintenance is Key: Just like regular car maintenance, water systems benefit from routine checks to ensure longevity and peak performance.

Investing in knowledge about your water is an investment in your home's overall health and your family's comfort.

The Power of Professional Water Analysis: Clarity and Confidence

A professional water analysis provides a clear, objective picture of your water's quality and your system's performance. It's about gaining valuable insights, not dwelling on potential problems. A qualified expert will:

Conduct Comprehensive Testing: Identify the precise composition of your water, highlighting any areas of concern.
Perform a Detailed System Evaluation: Assess the functionality and efficiency of your water treatment system.
Provide Informed Recommendations: Offer tailored advice on maintenance, adjustments, or upgrades to optimize your water quality.
Empower You with Knowledge: Help you understand your water system and make confident decisions for your home.

This proactive approach is about gaining control and ensuring you're providing the best possible environment for your family

Building a Foundation for Healthy Living: Empower Your Home with Information

Don't leave your water quality to chance. Understand your water and your system to create a healthy and comfortable home. A professional water analysis is a valuable tool for any homeowner, whether you're moving in, renovating, or simply seeking to improve your living environment. Gain the knowledge you need to make informed decisions and enjoy the peace of mind that comes with knowing your water is working for you.

Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.

It's Included! - BrightMLS: More Than Just Listings

Mon, 20 Oct 2025 15:16:40 GMT

As busy real estate professionals, we juggle multiple memberships, each packed with benefits that can easily slip under our radar. It’s time to take a fresh look at what’s included in your membership—you might discover the perfect tool you need, right at your fingertips!

We rely on BrightMLS daily for listing data, searches, client portals, and launching new listings. But did you know your subscription includes powerful tools beyond the basics?

Marketing & Listing Tools

CubiCasa – Free Floor Plans
Quickly generate accurate floor plans using your mobile device. Upload your scan, and within 24 hours , you’ll receive a detailed floor plan at no extra cost. (An enhanced version is available for an additional fee.)
For Listing Agents: Enhance your listings with professional floor plans.
For Buyer Agents: Create floor plans for buyers when listings don’t include them.
Get Started: Download the CubiCasa app today.

RentSpree – Rental Management Simplified
An award-winning rental software that streamlines the entire rental process.
Included Features:
Online rental applications & screening (applicant pays a fee)
Rental Client Manager
Rental Listing Page & Agent Profile Page
Optional Upgrades (Monthly Fee): Rent estimator & rent collection

Stay Informed

RISMedia Subscription – Access real estate industry news, upcoming events, and reports directly from your BrightMLS homepage .

Monthly Marketing Kit – Found under the "News" tab , this includes:
Infographics for social media
Central PA Monthly Market Report

Education & Training

Customer Success Coach
Get personalized training and technical support. Lancaster County’s assigned coach:
Jena Burley | 610-205-3317
Schedule an appointment at BrightMLS.com/officehours

LCAR Streaming Training (via BrightMLS Collaboration)

On-Demand Webinars
Access ongoing training at your own pace, covering everything from beginner to advanced topics:
Getting Started: Let us take you on a tour of your Workspace!
Prospecting in Public Records

New Feature: Nestfully App

BrightMLS now includes access to the Nestfully App, a free tool to share listings and communicate directly with buyers.

Pros: Convenient for buyer communication and listing sharing.

Cons: Does not include listing documents or agent remarks—so if that’s essential, stick with the MLS-Touch App.

Maximize Your Membership

If you’re looking to sharpen your skills, enhance your client services, or manage rental properties more efficiently, take some time to explore everything included in your BrightMLS subscription. You might be surprised at the valuable tools already at your disposal!

Guidelines for Short-Term Rentals

Mon, 11 Aug 2025 13:01:43 GMT

Chances are you have had at some point in your career, a client who was interested in buying a property to use as a Short-Term Rental (STR). In recent years the popularity of these types of properties has grown due to a culmination of factors. Landlords realized profit margins are often greater than a standard yearly rental. Or they can help offshoot the cost of a vacation home, with income and tax status, but still leave availability for the owner to use. Travelers have taken a shine to them over hotels, due to the ability to stay with larger groups, affordability, and more comforts like real kitchens and gathering spaces.

A problem arose when municipalities realized a significant amount of housing stock was being taken over by such rentals, thereby limiting standard rental housing, which obviously drives up prices. Residents began being priced out of areas due to lack of supply. In response, local governments began cracking down with ordinances and zoning laws. You may have even read about lawsuits in large cities such as New York and Los Angeles. (In NYC new STR regulations went into effect and now the number of legal STRs has gone from 10,800 to just over 800 licensed units at the beginning of December 2023.)

A detailed list of each of Lancaster County’s municipalities’ STR rules and regulations would be fairly cumbersome and could easily become outdated. It’s best to either have your client look into the areas they are interested in and do their own research or help guide them along.

I would also make the recommendation when buying an existing STR, to caution your client that nothing is written in stone and zoning rules can change. Even people’s travel preferences can change. My clients bought the second longest existing air bnb property in Lancaster City, and were running it as the same, when the city decided to change its STR boundaries. The odd thing was they were still allowed to do short-term over 30-day rentals, so the new law didn’t even seem to address the housing shortage in the first place! They were happily surprised by the demand for over 30-day (it often ends up being a few months rental) housing, many travel nurses and businesspeople booked stays. If your client does their budget on proposed short-term income and then has trouble paying the mortgage when the rules change, no one wins.

Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.

Real Estate Lingo: Encroachments

Thu, 26 Jun 2025 16:00:10 GMT

Encroachments in real estate occur when a property owner extends a structure or physical feature beyond their legal boundary onto a neighboring property. This can include fences, driveways, sheds, or even tree branches that overhang into another person’s land. Encroachments can be classified as:

Minor Encroachments – Small, often unintentional violations, such as a garden bed slightly extending past a boundary line.

Major Encroachments – Significant intrusions, like a garage or portion of a building extending into a neighbor’s property.

How encroachments affect property owners:

Legal Issues: If left unaddressed, encroachments can lead to lawsuits or claims of adverse possession, where the encroaching party may eventually gain legal rights over the land.

Property Value: Buyers may be hesitant to purchase a property with encroachment issues, impacting its resale value.

Title Issues: Mortgage lenders and title companies may require resolution of encroachments before approving a loan or insurance coverage.

Resolving Encroachment Disputes:

Negotiation: Property owners can reach an agreement, such as granting an easement or selling the encroached portion of land.

Survey & Legal Action: A professional land survey can clarify boundaries, and if necessary, legal action may be taken to remove the encroachment.

Mediation: If disputes arise, mediation can provide a cost-effective alternative to litigation.

Encroachments are a common yet serious issue in real estate that should be addressed promptly to avoid legal and financial complications.

Conducting property surveys and maintaining clear communication with neighbors can help prevent encroachment disputes.

Wish you all the best!

Wholesaling Updates

Thu, 12 Jun 2025 19:06:10 GMT

I think it’s safe to say that the past year saw a lot of change for our industry. With the NAR settlement front and center, and the fallout from that with the restructuring of how cooperating broker compensation is disclosed, we were forced to rewire our brains and adapt to new business practices. But the NAR settlement wasn’t the only catalyst for change this past year. Another important change that didn’t get quite as much attention were the changes in regards to wholesaling, specifically Act 52, which went into effect January 4th of this year. But before we talk about what those changes are, let’s first talk about what wholesaling is.

By definition, wholesaling is a short-term investment strategy in which a wholesaler secures a property under contract and then quickly transfers that contract to another buyer for a profit, without ever taking ownership of the property. In practice, a wholesaler begins by locating a property which in most cases is being sold below market value, often a distressed property or one owned by a seller needing to sell quickly. The wholesaler then negotiates a purchase contract with the seller. The wholesaler, having no interest in actually owning the property, searches for a buyer who does want to own the property, typically a cash buyer or investor, willing to pay a higher price for the property than what they paid. The wholesaler acts more or less as a middleman. Once a buyer is found, the wholesaler assigns the contract to them, and the buyer closes the deal, taking ownership of the property. The wholesaler, in essence, is selling their interest and thus profits by earning a fee from the difference between their purchase price and the price they sell the contract for. While there's more to the process, this provides a general overview.

So what changed?

Before Act 52 went into effect, wholesaling was for the most part unregulated and seen by many as an exploit to practice real estate without needing to hold a license. That has changed. Act 52 has amended the Real Estate Licensing and Registration Act, or RELRA, to include those who engage in wholesale transactions. Pennsylvania’s Real Estate Licensing Law now defines “wholesale transactions”, and requires those who conduct in wholesale transactions to register with the state and be licensed by the Pennsylvania State Real Estate Commission. Before January 4th, wholesalers were just running amok with reckless abandon. Ok so maybe that’s a little dramatic, but wholesaling was seen by most in our industry as engaging in real estate practice and thus should require a real estate license.

On top of a license being required to engage in wholesaling practices, disclosures are required for both buyers and sellers who may be involved in a wholesale transaction. This requirement applies to agreements between the property owner and the wholesaler, as well as disclosures between the wholesaler and the final buyer. Compensation has also impacted by the new rules and regulations. The same rules that apply in all other real estate transactions also apply to wholesale transactions, meaning anyone practicing wholesaling cannot accept commission from anyone other than their real estate broker.

There is a whole lot more that is involved with all of the recent changes when it comes to wholesaling, this is just meant to serve as a general overview of the changes. For more information regarding wholesaling, visit PAR’s website at https://www.parealtors.org/resources/wholesaling-overview/ .

A Buyers' Agent's Guide To The Seller's Property Disclosure Requirement

Wed, 21 May 2025 15:58:48 GMT

I read the May 9, 2025, JustListed Blog posted by Kacey Clouser, Esquire, entitled Seller’s Property Disclosure: From the Buyer’s Side , and thought it was very well written. In fact, it caused me to think about some of the next steps that a buyer’s agent needs to consider when they receive a Seller’s Property Disclosure Statement. I know most, if not all of you, read JustListed, so I write this to complement (and compliment) Kacey’s blog.

Under the law, buyers’ agents have a general ethical responsibility to advise their buyers that sellers have a legal obligation to provide a “completed property disclosure statement.” Pa. Code §35.284a(b)(1). They are also obligated to assure that a completed property disclosure statement was delivered to the buyers. Pa. Code §35.284a(b)(2). These requirements are set forth in the rules and regulations that were formally adopted by legislature, meaning this is “THE LAW.” There are some important components in these two sentences that I want to unpack for you.

Too many times, I have heard REALTORS® describe their obligations to buyers to be something like, ‘the sellers are required to disclose all of the defects about a property;’ or ‘sellers have to fill out the sellers’ property disclosure form to tell you about the defects with the property.’ Read Kacey’s blog for a better understanding material defects and what the PAR form is and is not. What often gets overlooked is the obligation of a completed disclosure form. Buyers’ agents are obligated to advise their buyers have the right to receive a completed form. Some sellers mistakenly think that they are not required to provide a sellers’ disclosure form (e.g., “flippers” or people who never lived in the property). “Flippers,” or people who buy houses, rehabilitate or renovate them, and then resell them without ever living in them are NOT excluded or exempt from providing a completed sellers’ disclosure form. Stated differently, “flippers” are REQUIRED to provide a completed sellers’ disclosure form. As buyers’ agents, it is your responsibility to let your buyers know that the sellers have a duty to provide the completed form.

The second sentence obligates agents to “assure” that the sellers provide a completed disclosure form. To assure your buyers means to give them confidence, in this case, give your buyers confidence that they are entitled to receive a completed disclosure form from the seller. This means agents have to actually read the form. Importantly, you are not reviewing for accuracy (though you do want to pay attention for any errors or inaccuracies), you are looking at the form to make sure that it is complete. In other words, are all of the questions answered (are all of the boxes checked)? If the seller checked a box ‘yes,’ did the seller provide the required explanations? Are all of the explanations or notations on the form or any attachment to the form clear to the buyers, or do they have follow-up questions? Attaching a home inspection report to a blank sellers’ disclosure form (whether physically, electronically, or digitally) is not the same as the seller actually completing the form. Buyers do not have to accept this, and it is your job, your responsibility to not only advise them of this, but assure them as well, so they are confident in making their requests for more information.

What happens if a seller – or a listing agent – simply refuses to provide a completed sellers disclosure form? I am frequently asked, “Can they do that?” Yes, they can because they did – you hold the proof in your hands! The right question is, “What are the consequences of not providing a completed sellers disclosure form?” I have a confession – your obligation to assure your clients that they are entitled to receive a completed form is only part of THE LAW. The full sentence reads, “A licensee who represents buyers or a transaction licensee who as entered into an agreement with buyers shall assure that the completed property disclosure statement or the property disclosure statement marked “refused” was delivered to the buyer prior to the execution of an agreement of sale.” Pa. Code §35.284a(b)(2). If a seller does not complete any or all of the property disclosure statement, then your job in representing buyers is to assure them that they can request the seller to complete the form, either with complete answers or designating what questions the seller refuses to answer.

What if, despite what THE LAW requires, a seller just will not do what they are supposed to do? If you are the buyer’s agent (not a dual agent or transaction licensee), keep your client’s best interests as your guiding principle. Advise them on the seller’s obligations, assure them about what they are entitled to receive and request, and let them make the best decision for them. They can still buy the house, they can walk away from the transaction, or with your guidance they can structure an offer that best satisfies their needs! Just don’t tell them what to do, don’t make the decision for them.

What about the listing agent’s obligations? What about the sellers’ obligations? Those are topics for a different day!

Brett M. Woodburn, Esquire, is the founding member of Woodburn Law. He has represented REALTORS® since he started practicing law in

1999. He currently represents several local Associations of REALTORS® and MLSs across Pennsylvania. This article is his work, with all rights

reserved, and may not be reprinted without his permission. Copyright May 2025.

Clean & Green

Thu, 15 May 2025 14:46:19 GMT

Imagine showing your clients a beautiful home overlooking a serene landscape of neatly plowed fields and contented cows grazing in the distance. As you walk out on the stone patio, you tell them confidently, because you read in the agent remarks notes that the farm was enrolled in the Clean and Green Program, “this land and the amazing view will never be compromised with a housing development or anything else!” Your clients love the expansive openness, and the house, and settle on the property in short order.

Then imagine getting a very angry call in three years’ time from these same clients, stating that the farm was sold and ugly mcmansions are about to be littering their landscape and how could you have lied and how could you be so ill informed and we are never going to recommend you to any of our friends, ever again!

It feels like the making of a terrible stress dream, but it could easily happen if you don’t do your research into land preservation. There are different agricultural programs in place in Lancaster County and are not all created equal.

This fictional farm above was part of the “ Clean and Green ” Program, which was enacted in 1974 as a tool to encourage protection of Pennsylvania’s valuable farmland, forestland, and open spaces. It applies to property ten acres or more and helps the landowner in that it bases property taxes on use values rather than fair market values, which ordinarily results in a substantial tax savings for the landowner. More than 9.3 million acres are enrolled statewide.

However, it is not a guarantee that land enrolled in the program will never be changed from its origin. When a landowner, for example, decides to sell his farm to a developer, the party is subject to seven years of rollback taxes at 6% interest per year. The rollback tax is the difference between what was paid under Clean and Green versus what would have been paid, if the property had not been enrolled, plus 6% simple interest per year. So while seemingly substantial, may actually amount to small potatoes in the event the farm is being sold to a developer.

A much more serious dedication to preserving land is “ The Pennsylvania Agricultural Conservation Easement Purchase Program ”. It was developed to strengthen Pennsylvania's agricultural economy and protect prime farmland. It enables state and county governments to purchase conservation easements from farmers. The program was approved in 1988, and the first easement was purchased in December of 1989. To date, 6,400+ farms have been approved for easement purchases totaling 645,000+ acres.

You undoubtedly have heard of the Lancaster Farmland Trust , which is a non-profit acting in the same manner but by using private funds to preserve farms. To date they have “saved” over 600 farms and they also add value by working with farmers to help implement conservation practices, etc.

While it is tempting to assure a client that preserved farmland will never be altered from its present form, I would hesitate to make such a declarative statement that could someday find its way of being undone. In the current climate, it seems long held rules were made to be broken, and nothing is guaranteed.

Which Came First: The Chicken or The Ordinance?

Fri, 25 Apr 2025 18:18:47 GMT

Chickens are becoming a hot topic…whether it’s the increase in egg prices, or the continuing interest in homesteading, more clients are expressing interest in raising chickens. Spring is approaching fast and adorable fuzzy, chicks will be looking for homes. Even in Lancaster County, it’s not as easy as throwing a coop in the backyard and joyfully collecting eggs.

If you have a buyer who wants to join in the chicken fun, here is some information you can share to make their home purchase align with their goals.

Is there a HOA? Be sure to check the rules & regs to see if chickens are allowed.

Every municipality has their own ordinance regarding poultry. It would be best practice to have your buyer reach out to the municipality to confirm what it is currently allowed [1] . Be sure to know the specific zoning classification of the property. If the property is zoned agricultural, it will be easier to have livestock. If there is a different zoning classification, it will be important to understand what is currently allowed for that classification. If chickens are allowed, there may be restrictions, such as: no roosters, limited numbers depending on acreage, and specifications as to construction and location of the coop. There may be permitting/licensing fees as well.

Less commonly, there may be deed restrictions that prevent livestock/chickens. If the listing agent does not have a copy of the deed, you can visit lancasterdeeds.com to find a copy of the deed.

While it may be impossible to keep up to date with the guidelines of all 60 municipalities of Lancaster County, you can be the superhero to your buyers by guiding them in the correct direction. By sharing some of the hurdles that exist in owning chickens, you will be reinforcing your real estate expertise and guiding them into the correct home to roost.

[1] Personal experience: I had buyer clients who definitively wanted chickens. We looked at a property that had an existing coop (no chickens currently living on property). When checking with the municipality, it was discovered that chickens would not longer be permitted on this particular property due to changes in zoning and ordinances. The buyers passed on the property.

Podcast Episode 4: Generating Power with AI in Real Estate

Thu, 17 Apr 2025 17:45:50 GMT

Featuring Host Mike Berk & Guest Chandra Mast, Red Rose Appraisals

Welcome to the fourth episode of The LCAR Corner, the first-ever podcast from the Lancaster County Association of Realtors®.

In this episode, LCAR's Executive Director, Mike Berk, chats with prompt specialist Chandra Mast about the cutting-edge trends shaping Artificial Intelligence as we know it. Together, they dive into how AI is transforming the real estate industry—from smarter listings to predictive analytics—and what it means for agents, buyers, and the future of the market.

LCAR Members can register for Chandra's upcoming CE course on May 7th , "Fundamentals of Artificial Intelligence for Real Estate Professionals", on their LCAR Portal . Non-LCAR members can register for the course through the LCAR website .

Stay tuned every month for more engaging episodes and expert advice from the world of real estate and beyond, right here on The LCAR Corner!

Click Here For More Listening & Download Options

It's Included! - Your PAR Membership Benefits

Thu, 10 Apr 2025 14:03:15 GMT

As a member of the Pennsylvania Association of Realtors (PAR) , you have access to a wide range of resources to support your real estate career. Here’s what’s included with your membership:

Legal Support & Resources

• Legal Hotline: Have a legal or regulatory question? PAR’s Legal Hotline provides information to support your clients. Submit a form online to verify your membership or call 800-555-3390 to receive the hotline number. Access the Legal Hotline here: https://www.parealtors.org/legal-hotline/

• Legal Help Articles: PAR offers an extensive library of Legal Help Articles for members. Browse the articles here (member login required): https://www.parealtors.org/legal-help-articles/

Market Data & Industry Reports

• Pennsylvania Housing Market Report: In addition to LCAR's market reports, this monthly report provides insights into housing trends across the state. (Temporarily suspended as discrepancies in reporting are being corrected.)

View the latest reports here: https://www.parealtors.org/housing-report/

Governance & Industry Involvement

• Committees, Councils & Feedback Panels: Get involved with PAR leadership and decision-making by joining a committee or council. Apply for an appointment here: https://www.parealtors.org/governance/

Education & Professional Development

• Webinars & Events: Stay informed with industry courses, webinars, and events designed to help you grow professionally. Find upcoming events here: https://www.parealtors.org/events/

• Triple Play Convention & Trade Expo: A joint convention for Pennsylvania, New Jersey, and New York Realtors, held annually in Atlantic City, NJ. The 2025 event takes place December 8-11.

Advocacy & Political Action

• RPAC (Realtors Political Action Committee): RPAC helps influence government decisions that impact the real estate industry, homeowners, and commercial businesses. Learn more about RPAC and advocacy efforts here: https://www.parealtors.org/advocacy/

Standard Forms & Transaction Tools

• Standard Forms: PAR provides up-to-date standard forms used daily by real estate professionals. Members receive free access to fillable, electronic forms through Lone Wolf Transactions (zipForm edition). Access forms here: https://www.parealtors.org/resources/electronic-forms/

News & Industry Updates

• JustListed Blog: Stay updated with the latest real estate news and trends. Subscribe to JustListed here: https://www.parealtors.org/blog/

Exclusive Discounts & Savings

• Member Discounts on Products & Services : Take advantage of preferred partner savings on business and personal products. Explore membership savings here (login required): https://www.parealtors.org/membership-savings/

Your PAR membership is packed with valuable tools and resources to help you stay informed, supported, and successful. Take advantage of everything included and make the most of your membership!

Podcast Episode 3: Mind Over Matter - Prioritizing Mental Health & Wellness

Thu, 27 Mar 2025 15:19:48 GMT

Featuring Host Mike Berk & Guest Stacey Kreitz, Family Therapist (Lititz, PA)

Welcome to the third episode of The LCAR Corner, the first-ever podcast from the Lancaster County Association of Realtors®.

In this episode, LCAR's Executive Director, Mike Berk, sits down with Lititz-based family therapist Stacey Kreitz to discuss mental health, work/life balance, and overall wellness. Stacey shares practical tips for managing stress, preventing burnout, setting boundaries, and creating a work-life balance for those managing a busy lifestyle. Whether you're a Realtor®, business owner, or simply looking to find balance in your day-to-day, this episode is full of helpful tips to improve your well-being and maintain a healthier work-life balance.

Stay tuned every month for more engaging episodes and expert advice from the world of real estate and beyond, right here on The LCAR Corner!

Click Here For More Listening & Download Options

Digging On Your Property

Thu, 20 Mar 2025 17:42:38 GMT

Regardless of whether you’re planting a few shrubs or putting in some fence posts, it is important to reach out to the authorities.

Remember, if your home improvement project involves digging, you must contact your state’s 811 center at least 3 days before breaking ground. Underground power lines, communication cables, gas lines, water lines or other utilities may lie below the surface of your property. There is no prescribed depth that you are allowed to dig before you call 811.

You may also contact 811 online. Go to Pennsylvania One Call System ( www.pa1call.org. )

The telephone number is free and service is no cost for homeowners who are digging on their own residential property.

Just be sure to allow time for utility companies to visit the area to mark the location of the underground facilities. If you’ve hired a professional to do work on your property that includes digging, make sure that they have called 811 or made their request online before work.

Wish you all the best!

VLOG: How Buyer Agency Commissions Impact Homebuyers and Lenders

Fri, 07 Mar 2025 19:26:30 GMT

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

Podcast Episode 2: Working Together Tenfold

Thu, 27 Feb 2025 15:56:38 GMT

Featuring Host Mike Berk & Guest Shelby Nauman, Tenfold CEO

Welcome to the second episode of The LCAR Corner, the first-ever podcast from the Lancaster County Association of Realtors®.

In this episode, LCAR's Executive Director, and your host, Mike Berk meets with Shelby Nauman, Chief Executive Officer at Tenfold, to discuss and learn more about the many programs Tenfold has to offer. From transitional living to first-time homebuyer programs, tune in to learn about the unique connection between LCAR and Tenfold, which has flourished since LCAR members began fundraising efforts back in 1989.

To learn more about Tenfold and its programs, please visit their website at www.wearetenfold.org .

Stay tuned every month for more engaging episodes and expert advice from the world of real estate, right here on The LCAR Corner!

Click Here For More Listening & Download Options

It's Included! - Your LCAR Membership Benefits

Thu, 20 Feb 2025 20:15:39 GMT

As real estate professionals, we know the value of connections, resources, and staying informed. Your Lancaster County Association of Realtors® (LCAR) membership comes packed with benefits designed to help you grow your business, network with colleagues, and access valuable industry resources. But are you taking full advantage of what’s included?

Networking Events – No Additional Fee

LCAR hosts three complimentary mixers each year, providing excellent opportunities to connect with fellow Realtors, affiliates, and industry professionals:

• Spring Mixer – March 27, 2025, at Bent Creek Country Club (5:00-7:00 PM)

• Member Appreciation Picnic – June 26, 2025, at Manheim Township Community Park (11:30 AM-1:30 PM)

• Fall Mixer & Cornhole Tournament – September 17, 2025, at Marion Court Room (4:00-7:00 PM) (Cornhole participation requires a fee.)

There are additional events and fundraisers that require a fee.

Shred Event – Free for Members

Protecting sensitive client information is a priority, and LCAR makes it easy for you to safely dispose of old documents. Join us for a free shred event:

�� May 13, 2025 – LCAR Lower Level Parking Lot (10:00 AM-12:00 PM)

Supra Lockbox Access – Now with Single-Use Code Option

LCAR manages Supra Lockbox access for members , and members pay for their Supra subscription separately. We recently introduced a single-use code option, allowing agents who do not have a Supra subscription to access listings with a one-time-use code.

• The showing agent pays the fee for a single-use code.

• Instructions are easy and available from LCAR.

• Add these details to your listing documents so that showing agents can easily obtain access to your listings.

This enhancement expands showing opportunities while maintaining secure access to properties. Contact LCAR for more details!

Lancaster County Market Report – Branded for You

Each month, LCAR issues a Lancaster County Market Report packed with valuable data to help you stay informed and provide insights to your clients. Customize the report with your logo before sharing it with your sphere via email, social media, or printed materials.

Monthly LCAR Newsletter, Weekly Blog and NEW Podcast

Stay up to date with industry news, upcoming events, and key market insights through the LCAR Monthly Newsletter and weekly blog . Make sure you’re reading it to take full advantage of your membership! Check out the new Podcast. The first episode was just dropped and can be found where you listen to podcasts.

LCAR Real Estate School

Looking to expand your knowledge and skill set? LCAR runs a Real Estate School , offering a variety of continuing education, licensing, and professional development classes . While most courses require a fee, LCAR also provides free seminars throughout the year on important industry topics. Be sure to check the schedule regularly for upcoming opportunities!

Tech Helpline – Free Support for Members

Connecting to your tech support team just got easier! LCAR has partnered with Tech Helpline to provide all members with FREE, U.S.-based, technical support for both work-related and personal devices. This exclusive member benefit includes assistance with:

✔️ Computers, phones, and tablets
✔️ Printers and other hardware
✔️ Email setup and troubleshooting
✔️ Network and Wi-Fi issues
✔️ Virtual meeting support
✔️ Virus and malware removal
✔️ And much more—at no cost to you!

Access Your Tech Helpline Benefit Today!

�� Call: (866) 829-1441
�� Online Chat: chat.techhelpline.com
�� Email: support@techhelpline.com

�� Hours of Operation:

• Monday – Friday: 9:00 AM – 8:00 PM

• Saturday: 9:00 AM – 5:00 PM (EST)

�� Download the Tech Helpline App in the App Store or Google Play for on-the-go support!

Advocacy & Government Affairs

Realtors play a vital role in shaping policies that affect housing, homeownership, and real estate investment. LCAR has a very active Government Affairs Committee and Political Action Committee (PAC) , ensuring that members stay informed and engaged in local government .

�� Why It Matters:

• Legislation impacts your business and your clients.

• Building relationships with government officials allows Realtors to serve as trusted advisors .

• Ensuring decision-makers understand the Realtor perspective helps protect property rights and promote fair housing policies.

This advocacy work is included with your membership , but you are also invited to support it through a contribution to LCAR-PAC .

Follow, Like & Share – Stay Connected on Social Media!

Stay informed, get event updates, and engage with the LCAR community by following us on social media! We encourage all members to like, follow, and share our pages to stay in the loop and help promote our industry.

�� Follow LCAR on Social Media:
�� Facebook: @LCAR
�� Instagram: @ lancasterassociationofrealtors
�� LinkedIn: Lancaster County Association of Realtors

Engage with us by liking, commenting, and sharing posts to help grow your professional network and keep the Realtor community strong!

Member Portal: Your One-Stop Resource

The LCAR Member Portal is your central hub for managing your membership and staying engaged with the association. Through the portal, you can:

• Pay your dues quickly and securely.

• View upcoming events and classes and easily register online.

• Make LCAR-PAC contributions to support Realtor advocacy efforts.

• Review your committee service history and stay involved.

Get Involved! Join an LCAR Committee

Looking to strengthen your network, build relationships, and make an impact ? LCAR offers several committees where you can get involved, contribute to the association, and connect with fellow Realtors. Serving on a committee is a great way to expand your influence , give back to the industry, and stay engaged in local real estate initiatives.

Additional LCAR Events

Throughout the year, LCAR hosts other educational sessions, networking events, and professional development opportunities that may require a fee. Stay tuned for details on these valuable programs! Your LCAR membership is more than just access to the MLS—it’s a gateway to networking, education, advocacy, and business growth .

Be sure to take advantage of all that’s included!

Podcast Episode 1: What's The Scoop on Real Estate Auctions?

Fri, 07 Feb 2025 18:53:08 GMT

Featuring Host Mike Berk & Guest Tim Keller, H.K. Keller

Welcome to The LCAR Corner, the first-ever podcast from the Lancaster County Association of Realtors®. In this episode, meet your host, LCAR Executive Director Mike Berk, as he sits down with Tim Keller, LCAR Treasurer and Auctioneer at H.K. Keller, to break down the basics of real estate auctions. Whether you're new to the process or looking to learn more, Tim shares valuable insights on how auctions work and why they’re an exciting option in the real estate industry.

Stay tuned every month for more engaging episodes and expert advice from the world of real estate, right here on The LCAR Corner!

More Listening & Download Options: https://www.podbean.com/ew/pb-zvk2d-17d8ab3

Grow Your Business With An App Designed with You in Mind

Thu, 23 Jan 2025 20:30:00 GMT

Great news, agents—the collaborative, MLS-powered mobile app you’ve been waiting for is here! Free of fees and packed with powerful features to grow your business, the new Nestfully app is designed to help you nurture the most valuable asset for any successful agent—your client relationships.

Powerful Tools Keep You at the Heart of Your Client’s Home Journey

Here’s what you can do in the app right now:

· Manage buyers and leads on the go

· Gain insights into client activity and behavior

· Search and share listings in a snap

· Expedite communication with in-app messaging

Plus, there’s plenty more to come as Nestfully spreads its wings, including:

· In-app listing creation and management

· Boundary walk

· An integrated, agent-assisted AVM tool

· The ability to promote your listings with powerful social tools

· And more!

3 Things You’ll Love About Nestfully

You might be wondering: How is Nestfully different from all the other real estate apps out there? Here are just a few ways this app sets itself apart.

[ Download your Agent Kit ]

1. It helps you do what you do best—build relationships. Nestfully never gets between you and your clients. It provides a user-friendly space where you can work together for a successful home journey!

2. It’s fueled by the MLS. Featuring up-to-date, accurate property listings straight from the source you know and trust, Nestfully keeps you and your clients on the same page.

3. It’s free—really. Nestfully and all its features are included as part of your MLS subscription, so it’s yours to enjoy with no subscription fees, no referral fees, no B.S.! Don’t be the one who leaves this valuable tool on the table.

Start Building Stronger Client Connections Now

Download the app at the link below and create an account today. Make sure to invite your clients to meet you there for next-level collaboration!

Facts, opi nions and information expressed in the Blog represent the work of the author and are believed to be accurate but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association

AI Drives Three Mile Island's Revival and Possible Real Estate Surge

Thu, 09 Jan 2025 19:43:48 GMT

From Meltdown to Modernization: AI Drives Three Mile Island’s Revival and Possible Real Estate Surge

(As reported as of September 2024)

Microsoft has entered a significant agreement with Constellation Energy to revive the Three Mile Island nuclear power plant in Pennsylvania. This move is driven by the skyrocketing energy needs of AI data centers, which require vast amounts of electricity. The plant, closed since 2019, will undergo a $1.6 billion renovation and is expected to be operational by 2028. Once restored, it will generate over 835 megawatts of power, most of which will be dedicated to Microsoft's AI-driven operations.

Nuclear Revival: Three Mile Island's Second Life Powering AI

In 1979, the Three Mile Island nuclear power plant became synonymous with one of the worst commercial nuclear accidents in U.S. history. The partial meltdown at its second reactor not only halted the nation's nuclear ambitions but also ignited public fear and skepticism toward the industry. For decades, the incident cast a long shadow over nuclear energy, culminating in the plant's permanent shutdown in 2019. This closure seemed to symbolize the decline of nuclear power in a world increasingly focused on safer, greener alternatives.

But now, a surprising twist is unfolding in the saga of Three Mile Island. In a groundbreaking partnership, Microsoft and Constellation Energy have announced plans to revive the dormant facility. This revival, powered by the growing energy needs of artificial intelligence (AI) technologies, represents a major shift in how we think about nuclear power and its role in addressing the surging demand for clean, reliable energy.

The Power Purchase Agreement: Fueling AI with Nuclear Energy

The collaboration between Microsoft and Constellation Energy aims to breathe new life into the Three Mile Island facility. This strategic move is designed to meet the rising energy demands driven by AI and data center operations, spearheaded by tech giants like Microsoft. The implications of this revival extend far beyond the realms of energy production and technology – it promises to reshape local economies , real estate markets , and infrastructure development.

At the heart of this revival is a 20-year power purchase agreement between Microsoft and Constellation Energy. This deal ensures a steady flow of carbon-free nuclear energy to fuel Microsoft's rapidly expanding AI initiatives. The agreement, which involves purchasing electricity from the Three Mile Island plant, highlights how large corporations are turning to sustainable energy solutions to meet their growing computational demands.

The plant, soon to be renamed the Crane Clean Energy Center in honor of Chris Crane, the former CEO of Constellation Energy, is expected to resume operations by 2028, pending approval from the Nuclear Regulatory Commission (NRC). Once operational, this nuclear facility will power Microsoft's expansive network of data centers, which support its artificial intelligence (AI) technologies.

Constellation Energy plans to invest a staggering $1.6 billion in the refurbishment and modernization of the facility. These upgrades will ensure that the plant is equipped to handle the technological demands of the future, with enhanced infrastructure that improves both safety and efficiency. Buying the power is designed to help Microsoft meet its commitment to be “carbon negative” by 2030.

Nuclear Energy: The Solution for AI's Insatiable Energy Appetite

The decision to power AI infrastructure with nuclear energy highlights a broader trend in the tech industry. As AI technology evolves, particularly generative models like GPT-4 and other high-performance computing systems—the need for clean, scalable, and reliable energy has become a critical issue for tech companies.

While renewable sources like solar and wind are part of the solution, they often lack the reliability required for round-the-clock AI data center operations. Nuclear power, on the other hand, offers constant energy output, making it an attractive option to fuel the data centers needed for AI workloads. The Unit 1 reactor at Three Mile Island, which will be the primary power source, boasts a capacity of 837 megawatts—enough to power over 800,000 homes. This reliability is crucial for regions like Pennsylvania, as energy sources are moving away from oil and coal.

Ripple Effects: Economic Revitalization and Real Estate Boom

The reactivation of Three Mile Island is projected to generate substantial economic benefits for the local community. With 3,400 jobs created during the plant's reactivation phase, the influx of workers—ranging from engineers and construction crews to IT specialists—will have a direct impact on the local housing market and economy.

The economic projections from this deal are staggering:

Over $3 billion in state and federal taxes generated
An estimated $16 billion boost to Pennsylvania's GDP
3,400 jobs created during the reactivation phase

This surge in employment opportunities will likely increase demand for housing and commercial properties, stimulating real estate growth in the surrounding areas.

Reshaping the Real Estate Landscape

The revival of nuclear energy as a clean, carbon-free alternative to fossil fuels has the potential to reshape market dynamics in Pennsylvania and beyond. For real estate developers, this shift could result in a surge in demand for commercial properties near power generation sites, as companies look to co-locate their energy-intensive data centers close to reliable energy sources.

The concept of co-location—building data centers near energy sources—is becoming a key strategy for tech companies trying to cut costs while meeting their energy demands. In Pennsylvania, this could dramatically alter the real estate landscape. Data centers built near Three Mile Island would not only drive demand for land but also create opportunities for infrastructure development, such as roads, transport, and telecommunications networks.

The Future: A New Era of Energy, Technology, and Real Estate

As AI continues to advance, the demand for clean, reliable energy sources has never been higher. The partnership between Microsoft and Constellation Energy to revive Three Mile Island illustrates how nuclear energy can be harnessed to meet these growing demands while significantly reducing carbon footprints. This shift could lead to a broader reliance on nuclear energy across the tech industry, positioning it as a key player in the transition to sustainable, carbon-free energy sources. As tech companies explore co-locating data centers near power generation sites, we may see significant shifts in the real estate market. Areas around nuclear plants, such as Three Mile Island, could become hotspots for tech infrastructure development. The marriage of AI and nuclear energy plays a crucial role in meeting sustainability goals. By powering AI with nuclear energy, companies can ensure that their technological growth does not come at the expense of the environment.

In conclusion, the revival of Three Mile Island represents more than just a return to nuclear energy; it signals a new era where technology, clean energy, and economic development converge. As this project unfolds, it will likely serve as a model for future initiatives, reshaping not only the energy landscape but also impacting the real estate market for several generations.

Citations:

1 - https://www.theverge.com/2024/9/20/24249770/microsoft-three-mile-island-nuclear-power-plant-deal-ai-data-centers

2 - https://theweek.com/tech/microsoft-three-mile-island-nuclear-power-big-tech

3 - https://www.npr.org/2024/09/20/nx-s1-5120581/three-mile-island-nuclear-power-plant-microsoft-ai

4 - https://www.cnn.com/2024/09/20/energy/three-mile-island-microsoft-ai/index.html

5 - https://www.bbc.com/news/articles/cx25v2d7zexo

6 - https://www.cbsnews.com/news/three-mile-island-microsoft-nuclear-power/

7 - https://apnews.com/article/three-mile-island-nuclear-power-microsoft-8f47ba63a7aab8831a7805dfde0e2c39

8 - https://finance.yahoo.com/news/constellation-energy-gets-positive-comments-172420308.html

9 - https://www.reuters.com/markets/deals/microsoft-may-pay-constellation-premium-three-mile-island-power-agreement-2024-09-23/

10 - https://www.constellationenergy.com/newsroom/2024/Constellation-to-Launch-Crane-Clean-Energy-Center-Restoring-Jobs-and-Carbon-Free-Power-to-The-Grid.html

11 - https://apnews.com/article/three-mile-island-nuclear-power-microsoft-8f47ba63a7aab8831a7805dfde0e2c39

12 - https://www.reuters.com/markets/deals/constellation-inks-power-supply-deal-with-microsoft-2024-09-20/

13 - https://www.utilitydive.com/news/constellation-three-mile-island-nuclear-power-plant-microsoft-data-center-ppa/727652/

14 - https://www.nbcnews.com/business/business-news/three-mile-island-nuclear-plant-help-power-microsoft-data-center-needs-rcna171958

Chandra Mast,

Red Rose Appraisals

Give A Little Bit

Thu, 26 Dec 2024 15:00:01 GMT

LCAR’s 36 ^th Annual TLC Fundraiser is the largest fundraiser of the year to support the outreach and programs that make up the worthy nonprofit Tenfold . I was excited to attend for the first time this year, partly to support this organization that I know does amazing work for people working hard to better their lives, partly because I love auctions, and partly from curiosity about what a social event with a bunch o Realtors® would look like.

Being from a small brokerage, and knowing none of my other agents were attending, I asked my boyfriend to accompany me to the Fireside Tavern in Strasburg. My “red carpet” themed attire was fun to plan, and having our photo taken in the greeting hall was a fun touch that made us feel a tad bit fancy!

Donna Giovingo, who has been on the event committee for 11 years and chair of the benefit for ten, listed some of the themes of years past, including: Sports, Denim and Diamonds, 80's, and Western. Last year’s theme was Halloween, and a friendly person in the bar line recounted how last year he went all out for on his costume but not many others did. So this year he sort of went a little lax with his effort and then wouldn’t you know it, everyone looked great! We laughed and agreed, you win some, lose some.

After getting our photo taken, we added our pack of diapers and laundry detergent donation to the overflowing table and got into the short check-in line. This is where we were given our drink tickets, auction number to bid, and brief instructions on how the evening would progress.

We found the bar to use our first ticket, then made our way to the three silent auction tables. They were filled with lots of fun items; I was a little surprised to see some of the low bids, but figured they would grow before the auction ended. My win was a $100 gift certificate to the Bunyaad Marketplace, a delightful store of hand-crafted products made by fairly paid artisans from around the world, kindly donated by the Marian Rutt Team from RE/MAX Evolved. I figured it can either make a nice gift for a client, or even a Christmas present for family. In the past I’ve bought a pretty marble and wood cheese tray with a mouse shaped cheese knife from this store that clients really like!

We then decided to eat, and milled around many options on the buffet line. I was happy to bump into an agent I call a real friend, and some other friendly familiar faces.

When the program started Shelby Nauman, capable, hardworking, dedicated chief executive officer of Tenfold, spoke about what the organization is all about, with some input from another team member. In case anyone isn’t aware, Tenfold (formerly Tabor and LHOP) focuses on equitable housing and financial security for program participants. According to their website, “We believe housing is at the center of a thriving community.”

They provide tools, education and resources to help their clients achieve their goals. I think it’s so neat that this is the organization all of us support because it makes perfect sense with our livelihoods. Giovingo agrees, reassuring that Tenfold isn’t a handout, but a helping hand for people who want to better their lives.

The live auction is probably the biggest focus of the evening. H.K. Keller donates their auction services, including Tim Keller, who hosted the event. Halfway through the live auction, he paused, and asked the audience to commit certain dollar amount donations, starting with $2,500 and going down to $50. It was exciting and gratifying to see so many bid cards waving in the air.

After the auction there were a bevy of winners announced for Door prizes, Donation prize winners, etc. A special shout out to the 50/50 Raffle winner, Sasha Carter, who heroically donated her cash winnings back to Tenfold. Classy move!

An event like this takes a ton of planning, Giovingo emphasized theirs is definitely a working committee! From asking for donations (and arranging for them to then materialize), to selling tickets, to organizing all the events of the evening and lots more, the committee and dedicated LCAR staff (Tracy Matroni, Olivia Bevensee, Laura Haines, and Mike Berk) deserve a huge thank you! Giovingo stated it is always their goal to beat the prior year’s funds raised.

From the fundraiser, to LCAR's Golf Outing and Cornhole Tournament, to even the donation jar in the office, LCAR was successfully able to donate an estimated $38,800 to Tenfold's TLC-- making 2024 LCAR's best donation year yet! As we look to the new year, I would encourage our members to check out LCAR's upcoming events to help support TLC, you never know what type of fun you may have!

What Can LCAR Do For You?

Fri, 13 Dec 2024 19:50:37 GMT

Recent changes in real estate have been significant to say the least. We've had to adjust by learning new skills, re-learning old ones, and un-learning outdated practices. During these shifts, it's comforting to be part of an association that provides support and benefits to its membership. Something that I can attest to with first hand experience.

One of the great things about being an LCAR member is the excellent educational resources available. For instance, I recently finished a brokers class, having taken another one earlier this year which is something not all associations offer. Speaking of brokers classes, I was lucky to use the Michael Mastros Scholarship to pay for one of my courses. If you don’t know, this scholarship is given out every quarter to a member for education at LCAR’s school, all you need to do is apply. Even when I'm not taking a brokers class or working on renewal credits, I’ve benefited from several webinars over the years, which have provided useful training tips and insights.

When meeting with clients and talking about market trends, I like to use the market stats that LCAR provides. These stats show things like median sale prices, the number of listings, and average days on the market. They are sent to members regularly and are available on LCAR’s website. From my experience, these stats have been very helpful, especially when helping sellers prepare to list their homes.

From a political standpoint, local real estate associations are important because they work to represent their members' interests. They work to influence local rules, policies, and laws that affect real estate, agents, and consumers. I’ve been lucky to serve on LCAR’s Government Affairs Committee, where I had the chance to discuss key real estate issues with our local political leaders and learn their views in the housing world. This committee also decides which politicians LCAR supports based on their stances on real estate issues and how LCAR’s PAC is used.

One of my favorite aspects of being a member of LCAR is the social and networking opportunities. From member mixers, fundraising events, tournaments and luncheons, there is no shortage of opportunities for agents to connect with one another and have a fun time doing it. LCAR has many committees available for members interested in serving and networking, allowing them to network even further with fellow agents. Besides the networking opportunities, serving on a committee is a great way to stay updated on local real estate trends. It allows you to hear directly from agents about what they're experiencing in the industry.

LCAR recently held its second annual paper shredding event completely free to its members. Another great benefit and something that I have taken advantage of. LCAR has recently introduced a system that allows non-Supra members to access properties. This change has made it easier for listing agents, reducing the need for them to coordinate with sellers to grant access or to drive out themselves to meet the buyers' agents to let them into a property.

These are just a handful of benefits that I have personally taken advantage of over the years. It’s easy to take for granted just how many resources LCAR has available to its members, especially when compared to other associations. Being a part of this association has not only enhanced my business and professional life, but has provided opportunities for me to network with great people and created lasting friendships and business relationships.

Remembering Elaine Vehovic

Sat, 30 Nov 2024 16:30:00 GMT

Featuring Member Engagement's

Richard Boas III, Berkshire Hathaway HomeServices Homesale Realty

Gary Schlectic, Berkshire Hathaway HomeServices Homesale Realty

In this special interview, LCAR’s Member Engagement Chair Richard Boas III sits down with Gary Schlectic to remember Elaine Vehovic, an LCAR member whose passion and dedication continues to inspire others since her passing. Elaine’s impact on those around her led to the creation of LCAR’s Volunteer of the Year Award in memory of Elaine Vehovic, which is awarded to an outstanding LCAR member that exemplifies Elaine’s commitment to LCAR events, committees, and association initiatives.

The next Elaine Vehovic Volunteer of the Year Award will be presented at LCAR’s 2024 Member Appreciation Luncheon on Thursday, December 12, 2024, at the Wyndham Expo Center.

Members can purchase a ticket to LCAR's 2024 Member Appreciation Luncheon by visiting the LCAR Portal.

Between The Pages: "The 12 Week Year" by Brian P. Moran & Michael Lennington

Wed, 27 Nov 2024 14:50:01 GMT

Friend, right now it is the middle of November, and we are nearing the end of 2024. Goal planning for 2025 is at the forefront of our minds as well as reviewing 2024.

How was your year? Are you on point to meet your goals? How’s your activity level?

There is a lot of outside noise and distractions: changes occurring in the industry, figuring out new best practices, election outcomes, personal struggles and stressors. It’s easy to get sidetracked and forget to actually work your business. The good news is that it is never too late to focus and get your business moving in the right direction!

I recently took the opportunity to reread “The 12 Week Year” by Brian P. Moran and Michael Lennington. In this book, the authors introduce a system designed to help achieve more in less time by shifting from a traditional annual goal-setting to a 12-week timeframe. Focusing on a 12-week year—rather than a 12-month one—helps people achieve greater urgency, clarity, and results in their personal and professional lives. By condensing the annual goal-setting process into a shorter period, the book offers a practical approach to goal execution, productivity, and time management.

Core Concept: The 12-Week Year

The central idea of the book is that traditional annual goal-setting often leads to procrastination, lack of urgency, and diminished performance. How many of us start out strong in January with our new goals and New Year’s Resolutions? With a long 12 months, it can be easy to put off today what can be done tomorrow. A 12-Week-Year eliminates this lag – when one day is equivalent to a week, time is of the essence and a sense of urgency is created.

Key Principles

Focus on Critical Activities : The authors stress the importance of narrowing your focus to the few activities that will lead to the greatest results. Instead of attempting to work on everything at once, it is encouraged to prioritize key actions that align with your goals and yield the highest return on investment. One of my favorite take-aways is to focus on these activities and the results will follow. The authors show a great system for tracking your activity. If you were a student who enjoyed getting gold stars, this would be a great fit for you.
Execution and Accountability : Consistent execution is crucial. It is not enough to merely set goals; individuals must follow through with disciplined, daily actions. This execution requires strong accountability. Although we each need to be self-motivated, it is important to surround ourselves with others who will help encourage growth. Be sure to identify a partner or mentor who is willing to help hold you accountable.
Time Blocking : Time blocking is highly recommended to make sure the identified crucial tasks are completed. Love it or hate it, it is an important factor to time management and continued growth.
Measurement and Weekly Review : Since every week now equates to a month, it is important to track performance weekly and adjust courses as needed. This allows small issues to be addressed before they become larger problems and reinforces a mindset of continuous improvement

5. Accountability & Ownership : Take ownership of your goals and progress. Stay focused, make adjustments, maintain momentum. Never stop striving for betterment.

Whether you are ready to keep momentum going in 2024 or getting a head start on 2025, it is my hope that this system will be of some help in planning your next 12 weeks. Put the noise aside and focus on the good work that can be accomplished.

The ABCs of the CBC and AOS

Thu, 14 Nov 2024 16:55:10 GMT

Navigating Recent Changes to Buyer Agent Commissions: Best Practices for Agents

Over the last couple of months, real estate practices have undergone significant changes due to recent NAR settlement guidelines. To comply with these changes, new systems and best practices are necessary to streamline your process and avoid costly mistakes. This article will focus on the updated practices regarding the confirmation of the buyer agent commission, if any, when showing and offering on a listing.

1. Buyer Agent Commission is No Longer Stated in the MLS

If you were unaware of this change, you might need more background than this article can provide. However, here are some steps to take to ensure accuracy when handling buyer agent commissions for each showing and offer.

2. Confirm the Buyer Agent Commission Before Showing

Before showing a listing represented by another agent, confirm whether a buyer agent commission is being offered and, if so, how much . You can do this by contacting the listing agent directly via text, phone, or email.

For Listing Agents: Please respond to these inquiries promptly to ensure smooth communication.

3. Communicate Commission Details with Your Buyer

If the buyer agent commission (or lack thereof) means your buyer will need to pay part or all of your commission at settlement, communicate this clearly to your buyer before touring the home . Transparency is key to avoiding surprises later in the process.

4. Consider a Cooperating Broker Compensation Agreement (CBC)

Some buyer agents prefer to have a CBC signed before showing a listing. Doing so can help avoid delays when submitting an offer, as the commission terms are already agreed upon.

A Tip for Buyer Agents: If you want a CBC, prepare the document yourself and send it electronically to the listing agent for an easy click-to-sign.

For Listing Agents: You likely don’t want to stop everything to draft this document, but signing one that's prepared and sent to you should be quick and easy.

5. Submitting an Offer? Ensure the CBC is Signed First

If your buyer decides to write an offer, make sure the CBC is signed by the listing agent before submitting the offer . This explicitly confirms the buyer agent commission being offered and protects both you and your client.

6. Do Not Duplicate the Commission in the Agreement of Sale (AOS)

This is crucial: If you have a signed CBC that confirms your buyer agent commission, do not include the commission again in Section 3(A) of the Agreement of Sale . Adding it here would imply you are asking for both amounts—what’s in the CBC and what’s in the AOS.

7. How to Use Section 3(A) of the AOS

You should only use Section 3(A) of the AOS to request a seller to cover some or all of your buyer agent commission if the listing agent is offering none or only part of the commission. For example:

• If no commission is offered by the listing agent, you can request the seller to pay your buyer agent commission.

• If only part of the commission is offered, you can request the balance in Section 3(A).

8. Ensure Compliance with Your Exclusive Buyer Agency Contract

Remember, you cannot receive more commission than what is stated in your Exclusive Buyer Agency Contract (BAC).

9. Listings from Your Brokerage

If you’re submitting an offer for a listing held by an agent within your brokerage, do not use a CBC , as this would not involve a cooperating broker. Instead, check with your broker for the correct documentation procedure in this situation.

10. When in Doubt, Get a Second Opinion

If you're ever unsure, it's always a good idea to have your broker, manager, or team leader review your documents before submitting them. This can help you catch any errors and ensure that everything is compliant.

Spooky Lancaster!

Thu, 31 Oct 2024 14:31:34 GMT

Lancaster County is a unique area of the country. One minute, you could be driving through the hustle and bustle of the city, and the next, you could be taking in the fresh country air. Lancaster is both a popular place to live and a sought-after destination to visit. From the Amish community to various shops, restaurants, and events, there’s a little something here for everyone. With its long history, dating back to its founding in 1729, Lancaster also has its fair share of haunted attractions. With the spooky holiday approaching, I thought it would be fun to explore some of these intriguing places.

Fulton Theatre

Fulton Theatre, named after Robert Fulton for his commercialization of the steamboat, is not only one of the oldest theaters in Lancaster County, but it’s also one of the oldest in the entire country. Built in 1852 by Christopher Hager and designed by Samuel Loan, the theater was meant to serve as a community center for concerts, lectures, meetings, and theatrical events. Before its construction, the site was home to Lancaster’s prerevolutionary jail and was the location of the infamous Paxton Boys massacre, where the Paxton Boys gang murdered the last 14 Conestoga Indians who were being held there for protection. Over the years, there have been countless reports of hauntings throughout the theater, including sightings of the ‘Woman in White,’ a ghostly apparition of former stage actress Marie Cahill, whom many actors and stagehands have reported seeing. Others have claimed to witness an apparition known as “The Whistler,” who is said to wear a light-colored suit, brown shoes, and a straw hat. This spirit often whistles or claps, causing actors to miss their lines during performances.

Bube’s Brewery

With a history dating back to the 1800s, Bube’s Brewery has a rich heritage that has led many to believe it may be home to a few lingering spirits. Over the years, both staff and customers have reported strange sightings and encounters, including the appearance of a woman dressed in a long, flowing gown, who has often been seen floating through the art gallery. In addition to her, patrons have also claimed to witness the apparition of a man, further enhancing the brewery's reputation as a hotspot for paranormal activity. The tales of these figures have sparked curiosity and fascination, drawing in visitors eager to experience the mysterious atmosphere for themselves. Bube’s Brewery's history and supernatural associations garnered significant attention when it was featured on the popular television show Ghost Hunters.

Franklin & Marshall College

Built in the 1850s, Franklin & Marshall College's Old Main Building stands as a unique architectural landmark with a wealth of history. Interestingly, this historic structure was reportedly constructed on the site of Lancaster’s infamous “Gallows Hill,” where criminals faced execution following their trials. Numerous reports of paranormal activity have surfaced over the years, piquing the interest of both students and ghost enthusiasts alike. One recurring phenomenon is the tolling of the bell, which has been reported to ring out on its own at night. This occurrence has led some to speculate about the building’s past and whether the ringing is caused by the spirits of those who were executed at Gallows Hill. There have also been reports of unexplained noises, shadowy figures, and cold spots throughout the main building. These sightings have made the college an attractive destination for tourists interested in the supernatural. These are just a few locations throughout Lancaster with a long history of supernatural happenings.

With so many old buildings scattered across the county, it’s not uncommon to hear stories of unexplained sightings and eerie sounds that continue to perplex people to this day. Whether you’re drawn to tales of unusual sightings or eerie whispers, Lancaster’s rich history continues to attract and amaze both tourists and locals alike. Whether you were out to eat or showing a house, have you ever encountered any otherworldly phenomena in the area?

Is The Trend Our Friend?

Thu, 17 Oct 2024 18:30:00 GMT

Many potential home buyers – whether first-timers or repeat have embraced the mindset that they are going to hold off on purchasing until home prices or mortgage rates “normalize” or settle down.

It’s no secret that home prices and mortgage rates are key drivers of affordable housing and two of the most frequent questions we are posed with as professionals in the real estate industry are, “how is the market,” and “how are interest rates.”

Both are somewhat loaded questions as the answer can always be, “compared to what?”

Although current mortgage rates may seem “high” depending on one’s perspective, trends may prove otherwise.

Back in 1999, 25 years ago, the average 30-year mortgage rate was around 7.50%. For the next several years, we saw rates fluctuate between the high 5’s and low 6’s landing at around an average of 6.25% in 2008.

Anyone recall what happened around 2008-2009?

Rewinding back to that infamous time-period, it was the great recession AND the housing market was in shambles with the bubble bursting. Many homeowners were underwater – in many cases, home values were less than what they owed on their mortgage. Risky mortgage products – Pay Option ARMS, Stated Income Programs, and more, as well as subprime mortgages contributed to this disaster.

One of the first steps on the road to recovery included jump-starting the housing market. Thousands of dollars in tax credits were offered to first-time homebuyers as well, as an added incentive to homeownership.

The Fed jumped in and started buying mortgage bonds to help drive down mortgage rates.

This process was known as quantitative easing and was in place from 2009 through the early 2020s. This action was key in driving mortgage rates to an artificial low of 5.00% or less for most of the time throughout this period.

Shortly after QE came to an end, our country was faced with the whole COVID crisis in 2020 and 2021, so once again the Fed needed to intervene. The initial action step was to lower the funds rates to 0% which at the time, quickly drove mortgage rates to the lowest point ever which was under 3.00%.

In 2022 when the dust settled and all the Fed actions to artificially lower mortgage rates had ceased, we started to see rates climb slowly and steadily with what initially appeared to be no end in sight. Rates had jumped to their highest level in over 25 years topping the 8% range in many cases.

Even with the swiftly climbing mortgage rates, home prices followed right along with continued appreciation year after year.

So where are we now and what do the trends tell us?

Although the overall cost of living has escalated, the housing market is still very strong, despite mortgage rates returning to a somewhat normal range of the 6’s and 7’s.

Homeowners have more equity than ever, so no real concerns exist with any bubbles bursting and appreciation remains steady and strong.

Although no crystal ball exists to predict the future and of course anything can happen, but looking at history and trends, mortgage rates are at a fairly stable place right now with no real indicators of the need for artificial reductions.

The trend points to stability at this time which can often be greatly beneficial to homebuyers for budgeting and future planning.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

Fool Me Once

Thu, 03 Oct 2024 18:08:16 GMT

I relearned an important lesson recently. A long time ago I learned that listening is way more important than talking, but somehow, I forgot that it is even more important to make sure that when you are speaking the other person is listening too. Poor communication is a common ailment of stressed and busy people. It is passably acceptable to listen with half an ear when two people are exchanging the time of day or talking about the weather or even sports. We simply go on auto pilot sometimes, focusing only on what the crucial or interesting parts are to us and responding accordingly. Paying attention can literally be linked to costing you money. By missing something critical or failing to impart something vital, it can end up being something you pay for in a very big way.

Missing someone's waning attention can be very dangerous. Take, for instance, if you disclosed environmental information about a property during a showing when the person was actually daydreaming about space planning. Imagine if you had a commission discussion over cocktails after golf and, unbeknownst to you, the person had not had a substantial lunch; and while they certainly were not inebriated, they just were not on the same page as you. That information is not going into the vault.

Even if you honestly feel that you have solidly and successfully passed off the ball of information, sometimes instead of it sinking into their brain, it actually bounces off the person's head and then it rolls down into the contaminated, non-functioning, antique septic tank ... that same one you were actually trying to notify them of at the time ... or possibly your commission discussion got all mixed into their embarrassingly high golf score angst so that it never really registered that they only get half of what they were expecting commission-wise. But there you are, all 'Mr. Above Board' or 'Ms. Full Disclosure' just as alone in your clarity as if you had never spoken at all, thinking it is all crystal clear to everyone.

We are bombarded by information all the time. The ways and means of imparting information have changed. It is not enough to ask if anyone called or if we have any messages as we pass through the front office anymore. It is not even enough just to check the office voice mail. Today there is cell phone voice mail, e-mail, instant messages, internet postings, message boards, home answering machines; and of course, there are still the fuchsia pink fill-in-the-blank style message papers from the 1950s. If you work on a team, there is always the "I told your assistant/office manager/receptionist/partner" type message which is my all-time favorite. A "simple" message is a memory ... kind of like the face-to-face slow and comfortable listing exchanges over coffee in a diner which have gone the way of the "every Realtor® represents the seller" mentality.

We are all just trying to get our point across. Some of us are better at it than others. Some people fear losing a communication step so much that they overkill the communications, repeating and covering everyone and anyone potentially involved in a deal. Others do not copy enough and unintentionally leave vital people out. We can no longer just be about manners and protocol and being polite when sharing information. We need to cover ourselves more than ever, to put it politely. As a society, we are now more litigious than was ever anticipated. Is it any coincidence that the paperless society has never quite materialized into what it was supposed to be? The only way to avoid any questions at all is virtually as old as the profession itself. Whether you do it on a sketch pad inside the potential space or you use a golf scorecard or even a bar napkin, GET IT IN WRITING.

If you fail to hear it correctly when another person says under his breath, "I don't have time for this" or even "Yeah, yeah ... whatever", you will have missed clues that the other person is not listening and that he or she has, in fact, shut down. It would be wise to stop right there and to realize that if you are about to try to impart something important that you may want to save it for another time. What is hard is that we all get tired, busy and stressed; and we all shut down sometimes. We reach the point where we want to close out the business and get it done. People can pass information like two ships in the night who weren't listening to each other tell about the icebergs that they just passed by as they each proceed full steam ahead and slam right into them. It can cost the cargo of both ships; and while one or both may limp home or even make it to shore, the priceless and irreplaceable payload can get lost.

The first thing we learn in real estate school is to get it in writing. The second thing is know who you represent and how you are getting paid. The third thing is to get that in writing. That is the one and only way that you can ever prove that you said what needed to be said and that what you thought you said was heard. I remember those lessons, and I do know now why they were so paramount in the curriculum. Verbal agreements, verbal oversights, mishearings or miscommunications can cost you more than money. The lesson I relearned is that it is not only about getting heard or listening; it is also about paying attention and how much not doing so can really cost you.

Dryer Safety: Protecting Your Home and Family

Thu, 12 Sep 2024 18:45:00 GMT

As a homeowner, ensuring the safety of your household appliances is paramount. One often overlooked yet crucial aspect of home safety is dryer maintenance. According to the U.S. Fire Administration, approximately 2,900 home clothes dryer fires are reported yearly, resulting in an estimated five deaths, 100 injuries, and $35 million in property loss. These alarming statistics highlight the importance of prioritizing dryer safety in every home.

As the owner of HouseMaster Home Inspections Serving Lancaster County, and surrounding areas, we have encountered numerous instances where neglected dryers posed significant safety risks to homeowners. This article will delve into essential tips to keep your dryer operating safely and efficiently, ultimately safeguarding your home and loved ones.

1. Regular Cleaning: One of the primary causes of dryer fires is lint accumulation within the dryer vent system. Lint is highly flammable and can easily ignite when exposed to high temperatures. To prevent this, homeowners should clean the lint trap after every load of laundry. Additionally, it's crucial to schedule professional dryer vent cleaning at least once a year to remove built-up lint from the vent ducts.

2. Proper Installation: Ensure your dryer is installed correctly by following the manufacturer's guidelines and local building codes. Improper installation, such as using the wrong vent material or inadequate venting, can restrict airflow and increase fire risk. If you need more clarification about the installation, consider hiring a qualified technician to assess and correct any issues.

3. Ventilation Maintenance: Check the dryer vent system regularly for any signs of damage or obstruction. Inspect the exterior vent hood to ensure it opens correctly and is not blocked by debris or vegetation. Additionally, ensure the vent ducts are free from kinks or bends that could restrict airflow. Proper ventilation is crucial for allowing hot, moist air to escape efficiently, reducing the risk of overheating and fire.

4. Avoid Overloading: Overloading the dryer with too many clothes can lead to inefficient drying and overheating. This not only increases energy consumption but also poses a fire hazard. Follow the manufacturer's recommendations for load capacity and avoid cramming too many items into the dryer at once.

5. Regular Maintenance Checks: Conduct routine maintenance checks on your dryer to identify potential issues early. Inspect the drum for signs of wear or damage, check the door seal for a tight fit, and ensure that the dryer operates smoothly without any unusual noises or vibrations. Addressing minor problems promptly can prevent them from escalating into significant safety concerns.

6. Monitor Dryer Operation: Pay attention to how your dryer operates during each cycle. If you notice any unusual smells, excessive heat, or prolonged drying times, it could indicate a problem that needs to be addressed. Unplug the dryer and consult a qualified technician to diagnose and resolve the issue to prevent safety hazards.

7. Keep Flammable Materials Away: Avoid placing chemical-soaked items near the dryer. These materials can ignite quickly if exposed to high temperatures or sparks, increasing the fire risk. Store such items safely away from the dryer to minimize the risk of accidents.

By following these essential tips for dryer safety, homeowners can significantly reduce the risk of dryer-related fires and ensure their appliances' continued safety and efficiency. Remember, investing in regular maintenance and safety precautions is a small price to pay for peace of mind, knowing that your home and family are protected from potential hazards.

The Ultimate Guide to Whole House Water Filtration Systems

Thu, 29 Aug 2024 18:45:00 GMT

Upgrade Your Home’s Water with a Whole House Filtration System

In Central PA, the quality of your drinking water is paramount to your family’s health and well-being. Issues like chlorine taste, iron smell/taste, sediment, and various contaminants can affect not only the taste of your water but also its safety. Fortunately, a whole house water filtration system offers a comprehensive solution to these concerns, ensuring that every drop of water in your home is clean and safe.

Benefits of Whole House Water Filtration

Cleaner, Tastier Drinking Water

One of the most immediate benefits of a whole house water filtration system is the improved taste and clarity of your drinking water. By removing impurities, your water will taste fresher and more enjoyable, encouraging your family to stay hydrated.

Reduced Contaminants

Whole house water filtration systems are designed to remove harmful contaminants such as chlorine, lead, and certain minerals. This ensures that your water is not only tasty, but safe from harmful substances that can affect your health over time.

Better for Skin & Hair

Filtered water is gentler on your skin and hair, reducing the risk of irritation and dryness. By eliminating harsh chemicals and impurities, you’ll notice softer skin and shinier, healthier hair.

Protected Appliances

A whole house water filtration system helps prevent build-up in pipes and appliances, extending their lifespan. Appliances like coffee makers and ice makers will function more efficiently and last longer when they’re not clogged with sediment and scale.

Peace of Mind

Above all, a whole house water filtration system provides peace of mind. Knowing that your water is free from harmful contaminants gives you confidence in the safety and quality of the water your family uses every day.

Understanding Water Filtration Systems

Types of Filtration Systems

Different water filtration systems offer various methods to ensure clean water. Here are a few common types:

Reverse Osmosis: This method uses a semi-permeable membrane to remove a wide range of contaminants, including lead, fluoride, and nitrates.
Carbon Filtration: Activated carbon filters are effective at removing chlorine, volatile organic compounds (VOCs), and other chemical impurities, improving taste and odor.
Sediment Filtration: These filters remove physical particles like dirt, sand, and rust, which can affect water clarity and taste.

Addressing Specific Concerns

Each filtration system targets specific water quality issues. For instance, carbon filtration is excellent for chlorine removal, while sediment filters handle particulate matter. Understanding your water’s specific issues will help in choosing the right system.

Choosing the Right System

Selecting the right filtration system requires considering your home’s unique needs and water test results. A professional water analysis can identify the specific contaminants present in your water, guiding you to the most effective filtration solution.

Final Thoughts

Investing in a whole house water filtration system is a crucial step toward a healthier and more enjoyable home environment. With cleaner, safer water, you can protect your family’s health and enhance their everyday experience.

Missing Kickout Flashing - A Common Defect

Fri, 16 Aug 2024 19:17:40 GMT

When inspecting the exteriors of homes, one of the most common flaws that I seem to find is missing kickout flashing. Roof flashings help prevent water entry into the home. Roof flashings are needed where there are changes in roof angle, at roof penetrations (such as chimneys and plumbing stack pipes), and where roofs join sidewalls or chimneys. In many cases, once a roof covering is installed, the roof flashings are no longer visible.

For homes that have a roof terminating against a lower side wall, kickout flashing is needed. To better illustrate this, think about the end of a gutter terminating laterally adjacent to an exterior side wall. Kickout flashing is needed just above the gutter’s end cap in order to help prevent roof runoff from passing between the gutter’s end cap and the home’s siding. The first 2 photos below are good illustrations of such an area. The lack of proper flashing can allow damage to the siding below this area to occur and may also allow hidden water damage into the adjacent exterior wall below this area. If a gutter terminates against a chimney, kickout flashing should also be installed just above that junction. It’s called kickout flashing because, in essence, as water runs down the roof along a side wall, this flashing kicks the water outwards towards the gutter and away from the gutter’s end cap junction with the siding.

Kickout flashing (also called “sidewall flashing”) has been required since the 2009 IRC (International Residential Code). I’ve seen many photos over the years of contractors called in to repair homes that have extensive water damage, rot, and mold due to years of water runoff onto exterior walls that can be directly linked to missing kickout flashing. The original wording of this flashing requirement in the 2009 IRC was somewhat vague and confusing to some. The wording changed in later code cycles [the IRC is updated every 3 years] to make it perfectly clear to builders, roofers, siding installers, remodelers, home inspectors, code inspectors, etc. that kickout flashing is needed at these areas.

In The Year 2025

Thu, 01 Aug 2024 17:56:14 GMT

So here we are, midway through 2024. That gives us six months to make our New Year’s Eve celebration plans. Collectively, we are all celebrating 25 years from that really big New Year-the Millennium! So where were you for the big one? Even most people who are typically asleep by the time the ball drops were somewhere a bit different or somewhat special at 11:59 PM a quarter century ago. I was in a steamy, hot and humid Key West on a flower draped wrought iron balcony in a lovely Duval Street restaurant overlooking a sea of very happy drunken street revelers. There was music and fireworks and not a care in the world as it became a new century with unlimited potential.

However, there were quite a few people hunkered down expecting the worst. Imagine being cold, wrapped in a blanket, perched in a folding chair inside a cabin in rural Virginia. Watching TV by generator, surrounded by your semi-immediate conspiracy theorist family and friends beside a few hundred cases of Spam- all ready and prepared for Y2K. Yes, that was an option.

For those who don’t really remember (or are too young) Y2K is an abbreviation for "the Year 2000". It also refers to a computer programming shortcut that was feared would cause major world-wide problems when the year changed from 1999 to 2000. This led to increasing fears, especially the closer we got to 1999 that computers would be unable to operate at the turn of the millennium, The year 2000 was expected to bring down computer systems, and infrastructures such as those for banking and power plants. This flaw was also known as the "millennium bug".

Everyone was being warned to shut down their machines so that their computers did not ‘freak out’ when the clock changed to 12:00 AM on January 1st of 2000. Some feared that the glitch would cause computer systems to literally ‘melt-down’ at midnight. Serious dark theory was that the power would shut off and the entire world would go dark at 12:01. To alleviate the concerns, news stations actually had reporters posted on-site in countries who had their ‘New Years’ before ours (different time zones) who reported live that everything was still “on” in that part of the world.

Some people theorized that the Y2K problem could cause banking transactions to be halted, transportation systems to be interrupted, even nuclear safety provisions to be missed. In anticipation of a computer-induced apocalypse, many withdrew large sums of money. They stocked up on non-perishable food, water, and firearms. Others purchased backup generators, seeds, batteries, camping supplies and even bought isolated, rural properties in preparation for a return to a very rustic lifestyle.

In actuality, world leaders took a deadly serious approach to Y2K, and they spent an estimated US $600 billion to prepare for and prevent any issues quite some years in advance. The solutions (planned and initiated before 1998) required the cooperation of governments and institutions around the globe. Leading the charge was John Koskinen, U.S. President Bill Clinton’s hand-picked czar of all Y2K preparations. Koskinen oversaw the $100-billion effort to prevent Y2K catastrophes in the United States, and he presided over a $50-million war room tasked with monitoring all millennium bug-related problems on New Year’s Eve and New Year’s Day.

For those who think that because nothing happened at 12:01 on January 1, 2000, that the whole Y2K issue was a hoax may find it interesting that when he was interviewed two decades later Koskinen said “Governments, industries and companies do not spend $100 billion dollars or devote these personnel resources to a problem they think is not serious. The people who knew best were the ones who were working the hardest and spending the most.”

Innumerable computer programmers devoted months and years to implementing fixes. They received scant recognition as the world largely believes it was all imaginary. One programmer recalls the reward for a five-year project at his company: lunch and a pen. The work of re-writing code was a tedious, unglamorous effort, hardly the stuff of heroic narratives — nor conducive to an outpouring of public gratitude, even though some of the fixes put in place in 1998 and 1999 are still used today to keep the world’s computer systems running smoothly. Many have since credited Y2K with creating new jobs and highlighting the importance of information technology employees.

Never fear though, there is more drama to be had. Evidently there is a new computer glitch on the not-too-far horizon. The “Year 2038 Problem” is an actual real issue related to how some software systems store dates. When the date rolls around to (without going into the weeds on the details) January 2038 there could be a serious similar problem in which computers backdate to December 1901. Theoretically, they have 13.5 years to get it all fixed, but how you feel about all the near and far doomsday theories may influence your approach to planning your celebrations. Maybe it is time to invest in that bucolic, remotely isolated property that you’ve always wanted. It’s never too early to watch your sale flyers for stocking up on sardines, canned tofu and pup tents. Or make your Key West reservations-it’s really up to you. Time (and the calculation of dates) flies whether you’re having fun…or not.

(Credit for the historical/technical information to the Washington Post, The Guardian, Time, Newsweek, Reddit, Google, The New York Times, Global News).

Spotlighting & Exploring: Historic Real Estate in Lancaster County

Thu, 18 Jul 2024 19:12:31 GMT

Lancaster County, Pennsylvania, is rich in cultural and historical landmarks that reflect its unique heritage. Here are some notable sites to explore:

The Herr Family Homestead

The Herr Family Homestead is a significant cultural and historical site located at 1756 Nissley Road, Landisville, PA. The Herr family has a rich history in Lancaster County, dating back to the early 18th century. The sandstone house built by Christian Herr in 1719 still stands today, bearing his name and the date.

What to Expect:

· Historical Tours: Guided tours on the 2nd and 4th Saturday from May through October.

· Self-Guided Tours: Available for the barn.

· Admission: Entry by donation.

· Virtual Tours: Available online.

For more information, visit the Amos Herr House Foundation & Historical Society .

Additional Architectural Landmarks in Lancaster County

President James Buchanan’s Wheatland

o Location: 230 North President Avenue, Lancaster

o Activities: Guided tours of the home and exhibits on Lancaster’s history.

o Website: Lancaster History

Historic Rock Ford

o Location: 881 Rockford Road, Lancaster

o Activities: Tours of the 1794 Hand Mansion and decorative arts gallery.

o Website: Historic Rock Ford

Fulton Theatre

o Location: 12 North Prince Street, Lancaster

o Activities: Live theatre performances in a historic setting.

o Website: Fulton Theatre

Lancaster Central Market

o Location: 23 North Market Street, Lancaster

o Activities: Shopping at the oldest continuously operated public farmers market in the U.S.

o Website: Lancaster Central Market

Ephrata Cloister

o Location: 632 West Main Street, Ephrata

o Activities: Tours of the historic religious community.

o Website: Ephrata Cloister

Hans Herr House

o Location: 1849 Hans Herr Drive, Willow Street

o Activities: Tours of the oldest homestead in Lancaster County.

o Website: Hans Herr House

Ressler Mill

o Location: 113 Willow Street, New Holland

o Activities: Tours of the historic mill and museum.

o Website: Ressler Mill

Boehm’s Chapel

o Location: 13 West Boehm’s Road, Willow Street

o Activities: Tours of the oldest Methodist structure in Pennsylvania.

o Website: Boehm’s Chapel

Columbia Historic Preservation Society

o Location: 21 North 2nd Street, Columbia

o Activities: Exhibits on the history of Columbia and its significance.

o Website: Columbia Historic Preservation Society

Lancaster Medical Heritage Museum

o Location: 410 North Lime Street, Lancaster

o Activities: Exhibits on the medical history of Lancaster County.

o Website: Lancaster Medical Heritage Museum

These spots offer a glimpse into the rich tapestry of Lancaster County’s history and its development over the years. Whether you are interested in the religious, military, or agricultural aspects of the county’s past, or if you are looking to understand the historical significance of its real estate, these locations provide valuable insights and experiences. Enjoy your cultural exploration!

Katherine Stephenson
Pennsylvania & Maryland REALTOR with Keller Williams Elite
5139 Main Street, East Petersburg, PA
O -717-553-2500
C -717-208-0758
Website: https://stephensonnke.kw.com
Email: kestephenson@kw.com

Remembering Michael Mastros

Thu, 04 Jul 2024 14:00:34 GMT

Did you know that LCAR has a scholarship program? Well, they do. Announced by the Community Partnerships committee, once a quarter, LCAR members can apply for the Michael Mastros Memorial Scholarship. This scholarship awards its recipient tuition up to $350 to be used towards any designation course or Broker series provided by The Real Estate School of LCAR. This is a great benefit that LCAR provides, providing members funds to help further their real estate knowledge to help better serve their clients. But this blog isn’t so much about the scholarship itself, but rather the man that the scholarship is named after. Michael Mastros. So who was Michael?

Michael Mastros, or Mike as he was commonly referred to, was a lifelong resident of Lancaster County. Mike was known for his hard work, community involvement, and his sense of humor.

Multi-Unit Mastery: A Realtor's Guide

Thu, 20 Jun 2024 14:23:44 GMT

As a residential Realtor®, you may dabble in multi-unit sales from time to time. Most of us could use a refresher on some distinct differences in the listing information needed for a multi-unit compared to a single-family home. The more complete the information, the better to attract buyers. At the very least, you will have a better understanding of your listing and how to price it.

A good starting point is to determine how many units are in the property. Guess what? A garage is not a separate unit, even if it is getting separate monthly rent. A property with two residential units and a detached two-car garage is a two-unit. A multi-unit with 4 units or fewer is considered residential; 5 units or more is commercial. This relates to financing, with 5 units or more needing a commercial loan.

You’ll need to know the monthly rent for each unit. The best way to verify the monthly rent is with a copy of the leases for each unit. Do you know who else will want copies of the leases? The buyer agents and buyers. You can add the leases to the documents in Bright. I suggest making them available to agents only. The lease will also show you if the tenants are month-to-month or yearly, which is another field in Bright.

You will need to know the amount of the security deposit, which is found in the lease agreement. The deposit is transferred to the buyer at settlement, so it's important to know this information and have it documented in the lease. If one or all of the units are vacant, there is a field for projected monthly rent. Bright will ask you for the number of bedrooms and bathrooms for each unit; there are separate fields for each unit.

The square footage per unit is another field. A good way to get this is to use CubiCasa, the floor plan app that is included in your Bright membership. You can create floor plans for each unit using CubiCasa and add them to the listing. CubiCasa calculates square footage, too.

You can calculate the gross annual income based on the lease agreements. The owner or property manager will need to provide their expenses so that you can determine the net operating income. Even better if they can provide a financial statement with both income and expenses for the property. You should indicate in Bright what utilities are paid by the owner and which are paid by the tenants. This information is also noted in the lease. Enter the amounts of the annual expenses paid by the seller/landlord.

Have you heard of an APOD? It is the Annual Property Operating Data, which is essentially a profit & loss statement for an investment property. There are many templates for this form available with a Google search. It’s helpful tool to demonstrate the cashflow and financial viability of an investment property.

Does your listing require a rental license? If so, a copy of the rental license would be helpful for your listing. Some municipalities oversee rental property licensing in Lancaster County, and some do not.

Other helpful information includes a list of recent capital improvements and renovations, historical rental income (the last 2-3 years), the Net Operating Income (NOI) at full occupancy, financial metrics (cap rate, cash-on-cash return, gross rent multiplier), and potential for rent increases.

In summary, listing a multi-unit requires additional information to help you, as the listing agent, understand the market value and help buyers make a decision. The two most helpful documents are the lease agreements and the financial statement from the seller. The more complete your listing in Bright, the better prepared you will be to sell the property.

Stretch Like Gumby

Thu, 06 Jun 2024 18:36:47 GMT

Our industry allows for a lot of flexibility in terms of focus, growth and personal development. Naturally we gravitate toward the elements in which we have the most interest. Over time, in a career which can span many decades, the place in which we find ourselves can often look much different at the end when compared with the beginning. Unlike some careers where change requires years of additional education and certification, the Realtor® is able to practice amazingly different pursuits within the same industry at will. Let’s say a young man starts out at a good residential real estate firm just after college in a support role and is sent to get his real estate license by his boss. He takes his classes, gets licensed and begins supporting and eventually selling residential real estate. But he just doesn’t love it. One day someone at an industry networking event offers him a job supporting a commercial agent and the offer also holds the appeal of apprenticing into the commercial practice. After a few years of commercial work there comes an offer to work for a development company working on in-fill city projects. Later he joins management at a Real Estate Investment Trust and stays for many years adaptively repurposing obsolete facilities during which he does years of leasing, restructuring, property management and adaptive re-use construction. Toward the end of his career, he goes back to commercial brokerage for the enjoyment of industrial, land sales, office and maybe to pick up a new skill set like retail. All of those very different and multifaceted parts of a diverse career are possible while still falling under the basic category of a Realtor®.

In these times of uncertainly and change, adaptation and recovery, and as we wait to see what the interest rates are going to do…if more people will decide to sell their homes… if employers are going to mandate a return to the office… if people will ever again flock to the mall… if drones will just begin dropping our internet purchases down some new-fangled reverse chimney situation to defeat the porch pirates… we may as well stretch ourselves like Gumby and learn some new skills. You cannot make the required changes and improvements to yourself and your situation without learning.

I am the first to admit that when I don’t know how to do something. A lot of people don’t like to do that, but I find it is much better to do it right up front. I have no huge phobia about seeming dumb or being judged as I am old and wise enough to know that I just need the info/skills and I will practice and study and eventually add them to the arsenal. Does that mean I don’t ever worry that I can’t do new things or that I won’t be good at them? Absolutely not! It means that I have an active conversation with myself (mostly silent) wherein we discuss and review that I can do anything I set my mind to. I envision stretching myself further and being willing to grow and then I begin to seek out the ways to let the learning commence from the various and assorted means possible. It became obvious to me a time long ago that there is so much to learn, and the only way to fail is to quit being willing to learn.

Sometimes during the course of a career, we are asked to do things that we don’t readily have interest in or even know anything about. Sometimes those things are disguised as skills. At the very least they are experience. Aside from books, courses, seminars and trainings people will help you. All you have to do is show genuine and sincere interest and a willingness to learn. Being a new anything at any age is scary and challenging but where you find yourself is where you need to apply yourself, no matter the economy or the climate or the industry. If you find yourself professionally related to real estate, you have found a home that can grow and adapt with you for the rest of your working life.

RESPA: Have You Crossed The Line?

Fri, 17 May 2024 18:17:12 GMT

RESPA – the 5-letter word or acronym and is integral part of the Real Estate Industry.

RESPA or The Real Estate Settlement Procedures Act has two main purposes: to mandate certain disclosures in connection with the real estate process so home buyers can make informed decisions regarding real estate transactions AND secondly to prohibit certain unlawful practices by real estate professionals including Realtors, Mortgage Lenders and Title Companies, such as kickbacks, referral fees and more which can potentially drive-up costs for home buyers.

In our industry, we all need to work together on behalf of our clients to ensure a smooth homebuyer or home seller experience. Our natural instinct with business is often to show our gratitude for a job well done, especially for those business partners who go above and beyond and refer us repeat business. The world of RESPA and compliance however requires us all to walk a fine line to keep the industry balanced. Section 8 of RESPA specifically applies to Kickbacks & Referral Fees .

Review the following scenarios – are you aware of any similar situations within our industry?

Pete, the mortgage lender, has developed an extensive network of real estate agents over the years and has a core group of agents who have referred him a great deal of business over the years. Pete wants to thank his top 10 agents so he invites them out for dinner and drinks and he covers 100% of the cost.

Although Pete’s gesture of gratitude is understandable and commendable, it’s a direct violation of RESPA for both Pete and the agents, as no party should receive anything of value for referring business for a residential mortgage loan.

Jim, the real estate agent and Mary, his preferred mortgage lender are planning on doing a marketing campaign together to help boost their business in the Spring market. They meet and plan the campaign but since Jim is much busier than Mary, Mary assumes the responsibility of designing the post cards and covering all the costs of mailing them. Mary knows that Jim refers almost all his buyers to her, so spending a few hundred dollars on stamps isn’t really a big deal.

Although there is no real concern with Mary spearheading the project, any costs with design of the marketing materials and the mailing must be split evenly between both parties – 50/50. Again, the gesture of Mary wanting to cover the costs is “nice,” but it too is a violation of RESPA.

It’s the beginning of the year and Ashley, a very successful loan officer schedules meetings at a local coffee shop with her top 6 real estate agent partners. At the meetings, they discuss business strategies and goals for the upcoming year, Ashley provides a variety of information on some new loan programs that will be launched in the coming months as well as some co-marketing ideas on how they can grow their businesses together. During the meetings, some of the agents just have coffee, some have a pastry and two have a breakfast sandwich. Since Ashley extended the invitations and these are her top six agents, she picks up the tab at the coffee shop for all the meetings.

Since these meetings were for legitimate business purposes and Ashley as the loan officer provided information and education to the agent partner, there doesn’t appear to be any RESPA violation concerns. Although it’s assumed that the agents do refer business to Ashley and may continue doing so, nothing was discussed that was a condition of Ashley covering the cost. To ensure full compliance, both Ashely and her agents may want to document the meetings with time, date, location, topics discussed and cost. This is just an added layer of protection in the event any questions would be raised by anyone to ensure that no RESPA violations occurred.

ABC Title Company has season tickets to a nearby NFL team and generally allows their employees to use them for all home games. A few days before the upcoming game, the employee who was to use them can no longer attend, so the owner of ABC Title, Ralph, offers them to Barry, a local real estate agent and 3 of his team members to attend the game. Barry jumps at the chance to take his hard-working team to the game. When Barry picks up the tickets, he thanks Ralph of ABC Title and tells him “He owes him” and will be sure to try and send more business his way.

This indeed is a fine line that is obviously crossed with this whole situation. Why did Ralph offer the tickets to Barry? We can assume that Barry has referred business to ABC Title so that is concern number one. The fact that Barry also intends to send more business to ABC Title because of receiving the tickets is concern number two. And lastly, Ralph is not even attending the game with them so that is concern number three.

Some may feel that RESPA guidelines are government overreach but ultimately, they are in place to protect the consumer as well as create a fair and balanced market for all industry professionals.

Violation occurs when “anything of value” is being exchanged for referral of business which is a very broad definition, but when in doubt, it’s best to take the road of caution. The penalty for violating section 8 of RESPA is a fine of up to $10,000 and possibly one year of jail time for all parties involved in addition to the damage to your business reputation which can cause significant future losses.

The best way to show your gratitude is a smile, handshake or a hand-written thank you note – all can be considered priceless and will help drive future business.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

Home Inspections: A Crash Course for Beginners

Fri, 03 May 2024 13:36:45 GMT

NOTE: Back by popular demand, this article has been revised from its original March 2023 publication date for May 2024 with updates and new segments.

Home inspections are back! This means you are either rusty working through this process and contingency, or you have no idea what you’re doing because you have never had to navigate inspections as part of an Agreement of Sale. This article is a framework to work through inspections and will get down to the basics, assuming many of you have no experience in this arena. This is your crash course on home inspections.

As a listing agent, your seller has accepted a contract and the buyers elected to do a slew of inspections. What’s next? The buyer/buyer agent will schedule the inspections within the timeframe identified in Section 13A of the Agreement of Sale. It is 10 days by default, but that can be adjusted when preparing the AOS. The home inspector will schedule the inspection with the seller, typically through ShowingTime, and sometimes directly through the listing agent. Home inspectors have a Supra eKey and can let themselves into the property for the inspection. Most home inspectors reach out to the listing agent to provide some guidelines for the inspection. You should forward this information to the seller, so that they can be prepared. Typically, this will ask them to have all appliances and utilities running (oil in the tank), clear access to the attic, clear access to the mechanicals and other tips for a smooth inspection. If a radon test will be conducted, the inspector will have instructions for the seller to maintain closed house conditions during the test.

Listing agents should share the inspector-provided information with the seller. They should also give the seller a heads-up about what will happen during the inspection. For example, most buyers attend the inspection. Some buyer agents attend the inspection, but they don’t always stay for the entire time. Your seller may want to present their home in the same manner as a showing because the buyers will be there for a much longer timeframe and you want them to still be excited about the home and not distracted by dirty laundry or a messy kitchen. The home inspector will schedule the appointment with a beginning and end time. For the average house, it is approximately a 2-to-3-hour inspection.

It is customary for the seller to leave the house for the duration of the inspection. They can stay in the home if they choose, but they should stay out of the way of the inspector and provide privacy for the inspector to speak with the buyer. Sellers don’t necessarily know this or know what to expect, so the listing agent must communicate with the seller clearly to set expectations.

Buyer agents should set expectations for the buyer, as well. It can be very helpful for the buyer to attend the inspections, especially the whole house inspection. This way they can see the material defects that are found in person, and they can ask the inspector questions about the issues. This can give the buyer a much clearer understanding of the severity of the issues. If they skip the inspection and simply receive the report, they may feel overwhelmed, not knowing if the issues are significant or costly, or just routine, run-of-the-mill maintenance items. The home inspector will also show the buyer where the main water shut off is located, where the filter goes in the furnace and other useful tips that will help the buyer when they move in.

Who can’t attend the inspections? Only the buyer, seller and their real estate licensee(s) may attend any inspections (Section 12A1). The buyers cannot invite their parents or friends to visit the home during the inspection.

New agents should attend every home inspection they schedule to gain familiarity with the process and with the commonly found issues so that they can achieve a depth of knowledge related to homes, maintenance and material defects. The more you know about homes, the better a resource you are to your buyers. In fact, buyer agents should inform their buyers about the home inspection process beginning with their first meeting with the buyer. This is the best way to set the proper expectations for the buyer so that when they finally get to their actual home inspection, they have realistic expectations, and they will be happier with the entire process. You can let the buyer know things that are routinely found during inspections, like exhaust fans in the bathroom that vent to the attic instead of the exterior, ungrounded electrical receptacles, and the age of systems are a few examples.

Most home inspectors provide a full written report with photos either the day of the inspection or the following day. Some tests may take more time to get results; for example, the radon test runs 48 hours or more, and water tests sent to a lab may take several days to get results. Be mindful of the tests that take days to get back when scheduling the inspections. You’ll want to get them scheduled as early in the inspection contingency timeframes as soon as possible.

It is safe to say that the buyer is responsible for the costs of inspections with one notable exception. If the buyer has elected a septic inspection, it is the seller’s responsibility to locate and provide access to the septic tank and system. The seller is financially responsible for having the tank or tanks pumped at the time of the inspection, and they are to provide the water for the test (Section 12C On-lot Sewage). Most septic inspection companies will coordinate the tank pumping and bill the seller, but sometimes a seller will insist on ordering their own company to pump the tank. These logistics should be coordinated with the inspection company, the agents and the buyer and seller. Don’t take for granted that the septic tank has easy access or can be easily located. Sometimes the cover is buried under a foot of dirt, and the seller has no idea where it is. It is the seller’s responsibility to find it and to dig the hole to the cover. Some inspection companies will dig for the cover, but they will charge the seller for this service. Many septic inspection companies will send the listing agent detailed paperwork to complete with the seller prior to the inspection, outlining their needs for the inspection and gathering as much information as they can about the septic system so they are prepared for the inspection.

Some buyer agents will schedule additional inspections to occur simultaneously under the umbrella of the Home/Property Inspections and Environmental Hazards. These can include air quality/mold, a camera in the sewer line and a chimney inspection. The seller is entitled to receive a copy of all of the inspection reports (Section 12A5).

If the Inspection Contingency Period is 10 days, then the buyer agent must have inspections completed and submit the Buyer’s Reply to Inspections/Reports and/or Written Corrective Proposal (BRI) to the seller by the 10th day. If the buyer is electing to terminate the agreement, then they will skip the BRI and submit a Notice of Termination of the Agreement of Sale (TERAREL). This document includes both the Notice of Termination and the Agreement of Sale Release and Distribution of the Deposit Money. Make sure you use this document to both terminate based the inspection contingency (Section 13B2) and release the buyer’s deposit to the correct party. Include the inspection reports in their entirety when sending to the listing agent. Keep in mind, the timeline works the same as all other timelines in the Agreement of Sale, with day 1 being the day after the contract is executed by all parties.

If the buyer decides to complete the purchase after the inspections, they can either accept the property in the condition reflected in the reports or submit a corrective proposal. One of these two choices should be selected on the BRI.

What is a corrective proposal? This is where things can get tricky. First, the corrective proposal can include a list of repairs, a credit in lieu of repairs (seller assist), a change to the purchase price, or a combination of these three options.

Before delving into these three options, the buyer should consider their expectations. When purchasing an existing home, it is never in perfect condition. It is helpful to let the buyer know before the home inspection some of the things that typically come up on inspection reports. I’ve mentioned a few of these common issues earlier in this article, but you’ll find there are many items that appear repeatedly, such as lack of maintenance records for the HVAC system, exterior grading that could be improved, a water heater missing the pressure relief valve extension, or wood deterioration at the exterior door frames.

The primary purpose of the inspections is to find or catch major material defects. Every home has some maintenance that could be done. When considering what repairs to ask the seller to make, it is essential to keep in mind that the seller can refuse to make any repairs unless the repair is stated and agreed upon in the AOS. The buyer should understand that they will be taking over ownership of an existing home that is not perfect, and they can assume responsibility for anything found on the report.

One benefit to not requesting the seller to make repairs is that the buyer will have complete control as to how repairs are made once they own the home. The seller is ready to move on and not invested in making the highest quality repairs. According to the BRI, the seller will make repairs in a “workmanlike manner," which is vague, unless the buyer has stipulated more details about the repair or required completing a written proposal by a specific contractor.

When a major defect is found, then what? During the initial inspection contingency period, the buyer and/or buyer agent can obtain estimates for repairs. You can schedule an appointment with the listing agent/seller for a contractor to take a look at any issue so you and the buyer can fully understand what’s at stake. Sometimes the actual cost is good news and sometimes it's bad news, but when buyer and buyer agent guess at the cost, they are often wrong. If you want the seller to make the correction and use the contractor who provided the quote, you can specify that in the BRI.

Once the BRI is submitted to the Listing Agent/Seller, there is a 5-day negotiation period (unless the buyer agent changed this default timeframe in Section 13B3a). To be clear, the full 10 days are counted, and then there is a 5-day negotiation period. If the buyer agent delivers the BRI to the listing agent in 7 days, you still have 10 full days for the inspection contingency and 5 days following that for negotiation. A buyer cannot terminate the sale during the 5-day negotiation period. They can terminate by day 10 of the original contingency period, but once they submit a BRI with a corrective proposal they have to wait for the 5 days of negotiation to pass before they can terminate the agreement.

During the 5 days of negotiation, the seller can have contractors evaluate any issues the buyer would like to have corrected before committing to the repairs or to check the price of the buyer’s contractor. The seller can agree to the terms the buyer outlines in the BRI, counter the terms, agree to do some but not all repairs, or counter a seller assist amount. They can also decline to do anything in the buyer’s corrective proposal.

If the seller agrees to the buyer’s terms in the BRI, you will notice that there is no line for the seller to sign on that form. The listing agent can prepare a Change In Terms Addendum to Agreement of Sale (CTA) and outline the terms as stated on the BRI. Then, all parties can sign it. Alternatively, the buyer agent can submit both a signed BRI and CTA with the reports when submitting the buyer’s reply to the inspections.

If the seller and buyer come to an agreement that is different from the original BRI, one of the agents can draft a CTA, and all parties can sign it. The CTA needs to be fully executed before the end of the 5-day negotiation period. If it is not or if the seller declines to do any of the buyer’s requests, the buyer has 2 days to either accept the property as-is or terminate the agreement. Note that on-lot sewage disposal systems have a different timeline and process, which is outlined in Section 13C if the system needs to be replaced.

Here are a few best practices for inspections:

-Have a list of inspectors you or your buyer will contact so you are prepared when your buyer goes under contract.

-Have trusted contractors available to get timely estimates when needed. If you do not have trusted contractors, ask agents in your office, and you will likely get some good options.

-Set expectations for both buyers and sellers about this entire process. Help them understand the timelines so they don’t expect a same-day response.

-If you are preparing a list of corrections or repairs, cite the section of the inspection report that relates to the repair so the listing agent and seller can clearly see what the inspector found and what repair is being requested. It can be helpful to include a written summary for the listing agent when submitting the BRI to explain what the buyer is requesting and why.

-Keep in mind that there is a difference between a material defect, deferred maintenance, upgrades, and a system at the end of its useful life. Focus on material defects when guiding the buyer to reply to the inspections. A material defect is a specific issue with a system or component of a residential property that may have a significant, adverse impact on the value of the property, or that poses an unreasonable risk to people.

-Send all of the complete inspection reports to the listing agent/seller when replying to inspections or terminating. Listing agents can request the reports at any time after they are completed, but it is better to wait for the agent to send the BRI before reviewing the reports. If a seller reads the report before they know what the buyers are asking for, they can do a lot of unnecessary worrying. Sometimes they start fixing things immediately, which could be different from what the buyers would like. Therefore, it is best to review the reports and the BRI at the same time.

-Finally, if you are not experienced preparing a BRI or CTA, it is a good idea to ask for assistance or have it reviewed by your broker or manager before signing it.

I am sure there are other tips you may have to successfully navigate the inspection process. If so, I’d love to hear about them.

20 Years Without A Window

Fri, 19 Apr 2024 18:33:16 GMT

Evidently, spending too much time alone, under stimulated and without quality views is detrimental to one’s world-vision. Being myopic was not something I ever thought I would be, but I spent too long without a window. Now that I work beside a wall of glass, with a view of more trees than I can count, I realize the power of the view-both inside and outside.

I find myself willing to let the sun partially blind me and turn my polarized glasses dark as I type away and otherwise occupy myself with meaningful tasks. I don’t want to close the blinds as it is more fun to pretend I am working at the beach. Birds sit on the limbs outside and visit with me as I adjust to a life that I almost missed. I need to make sure that I don’t miss seeing the forest for the trees as it would be easy to take the newly found vista at its surface.

I occupy myself with real estate research, as there is where I find myself gainfully employed. Much of the perspective in research, I have found, is looking backwards. Funny that my calendar today says “Life must be lived forwards but can only be understood looking backwards”. Coincidences like that have been happening more and more. Some schools of thought say that is what happens when you align with your purpose. Maybe I should research that…

It seems lately that we stand at the front door of change on so many fronts. A presidential election is now in the very foreseeable future, and while that may be quite macro it is impactful down to the micro in terms of so much, running the gamut from interest rates to the stock market to the prices in the grocery store. We are experiencing war in the world, and while that is nothing new, we have increasing amounts of turmoil and violence foreign and domestic as a part of every news cycle. Four years out now from the start of a worldwide pandemic, research is showing that we have not become kinder and gentler. Mayhem at home and abroad abounds in terms of literal hunger and failing health. People cannot contain themselves enough to be quiet and obedient for the duration of an airline flight. Our country and her states battle on the approaches toward immigration and family planning where no matter what is decided there will be no winners.

Our local atmosphere, which is so often much quieter in the face of adversity than is found outside the imaginary mountains that create the ‘Susque’ valley, also has its share of discontent and adversity over who can read to kids at the library and what they can wear. Seemingly we too are not immune to the arguments about who is welcome and how to treat them as we cannot get a handle on our own homeless or feed all our own hungry (despite being the “Garden Spot of all the Earth”) or even to sufficiently and humanely imprison our criminals.

On the evolutionary spectrum, more trips than ever before are planned to the moon and to mars to research life forms and colonization as if even the earth is not quite enough for us anymore. Telescopes send us increasingly vivid pictures of incomprehensible beauty in a far-off galaxy. Meanwhile people are being supplanted by AI and our response largely seems to be curiosity along with using it for entertainment and personal assistance. Does this concern me? Not really. People like me who like to write know that those who like to read are increasingly rare, and only a very few have even gotten this far in the article. That and I have social security to look forward to sustaining me though my golden years. Insert crying/laughing emoji here.

But getting back to reality: most paramount to Brokers/Realtors is the seemingly seismic shift coming from the NAR settlement which at this writing is still to be determined. I for one remember when Buyer Agency was “invented” not long after I was first licensed and the general and most practiced structure of it made no sense to me then (or now). For the 20 years without a window where I worked, I gave every single person that I did business with a written explanation telling them in no uncertain terms that I represented the Landlord/Seller and that they should get representation (if they did not already have it) because I was not and would not be practicing Dual Agency. We offered to pay their representative agent and disclosed the offered fees to all and invited any negotiations about those terms to be done ASAP. By doing this all up-front we only ever had 1 single case in which a tenant rep tried to hold us up for more commission after interest was firmly established, but there is always one rotten apple in an orchard of prime fruit.

Today is a bright sunny day and from my little room with the big, beautiful view the best answers are clear: 1) communication, 2) disclosure 3) sharing. In that order. There really is no news here. Commissions and fees were never pre-set. Everything is and always has been negotiable and if done correctly everyone should have already known how it was set up in each case anyway. By simply and routinely sharing the how much and the mechanism of who pays who and putting it all in writing, we can all get back to making dreams come true. Some of you may be thinking I’ve had too much sun, but I really believe this is this simple.

In case you need a reminder to spend some quality time staring out at the landscape, skyscape or even hardscape, I implore you to do so in this waning winter of discontent. In so much as possible enjoy the amazing people around you, if you are as lucky as I am to have found some. Keep in touch with what it is that excites you. A good window looking out is not half as important as a good view looking in.

I am going to enjoy watching Spring come out in all her glory with buds, leaves and flowers surrounding the neighboring building with its pristine roof and its perfectly mounted HVAC units and then I’m going to watch it all bake in the summer sun while I sit inside in 100% reliably functioning air conditioning until the leaves turn beautiful colors and eventually obscure the perfectly symmetrical tar seams and eventually I’ll drink provided flavored coffee as I see it all get covered over by a blanket of fine white snow… while I’m in here warm and cozy… and onward like that through a few more seasons… and then the chatbots are welcome to all of it and I’m going to Saturn.

Improper Stone Veneer Installation Practices

Fri, 05 Apr 2024 19:30:04 GMT

Adhered Masonry Stone Veneer (also known as AMSV) is a product used on many newer (say, the past 30 years or so) homes in our area, although it is rarely properly installed based upon my experience. I’ve inspected lots of newly constructed homes for buyers just in the past 5 years and have not seen a proper AMSV installation yet.

In 2009, guidelines from the Masonry Veneer Manufacturers Association (MVMA) were introduced. Prior to that, only manufacturer installation guidelines really existed and those were often confusing to some installers, builders, home inspectors, and code officials. These guidelines were used to create a document considered the standard for AMSV installation, called ASTM C1780: Standard Practice for Installation Methods for Adhered Manufactured Stone Masonry Veneer . Homes with stone veneer installed that were built prior to this time frame will generally only have the items shown below if they were repaired or otherwise modified later on after installation.

This ASTM document outlines how this product should be installed and includes many (48, to be exact) helpful diagrams to use as reference to show many different situations and locations on a home’s exterior where this product is to be installed.

Adhered Masonry Stone Veneer is often installed along the lower portion of a home’s front exterior (such as below another type of siding) or sometimes is installed to cover the entire front (or more) of a home. Sometimes the product is only installed over the exposed foundation and another siding product serves as the home’s exterior cladding from the sill plate upwards.

I’ve inspected nearly 80 homes in a new development in the area and repeatedly call out the same flaws for each home. In this case, it commonly relates to the lack of sealant below a piece of metal flashing that is installed where vinyl siding terminates on top of a stone ledge. The stone ledge serves as the top of the stone veneer (a transition, if you will) installed below it

These proper flashing and sealant details are important in order to help prevent water entry into an exterior wall where hidden rot and mold (and/or insect infestation) can then occur unbeknownst to the homeowner for a period of time.

This sealant is supposed to be installed to help prevent wind-driven rain from entering behind the stone veneer at this location. I either use a screw driver or my finger to check this area. For whatever reason, most builders do not perform this detail as required.

I’ve actually asked a few builders about this in the past. Each time, the reply was along the lines of ‘we’re hoping that the house wrap behind the veneer will catch and shed the water’.

I’ve also asked a code official who was doing a final inspection on a brand new home as I was performing the buyer’s home inspection. His reply was that he was ‘not too familiar with the requirements’ and that ‘it’s up to the product manufacturer to tell the builder how to install the product’. The lack of following proper guidelines and the lack of knowledge of the installers and code officials is a good re-enforcement of why buyers of even brand new homes should always get their new home inspection performed.

Another related issue that I run across pertaining to AMSV deals with how these products are terminated along grade, roofs, windows/doors, and flat hard surfaces. Improper installation at these areas can prevent proper drainage from the AMSV and can allow for the absorption of water into the exterior wall structure.

Bytes & Bricks—Tech-Trend Updates on Artificial Intelligence

Fri, 29 Mar 2024 13:45:00 GMT

Hello LCAR Real Estate Adventurers! This winter & spring I’ve had the distinct pleasure of seeing many of you in the new two-part CE course on Artificial Intelligence and Real Estate. I’ll tell you a secret, from the moment I agreed to write these AI courses for LCAR I knew they faced one huge weakness – they would be out of date by the time the class aired.

The first round was being edited right up until a few nights before class due to everything changing, then the advanced class got some last-minute changes. Not only did the chatbot formerly known as Bard get rebranded as Gemini, but we had a big release - with the CoPilot AI integration for all users on the Microsoft platforms. Users are being given free previews before being offered subscriptions.

Suffice it to say the updates and changes keep coming! Since we can’t have a fresh AI course and bring everyone into LCAR every month, here’s your quick rundown on what’s new working with AI in the Real Estate world and what’s gaining traction ~

On the regulatory front, The Appraisal Foundation has released an official Q&A that answers “What is an appraiser’s USPAP obligations when using artificial intelligence (AI) in an appraisal assignment?” The Foundation offers guidance on the reliance of credible data and the quality of the conclusions that are drawn from this data. The Foundation also cautions with the Competency rule on its use, and the Ethics rule for its output. The full PDF is available from their website.

Keeping up with the pace of progress these past few months ChatGPT has remained the #1chatbot, and at the latest count the website is getting close to 2 billion web visits monthly, which is about 5 x that of the second most popular chatbot Gemini (formerly known as Bard). Quill Bot, whom I introduced in the Real Estate LCAR class has remained in the top 5, which is no easy feat when you are up against research copilots like Claude and some new “uncensored” AI bots which are rising in popularity.

One of the bigger changes to ChatGPT is that plug-ins are being phased out. As the developer library of what we needed the bot to do, these “extras” grew to over 800 and had grown difficult to find the exact bot upskill you needed - and then there were so many good upskills that it had just become overwhelming. In class I spoke about the Redfin and Zillow plugins that had been used to pull property listings, but those specific plug-ins have been canceled directly, and recently the past conversations that included them have been wiped. Some of you have reached out to me directly, and I wanted to share with everyone that these specific real estate plugins (Redfin and Zillow) were removed by OpenAI due to difficulties of being able to control against guardrails of fair housing discrimination laws. Basically, what that means is to do data analysis right now, you need to upload your own data from an excel file.

As the plugs-ins are phased out there has been a tidal wave of customGPTs replacing them. Many of them have built-in synchronicity with other apps. One of my favorite new customGPTs on the scene is the Spotify GPT - you tell the bot what your music interests are, how long you need the playlist to be, maybe a “theme”, and the GPT will create a custom Spotify playlist just for you. Another one that has been helpful for me is a customGPT called MyVisionBoardArtist that makes images with the DALL-e image generator which are suited for a mood board. A mood or vision board is one of the top 2024 trends for business management. Where do you see yourself going this year? What specific goals have you set for yourself? Create a visual of it and add it to your 2024 Vision Board.

For those of you who attended the introductory AI course and were introduced to Claude, this bot has now been upgraded to read images, and the company Anthropic has released a massive prompt library with several popular categories to inspire people and get them going with the bot. This of course comes with a tiered subscription package for that value added bump over the free version. The free version will still be there to analyze documents as large as a harry potter book – and answer questions, summarize, analyze the documents all without a subscription.

While Gemini (the Google bot formerly known as Bard) has tried to join the image generation game and had a failed start, Meta (formerly known as Facebook) still has a low-level image model turnout, CoPilot has kept their image tool running, but it’s poor quality and doesn’t handle text all that well. As mentioned, Claude now at least reads images, Perplexity will return images to you in a way that feels like a very tailored Google image search – but no one is matching Midjourney’s image generation. The image at the top of this article is made with Midjourney with the following prompt:

Just to make sure they were in the lead of the pack Midjourney released their consistent character parameters this week, so if you were looking to create a brand mascot, or better yet, write a book – this process is finally just within easy reach. Up until now it was a bit of a hack to perform this step, now we are leaping forward with design ideas.

With the emergence of CustomGPTs, an increasing number of bots appear eager to get to know us. Private companies are all getting in line to brand their GPT and tune it to their vision. I encourage everyone to tune at least one custom GPT – even if you don’t release it publicly, you can use it as your personal Real Estate assistant and train it for your daily business GoTos. From writing newsletters, property listings, to neighborhood summaries, to analyzing ordinances and excel files that you upload, marketing, and social media – these AI assistants are ready and available for whatever comes next.

Here's a sample of an actual prompt that I used with ChatGPT recently. Update the address in the brackets and the description of the house to see what you get as the results!

Keep your circuits cool until next time.

Chandra Mast,

Red Rose Appraisals

Spring Cleaning - Of Our Listing Practices

Fri, 22 Mar 2024 17:21:15 GMT

I’d like to offer a few tips to streamline the information in your listings and to improve communications with buyer agents. First tip, the Seller’s Property Disclosure Statement is not where the seller can state what appliances are included in the sale. In fact, it specifically states in paragraph 16, “THE FACT THAT AN ITEM IS LISTED DOES NOT MEAN IT IS INCLUDED IN THE AGREEMENT OF SALE”. I see this misunderstood by agents, buyers and sellers. See this PAR Just Listed Article for a deep dive into paragraph 16 of the SPD: https://www.parealtors.org/blog/an-explanation-of-paragraph-16-of-form-spd/

Instead of telling buyer agents to see what is stated on the Seller’s Disclosure (which is not correct) when they ask what appliances are included, use the appropriate fields in Bright MLS when you enter your listing. There is an “Inclusions” field and an “Exclusions” field. This is where you can state that the kitchen refrigerator, dehumidifier, workbench in the garage and shelves in the basement are included. This is also where you can state that the dining room light fixture, mirror over the powder rooms sink and lilac bush in the front yard are excluded from the sale. These two fields are shown in the “Remarks” section of the listing in BrightMLS, right above the Agent Remarks, they are easily found and helpful for buyer agents who are preparing an offer. Enter this information in BrightMLS and it will save you from getting extra calls and texts from agents who are looking for this information as they are preparing an offer.

Speaking of the Agent Remarks, this is the perfect place to offer pertinent information about the property and sale for buyer agents. The seller wants to close on their home on June 15? Put it in the Agent Remarks. You can include a deposit link for the buyers EMD or a disclaimer about the square footage calculation. You can include information about the single access code that is now available for our SUPRA lockboxes. You can refer agents to the listing documents with instructions to get the single access code. Here is a link to these documents. You can give parameters about when the seller will review offers.

On the subject of offers, let’s review ways to communicate offers to buyer agents. Once you have confirmed the deadline plan with the seller, you can write the deadline in the Agent Remarks in Bright MLS. This helps agents who have not yet scheduled a showing understand the timeframe they are working with. Use Showing Time to communicate to all of the showing agents that an offer has been received. You can easily send an email to all of the showing agents when a deadline is set, or if there is a change to the timeline, or if you want to let agents know how many offers are in hand. If there is an offer in hand and the seller has set a deadline for offers, please communicate this with the showing agents, at the very least. Buyer agents do have the responsibility to contact the listing agent to find information like this out, but you can save yourself the multiple calls and texts and make this information known.

I’d like to shine a little more attention on the new single access codes that are available for our SUPRA lockboxes. Take some time to review the instructions so you are prepared to help a showing agent with this on a Saturday morning. You no longer have to use a combo lockbox on your listings to accommodate out of the area agents who don’t have Supra access. For less than a cup of coffee at Starbucks, you can grant access codes to these agents. Put notes about this in your Showing Time agent instructions and make sure to add a note in the agent remarks in Bright MLS. Get the instruction PDF’s and add them to the documents for all of your listings. Make it easy and clear to buyer agents that this is available.

As a listing agent, supplying comprehensive instructions, details, and information through BrightMLS and ShowingTime not only saves you time by avoiding individual inquiries but also streamlines the process for buyer agents. This proactive approach facilitates smoother showings and enables agents to craft offers tailored to meet your seller's needs.

Quarterly Check-In with LCAR President Jeff Peters

Fri, 15 Mar 2024 19:36:19 GMT

Let's Chat: Local Government Initiatives!

Featuring LCAR's Executive Director Mike Berk and LCAR President Jeff Peters!

Join us for LCAR's first Quarterly Check-in as LCAR's Executive Director, Mike Berk, sits down with LCAR President Jeff Peters to discuss LCAR's Government Initiative. Discover the impact LCAR is making on the local level, and how LCAR members can get themselves involved!

LCAR's 2024 Spring Mixer Vlog

Fri, 08 Mar 2024 16:07:04 GMT

Featuring Member Engagement's

Richard Boas III, Berkshire Hathaway HomeServices Homesale Realty

Dan Ranck, Homesale Mortgage

Lisa Naples, Berkshire Hathaway HomeServices Homesale Realty

Join us for an evening of excitement and networking at LCAR's 2024 Spring Mixer! This year, we're bringing the madness to Blue Collar Restaurant & Bar on Thursday, March 21 from 5-7pm.

Get ready for a night filled with fun, food, and fantastic company! This event is a great opportunity to connect with fellow real estate professionals and expand your network. Leave the business attire at home and come dressed in your favorite sports jersey, all teams are welcome!

Don't miss out on the madness – RSVP now and secure your spot on the LCAR Portal: https://glnc.rapams.com/scripts/mgrqi...

This event is open to LCAR members only. The deadline to register is March 10, 2024. For questions, please contact LCAR's Executive Assistant, Olivia Bevensee, at Olivia@LCARonline.com or call the LCAR office at 717-569-4625.

Improperly Installed Dishwasher Drains- A Very Common Defect

Fri, 01 Mar 2024 16:58:57 GMT

One of the most common defects that I routinely find when inspecting homes is improperly installed dishwasher drains. All dishwasher manufacturers require either a high loop or an air gap. Each helps prevent dirty water discharge back into the dishwasher where it could contaminate silverware, dishes, glasses, etc. that you thought were now clean and sanitary.

High loops are easier to install and are the preferred method that we see in the eastern US. In some areas of the country, such as out west, air gaps seem to be more common. For this article, we’ll discuss high loops only.

High loops are required by every dishwasher manufacturer yet most dishwasher installers, it appears, don’t actually read the installation instructions. It is also required by the International Residential Code (IRC) in section P 2717.2:

P 2717.2 Sink and dishwasher -

“The combined discharge from a dishwasher and a one- or two-compartment sink, with or without a food-waste disposer, shall be served by a trap of not less than 1½ inches (38 mm) in outside diameter. The dishwasher discharge pipe or tubing shall rise to the underside of the counter and be fastened or otherwise held in that position before connecting to the head of the food-waste disposer or to a wye fitting in the sink tailpiece.”

Most dishwashers nowadays come with a loop in the drain line mounted to the side of the dishwasher (it’s not visible once the dishwasher is installed into the kitchen cabinetry) although a high loop adjacent to the sink under the countertop is still also required. Repairing this defect is pretty straightforward and can be performed by a licensed plumber.

Another issue related to dishwasher drain lines has to do with them being connected downstream of the sink drain’s trap. All plumbing fixtures need to have a trap installed in order to keep sewer gases out of the home. (The only exception is for toilets as they have a built-in trap). A plumbing trap holds water in it which creates a blocking point to prevent sewer gases coming from drain plumbing downstream.

If the dishwasher drain is connected to the sink drain downstream of the sink drain trap (see photo below), it is possible for sewer gases to enter the home through the dishwasher. The sink trap can’t provide proper sewer gas protection for the dishwasher in this case.

Supra Single Access

Fri, 23 Feb 2024 16:07:37 GMT

Have you heard the exciting news? As of February 1st, Supra Single Access is now available to LCAR members! No more scrambling to throw on a combo lockbox or meeting agents at the property to grant access.

Single Access provides convenient and secure access for individuals who require one time entry to properties and are not a current member of LCAR. LCAR members must retain full access to Supra. The non-member no longer needs to reach out to LCAR – access will be granted through the Supra app.

Thorough instructions were previously sent via email, including documents for both parties AND a “How To” document that can be uploaded in the MLS. If that email got buried in your inbox, the documents can be found here: Complete Supra Single Access Guide.pdf (cdn-website.com)

The process starts easily with the listing agent adding the phone number of the grantee. This will trigger a series of texts to the grantee which walks them through the process.

There will be a $4 charge to the grantee, which they pay on the app. While the process is user friendly, tech support is only a phone call away: call Supra 1-877-699-6787 (5am to 7pm PT, seven days a week)

This is yet another way to show value to our sellers, giving them peace of mind regarding who is accessing their home and when. What a great advantage!

Thank you to the LCAR staff who dedicated a great deal of time and research to roll this out. They have done the hard work for us.

At the time of this writing, a couple of members have used this feature…if you are one of them, please share your positive experience on our LCAR social media!

Seller Disclosure, The Flipped Home and Your Role

Fri, 09 Feb 2024 19:41:37 GMT

This is not my first article on the subject. Many calls later, including a recent one, suggests the need for a revisit.

The recent caller is a seller’s agent whose client, a flipper, had listed a handful of properties with her. Shortly after settlement on one of these properties she got a call from a ‘fired-up’ buyer agent. Less than three hours after taking possession, the buyer noted that a toilet would not flush. A plumber’s visit revealed that a crushed pipe was responsible. The cost to remedy the sewage problem was in the thousands. Unless the seller paid for repairs suit would follow.

So far, this is a common pattern: something’s wrong, the seller must have known, the seller (and maybe his agent) didn’t disclose. The wrinkle here, however, is that the listing agent had some prior knowledge that must have been related to the problem but was not disclosed. On a visit to the property a month before its sale, the agent noted that the subject toilet was clogged. She informed the seller who authorized her to call a plumber. She was present when the plumber snaked the line and cleared the clog. He said “all good,” presented his bill, and departed. Thereafter, at least through settlement, the toilet worked. This history was not revealed by anyone.

Additionally, other defects were enumerated by the buyer agent that the listing agent had no knowledge of. Assuming the truth of these facts, how is this mess to be untangled, who’s liable and what lessons are to be taken?

Before going to the broader issues involving flipped properties, let’s deal with the wrinkle. Is the listing agent liable for failing to inform the buyer of the toilet clog/repair? Again, assuming the truth of the agent’s recitation of the facts, I’m going with “no”! Our Real Estate Seller Disclosure Law (RESDL) includes a section entitled “Non-liability of Agent: An agent of a seller or a buyer shall not be liable for any violation of [this law] unless the agent had actual knowledge of a material defect that was not disclosed to the buyer or of a misrepresentation relating to a material defect.”

We know the agent was aware of a quickly repaired clogged toilet but that is not the same as knowing of a material defect (harmful to those inhabiting the premises or substantially impacting value). The plumber actually put her at ease and said nothing to the effect that further investigation was necessary. Sure, the agent could have revealed the clog (reread), but to require her to note every ‘rub of life and living’ is not the standard. To have to catch everything, to assume every little whatever is noteworthy, would drive most of you in this business crazy if not reaching into your pockets following every settlement!

On to the general issue of disclosure and flipped homes. A seller who’s updated a home in a matter of months is not likely to know as much as someone who has lived in that home for decades. The flipper (and I don’t mean this as a derogatory reference) may not have owned the property during a rainy season or in other conditions that might reveal problems. Often, these properties are acquired in situations where there was no disclosure from the last inhabitant or from an owner who had real knowledge. Buyers need to know this!

Buyers also need to clearly understand (reread) that flippers only need to reveal material defects known by the seller. Not only that, RESDL says that the flipper is not liable for failing to disclose a material defect if the flipper reasonably believed the defect had been corrected!! [Note: RESDL specifically states: A seller shall not be liable for any error, inaccuracy or omission of any information delivered…if the error, inaccuracy or omission was based on a reasonable belief that a material defect or other matter not disclosed had been corrected.] Buyer beware indeed!

A good practice for the buyer agent is to get the previous disclosure. It won’t help in the situations I mentioned above, but, then again, it may have value. Get whatever history is available.

Get inspections…….if you can. If you can’t, be sure your buyer understands the “gamble” and is willing to go forward. You might also seek a list of repairs, contractors and invoices. Were permits sought/obtained? Were municipal inspections required and what does the municipality know of the property and its history? There’s much investigation that can be done even when your buyer is denied a home inspection.

Your buyer also needs to know that there is no implied warranty like may exist with a new-build. If a written warranty is promised, read it and understand the limitations (they will certainly abound).

Listing agents, as you’ve read, your flippers have some good defenses to claims of failure to disclose. But claims, regardless of the outcome, are costly. Keep in mind that you may be included in the claim! So what to do? Select your clients (flippers) carefully. Those with a terrible history of litigation might best be avoided. When you can, get a prior disclosure and ask the flipper for a list of contractors, copies of permits and other documents detailing what was done. Will your seller consider engaging an inspector to before the property is marketed? You can easily understand how this can protect you and your seller.

As a listing agent you must also read the flipper’s disclosure to see that all questions are answered and that all answers make sense. The section dealing with renovations might require a second or third page!

If you are not comfortable with you client’s disclosure you face a difficult choice. By law you must reveal material defects not disclosed by seller. If you reveal a problem your client denies exists your relationship may end. On the other hand, failing to reference what proves to be a problem, renders you culpable.

I’d like to hear your tips for those selling flipped properties or listing them. As always, best to all.

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represents Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

Hashtag, you're it!

Thu, 01 Feb 2024 20:17:05 GMT

Are you on social media? Facebook, Instagram, Tik Tok, the opportunities are endless. However, the thought of trying to stand out in the massive world of social media can be…daunting. There are billions of people just like you creating posts, so how can your voice stand out?

Bring in the “#.”

Aside from utilizing trending topics and trusting the “almighty algorithm”, hashtags are a great way to launch your content! Imagine this, you are at the grocery store and need to find one specific item. You may wander aimlessly until you come across exactly what you are looking for, or you may check the signs to see which aisle you need to go to. Hashtags, or keywords, are just that in any social media space.

A category method that helps you find content.

It all started on Twitter when someone thought of an idea to group relevant tweets together. In comes the hashtag, formerly known as the pound symbol, and suddenly searching up different categories of interest became easier than ever before. The use of hashtags on other platforms has only grown since then.

Using relevant keywords in hashtags helps put your content out there and makes it easier for others to find it. Believe it or not, there is a science behind the mix of words you see at the end of a post. A good posting strategy follows these tips:

A hashtag always begins with the # symbol , and cannot include spaces, punctuation, or symbols. Otherwise, it’ll break off the link. (Ex. #PArealtor, #LCARblog)

Before you tag away, make sure your accounts are public. The point of a hashtag is help someone find your post; however, if your post is not public…then there is no way for it to be found!

Do not clump too many words together in a hashtag. The likelihood of someone searching for a really long hashtag, such as #thegreatestLCARblogarticleyouwilleverread, is extremely slim. Keep it concise and you will have much better results.

Keep your hashtags relevant and specific so that they stand out. You want your content to be easy to find, and simple hashtags are short while being easy to remember. Look up trending hashtags and try to apply them to your posts for a bigger boost in engagement.

Limit the number of hashtags used. Too many hashtags can make a post look spammy and can be too distracting. Imagine looking at a fancy sports car littered with bumper stickers. It’s distracting and takes away the value of you are trying to share. A good rule of thumb is to exceed no more than five really strong hashtags.

Hashtags are a great way to help shared audiences find your content, and when used correctly, can help boost your voice on any social media platform. They not only help provide value to your posts but also build connections with others in your field. Whether you are creating content for your business or simply just want to be found, consider throwing in a few hashtags to your post.

You never know how much of a #success it could be!

Emergency Egress: What You Don't Know Can Hurt You

Fri, 26 Jan 2024 19:10:29 GMT

Modern building standards require sleeping areas (‘bedrooms’) to have secondary egress methods in case of emergency. Most people commonly use the term “emergency egress” and it most often occurs in the form of a window meeting specific size requirements in each bedroom.

Some homeowners decide to finish their basements, many without the required city or township permits and inspections. In 2004, most cities, boroughs, and townships in the Commonwealth of PA moved to a more uniform standard called the "Uniform Construction Code" (or "UCC") and now typically require a permit to legally finish a basement although some only require permits if the finished basement will include a bedroom(s), a bathroom(s), etc. Permits are normally also required to add a shed or garage, build a deck over 30" above grade, add a patio or driveway, add an addition to your home, etc. You should check with your AHJ (authority having jurisdiction…aka city, township, or borough) to find out what they specifically require for the work you are planning to do. Many homeowners see the whole permit requirement as an overburdensome city or township trying to make money but permits are designed to ensure the work is done to code and with safety in mind.

When you apply for a building permit, you pay a fee and submit paperwork to the city or township stating what work you want to perform including drawings or plans. For cosmetic projects like painting, carpeting, replacing cabinets, modifying non-structural walls, etc., permits are normally not required. However, if you are adding a shed, rewiring or replumbing your home, or adding living space to your home (such as finishing your basement), permits most often will be required.

Someone would be trapped in this finished basement should an emergency (such as a fire) occur blocking the basement staircase to the main level since the window can't fully open.

As part of a home inspection, it is wise for the home inspector to point out to his client areas of the property that may have been recently added/remodeled, such as a shed, a new deck, sunroom, or even a finished basement. The client would then be wise to contact the city or township before closing to verify whether proper permits were pulled and that the final code inspection(s) was performed. It is outside the scope of a home inspection, however, for home inspectors to check for permits. I know of specific instances where sellers finished their basements, for example, with no permits. In some of these cases, the townships or cities ‘got wind of this’ (such as when the new buyer got permits for something else such as a new deck) and required the current owner to de-construct the work that was done with no permits, such as unfinish a finished basement back to its original non-finished status. Not what a new homeowner wants to deal with when buying a new home with an illegally finished basement, for example. As a home buyer, talking to your title professional about enhanced title insurance is also wise as it can help protect you from non-permitted work.

One critical topic that many home buyers and sellers (and even some Realtors) don’t know about pertains to emergency egress. The term “emergency egress” is not found in the code, but rather “emergency escape and rescue opening (EERO)” is used. The term says it all. Rooms or areas of the home that may be used as sleeping or finished areas must have multiple ways out in case of emergency.

A door or window provides escape from the room or home in case of emergency (such as a fire) to the exterior grade and also allows for fire personnel while wearing full apparatus to enter and rescue occupants via the same door or window. In most cases, the EERO is a window to the exterior although an exterior door can serve this function as well. If a finished basement has 2 bedrooms, for example, each bedroom must have its own independent EERO; in other words, one basement bedroom's window can't be considered a second basement bedroom's EERO. The door does not need to go directly outside but may run to a different area of the home. If the EERO is a window, it generally must be, at least, 5.7 square foot in size. This size allows a firefighter wearing full apparatus to enter and rescue the home’s occupants.

Beside the 5.7 square foot opening requirement, there are also 20” clear-opening width and 24” clear-opening height requirements. All 3 requirements must be met independently of each other. A 20” x 24” window that does not open to provide 5.7 square foot of open space does not meet the requirement; this is a common problem with double hung 20"x24" windows. Their overall size may be OK but they don't open enough to provide the necessary opening size. Sliding double-sash windows are often used for this reason. An exception to the 5.7 square foot opening does exist, however. If the opening is at grade or below grade, the opening size may be lowered to 5.0 square feet since a ladder will likely not be needed to access these areas. Also, some areas don't require the egress requirement if the home has a fire sprinkler system installed. Also, the lower sill of a window must be no higher than 44" above floor level. A small child may not be able to easily escape a fire, for example, if the windows are high up on a wall. This sort of 'high window' setup exists in some homes from the 1950s and 1960s before these modern safety standards existed.

In everyday life, we don’t think about the doors and windows in a home, but we need to plan ahead and be prepared in case a fire were to occur. If you get woken up at 3AM and your home is filled with smoke, you likely will be in a panic state and may not think straight due to the imminent danger before you. This is not when you should be planning how to escape the home. The building code is designed to have these safety features already built-in for you before you ever realize that you need them.

If a fire was in your hallway or staircase, you would need an alternate way to escape. This is where EERO comes into play. Any room that can possibly be a sleeping area (bedrooms, habitable attics, basements, living rooms, family rooms, etc.) need to have EERO. If you were sleeping in your basement, and the staircase or the hallway just beyond the basement staircase were to be on fire, you would easily be trapped in your basement. With no properly-sized window or door to the exterior, your chance of survival is minimal or non-existent.

As mentioned above, window sills should be no higher than 44” above the floor to allow children and short adults to escape. Windows should also be able to be openable (not painted shut or have bars instead preventing opening and exiting) and should stay up when opened. Sometimes when inspecting homes, I find windows that are painted shut or the window’s bottom sash won’t stay up when opened, such as due to a broken sash cord. Either could prevent an adult or child from escaping. This is why home inspectors need to call these issues out and recommend repair. A window or door acting as a sleeping area’s EERO will do no good if the door or window won’t open. Also, bars should not be installed over windows since they prevent escaping through the window. Windows and coverings over window wells must not require a key, special tool, or special knowledge about how to open and operate the opening. I occasionally find windows that are screwed shut in a way to help prevent a burglar from entering. This would also prevent a panic-stricken adult or child from opening the window and escaping a fire.

Most new homes built in the last 15 or so years will generally already have an egress window(s) or bilco door installed in their basements which would generally allow the basement to be finished in the future. In most homes older than that, though, there is often no sufficient egress existing in the basement and modifying the foundation to add a properly sized window or door can be quite expensive. In homes with daylight basements, for example, proper windows and door(s) will very likely already exist.

In summary, as home inspectors and Realtors, we need to keep these requirements in mind when talking to our clients, especially when the client expresses an interest in remodeling their new home, such as finishing a basement, or if the seller recently finished the basement before listing the home for sale. Checking with the local jurisdiction's code/building department is the wise first step that can help prevent future headaches.

Also, all families should periodically do a fire drill and have a plan in case of emergency. You should know, at least, 2 ways out of your home from all interior rooms.

Just What Is Procuring Cause?

Fri, 12 Jan 2024 18:15:01 GMT

Beginning a new year often sparks times of reflection and introspection. I have had the benefit and opportunity to work with, for, and represent Realtors ^® for nigh on twenty-five years. Suffice to say, I have probably seen it, heard it, or been told it more than once… oftentimes by a Realtor ^® ! When you hear something time and again, not unlike the Internet, it must be true… right? Maybe not so much.

One of the most challenging things to understand is procuring cause. I have heard more examples of procuring cause, more definitions of procuring cause, and more explanations of procuring cause than Carter had liver pills (as “they” say), but rarely have I heard the right example, definition, or explanation.

Just what is Procuring Cause?

The first challenging thing to accept about procuring cause is that it is a CONCEPT! There is no one all-encompassing definition. Importantly, there is no Rule of Thumb. When there is a dispute among Realtors ^® as to who is entitled to compensation in a transaction, the concept of Procuring Cause is oftentimes at the center of the discussion, so why is it so hard to understand? Because first and foremost, it is a Concept. The National Association of Realtors ^® Code of Ethics and Arbitration Manual defines ‘Procuring Cause’ as, “the proximate cause; the cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime object. The inducing cause; the direct or proximate cause, substantially synonymous with ‘efficient cause.’”

See? A Concept.

Procuring cause is probably one of the most contentious, debated, and misunderstood aspects of being a Realtor ^® . The Code of Ethics and Arbitration Manual does a good job of presenting the concept of Procuring Cause in Appendix II to Part 10 of the Manual. In the 2023 edition, this starts around page 159 and runs to approximately page 170. Single space, two columns per page, small font. It is a lot to digest, but here are three general factors to consider when deciding who, or what constitutes the Procuring Cause in a transaction.

1. There is NO Predetermined Rule of Entitlement

The Realtor ^® who shows the property to the prospective buyer is not the procuring cause of the sale simply because they crossed the threshold. The converse is also true; the fact that you were not present the first time your buyer saw the property does not prevent you from being the procuring cause. Similarly, being the Realtor ^® who wrote the initial offer does not guarantee that you will be the procuring cause. Likewise, another agent or another Realtor ^® may have written the offer, but you still may ultimately be the procuring cause of the sale. Finally, the presence or absence of an agency contract does not, in and of itself, resolve the question of which Realtor ^® is the procuring cause of the sale.

2. Is the Dispute Arbitrable and Are the Appropriate Parties Named

Is the dispute about the compensation in ‘this’ transaction arbitrable under the Code of Ethics? Start with Article 17 of the Code of Ethics and use the Standards of Practice to help you decide this preliminary question. Is the dispute being brought within 180 days of the claim ripening? Are all of the Realtors ^® involved in the dispute members of the same Association, or are there different Associations involved? Are the parties involved all Realtors ^® or is one more of the agents a non-Realtor ^® licensee? Is one of the parties a consumer bringing a claim against the broker that they hired?

Let’s not forget one of the most important questions – are the proper parties named in the arbitration? In order to answer this question, you need to know exactly who the proper parties are. If you are licensed as an associate broker or a salesperson, the only person or entity who can pay your fee is your employing broker. That means the brokers absolutely MUST be named as parties to an arbitration, otherwise the dispute is not arbitrable. Depending on how the brokerage is structured, the brokerage may be named as a party, or the broker of record may be named as a party, or both may be named as parties. Associate brokers and salespersons are witnesses whose testimony is relevant to the claim, but the claim for compensation through arbitration is brought by a broker, against a broker.

3. Factors Relevant to Establishing Procuring Cause

If you have a signed buyer agency contract, showed the property to your buyer, and ‘wrote the offer’ with your buyer, does that mean you are the procuring cause of the sale?

IT DEPENDS!!

Here are some other factors that may be important in determining who is the procuring cause of the sale. How much time passed between when you first started working with the buyer to buy this property and when the final agreement was negotiated? Did the first time you show this property to your buyer start an uninterrupted series of events that culminated in your buyer taking title to (or possession of) the property? Did you and the buyer voluntarily end your agency relationship, or did the buyer fire you? Was there a time when the negotiations broke down? If the negotiations broke down, why did they break down and who ended the negotiations? Did the agent who introduced the buyer to the property maintain contact with the buyer directly? If a cooperating agent was introduced into the transaction, was this introduction an intrusion, or was it a natural extension of an existing relationship?

You may want to involve your broker, manager, or other experienced colleague in evaluating these factors to help analyze the transaction objectively .

Here are some final thoughts… sort of. From the Code of Ethics and Arbitration Manual: “A broker will be regarded as the ‘procuring cause’ of a sale, so as to be entitled to commission, if his efforts are the foundation on which the negotiations resulting in a sale are begun. A cause originating a series of events which, without break in their continuity, result in the accomplishment of the prime objective of the employment of the broker who is producing a purchaser ready, willing and able to buy the real estate on the owner’s terms.”

What is procuring cause? It’s a concept; an idea that is at the same time simple and complex. It is the Realtors ^® ’ way for analyzing a cooperative transaction when there is uncertainty or disagreement as to who has earned a fee once the transaction has closed. It is not a perfect paradigm, but it’s a damned good one!

Brett M. Woodburn, Esquire is the principal and founding member of Woodburn Law. He serves as general counsel to several local Associations of Realtors ^® across Pennsylvania. All rights reserved. This article may not be re-printed or reproduced, in whole or in part, without Mr. Woodburn’s express written consent.

Time For A Quiz

Fri, 22 Dec 2023 19:45:00 GMT

Every now and again I like to see who’s reading these missives. Answer this quiz and if you are correct it is because: a) you read the article where I addressed this…what I’m hoping for, b) you’re smart…also good, or c) you looked on the paper of the quiz-taker beside you. No, this is not the quiz, you’ve got to keep reading as this is just the teaser.

So here’s the quiz. While enjoying a buttery, oak-aged chardonnay and taking in the lovely sunset (since the loss of daylights savings time you must be starting early) your evening is interrupted by a call from a client. The client, Barbara Beyer, had purchased a home nearly a year ago. Barbara had been a picky buyer and you accompanied her to over 20 properties before she wrote her offer on this one. To be kind, let’s just say that you were relieved to have concluded the relationship!

Because it was a resale property that Barbara had purchased, it came with a seller disclosure. Barbara was also permitted to have a home inspection, which she did via one of the inspectors your recommended. The disclosure made no reference to any plumbing problem though Barbara later found credible evidence that the seller had been aware of a serious one. Likewise, the inspector noted no problem though Barbara insists it was there to be seen.

The problem was manifest by a substantial leak from an exposed pipe in the basement. Barbara found it when she went to do laundry, by which time there was an inch of water over the floor. The plumber Barbara called arrived quickly and was able to put a temporary band aid on the pipe but declared that a permanent fix would be invasive and expensive as it involved some excavation. Along with the bad news, the plumber also surprised Barbara when he told her that he had been to the property not too long before her purchase. The problem then was similar, as was his advice to then owner. He also showed Barbara some of the tell-tale signs that a “good inspector should have seen” that would have contradicted the disclosure where seller denied knowledge of any plumbing problems. The plumber had not been hired by the seller to do more than a triage and figured that the seller had some other plumber do the work.

A furious Barbara wants your help. What to do? I’m sorry, but as you can see, this is not a multiple choice quiz.

Most of you will think that you shouldn’t have answered the phone after pouring the wine. But you will also think that your first task is to call the listing agent to relate what you have learned. I don’t fully understand what a buyer agent expects from the listing agent other than to have the seller alerted to the problem. Reality we know……….no way is the seller going to pony-up the estimated cost of repair based on a call. But, you’re right; you’ve got to give the listing agent the news so it can be passed to the seller.

What else do you do as Barbara’s agent? Is there any advice you should give her? The agreement Barbara and the seller signed requires the mediation of a dispute. Should you mention this to Barbara? Do you tell her how to initiate the process by contacting the local association? Do you offer to attend and help her at mediation? How about having her get a written estimate of repair and while she’s asking for that, have Barbara get a statement from the plumber as to his history with the seller. And when Barbara gets these things, are you the one to forward them to the seller’s side?

Some of you may question your role here. I know because I got these questions from buyer agents facing similar situations when I took calls on the Hotline. So let me give you the answer that I gave on the Hotline and in an earlier article you may have read.

My answer comes with some preliminary questions. How much are you being paid to put down your wine glass and solve Barbara’s problem? Nada, zip. Yes, you were paid but that was for doing your job as Barbara’s agent in her quest for a home and for the ancillary tasks involved. You are not getting paid, nor were you paid, to handle Barbara’s post settlement problems, claims, disputes and legal matters.

That is not to say you are not permitted to sympathize or even offer suggestions about mediation and the other things I mentioned above. But you must ( and here’s the answer to the quiz folks ) emphasize your limitations in this arena of post-settlement issues and must advise the client to consult legal counsel….a lawyer.

Here’s just one example of how your failure to do the above (read the last sentence again, please) can make Barbara’s problem your problem. You give Barbara all of the advice I mentioned above, except for the part about getting a lawyer. You forward the repair estimate (or bill, should Barbara have had the repairs performed) and the plumber’s statement that he had been to the property for the same issue when seller owned it. You go back and forth with the listing agent who tells you her seller may be willing to offer something. Maybe you help Barbara with the mediation process and maybe you’ve contacted the inspector to bring him in to the mediation since he missed the problem.

But when all your seemingly good advice does not resolve Barbara’s issue, and assuming the repair cost is significant enough, Barbara will go to a lawyer. And from her lawyer Barbara learns that her case, good or bad, against the inspector is a no go: “An action to recover damages arising from a home inspection report must be commenced within one year after the date the report is delivered.” (Section 7512 Pa. Home Inspection Law) Had you, buyer agent, sent Barbara to an attorney when you first took her call, the case against the inspector could have been preserved. The year had not yet passed when Barbara first complained to you. You are now working for free, are the subject of a suit claiming you lost Barbara’s opportunity to make the claim against her inspector who is insured against such claims, and therefore the demand for payment is made to you!!!

Fortunately there is still the case against the seller and that too may be complicated by credible defenses (not suggested in this scenario) or by recent events that could have been avoided had you initially advised Barbara to see her attorney.

The answer to the quiz makes perfect sense. You are expert in marketing real estate. You know values and markets. As a lawyer I’d never dare advise a client as to what to demand or pay for real estate. You are paid for what you do and not paid for what you don’t, so don’t do it. Ok, that’s confusing so go with this: don’t do for free something you are not expert in, no matter how obvious to you the path may be (or….a smart person knows what he/she doesn’t know). Its far easier to say “I like you, I value your trust, but as much as I want to help you, you must consult your attorney; I’d feel terrible if I failed to advise on matters for which a law license is required……….this is my best advice to you. I’ll be available to help your attorney by providing information and will cooperate in all ways.”

Did you all pass the quiz?

Hanging Christmas Lights

Fri, 15 Dec 2023 19:15:00 GMT

It's that time of year again and most home owners are decorating their homes for Christmas. Thanksgiving has come and gone and it's time to put up your Christmas lights before the weather gets cold. The first thing that a home owner should do when hanging Christmas lights outside the home is to ensure that the lighting is approved for exterior use. Interior-only rated lighting is not meant to get wet or be exposed to ultra-violet (UV) energy and, of course, should not be run underground. These situations can damage the wiring and present a fire or electrocution hazard. The light manufacturer's tag and/or the box that the lighting came in will indicate if it is approved for exterior use. Also, use only Christmas lights with a UL (Underwriters Laboratories) logo on the label.

If extension cords are needed, they should first be carefully inspected for any damage. If the protective outer insulation of an extension cord or string-lights or its plug is damaged, throw it away and replace it with new. Keep in mind that any extension cord is only meant for temporary use. Where lighting needs to be plugged into an extension cord, it is wise to ensure that the connection is secure and water-tight. Placing the plug-in connection inside a plastic baggie (like a large sandwich bag) and then properly sealing it shut (such as with a zip tie) is suggested. The plug-in connection should ideally be off the ground with the baggie's closed opening facing down to help prevent any possible rain or snow from getting into the bag. Multiple extension cords should not be strung together in series. Also, Christmas lights should be turned off when lea ving the home or going to sleep.

When installing any string lighting indoors or outdoors, always use a type of clip or other fastener designed for hanging lighting and do not insert nails, pins, tacks, or anything else into the string light's wiring. It should be common sense, but this damages the string lighting's wiring and can easily lead to a fire or shock hazard. Who wants to have family over on Christmas Day for dinner only to have a small arc occur in the wiring on the fireplace mantel and the home burns down. That may make for a memorable Christmas, but not a recipe for a ‘happy holiday’, if you ask me. Also, keep decorations and lights at least 3' away from heat sources such as open flames.

Lastly, if you have a real Christmas tree, make sure you water it daily.

Message Mishaps: Lessons in Communication from Real Estate Blunders

Fri, 08 Dec 2023 18:54:06 GMT

Have you ever sent a text or email only to realize as soon as you sent it that it went to the wrong person? I think it’s safe to assume that this has happened to most of us. I once sent a text to my daughter to tell her it’s time for bed. Except I sent it to a client instead. I hope they had a good laugh. Recently, on the same day, I received text messages from two separate clients with messages meant for their significant others. Thankfully, they were mundane messages and not embarrassing for either of us.

Next, imagine you’re in the throes of a stressful situation with a client and you need to vent to someone. You text a friend to complain about your client, hit send, and then realize that you sent the message to your client. The message about your client was sent to your client instead of your friend. We’ve already established that it’s easy to send a text or email to the wrong person. How do you recover from this?

PAR hosted a webinar in October titled “Best of the Legal Hotline: And They Got Caught!” . This was a compilation of several actual and recent cases where agents were subject to disciplinary decisions by the Pennsylvania State Real Estate Commission for various acts of poor conduct.

Case 7 was about a Salesperson who accidentally emailed the buyers about the buyers when the Salesperson intended to send it to another agent. The Salesperson wrote in the email that they were hoping the buyers were homeless for months since they were difficult in the sale. The buyers requested that the agent withdraw from the transaction. The Salesperson was fined $1,000 plus $590.29 in investigation costs, and they were assigned 10 hours of CE courses on ethics.

It’s a warning to all of us to not become an idiot when we’re stressed out. This business is stressful and some clients will be very frustrating to work with. Figure out how to deal with it without putting yourself in a position where your words will haunt you and jeopardize your career.

Case 8 involved texts mistakenly sent to a client. The agent sent 2 texts to clients trying to schedule an appraiser visit. Then sent 2 more texts, including racial slurs clearly directed at the client. The agent had meant to send these to a friend. The Broker fired the agent and released the client/sellers from their contract. The agent was handed a $4,000 fine plus $485.04 in investigation costs. They were given a 3 year license suspension that was immediately stayed in favor of probation, meaning the agent will be on probation for 3 years. They were also assigned remedial education as a term of the probation, to include the courses “NAR At Home With Diversity” and “NAR Fairhaven”.

I think this agent got off light. The moral of this story is not to suggest that agents shouldn’t put their racial slurs in writing. If you have the impulse to demean your clients with racial slurs, you have a lot more work to do than taking those two NAR courses. You have no business doing this business. The moral of this story is that there are real world ramifications to what can be a brief lapse of judgement, a short fuse, a minor complaint. When sent to the wrong person, it can cost you your license, and depending on what was said, it should.

You should know that you will invariably get frustrated by the decisions and behaviors of some clients. It’s part of the job. Sending a text or email in the heat of the moment to vent to someone could backfire in a big way if you mistakenly send your rant to the wrong person. In summary, these real-life examples underscore the importance of careful communication in real estate, cautioning agents to be mindful of their messages to prevent unintended professional ramifications.

The State of Things

Fri, 01 Dec 2023 18:27:01 GMT

On the home front, governance, war, inflation and rate hikes are some of the most talked about topics right now. Not cheery topics I know, but relevant to what we do and how we do it.

Since 1950, the S&P 500 has historically declined in September 55% of the time and the last two weeks of September 2023 have lived up to the reputation as typically being the worst of the year.

The impact of higher short-term interest rates is being felt; homebuyers saw the average 30-year fixed rate reach a 23-year high. It is speculated that the Fed is most likely nearing end of aggressive rate hikes.

Here in the 4th Quarter, historically, the S&P 500 performs the best during this time (mainly Nov and Dec) however, the stressors of the U.S. having no speaker of the House of Representatives and the ongoing Ukraine War and now the most recent lsrael-Hamas conflict, stock watchers sit with baited breath to see how the markets will react. Prognosticators wonder aloud if the market will take geopolitical events in stride. As is customary, everyone wonders if oil prices will be impacted if conflict spreads in the Middle East. When combined with the fact that the U.S. needs to stop an impending government shut down in only a few weeks with no clear leader for the speaker job in sight, multiple variables continue to be at play affecting market vibes. Consumer confidence has taken some serious blows.

To say that things are a mess at home and abroad is an understatement. There are not enough houses on the market for sale. There are people in need of homes who cannot get into one and not enough apartments that people can afford. There are senior citizens living in paid off homes where they cannot afford the taxes. They have enough equity that they could sell and go into smaller houses but again-there are not enough smaller affordable houses for sale or even apartments to go to. There are young families having more children and needing larger houses and yards who are staying put in little starter homes waiting to see if things change for the better. There are apartment dwellers waiting for the conditions to improve before they join the fray.

On the Commercial and Industrial side of things there is a shortage of affordable Class B industrial space. Good Class B space generally means practical, not all that fancy, but solid, functional storage or manufacturing space with the required amenities of power and docks in a decent location. This asset was typically always plentiful in the Lancaster market. Class B space is used as both long-term dedicated operational space and as transition space for companies expanding or solving evolving growth issues. Conversely, there is an absolute glut of office space seemingly everywhere in the county, and in the rest of the country for that matter. There are people looking for good Class B space that are settling for whatever they can find which is not ideal at all. Others are stuck improvising and having their business growth limited and restricted because they cannot grow. Additionally there are people who would love to convert their now obsolete office space to some other functional purpose who cannot do it for reasons of zoning or construction or the higher cost of money.

What is the Realtor to do? Keep trying. Keep reaching out. Soldier on, speak out, and rise above the fray to serve. These are the times that separate the wheat from the chaff. Old timers will tell you stories of when interest rates were 17% and they struggled to make their car payment. Also, please note that same car was what they used to transport their buyers around to see houses in those days- so it was a really BIG deal. Remember that if they made it through that and are still around today they have insight to share. Ask them about it! Urge your frozen clients to use this time to get their homes ready, build their credit scores and save while they wait. Be a tool in their toolbox for when they are ready. Stay in touch and stay relevant. Get creative, find a niche. Do not commiserate. Instead, inspire and help your clients to overcome their resistance to move forward in a world that is seeing people hunker down and do nothing.

This industry is not for everyone. It has survived countless wars, stock market crashes, natural and terrorist disasters, interest rate fluctuations, elections and even a pandemic ... and it will see more. However, if you want to become an old timer someday, put in the effort now so that you too can tell stories, years from now, about how awful it was and what you did to survive it and how you made it work for you- and for your clients. Above all, remember that this too will change. It always does. Change is the one thing about which you can rely.

Althea

October 18, 2023

Supply Plumbing in Older Homes

Tue, 21 Nov 2023 19:50:12 GMT

When inspecting older homes, I often find quite a variety of plumbing supply materials. Copper is the old reliable dating back to the 1930s and still is in use today, although to a lesser extent due to cost.

Older Types

Lead was used until the 1930s, but due to health issues related to lead exposure and ingestion, it luckily found its way out of the plumbing world as a supply material.

Galvanized steel is still found today in older homes, although it is almost always now found with other materials (such as copper, CPVC, PEX, etc.). When certain dissimilar metals meet, they can react with each other and quickly corrode the pipe material, leading to leaks. Copper and steel are two such metals. Therefore, whenever copper and steel meet, a dielectric union should be installed between them. A plastic or rubber gasket actually separates the two metals so they can not touch.

Copper became much more common in the 1930s and has been in use ever since. It has a long-lifelife expectancy compared to some other plumbing materials.

Galvanized steel, for example, may last only 40 or 50 years before it has rusted through. Also, when galvanized steel rusts, it expands approx. 8 times its original size. Therefore, a galvanized steel pipe that had an inner diameter of 1” when new, may only have an inner useful diameter of 1/8”. This is often the reason for low water flow at bathroom or kitchen sinks in older homes. Keep in mind that most of the home’s plumbing is hidden in walls, ceilings, or flooring and that the plumbing material you see under the sink may not be the only plumbing material supplying water to that fixture. Copper pipe may be visible under the sink although within the wall, there may also be galvanized steel pipe.

Water flow issues

When the flow is low enough to declare it insufficient for normal use, it’s often time to call in a licensed and qualified plumber to evaluate the system. Replumbing, at least, part of the home may be the plumber’s recommendation. In a large home with a high amount of still functioning galvanized steel pipe, the cost to replumb may be quite high.

Another possible cause for low flow at kitchen and bathroom sinks can often be fixed rather easily. If the spigot’s aerator is clogged with sediment, this can drop the flow way down. Carefully unscrewing the aerator should show if sediment is indeed limiting the water flow. I tend to find this issue more commonly in homes with wells since they can easily pick up sediment from the well. A sediment filter in-line with the well’s pressure tank can help prevent this issue. That’s not to say sediment can’t clog aerators in a home with public water, but it’s less likely.

Other options beyond copper

While copper has been the standard supply pipe material for the past 70 or so years, the price of copper has risen the past few decades making other materials much less costly. It doesn’t seem that we can go a month or two without hearing a story on the TV news of someone breaking into a vacant home and stealing the copper pipe and wiring.

A material called polybutylene (or “PB” for short) came out in the 1970s and was supposed to be the next greatest thing. This material came in several colors, although the most common color in this area is grey. It normally will have “PB2110” printed on it every few feet.

The plastic pipe material didn’t require soldering and it was bendable, and this allowed for lower labor costs. Pieces of PB pipe are mechanically fastened to each other with metal or plastic fittings, while copper pipe and its fittings are soldered together. After some use, however, polybutylene was found to have issues itself. It is believed that the when hot chlorinated water passes through this material, it causes the fittings to become brittle and corrode which can lead to leaks. Different types of PB fittings have come out, however the material was taken off the market around 1995 after a $950 million classaction lawsuit settlement. There was also a 2nd class-action lawsuit as well. Both classactions have since expired (run out of money). Personally, I see polybutylene in maybe 5% of the homes that I inspect. Interestingly, I’ve only ever seen PB pipe leak once in over 21 years inspecting homes. Based upon the size of the class action settlements, PB pipe obviously has its issues regardless.

Chlorinated polyvinyl chloride (CPVC) became popular in the 1960s and is still in use today. This material is primed and glued to its fittings with special cement products. Since there are no mechanical fasteners, such as what polybutylene uses, CPVC is quite durable and long lasting. This material can be used for hot and cold water, whereas it’s ‘cousin’ Polyvinyl Chloride (PVC) is only rated for cold water. I occasionally find PVC installed as the discharge pipe on a water heater’s temperature/pressure (T&P) valve; that is a faulty and potentially hazardous installation.

In the 1980s, a new pipe material called PEX or Cross-linked Polyethylene became popular in the US and is still in regular use today. In most new or recent construction that I inspect today, I commonly find PEX or CPVC. PEX comes in clear, white, and red and blue varieties. Th e red and blue color coding makes it easier for plumbers to fish the pipe through walls and ceilings to ensure the proper pipe is connected at the other end to either hot or cold water. The only difference between red and blue PEX is purely the color. A PEX plumbing system is assembled using mechanical or compression fittings. Another advantage of using plastic plumbing materials over copper is that much more heat is lost from hot water through copper than the plastic materials, which can lead to energy cost savings. Energy loss due to copper piping can be lessened to some degree by installing pipe insulation over the material. Pipe insulation can be purchased at most hardware stores and is quick and easy to install.

As with any type of plumbing in the home, I always suggest to my clients that they regularly check any accessible plumbing (basement ceiling, under sinks, etc.) since it’s always better and cheaper to fix a minor leak than a big one that’s been going on for a while.

Student Loans: The Fall Thaw

Tue, 21 Nov 2023 19:18:03 GMT

A little over three and a half years ago, the world came to an abrupt stop. Businesses shuttered, schools closed, and people were told to stay in their homes all in the name of COVID.

Many financial-related responsibilities were put on hold due to individuals being temporarily displaced by their employers and the unknown impact to their income. Individuals with mortgages and auto loans were able to request a forbearance agreement for some financial obligations and the federal government enacted a freeze on student loan payments and accruing interest.

Although the mortgage payment and auto loan obligations resumed after a few months, the hold on student loan payments and accruing interest remained frozen. Until now…

Interest began accruing on federal student loans effective September 1st with payments resuming during the month of October. The resuming of student loan payment obligations could have a significant impact on many homebuyers and their buying power.

The student loan payments that were on hold were treated as deferred student loan debt in mortgage world. When student loans are in deferment, there usually is not a monthly payment reported on credit, however that doesn’t mean a monthly payment obligation isn’t taken into consideration when analyzing a borrower’s debt-to-income ratio. The guidelines on calculating a monthly payment in this situation vary depending on the individual loan program.

With Fannie Mae (Conventional Financing), 1% of the outstanding balance is calculated as the minimum monthly payment. Freddie Mac (also Conventional) requires .5% of the outstanding balance to be considered as the minimum monthly payment. FHA and USDA Rural Housing follow the same calculation as Freddie Mac - .5% of the outstanding balance. VA loans use a few different formulas to calculate a minimum monthly payment.

Since student loan payments are resuming, it is likely that the actual monthly payment will be higher than what was considered as a minimum payment, thus impacting many homebuyers’ qualification.

Assuming a $37,000 balance in student loans which is the national average, the likely monthly payment used for debt ratio calculation over the past 3 1/3 years was $185 and the fully amortized payment beginning in October would be a little over $400 assuming a 5.5% interest rate over 10 years. That $215 increase in monthly payment is equivalent to about $30,000 in buying power meaning the buyer could potentially qualify for a purchase price $30,000 less than the prior pre-approval. With home prices remaining at high levels and interest rates not showing any sign of retraction, this could easily cause a delay in homeownership goals to many buyers.

From an industry perspective, agents as well as loan officers should make sure that buyer’s mortgage pre-approvals are up to date with these new changes. Most lenders obtain a “soft pull” credit report within a week or two of closing and if an unexpected increase in monthly obligations occurs, it could easily derail an entire deal.

Potential homebuyers who have student loan debt should take action immediately to obtain information from their current student loan servicers to understand what their monthly payment obligations are moving forward. In some cases, there may be an opportunity to request an income-based repayment schedule which may reduce the minimum monthly payment and help lighten the load of payment shock and help with mortgage qualification.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

Don't You Dare Disclose That

Tue, 21 Nov 2023 18:53:42 GMT

So, your seller has an inspection report. It may be weeks, months or years old and was issued when your seller was a buyer, or perhaps by a more recent buyer who did not purchase the property. The seller gave it to you because you asked, or perhaps because the seller thought you should have it. When you read it (you will read it, right?) you find out about a suggested problem that is not visibly apparent. Maybe the inspector opined about a moisture problem behind a stucco exterior, or a foundation problem or something else that you cannot verify by a visual inspection of the property. When you read the report against the Seller’s Disclosure Statement, you realize that the seller didn’t go far enough in disclosing the potential issue noted by the inspector. When you suggest to the seller that she did not sufficiently disclose what the inspector “found” she adamantly disagrees. She tells you the inspector was wrong and that the property does not suffer the problem the inspector had “questioned.” She tells you that you are not to reveal the matter because it does not exist.

What to do? The Real Estate Seller’s Disclosure Law (RESDL) is clear. A real estate licensee has an obligation to disclose material defects not disclosed by the seller. “Material defect” is defined twice in the disclosure form (a problem that substantially impacts value or human habitation). Thus, if the prior inspection report is accurate, it has to be disclosed; if it is not, then no disclosure.

Based on the information I’ve provided, the answer is elusive though there are several ways to hone in on the right answer. You can get a second opinion. Hire an expert and give that expert a copy of the prior inspection report and ask him to verify its accuracy. If the expert also suggests the problem, then disclose. I would not advise shopping this matter with multiple experts until you get one who says what you want!

In all but the rarest exceptions, I would still disclose that portion of the prior inspection report that notes the problem, together with the newer report that eliminates it. If the new inspector completely, positively, absolutely finds that the previously reported problem never existed, you might consider omitting mention of that previous report. Then again, what’s the problem with providing an older report together with a new one that absolutely rules out the problem (the preferred course)?

Another option is for your seller to make the repairs. You will have to analyze whether selling the property without the defective condition will net more than discounting the price and not repairing the condition. What do you think?

The worse thing that could be done is to accept the seller at her word and not update the disclosure to reveal what the prior inspector found. When the new buyer discovers the problem, he or she will undoubtedly run across the fact that there had been a prior inspection, a prior repair estimate or a previous buyer who walked away after discovering the problem. It happens far more often than you would imagine. Then, you the listing agent are seen to be a co-conspirator with the seller in efforts to hide a known or at least highly suspected material defect. This is the kind of thing that leads to ethics complaints and civil actions and the threat of punitive damages or treble damages under Pennsylvania’s Unfair Trade Practices and Consumer Protection Law. The latter provides that fraud or even engaging in a course of conduct designed to confuse, can be met with an award of actual damages times three! Keep in mind, your E&O insurance coverage may not cover you for punitive or unfair trade practice damages.

When you take the position with your seller that the suspected defect must be disclosed (disclosed by you if she does not), you’re likely to encounter a tussle. Some sellers think they have the absolute authority to tell you what to reveal and what not. But as noted above, RESDL requires your disclosure of the material defect not revealed by the seller and why take chances based on the seller’s representation that the problem is not a defect? If the seller is unwilling to allow disclosure, then you have to make a decision that I think is easy: fire the seller.

Perpetual Adaption: The Local Mall

Tue, 21 Nov 2023 15:56:43 GMT

Lately there has been nationwide speculation about the future of brick-and-mortar retail, specifically and most notably in the form and function of the shopping mall. Long before the Covid shutdowns, the traditional enclosed shopping mall was perceived as experiencing a denouement. Americans had started to change the way they were purchasing goods, and the impacts were causing a shift, made even more noticeable when the country shut down and then opened back up again.

I decided to look at two local malls to see how and what they have done over the years to flex with the times in order to deal with and survive the waves of economic feast and famine. I was quite surprised to find that literally, since they were built, the steady stream of change has been ever present. From the very beginning the concept of indoor enclosed shopping promenades with their comfort and climate-controlled atmosphere was designed to be an experience rather than just a convenience. I was also intrigued to learn how these malls had affected their local area's infrastructure and development in ways impacting both residential and commercial components.

In the news lately, there have been endless stories of how malls across the US have been adapting. If you listen to the headlines, it sounds as if this has come about since the coinciding of the pandemic with internet shopping. This made sense to me as someone who does not practice the specialty of retail sales or leasing as pertains to commercial real estate. I am, however, an avid shopper. As a casual observer in this realm, I am a layman. I have been largely oblivious to that which is not part of my direct experience and was quite surprised to learn of the dedication to adaptive reuse immersed within the world of the mall.

As most of us can identify best with that which most closely affects us, I wanted to look a little deeper at two places that most of us can relate to as having been to first-hand in our own part of the world.

York Galleria Mall

To tell the story of the York Galleria, one must go back to the original York Mall. Built in 1968, the York Mall was located in the 2800 Block of East Market Street in York, PA. While big cities did have enclosed shopping centers, the York Mall project was the first of its kind in our local region and was quite cutting edge. Prior to this, all shopping was done in the center city of downtown York in scattered stand-alone locations. The mall offered not only one-stop shopping but also an atmosphere of music, beauty, fun and entertainment. The three anchor stores were Hochschild Kohn, JC Penney and Montgomery Ward and they were connected by enclosed hallways filled with smaller stores. The mall had multiple floors, 4 fountains, a large buffet restaurant, an 820-seat movie theater and 4,200 parking spaces. Outparcels for ancillary uses held a grocery store and automotive services, which surrounded the main mall. There was even a branch of the US Post office along with a pharmacy and multiple banks.

1975 brought the first changes. Anchor tenant Hochschild Kohn left and Bon-Ton went into its place. The movie theater was split into two smaller theaters and fast food started to appear. Over the next decade, in-line stores came and went but the finishes and condition started to deteriorate as throngs of people tend to have a detrimental effect on a building's surfaces, structures and decor unless they are periodically replaced and meticulously maintained.

In 1987, not far away, a new and improved mall was being built that had a better location just off US Route 30. The anchor stores of the York Mall JC Penney and Bon Ton jumped ship and signed on to the coming York Galleria Mall. In 1990, the end of the York Mall came in the form of a new to the area retail entity called Sam's Club. With it came its cohort, Walmart which initially took the vacant JC Penney space. This too was cutting-edge as it was Walmart's first move north of the Mason Dixon line. Before long, the York Mall was demolished and the largest (for a brief time) Walmart Superstore was erected. Today it is still there, along with Sam's Club, Burlington and the neighborhood commerical outparcels, but no sign of the original enclosed York Mall exists.

The York Galleria opened in 1988. The anchor stores were JCPenney, Sears, Boscov's and Bon-Ton. Its finishes were modern for the time, finished in soft pastel colors in durable materials like white ceramic tile, quite feminine in design with glittery chandeliers, skylights, escalators and glass elevators on two light-filled floors. A large food court with all of the most popular fast food providers was placed central on the second floor between the anchors and there was one sit down restaurant a TGI Fridays inside the mall. In 1998, the western retail outparcels were built with Kohl's Department Store moving in first with Target and Michael's Craft Store opening in 1999. In the ensuing years, outparcel restaurants filled in the Eastern areas with sit-down dining options. The first major sign of economic based systemic change came in 2015 when JCPenney announced it would be closing. That anchor spot was completely remodeled into two uses, a Gold's Gym in 2017 and Marshall's Department Store, which opened in 2018. In 2019, serious problems resulted in greater transformation when both Sears and Bon-Ton closed, and adaptive reuse took hold. A fully climate controlled mini self-storage facility took over the former Bon-Ton and Hollywood Casino opened in August 2021 in the Sears spot after many years of delays. 42 stores (including restaurants) were listed as 'Open for Business' at the York Galleria property following the Covid shutdowns. More changes are coming to the Galleria in a valiant attempt to save the 35-year-old mall as it continues to adapt.

The surrounding municipalities around York, PA saw a proliferation of other retail and shopping center locations open and close over the years after the grand opening of the York Mall. Some of those have succeeded through adaptation, complete reinvention and retrofit, and others have failed. The York Mall started the ball rolling and was a catalyst for the expansion and bloom outward from the center city to the suburbs in every direction. Subsequent retail development along with the warehouses and distribution centers created the need for the increased network of roadways, bridges and infrastructure to support them. Eventually it all filled in with people in the forms of residential housing and commerical uses like offices, business centers and neighborhood services. These changes, along with other coinciding factors, all evolved together to create the landscape that we see today.

Park City Mall

Construction started on Park City Mall, which was also known early on as the 'Mall of the Four Seasons', in 1969 on a field located close to basically nothing but US Route 30 two miles outside of Lancaster City, PA. The parcel totaled 134 acres. It opened in stages with the anchors each opening separately but the official grand opening year was 1971 with 1.4 million leasable square feet and 7,000 parking spaces.

Four anchor department stores, with the first opening being JC Penney occupying two stories totaling 261,900 square feet in July of 1970. Watt and Shand followed on two levels with 143,000 square feet in September along with Gimbals, which had 180,000 square feet. Sears, the 4th anchor opened after dedication in 1972 in a two level 167,000 square foot space. One Hundred stores filled the hallways in between the anchor stores. The configuration and floorplan design of park City Mall was quite unique. The structure was designed and built around a huge octagonal center court featuring a giant fountain and overhead bronze sculpture of wildlife created by a local Lancaster artist. Four main hallways started at the Center Court and led outward to the anchor stores as if they were rays of the sun. These were all finished and decorated differently in themes for the seasons of the year winter, spring, summer, and fall. Four other smaller/shorter hallways also came off this center court. Parking was all around the mall, 360 degrees. Shoppers could enter and exit from every one of the 8 halls and at all of the anchor stores and at other areas as well adding to the convenience and ease of access. Initially the entire mall was carpeted and faux plants and seasonally specific color palates decorated the individually themed hallways. Closed circuit TV kiosks dotted the halls where shoppers could experience modern advertising rarely seen before. Space below the main floor housed a myriad of entertainment options like a kiddie ride area, mini golf and skating rink, which morphed into other uses over time.

The first of countless renovations started in the early 1980's when the carpets were removed and replaced with resilient flooring and cosmetic upgrades followed. Skylights were added which made a remarkable difference. Center Court changed dramatically over the years. The main center fountain was covered over in 1985, used as a stage, and then fully removed. Changes were made to the center court ceilings, which were eventually raised and opened to the air, over which a tent-like peaked covering was installed. In 1985, the 16 bay Food Court was added in the lower level, accessed by the JC Penney Mall, creating a new concept in dining. The lower level renovation added another anchor and Clover joined the mall (which later became Kohl's) at 85,000 square feet on one story, reportedly at a cost of $7 million dollars. In 1986, Gimbels closed and became Pomeroy's Department Store (briefly in 1987) and then became Boscov's in 1988. The Watt and Shand anchor store closed and Bon Ton arrived in 1992. In 1997, yet another remodel added a full-size 22-seat carousel at center court (which was removed in 2004). 2007 through 2008 saw an extensive renovation/addition of the Fountain Shops fac;ade and collection of 10 shops in a newly conceived 'lifestyle format' which added back a fountain to the mall and increased leasable square footage at a cost of (reportedly) $13 million dollars. Construction took 18 months. At completion of that project, the mall stood at 1,443,000 square feet and had 170 stores.

There were always many other things to do at the mall, aside from shopping. Over the years, a movie theater, ice and roller-skating rinks, a mini golf course, a fitness center, bumper cars, a public TV station, a farmers and a flea market, beauty contests, fashion shows, charity events, crafters markets, circuses, hockey games, car shows, art displays, fitness clubs, health fairs, community events and fundraisers and even a vaccination center have all been features of Park City. Generations of Lancastrians have experienced the holidays at the mall, visited with Santa and the Easter Bunny as well prepared for back to school and had their first jobs while senior citizens walk together and meet at the mall to stay active and social. Outparcels with additional stores, restaurants, banks and auto service dot the landscape.

In April 2018, Bon -Ton announced it would close and in December of that same year Sears announced the same. In 2019 the mall announced plans to demolish the Bon-Ton and embark on another extensive renovation focused on dining with enhanced greenspace experiences and more parking, but that went on-hold as the pandemic shutdowns affected everything. In 2020, the former Sears store was partially converted to Round1, which is an entertainment facility with bowling, an arcade and a kid-zone area.

In 2023, the mall ownership has said that they may not raze the Bon-Ton, but instead keep it for adaptive reuse. The owners have recently applied to subdivide the property with an eye toward the future, seeking flexibility where instability remains.

Shopping in Lancaster originally meant that all county residents had to go downtown or rely on their local hardware stores or individual town and borough shops. Park City changed that, and eventually many large retail complexes (but not enclosed malls) were built in the 1980's such as Lancaster Outlet City on Lincoln Highway in 1982 (now Tanger Outlets) and Rockvale in 1986 which is now being completely envisioned with a heavy residential component. Transition is as evident here in our local market as it is nationwide.

Lancaster at US Route 30 and Harrisburg Pike looks remarkably different 52 years after Park City Mall first opened. Since then, the development of literally everything in Lancaster has come well out to the farmlands. Park City no longer sits alone out on the far side of the highway. Early on, development came around the new mall. Aside from the outparcels, apartments were built to coincide with the opening in 1969. A United States Postal hub was built nearby on Harrisburg Pike in 1979, increasing traffic flow to the area but actual major commercial growth happened slowly. The LGH Health Campus was built in 1994 and has since grown with numerous medically related buildings and ancillary services like a pharmacy and an urgent care center. In 2000, a new maternal hospital was built by Lancaster General and in 2013 a state of the art cancer clinic. A hospice center was also built nearby. Several retirement home lifestyle complexes have been developed, along with residential neighborhoods and the ever-increasing retail and neighborhood commercial uses. The Crossings Shopping Center project was first conceived in 2006 but not completed until 2017. When fully realized, the center encompasses 90 acres of shopping, entertainment and residential rental living with full amenities. The roadways and streets throughout the area have been widened, upgraded, improved, replaced, redesigned, rebuilt and continually need to be maintained with the increased density.

While survival of the traditional mall, as it was originally conceived and brought to life, is highly unlikely, the most nimble and creative retail operators will continue to flourish with a continued finger on the pulse of what the public both need and want. It could be argued that retail in the form of the mall played a huge role in shaping our local communities just as much as the titans of industrial manufacturing did after WWII. For better or for worse, the history of our local malls could give a person who just loves a good shopping trip pause to consider the long-term implications, or maybe to have a whole new respect for the geniuses that conceived of the initial concept in the first place.

Double-Keyed Bolt Locks and Potential Safety Concerns

Mon, 20 Nov 2023 20:02:05 GMT

Bolt locks are not really an exciting topic to write about and they are not something that most homeowners really ever think about, but they should. For over 20 years, I’ve always recommended to my clients that one of the first things they should do after closing is to change all of the locks on their new home’s exterior doors, even in new construction. You never know who else may have a key to the existing locks. It’s an inexpensive and a commonsense security maintenance task that is easy to do and takes maybe 15 minutes per door.

There are 2 types of bolt locks commonly seen in residential homes: the levered type (also called a thumb-latch type) and the double-keyed type. The levered or thumb-latch type is keyed on the exterior side only and has a rotating dial or latch on the interior. You need a key to get in (assuming the lock is engaged) and you can easily unlock the door and exit from the interior by simply turning the latch 90°.

The double-keyed type requires a key to get into or out of the home, assuming the lock is engaged. This is a potential safety issue. In the event of an emergency, a house fire at night time for example, if the key is not in the bolt lock, it may be difficult to locate the key in the dark and smoke in order to get out. You never know where a fire could be in the home, so don’t assume you can access the key in your normal ‘storage spot’ when you’re panicking and time is of the essence. In some cases, breaking a window can be an option for egress in this situation, again assuming you’re not blocked from the closest window by a fire or furniture or stored items. For small children, the elderly, or someone who does not normally live in the home, they may have no idea where the key is stored or may not be able to reach the key. This can lead to someone being trapped in a burning home. Just last month, there was an article published about a house fire and two of the residents were found dead near the front door. It had a double-keyed bolt lock and no key in it and it appeared to the firefighters and the fire marshal investigating afterwards that the victims were trapped in the home.

Section 311.2 of the International Residential Code or IRC (the code used to build new 1 and 2 family homes no more than 3 stories in height) states that: “Egress doors shall be readily openable from inside the dwelling without the use of a key or special knowledge or effort.”

The above requirement for locks at egress doors goes back to, at least, the 2000 IRC although the verbiage was located in a slightly different paragraph of the IRC back then.

Of course, older homes that predate a specific building code are grandfathered in most cases, but safety doesn’t care when the home was built or what code was enforced at that time. Some areas, such as Manheim Township, forbid the front door of any home from having double-keyed bolt locks no matter when the home was built (new or existing). As time goes on, other cities and townships may follow suit for existing homes. Manheim Twp. has a 4-part occupancy permit process when homes are sold there, but a new occupancy permit (and twp. inspection) are not necessarily required every time a home is sold there. If selling a home there, check with the township office. One of the items included in Manheim Twp’s occupancy permit inspection is the bolt lock at the front (primary) door.

Ready, Set, Close?

Mon, 20 Nov 2023 20:02:03 GMT

Quick closings have seemed to be gaining popularity in the current housing market – especially in Central PA. The competition of cash buyers who often can close within a week or two have put pressure on buyers with financing to commit to being able to get to the closing table in a short amount of time. In many cases, the mindset from the seller’s perspective is “the sooner we can finalize things, the better.”

So how quickly can a mortgage transaction be processed? Well, the answer is, “it depends.”

There are a variety of factors to consider figuring out what a lending timeline looks like – no two borrowers and transactions are alike so of course it can vary.

Traditional agency programs – Conventional, FHA and VA that can be processed and underwritten by a lender in-house are the most efficient. Outside agency programs such as USDA Rural Housing, Pennsylvania Housing Finance Agency (PHFA) and Tenfold (formerly LHOP) have additional processing times since in most cases, once the lender is done with their approval, the loan file then needs to be processed and approved by the outside agency as well.

The appraisal timeline can be a moving target and heavily drive a closing date. With appraisers being an outside party in the transaction and independent firms, lenders have no direct control over their efficiency. Some lenders use an Appraisal Management Company (AMC) while others have their own internal pool of appraisers. Having an internal pool is usually a bit more efficient but there are also pre-established expectations for the appraiser to complete an order. Appraiser’s ability to complete an inspection and report are also going to be driven by the property type, the location and of course their current workload and schedule. Although the turn time of the appraiser order to receipt of the report can happen in a few days, a timeline of 10-15 days is often considered normal.

The borrower profile also is a significant factor in the closing timeline. Many loan officers are proactive and obtain full documentation in advance from a borrower – pay stubs, W2s, tax returns, asset accounts, etc. If a borrower can provide all that is needed for processing and underwriting of a file in a quick, efficient manner, then the workflow is much more efficient. No matter how much documentation is collected in advance, some unique borrower circumstances can often cause delays. Self-employment usually requires additional documentation. Other borrower situations such as separation and divorce, multiple employers, ownership of multiple properties, multiple asset accounts, gift funds, credit issues and more can add to the processing timeline of a loan file.

Working with a local, experienced loan officer can also create a greater opportunity for a more efficient transaction. Although we are migrating towards an electronic, paperless culture with mortgage processing, in many cases borrowers do need to bring documents to their loan officer and meet in person. This is easily coordinated if the loan officer is in Lancaster County or nearby – not too simple if they are located “somewhere” in the Midwest.

Ultimately a realistic timeline from contract-to-close is about 30 days. A “quick-close” can happen in 14-21 days and the customary timeline would remain about 30-45 days. Variables will always need to be considered with the previously mentioned criteria, individual lenders, as well as market activity and volume.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

An Interview with LCAR's Executive Assistant, Olivia Bevensee.

Mon, 20 Nov 2023 20:02:01 GMT

Original Post Date: August 29, 2023

Join Richard Boas III, Chair of LCAR's Member Engagement Committee, as he interviews LCAR's Executive Assistant, Olivia Bevensee. Together the two take a tour of the LCAR Office while Olivia shares her daily duties and responsibilities. Whether you are new to LCAR, or a longtime member, this is a special interview you don't want to miss!

Disclosures by an Estate

Mon, 26 Jun 2023 15:12:33 GMT

So everyone is familiar with the Real Estate Seller’s Disclosure Law (“RESDL”), right? I’d agree that most are, except when it comes to exceptions! And the exception that seems to cause most confusion is that applies to decedent’s estates.

The law makes clear that a transfer by a fiduciary in the course of the administration of the decedent’s estate need not provide a real estate seller disclosure form. So why is it that executors frequently provide completed forms?

Regardless of what you may know of RESDL, it does not represent the totality of Pennsylvania’s real estate disclosure requirements. Common law (case law), years before the passage of RESDL, abrogated the doctrine of caveat emptor (buyer beware). On a decision by decision basis, Pennsylvania courts have found duties to disclose adverse conditions that a reasonably prudent buyer would or could not learn of by way of a casual examination of a structure and its surrounding property. Contaminated wells, radon, are good examples but just about any major problem known to a seller and undetectable by a buyer require disclosure regardless of the applicability of RESDL and its requirement to furnish a disclosure form.

Thus, while RESDL may not require an executor to provide a form, common law requires that he disclosure a material defect not readily apparent. Many listing agents will ask an executor, especially with one familiar with the property, to complete a disclosure form as it alerts the executor to all of the systems and components that should be considered when trying to recall the problems. That can work but unless the executor lived in or cared for the property there will be many ‘unknowns’ on the form. That can lull a buyer into believing there are no problems and perhaps is a good reason why the executor might forget the form and merely indicate, in writing, what he knows to be a problem.

To repeat, while an estate may forgo the disclosure form requirement, material defects must be disclosed. And should the estate agent have knowledge of material defects not disclosed by the executor, the agent will be liable for non-disclosure. This is so even when the sale is “as is.”

It gets more complicated if the agent suspects a defect that the executor thinks need not be disclosed. This happens in traditional sales when a seller wants to seek disclosure of a questionable problem. I don’t think this is all that difficult to resolve: If you are not permitted to disclose a condition you consider to be, or likely to be, a material defect, terminate the listing. You are justified and besides, how hard is it for the selling estate to find another listing agent?

An alternative is to have the estate engage an expert to evaluate the problem. Even if that eliminates the question (no problem found), I’d still disclose any prior reports citing the problem together with the more recent evaluation. A good practice is to always assume that a buyer will eventually learn of a prior adverse report, and when not shared, will assume fraud.

Happy Summer to all!!

Appliance Maintenance Tips

Fri, 09 Jun 2023 17:45:01 GMT

Like everything else in life, regular maintenance is key in helping to keep your home’s major appliances in proper working order for a long time. This article provides some tips which can help keep them working as designed, help keep your energy costs in check, and help prevent future headaches.

Refrigerator/Freezer –

A refrigerator/freezer works on the same principle as an air conditioner. It uses a refrigeration cycle to move heat from inside the appliance and redistribute it to the kitchen air. It does this through the appliance’s rear opening(s) using coils, a refrigerant, and a compressor. To function properly, the refrigerator must have, at least, a few inches between the appliance’s rear and the adjacent wall. Without this needed space, the appliance works extra hard which means it runs longer, raises your electric bill, and may also shorten its life.

The back of the refrigerator/freezer needs to be cleaned regularly (at least annually) because dirt, dust, and cobwebs can limit this needed air flow of heat out of the appliance. Sometimes a plastic or cardboard cover needs to be removed. A vacuum cleaner with a hose attachment can make short order of this cleaning.

Checking the door gaskets of the refrigerator/freezer is important. Over time, the door gaskets can become deformed. If this happens, cold air leaks out of the refrigerator or freezer making the unit work inefficiently and harder. Again, this means higher electric bills. Freezers should be set between 0~10º F and refrigerators between 32~39º F. Also, if your refrigerator/freezer has a water line behind it, check it periodically for leaks.

Dishwasher –

The job of a dishwasher is to clean and sanitize your dishes, glasses and silverware. If improperly installed or maintained, it can’t perform this function well. Something that I find very often when inspecting homes is the dishwasher drain is not properly installed. Dishwasher installation instructions normally tell the installer to either use an air gap or a high loop although this is often ignored. Either option helps prevent the backwards flow of dirty contaminated water back into the dishwasher. High loops are a simpler option.

In most cases, the dishwasher’s semi-flexible drain line runs through a cabinet wall between the kitchen sink and the dishwasher. Ideally, this drain penetration should occur up high (just under the countertop) but should it occur near the cabinet’s lower shelf, a portion of this drain should be clamped up high (just below the countertop) so that the drain then discharges downhill either into the sink drain pipe or a disposal. If the termination location is the high point of the drain’s run, dirty contaminated water can easily run back into the dishwasher by gravity.

Many people also never clean the filter which is located below the dishwasher’s lower spray arm. This filter is where the dirty water from the dishwasher’s cleaning cycle drains out. Large food debris can clog this filter resulting in water accumulating at the bottom of the appliance. The filter most often snaps in and out of place for cleaning.

To prevent the dishwasher’s door from leaking, regularly inspect the perimeter rubber gasket. With regular usage of the dishwasher, the gasket should stay semi-flexible due to water. If the dishwasher gets used rarely, this gasket tends to dry out and then the door leaks once the dishwasher is run again.

Stove/Oven –

The maintenance needed with a stove/oven is pretty simple and really just entails cleaning the cooktop and oven’s interior. Glass cooktops should be cleaned with a cleanser meant for that purpose; abrasive cleaners can damage glass cooktops. Old food debris on the cooktop or inside the oven can potentially catch fire. Many ovens have a self-cleaning function which is often helpful in removing caked-on debris inside the oven.

A safety feature which I find missing in approximately 95% of the homes that I inspect is the anti-tip bracket. Since 1991, floor-mounted (free-standing) stoves have come with an L-shaped metal bracket that gets mounted to the floor behind the stove. A small groove in the stove’s rear or bottom allows the appliance to slide into the bracket. The anti-tip bracket’s purpose is to prevent the stove from tipping out when weight is applied to the oven’s open door. This can be from pulling out something heavy from the oven (think of a turkey) or even a child or pet putting weight on the open door. If the stove can tip out, this presents an injury or scald hazard and can even be deadly. Several large well-known appliance stores have been involved in lawsuits over the years due to their installers not installing the supplied anti-tip brackets and consumers being injured or killed due to their stove tipping out.

Laundry Appliances –

If your laundry appliances are installed in or above finished space (or even in a finished basement), a washing machine pan is a must. These pans normally have a drain either in the bottom or a side to discharge any collected water to a proper location. Many modern homes that have a laundry area on the first floor or higher, often have a small drain pipe (connected to the laundry pan) installed down to the basement for this purpose.

Washing machine hoses have a notorious history of leaking at some point. The rubber hose variety (often black, red, or blue) typically have a 3 year life span whereas the braided steel hoses generally last much longer. Even when the washing machine isn’t running, the hoses are under constant full water pressure unless you turn off their valve(s). There are sensors available that get installed on the floor next to the washer that can detect if a leak has occurred either from the hoses or the washer. If a leak is detected, the sensors can shut off the water supply to the washer and/or hoses and either make an audible alarm or send a message to your phone. Different sensors offer different alarm functions. Replacing your laundry hoses on regular basis is a wise idea, especially if they have bulges or rust or mineral deposits on them.

Clothes dryers definitely need maintenance on a regular basis. The first is cleaning the inside of your dryer vent; twice a year is suggested. Dryer lint is very flammable and can start a fire inside the vent which can then spread to your home. Dryer vents should be as short as possible, have few bends, and should only be 4” rigid metal duct. Dryer vent seams should only ever be foil-taped; never use screws. Building codes clearly stipulate the approved type of dryer vent although I find many homeowners using vinyl or mylar tubing. Mylar is a plastic type of flexible shiny tubing; just because it’s shiny doesn’t mean it's metal. In some instances, a short run of mylar is approved for connecting the dryer to the actual dryer vent. This short run is called a transition duct and may be mylar as long as it is short and does not run behind wall or ceiling coverings.

Dryer vents should only ever terminate to the home’s exterior; never inside the home, basement, attic, or garage. Doing so increases the risk of a fire and/or mold. Screens should not be installed at the exterior end of the dryer vent either. Only louvered or dampered exterior covers should be installed.

Also, dryers have a pull-out filter normally along the bottom of the front door opening. The filter should be removed (normally slides out vertically) and any accumulated lint removed before every use of the dryer.

A clothes dryer with a dirty vent system causes the dryer to run considerably longer than it needs to which results in wasted time and energy (meaning higher utility bills).

HVAC Equipment –

Although heating and cooling equipment should be professionally inspected and serviced annually, there are some things for the homeowner to do. First, air filters in furnaces, heat pumps, and central A/C systems should be replaced regularly. How often depends upon the type of filter installed: fiberglass air filters every 30 days whereas 1” pleated filters every 3 months. If you have a larger media filter (often 4.5~7” thick), those can often last 1 year.

Keep stored items away from your heating system so you can access it and help find potential issues earlier. Fossil fuel-fired (gas, LP, or oil) furnaces and boilers need fresh air for combustion. Most newer gas/LP furnaces have a 2 pipe setup (called direct-fired) which brings in combustion air from the exterior via 1 pipe and exhausts out of the other pipe. If your system has only 1 pipe (indirect-fired), that fresh air comes from the room where the system is installed (often the basement). Don’t store paint, gasoline, paper, wood, etc. or other stored items within 10’ of the appliance as they could catch fire or limit needed fresh air. Starving these appliances of fresh air could also lead to carbon monoxide generation. Also, a quick check to make sure you don’t smell natural gas or propane (LP) near these appliances is a good idea.

Central air conditioning and heat pump (non-geothermal) systems have an outside unit which needs, at least, 24” clearance around it for proper air flow. Don’t store garbage cans, etc. nearby and also keep vegetation trimmed away. An A/C or heat pump with limited air flow around their outside units results in reduced efficiency, longer runtimes, and higher utility bills.

Water Heaters –

Like furnaces and boilers mentioned above, fossil-fuel (gas, LP, fuel oil) fired water heaters also need a good amount of clear space (10’ is wise) around them to ensure needed combustion air and to help prevent a possible fire or carbon monoxide (CO) hazard. Also, if the water heater tank is leaking, you want to be able to tell early on. A water heater with clutter around it may leak for a period of time before you notice. Like mentioned above under laundry appliances, a pan with a sensor under the water heater is also important especially if the water heater is located in, above, or near finished space. Some of these water sensors can shut off power and water as well as gas supply to the water heater if a leak is detected.

Checking the water heater’s output temperature is also important. They should be set no higher than 120º F. Gas and LP water heaters normally have a dial on them for this setting. The triangular arrow often is the default 120º F setting. For electric water heaters, there are thermostats inside where the heating elements are installed. To measure the output temperature, run hot water at a sink and use a cooking thermometer (for example) to measure the temperature immediately under the faucet. 140º F water on skin can cause 3 ^rd degree burns within 5 seconds.

Also, make sure the water heater’s temperature pressure (T&P) relief valve has a proper discharge pipe connected to it. This valve is located either on the tank’s top or side and exists to help prevent the water heater from being a pressure vessel should the pressure or temperature reach dangerous levels. The discharge pipe must be a hot water-rated pipe material, such as copper, PEX, or CPVC. It must NOT be PVC pipe and may never be threaded at its bottom. In my home inspection travels, I routinely find water heater T&P valves missing a discharge pipe or the installed pipe is the wrong material.

Tortious Interference

Fri, 02 Jun 2023 14:58:58 GMT

Tortious interference. No, this isn’t about turtles derailing your real estate transaction. Although considering how unpredictable real estate can be, I’m sure that threat is never zero percent. Instead, what I’m referring to is the legal term in which a third party intentionally disrupts or interferes with an existing agreement or business relationship between two other parties - specifically with the intent to cause harm or gain an unfair advantage. Real estate transactions are complex and often involve various parties working together to achieve their goals. Tortious interference in real estate refers to actions taken by an individual or entity that hinder or obstruct a real estate transaction between a buyer and a seller, a landlord and a tenant, or any other parties involved in a real estate deal, such as a mortgage lender, title company, etc. Some example of Tortious interference include:

A real estate agent intentionally providing false information about a property to a potential buyer, knowing that the buyer is in negotiations with another agent. The false information causes the buyer to back out of the existing contract, resulting in financial loss for the seller.

A real estate agent interfering with another agent's exclusive listing agreement by contacting the property owner directly and convincing them to terminate the existing agreement or alter it in some way, such as changing the commission rate, expiration date with the listing broker, etc.

A mortgage broker, with knowledge of an existing mortgage contract, intentionally convincing a lender to deny financing to a borrower, causing the borrower to default on the purchase of a property.

So what are the potential consequences if a party is found guilty of Tortious interference? Depending on the jurisdiction, potential remedies can include

•Compensatory damages: The plaintiff may be entitled to recover financial losses resulting from the interference.

Injunctive relief: A court may issue an injunction to prevent the defendant from continuing the interference and to maintain the status quo until the matter is resolved.

Punitive damages: In certain cases, where the defendant's conduct is particularly malicious or egregious, the court may award punitive damages to punish the wrongdoer and deter similar conduct in the future.

These are just a few examples. What is and isn’t considered Tortious interference, as well as what a court can impose on a guilty party can vary by jurisdiction, and this article is not meant to be a legal guide on its ins and outs. For more detail, you should inquire with a legal representative. But in general, Tortious interference serves as a legal safeguard to protect contractual business relationships from intentional and unjust interference.

While it may not be a very common occurrence in your everyday business dealings, it is something to be aware of. Even if it’s not intentional, interfering with a contract agreement or business relationship between two other parties could be considered Tortious interference depending on the situation. If you believe a third party has committed Tortious interference, you should seek legal guidance immediately. If you believe a turtle is interfering with your business dealings, well, then you might have bigger problems on your hand.

The information provided in this article is for general information purposes only and is not intended to be legal advice. The article may not reflect the most current legal developments. Facts, opinions and information expressed in the Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author's opinion and are not necessarily the opinion of the Association.

The Peril of Electronic Signatures

Thu, 25 May 2023 13:26:47 GMT

What percentage of the agreements you draft are signed via eSignature software? For most of you, it’s a high percentage.

The impersonal method of presenting contracts for signature breathes a renewed vigor into an old complaint. The old complaint is that “I didn’t know what I was signing.” That complaint today is more credible when the document is not reviewed with the client in person.

Because most of my law practice involves representing real estate brokers and salespersons in malpractice cases, I see it all too well. Clients miss deadlines, or they now regret waiving inspection contingencies, fail to note that the property is enrolled in a preferential tax program or who knows what else. Chances are that the licensee’s defense is rooted in the agreement of sale. The agreement explains everything and it offers more than sufficient instructions, cautions and safeguards. If the client chooses not to read the agreement, that is one thing; if the client is given no opportunity to review the agreement, that’s another.

How do you review for your client a document that he/she will e-sign? The best practice is to meet in person but if that is not practical, then a detailed telephone conversation can work. You and the client have to be on the same page, literally. Expect the call to take at least forty-five minutes because you are going to go through the agreement paragraph by paragraph except for those provisions that do not apply to the transaction.

I don’t argue that you have to read the agreement, but you do have to paraphrase it with accuracy and detail. What is meant by marketable title as opposed to title that is free and clear? Does the buyer know that signing the standard agreement means buyer agrees to take title even if it is burdened with easements? Are you prepared to discuss all of the other nuisance presented by the agreement? I cannot over-emphasize the need to learn the agreement, backwards and forwards!

A carpenter certainly knowns how to use the tools of his or her craft. Your go-to tool is the agreement of sale and there is no excuse for not knowing the meaning of every clause in it. PAR has the resources you need, especially in its Guidelines for preparation and use of the agreement.

You will know when you have properly explained the agreement because your client will groan or surrender or signify their understanding some way. That’s good. You want your clients to know that you did a thorough job. You want it so that they will never have the courage to make up a story that you didn’t properly review the agreement before they signed.

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

To PAR or not to PAR

Fri, 19 May 2023 19:18:00 GMT

The Pennsylvania Association of Realtors meet in Harrisburg Pa three times a year: Winter, Spring and Fall. PAR meetings may sound like a big snooze fest, but I can assure you they are not. According to their website, the mission of PAR is to protect private property rights, facilitate a consistent and reliable marketplace, and promote the professional, ethical and successful practice of real estate. What possible reasons could it be beneficial to attend the PAR meetings? Read on!

Most PAR attendees feel that the information at the Standard Forms committee meeting had the biggest benefit than any other committee meeting. The Standard forms feedback panel provides a forum for all Realtors® to voice their opinions regarding the forms we use every day. Want something changed on the agreement of sale, sellers’ property disclosure or like almost EVERY Realtor®- the (clear as mud) appraisal contingency? Come bring your questions, comments, concerns and suggestions. You will hear why forms get changed and the origin regarding thought processes to each change. You will hear the lively discussions that go on regarding why one word in a clause might be taken this way or that. Do you have to attend these meetings to make your concerns known? You do not. You can reach out to a local representative that will be attending to bring your comments to the committee. I can honestly say, I have never spoken up at a meeting, but I get so much information from this particular meeting.

Standard Forms committee provides you great information FOR your business but you also won’t want to miss The Professional Standards committee meetings on what NOT to do in your business. This committee is tasked with promoting awareness and education about Realtor® code of ethics and related enforcement policies. Come hear the latest unbelievably unethical practices that sometimes take place in real estate.

District meetings take place during these two days as well. We come together to support those in our district that are on the front lines fighting for our specific concerns for our specific area in our industry. Hear the latest information for our region and meet your colleagues in neighboring communities.

Other committees that meet are Legal Action committee, Legislative committee, Realtor® Political Action committee and Director’s meetings to name a few. Once you attend you may just want to get involved in a committee too!

While all these things provide tremendous value for our businesses, the absolute best thing about PAR meetings is the relationships built with Realtors® all over the state. What’s good about meeting other Realtors®? Networking and Referrals of course… Realtors come from Erie, Pittsburgh, Philadelphia, literally all over the state- to attend these meetings because they know it’s important, and how lucky are we here in Lancaster to have these meetings right in our back yard? The next sessions are scheduled for June 5 and 6 with Hill visits on June 7 – PAR Hill visits provide a unique opportunity for PAR members interested in public policy and advocacy to learn more about key PAR legislative priorities and take the Realtor® message to the Pennsylvania General Assembly.

In the words of one very active PAR member “If Real Estate is your passion, Politics is your business”. PAR is a political arena, but there is so much more than just politics going on here, and is it really such a bad thing to understand some of the politics that govern your business?

To learn more about PAR and its benefits, you can visit their website at parealtors.org .

Got Mold?

Fri, 05 May 2023 18:05:33 GMT

Mold is a natural part of nature and is all around us. It helps leaves or old fallen trees break down, it gives blue cheese its taste, and can help save lives (penicillin). Problems with mold can exist, however, when certain types are present around susceptible people or high spore counts exist in structures. Mold does not have to be one of the toxic types in order to injure or cause illness in a person; non-toxic (considered allergenic or pathogenic) molds can also make people sick.

The most common part of the body that is affected by mold tends to be the respiratory system, although certain types can cause skin or eye problems in addition to other parts of the body.

Evidence of high concentrations of mold inside a home is almost always a sign of two things: water or a lack of ventilation, and very often both. Plumbing, foundation, or roof leaks can exist for a period of time before the homeowner notices the problem and, by then, a great deal of mold damage may already exist behind wall or ceiling coverings. Even if you see a small amount of mold on the drywall, a much larger mold issue may exist on the drywall's backside since the prime conditions for mold to grow are better there. Discoloration on a ceiling that appears dark may actually be a sign of a much larger amount of mold on the reverse side that is protected from ventilation. Studies show that the presence of water on materials like drywall for as little as 24~48 hours is enough to allow mold to start growing.

What are mold spores?

Mold spores are like tiny seeds and they are floating in the air all around us. They stick to most surfaces in our homes. When you add moisture to these areas, it can allow the growth process to start. Think of a seed in the dirt. The seed can remain in dirt for a period of time doing nothing until water is introduced. If these surfaces remain dry and within good ventilation, the tiny spores can remain on these surfaces for an extended period of time with little to no issue.

The most common places that I find mold in homes when I am performing a home inspection are attics, bathrooms, and basements. The presence of mold in an attic is often caused by one (or more) of the following issues: (1.) unsealed openings (such as where wiring, plumbing, or ductwork enters the attic through holes in framing or at the attic access location) between the attic and living space, (2.) a roof leak that was left unrepaired for a period of time, (3.) inadequate roof/attic ventilation, (4.) bathroom exhaust fans discharging into the attic, or (5.) inadequate attic insulation (including insulating the attic access location).

All ventilation systems should terminate to the home’s exterior. If a bathroom or kitchen ventilation fan discharges into the attic (even just above the soffit venting), the warm moist air from these conditioned spaces tends to condensate on the underside of the cooler side of the roof that faces away from the sun. This portion of the roof generally stays cool longer each morning and these cold surfaces will allow for condensation just like a cold bathroom mirror during a hot shower. In most cases, it is easy to reroute bathroom or kitchen exhaust fans beyond the home's soffit or through gable end siding. If the vent tubing runs above attic insulation, an insulation sock should be installed on the exposed vent tubing to prevent condensation within the tubing in the winter. Otherwise, condensation can run back down the tubing and drip back into a bathroom through the fan, for example.

A properly vented attic will allow the warm and moist air from the living space to exit to the exterior through the ridge venting and not within the attic, as well as help to preserve the life of many roof types and lower the amount of energy needed to heat and cool the home.

During my home inspections, I always recommend that the client periodically check around all accessible plumbing to look for small leaks. A small leak is often easier and inexpensive to repair and will most often cause less damage to occur than a full blown burst pipe. A small leak undetected may lead to mold growth and/or insect infestations.

Mold growth in basements is most often related to exterior drainage and grading. Downspouts should drain at least 4' from the home’s foundation and the exterior grading should encourage drainage away from the home. Some inspectors offer infrared thermography (aka thermal imaging) which can indicate if there is unforeseen recent or active water infiltration occurring behind these fixed surfaces which can potentially lead to mold in the future. The inspector will also check the lower end of the wall coverings with a moisture meter.

So what if you see mold?

Don't panic. A qualified and properly trained mold professional can perform mold testing. The person performing the mold testing should carry mold-specific E&O (errors and omissions) insurance; basic home inspector E&O insurance specifically excludes mold.

Mold testing generally consists of one or multiple types of sampling techniques. A swab test will determine what type (or types) of mold exists specifically on the surface where mold (or suspected mold) is visually seen. This is often on a wall or ceiling. Air sampling will entail measured amounts of air being pulled into a special plastic testing cartridge; air sampling will give a general idea as to what type(s) of mold(s) exist in the tested area/room as well as the spore count(s). If no visible mold exists, air sampling will probably be the only test able to be performed. When air testing is performed, an exterior reference sample is required so that the lab analyzing the samples has something to compare the interior air samples to. Since there is no set standard as to most mold types and spore counts, the exterior sample sets the 'standard' to allow comparison with the interior air sample(s).

As an example, an exterior air sample shows 150 spores per cubic liter of air of mold type A, 50 spores per cubic liter of air of mold type B, and 0 spores of mold type C, and interior air samples show 180 spores per cubic liter of air of type mold A, 1500 spores per cubic liter of air of mold type B, and 2000 spores per cubic liter of air of mold type C. The analysis would indicate that the sources of mold types B and C are very likely inside the home. There is no recognized standard regarding what is safe for mold spore counts (assuming none are the types found are considered to be toxic), but since mold counts and types vary depending upon where you are located and what time of year it is, the comparison between indoor and outdoor samples is necessary. Of course, any spore count of a toxic mold type in the home would be an immediate concern.

Mold types are commonly broken down into 3 types: allergen, pathogen, and toxic. An allergen is the most common type and may affect certain people who have sensitivities to specific molds. Pathogenic molds are ones that most often affect people with an immune-deficiency, such as those who have certain illnesses. Toxic molds are the most severe and will most likely affect anyone who comes in contact with it.

Someone who has no known allergies can actually acquire an allergy to a type(s) of mold simply from exposure to it over time and they often don't even know it. You could have 10 people in a room with a certain type of mold and possibly only 1 or 2 people who have an allergy to that type may show symptoms, whereas the rest of the people may show no symptoms. If a toxic mold type exists in that room, chances are good that just about all 10 people would show some adverse reaction or symptoms over a period of time.

After the testing is performed, the mold tester sends the testing samples to a certified lab for analysis. Once the lab report is received, the next step is most often to consult a qualified indoor air quality specialist/industrial hygienist or a qualified mold remediation professional should the lab report indicate high interior spore counts. Some local companies who specialize in cleanup after fire or flood may also be qualified to perform mold remediation. Of course, also addressing the source of the water/moisture or lack of ventilation must always be part of any mold remediation process and should be performed as soon as the problem is determined to help minimize the damage.

Keep in mind, that mold detection and mold testing is considered well outside the scope the ASHI (American Society of Home Inspectors) Standard of Practice. In other words, mold is not part of a home inspection. If a home inspector sees visual evidence of mold during an inspection, he should, however, note this in his inspection report and recommend evaluation and/or removal of the mold and any affected building materials (such as drywall, trim, carpet, insulation, etc.) by a qualified mold professional.

Don't 'bleach it away'!

Many people assume that bleach is the be-all and end-all of mold cleanup but this simply is not true. Some mold spore types may be eradicated using bleach, but other mold types may come right back and others may not be affected at all by bleach. Bleach may simply mask a mold problem for a short period of time and the mold problem may actually get considerably worse.

Some mold types need to be professionally treated to ensure that the spores can’t grow back again or are fully removed. I’ve seen some homeowners spray chlorine bleach on ceiling mold and appear to remove the mold, only to see the mold come back a few days later. If mold is observed growing on bathtub caulking, it very well may be able to be cleaned with certain bathroom cleaning products or even by simply removing the caulking. If visible mold growth covers, at least, 10 square feet, that is the standard used to determine when professional remediation is needed. An improper treatment may actually encourage further growth into a larger mold problem.

Mold growth on certain household surfaces may be able to be removed, such as surface mold on wood studs that may be able to be removed by sanding, for example. Other surfaces need to be completely removed once they get wet and moldy, such as plaster and drywall. The cellulose that exists in drywall paper is the very food that mold needs to grow and thrive. If mold grows on books or drywall, these materials need to be carefully removed from the home to help ensure the mold spores don’t get disturbed and released into the home’s air. When building a new home, for example, rain water often gets into the partially constructed home before it is fully closed up by siding, roofing, windows, etc. The home should be allowed to fully dry before any insulation, drywall, flooring, etc. are installed.

You can’t typically determine the type of mold simply by its color. Mold types come in all different colors, from black and yellow to green and brown and orange. If you see what appears to be mold growth in the home, that is a sign that something needs to be done promptly. Time to call in a professional. A delay could put the home’s inhabitants in jeopardy for health problems and possibly lead to the home not being able to be occupied.

Listing Agent Demands for Property Description

Wed, 26 Apr 2023 13:54:39 GMT

This article, and the situation that inspired it, is didactic in two categories. It considers how to describe the subject property in an agreement of sale; it also explores whether imposing one’s practice standards on cooperating agents is a wise and lawful practice. The situation arises from the demand of a seller agent that all offers include a copy of the last recorded deed in its entirety. An offer will not be considered in its absence.

Property descriptions in sales agreements are a source of problems and a frequent subject of litigation. Often, the “Property” identification section on page one of the Standard Agreement (ASR) is devoid of anything other than a street address. This works most of the time. But then I recently defended a buyer agent who described a property by its street address only to learn from the lawsuit that the matching garage was not included because of a prior subdivision and purchase by a neighbor. 123 Oak Street, once two-thirds of an acre with a home and garage was now a halfacre with no garage. I could provide a hundred examples where poorly described properties led to major problems with little effort.

Including more information in the Property box helps. Identifying the property by its uniform parcel identifier, tax identification number or by reference to the last recorded deed (usually by volume and page book where it appears in the county recorder of deeds office) is precise. Yet, as specific as that identifier may be, is it for the property that the buyer and/or seller intend to purchase/sell? One can insert the wrong number as what happened when a seller subdivided ten acres into a seven acre unimproved lot she intended to retain, and a three acre parcel with a rundown house she was selling. Oops, the agreement of sale referenced the larger of the two parcels, not the smaller. Couple this mistake with the integration language of the agreement that says that the written agreement controls and that prior representations (here that the property being sold was the 3 acre tract with the old house and not the larger parcel) do not control, and you have…..a mess.

You could also add descriptors to the property street address: 123 Oak Street, consisting of no less than two-thirds of an acre with house and garage. When the title search reveals a subdivision and prior sale of the garage, the buyer has recourse as the seller cannot/did not convey what she promised in the agreement of sale. At a minimum, buyer agents should describe what their buyers anticipate they are purchasing by minimum acreage and improvements.

When I took Real Estate Transactions in law school, it was suggested that the parties identify the property with a formal description as would be included in a properly drafted deed. Simply incorporating the last recorded deed will work if there are no mistakes in that deed (happens more frequently than you’d imagine) and that it is the correct deed for the property being conveyed.

A practice in commercial transactions is particularly helpful. The property is described with the specificity of a deed description. The buyer then has a due diligence period that allows for specific analysis of the property description, boundaries, restrictions, zoning, easements and other matters to assure that it is what the buyer intends to acquire. This has been made available to the residential buyer in the ASR where one can elect to have “inspections” of Deeds, Restrictions, and Zoning and Property Boundaries (inspection options available in paragraph 12 of the ASR). Then, within the inspection period, the agent and buyer can obtain descriptions (ask for a plot of property), restrictions, easements, acreage calculations and even a survey. If buyer is dissatisfied for any reason, buyer can terminate. Since the buyer will likely obtain title insurance, some of this process will occur anyway. It is essential, however, that the property description assessment is completed in the inspection period as the buyer loses the right to terminate by its end (the Title clause in the agreement only promises “marketable title” and does not protect against easements that impact the property, or acreage discrepancies, restrictions, etc.).

Now, let’s move to the second lesson: dealing with imposing one’s requirements on others. In the initial paragraph I referenced an agent, who when representing sellers, requires buyer agents to assure that the last recorded deed is attached to the agreement of sale. It can be a good practice, assuming the listing agent is assured that the description is correct, that no subdivisions or takings have occurred since the last conveyance, and so on. It is good, too, as some deeds include restrictions that may not appear elsewhere. But it can be bad if the deed is flawed or for a different property. Will or can the listing agent verify that the deed provides an accurate description?

Another problem is that unique practices, and I assume demanding that buyer attach and initial each page of the last recorded deed to the agreement is unique, can produce unintended results. The listing agent wants to assure accuracy in describing the property (a good thing) but his requirements may dissuade cooperation (more likely in a buyers’ market) and earn this agent “the smartest-manin-the-room” moniker.

I recently wrote about confusion arising from the Escalation Addendum and how one listing agent noted in the MLS that she won’t present an offer that includes one. That the addendum is good or bad wasn’t the issue of that article. Rather, it was whether a listing agent has the authority to not present a written offer. The conclusion, no, applies to an offer that describes the property in a manner different from what the listing agent prefers. Few of us want the reputation of a know-it-all and there are more benign ways of protecting your seller. Why not counter an offer with one that says, in the Property box, “see legal description, attached, which describes the Property.” The attached can include the legal description and exceptions, restrictions, etc. It is not dissimilar from what this agent seeks; yet the agent himself provides what he’s after and comes across as far less condescending.

The smartest-agent-in-the-room syndrome affects us all from time to time. If you are going to make demands based on a belief that you better know how to do your business or protect your client then you have to be certain of your practice. Having assured yourself the deed description is complete, accurate, and up to date may give you the assurance to follow through with the demand for attachment. I’m guessing, however, that there are more friendly or benign ways of asking. And of course, you cannot refuse to present an offer that offends you or your practice. Present it but make clear to your seller why you find an offer objectionable. Let your seller be an active part in the process.

As always, share your comments with me. And, happy spring

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

Hey Bud, Can I Catch a Waive(r)?

Thu, 13 Apr 2023 19:16:21 GMT

Your surfboard is all waxed up, sun block caked on your nose, and you head to the beach in hopes of catching the bomb and riding the barrel the whole way to the shoreline. All to gain accolades from onlookers as you pump your fist and raise your board feeling like a hero.

I know that feeling well…. Not because I’m a surfer by any means but being able to deliver the news of an “Appraisal Waiver” to a buyer and their agent fuels an adrenaline rush like no other.

Ok, I’ll admit, that’s a little melodramatic, but I’m guessing there may be a few similarities; however, I’ll stick strictly to the appraiser waive(r) for this article.

Although I do get to deliver the news of the appraisal waiver, contrary to some misconceptions, the loan officer is just the messenger and not the decision-maker.

Frequently there are questions raised along with requests from agents and borrowers for an appraisal waiver when there are certain positive characteristics of a purchase transaction, but unfortunately that’s not how it works.

An “appraiser waiver” or value acceptance is an automatic determination by either Desktop Underwriter (Fannie Mae DU) or Loan Prospector (Freddie Mac LP) based on assumed reduced risk of the overall characteristics of a loan file. Every single “agency” conventional mortgage is either Fannie Mae or Freddie Mac. Portfolio mortgage products or non-conforming conventional loans are mortgages where either the borrower or the property have some unique characteristic that does not conform to Fannie or Freddie Guidelines.

The first characteristic is loan-to-value. In almost all cases, the loan-to-value of the transaction cannot exceed 80%. To coincide with that, the purchase price or value used must be supported by electronic data within either Fannie Mae’s or Freddie Mac’s database. Both agencies compile ongoing data relating to property valuations to reduce risk to their portfolios.

In situations where a purchase price may not be supported by acquired data from Fannie or Freddie, an appraisal waiver my not be attainable even in a case where the loan-to-value may be considerably lower. For example, if a property is listed at what is assumed to be market price at $400,000 and a buyer contracts to purchase at $450,000 but is only obtaining a mortgage for 50% or $225,000, there will most likely NOT be an appraisal waiver granted through DU or LP because there is not sufficient data to support the $450,000 purchase price even though the $225,000 loan amount is far below the 80% loan-to-value of the listing price of $400,000. Data not supporting the higher purchase price triggers increased risk within the loan file.

Other characteristics to obtain an appraisal waiver include credit scores, debt ratio, reserves (cash on hand after closing), employment history, etc. Theses along with the property valuation data determine the overall layered risk of the file.

Ultimately, there is no man behind the curtain making the decision for the waivers and in some cases even when logic should play a role, there is no definitive determination for the waiver. If you’re lucky enough to obtain one, celebrate and ride the wave the whole way to the closing table. COWABUNGA DUDE!

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

What Should and Shouldn't a Home Inspector Do?

Thu, 06 Apr 2023 19:20:16 GMT

In the course of a home inspection, there are certain things that home inspectors should and shouldn’t do.

Contrary to what most consumers and even many Realtors® believe, there is no licensing or direct regulation of home inspectors in the Commonwealth of PA. Various licensing bills have been introduced in the legislature over the past 20+ years. A licensure bill passed both houses of the PA legislature last year but was vetoed by the governor. We are left with PA Act 114 in 2001 (also known as the Home Inspector Compliance Law) which passed in 2001 and stipulated what home inspectors are supposed to do or not do, however this law provided absolutely no enforcement or actual regulation from the Commonwealth of PA. There is no board of home inspectors nor any other state agency to oversee what home inspectors in PA are doing. I sometimes find this a little disturbing, especially after we hear stories of potential fraud or criminal acts that some inspectors have been accused of over the years. Approx. 34 other states regulate or license home inspectors but PA is not one of them.

Per PA Act 114, a home inspection is defined as: “A noninvasive, visual examination of some combination of the mechanical, electrical or plumbing systems or the structural and essential components of a residential dwelling designed to identify material defects in those systems and components, and performed for a fee in connection with or preparation for a proposed or possible residential real estate transfer.”

We perform home inspections for home buyers, home sellers, and homeowners (not buying or selling a home), but, for the intended purpose of the law, the definition is geared towards home sales.

These definitions and standards set by Act 114 and the ASHI Standard of Practice (SoP) set documented guidelines and also are meant to protect the homeowner, the inspector, and everyone else involved in the home sales process.

By non-invasive, and again assuming that we are talking about a buyer’s home inspection. A common misconception that I have found over the years is that most homeowners (and I believe even some Realtors®) seem to assume that the home inspector will move whatever is in their way when inspecting. This is simply not true and actually quite the opposite. We don’t move the seller’s belongings, furniture, boxes, shelving, etc. and we do not tear into walls, flooring, ceilings, etc. It is still the seller’s home and we must respect it as we don’t want to break any of the seller’s property.

It is very important that listing agents educate their sellers about the home inspection process to ensure that the home is ready to be inspected before the inspector, the home buyer, and their Realtor® arrive. We can only inspect what we can safely access and see so I actually email ‘house prep’ information to the listing agent ahead of time to provide to their sellers to help get the home ready. Areas or systems that can’t be accessed or aren’t operational at the time of the inspection will be noted in the inspection report and will lead to an uncomplete inspection.

The law and the ASHI Code of Ethics (ASHI CoE) also state that home inspectors can only legally provide the findings of the inspection to our client. By findings, this means our verbal discussions and the written report. We can’t discuss anything inspection-related nor can we share the inspection report with any party other than our client. In the inspection agreement (which is a binding legal contract) between the inspector and their client, there normally is a clause in which the client gives permission for the inspector to provide a copy of the inspection report to the client’s Realtor®.

Other things prohibited by Act 114 and/or the ASHI CoE includes inspectors offering to repair things found during an inspection, offering kickbacks to Realtors® and others that refer business to the inspector, etc.

The home inspection is a confidential process and any related discussion between the inspector and his client is confidential and private. This is a good reason why sellers, tenants, or listing agents are generally not present for home buyer inspections. The inspection generally entails an approximately 3 hour long continuing discussion about what the inspector is finding and recommending as well as answering the buyer’s questions and concerns in real time.

There are some exceptions to this requirement, such as if the inspector finds something that could present an immediate safety hazard to the seller, such as a gas leak.

The ASHI CoE states that the inspector is supposed to be impartial meaning they should not over- or under-state the severity of an issue and should not bias their report to their client. Even though the inspector is most often working for the home buyer and should look out for their best interests, they should still be fair to the home seller in terms of how they inspect, evaluate a home, and report on their findings.

Inspectors are permitted to provide an estimated life expectancy for home components or systems (such as the major appliances) in the home. A good example is an approximate age of a roof. Unless the inspector was present when the roof was installed, exact information will not be known to him. However, as a service to my clients, I typically will give an approximate range of age based upon what I can see, such as ‘the roof appears to be less than 10 years old’. For certain appliances (such as heating and cooling systems, water heaters, etc.), their manufacture dates are most often easily discernable to the inspector from the appliance’s serial number. Some inspectors do not offer this type of information whereas other inspectors do as it’s often based upon the inspector’s experience, research, and customer service level.

PA Act 114 does allow inspectors to provide price estimates for repairs, but it must be done in a range of prices and the source of the price information must be provided. Most inspectors, including myself, don’t provide repair quotes as we are not general contractors nor specialists in a specific trade. Plus, since we are doing a visual, non-invasive inspection, what we see (without becoming invasive) may not be the full extent of an issue. Providing a repair quote estimate without knowing all of the details of the issue can often be misleading to our client. A contractor called in to evaluate an issue can become more invasive that a home inspector is permitted and, thus, can get a better grasp as to the severity of the issue and provide a more accurate repair estimate. The law also says that, if the inspector is providing repair estimates, the report should encourage the client to obtain an estimate from a contractor who performs the type of repair involved.

Something else that the home inspector should do is protect and respect the home seller by way of limiting who is inside the home during the inspection. Paragraph 12 of the PA Agreement of Sale (AOS) says that only those listed on the sales agreement may attend the inspection. I have found that many Realtors® are not aware of this rule instituted by their own association (PAR). The home is still owned by the seller and not following this guidance can disrespect the seller (the current homeowner) as they likely didn’t expect (or approve) random people not involved in the inspection from being inside their home. Like many inspectors, over the years, I’ve had people not involved in the home purchase attend inspections and, several times, had found out later that either things were stolen, broken, or otherwise not left the way the seller intended, unbeknownst to the inspector, the buyer, or his or her Realtor®. People not involved in the home purchase should not be tagging along during the inspection, whether or not they are being directly supervised by the inspector or the buyer’s Realtor®. Uninvolved parties inside the seller’s home also greatly increases the legal liability of the inspector, the home buyer(s), and their Realtor®.

Home Inspections: A Crash Course for Beginners

Fri, 31 Mar 2023 19:52:10 GMT

Listing agents should share the inspector-provided information with the seller. They should also give the seller a heads-up about what will happen during the inspection. For example, most buyers attend the inspection. Some buyer agents attend the inspection, but they don’t always stay for the entire time. Your seller may want to present their home in the same manner as a showing because the buyers will be there for a much longer timeframe, and you want them to still be excited about the home and not distracted by dirty laundry or a messy kitchen. The home inspector will schedule the appointment with a beginning and end time. For the average house, it is approximately a 3-hour inspection.

Some buyer agents will schedule additional inspections to occur simultaneously under the umbrella of the Home/Property Inspections and Environmental Hazards. These can include air quality/mold, a camera in the sewer line and a chimney inspection. The seller is entitled to request a copy of all of the inspection reports (Section 12A5).

If the Inspection Contingency Period is 10 days, then the buyer agent must have inspections completed and submit the Buyer’s Reply to Inspections/Reports or Written Corrective Proposal (BRI) to the seller by the 10th day. If the buyer is electing to terminate the agreement, then they will skip the BRI and submit a Notice of Termination of the Agreement of Sale (TERAREL). This document includes both the Notice of Termination and the Agreement of Sale Release and Distribution of the Deposit Money. Make sure you use this document to both terminate based the inspection contingency (Section 13B2) and release the buyer’s deposit to the correct party. Include the inspection reports in their entirety when sending to the listing agent.

The primary purpose of the inspections is to find or catch major material defects. Every home has some maintenance that could be done. When considering what repairs to ask the seller to make, it is essential to keep in mind that the seller can refuse to make any repairs unless it is stated in the AOS. The buyer should understand that they will be taking over ownership of an existing home that is not perfect, and they can assume responsibility for anything found on the report.

When a major defect is found, then what? During the initial inspection contingency period, the buyer and/or buyer agent can obtain estimates for repairs. You can schedule an appointment for a contractor to take a look at any issue so you and the buyer can fully understand what’s at stake. Sometimes the actual cost is good news and sometimes its bad news, but when buyers and buyer agents guess at the cost, they are often wrong. If you want the seller to make the correction and use the contractor who provided the quote, you can specify that in the BRI.

Once the BRI is submitted to the Listing Agent/Seller, there is a 5-day negotiation period (unless the buyer agent changed this default timeframe in Section 13B3a). To be clear, the full 10 days is counted, and then there is a 5-day negotiation period. If the buyer agent delivers the BRI to the listing agent in 7 days, you still have 10 full days for the inspection contingency and 5 days following that for negotiation. A buyer cannot terminate the sale during the 5-day negotiation period. They can terminate by day 10 of the original contingency period, but once they submit a BRI with a corrective proposal, they have to wait for the 5 days of negotiation to pass before they can terminate the agreement.

Here are a few best practices for inspections:

-Have a list of inspectors you or your buyer will contact so you are prepared when your buyer goes under contract.

-Have trusted contractors available to get timely estimates when needed. If you do not have trusted contractors, ask agents in your office, and you will likely get some good options.

-Set expectations for both buyers and sellers about this entire process. Help them understand the timelines so they don’t expect a same-day response.

-Finally, if you are not experienced preparing a BRI or CTA, it is a good idea to ask for assistance or have it reviewed by your broker or manager before signing it.

I am sure there are other tips you may have to successfully navigate the inspection process. If so, I’d love to hear about them.

More Than Just Wiping Your Feet!

Fri, 24 Mar 2023 19:30:25 GMT

I’m sure many of you found your eyes drawn to a news article about a buyer agent who cut short a showing when she discovered an unresponsive and naked elderly man on the floor. The salesperson initially believed the man might be dead but he grunted when she asked whether he was okay. She later said that she did not want him awakening with her standing over him! She left the property without calling anyone but later completed a feedback form referencing her findings. In the feedback, she stated that perhaps he had too much to drink during the Super Bowl! The man eventually died.

It's hard not to be shocked by the situation described in the article. But standing in the shoes of that buyer agent may cause one to pause before rendering judgment. She was embarrassed for a man that she clearly believed was suffering from a hangover and nothing more. We, however, have the benefit of hindsight and know that the agent’s lack of action was the wrong choice for her and the grieving family. The North Carolina Real Estate Commission is now investigating.

Whether there is civil responsibility that would justify a financial verdict against the buyer agent would make a good law school exam. I presume a case will be initiated claiming that the buyer agent’s negligence in failing to seek assistance contributed to a death that otherwise could have been prevented. Expert testimony will be required to establish that the agent’s intervention would have likely produced a different outcome for the man; you can presume there will be expert testimony offered in contradiction. Regardless of the outcome, this is a mess for everyone. Undoubtedly, this is not the kind of press you seek as a real estate salesperson!

So why does this somewhat unusual incident make for an article? It underscores how we take for granted the immense responsibility of having access to somebody’s home, his/her castle, the repository of personal and priceless items and so on. Usually, the problems are less dramatic but over my 45 years of practice, I’ve represented many licensees who have failed to protect a home, or who have negligently entered or exited that home leading to loss or disaster.

Many of the cases involve licensees who have entrusted their buyer clients with lockbox access. In one such case, a buyer agent was sick and throwing up in the bushes outside of the home and simply could not go on. She gave her client the number to the lockbox and left. Other situations are less benign; the agent didn’t want to be bothered so gave access to the buyers. In every case, the licensee made the buyers pledge that they would never reveal how they gained access or that they were not accompanied by the licensee. In all of these cases, the licensees suffered discipline from fine to revocation of a license!

Then there was a listing agent who agreed to periodically take the mail from the mailbox to the kitchen while her seller was out of town. While the seller said that the agent should feel free use the stove to make tea, she never instructed the agent to place the mail near a hot burner! That house burned down. Oops!

There are, too, the “common” stories of agents finding people in bed, including other agents! Unlocked doors and windows are also popular problems, exacerbated when the neighborhood kids find an unlocked window and decide to spray paint walls and redecorate furniture! Lockbox entries provide the name of who last entered but that evidence does not prove who failed to close a window or lock a door. Regardless, if you gained access to a property by lockbox and a short time later there is a loss, you will be on the list of suspects.

Your potential liability when entering a home should not be the primary factor motivating your utmost care; respect and vigilance come first. Be mindful. Let your clients know that you take seriously their trust. Explain how it is that others will access their property. There’s no need for alarm as most visits are benign but at least make sure your client understands how the house is sho wn and the available options.

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

The Continued Evolution of Office Spaces

Fri, 17 Mar 2023 18:03:46 GMT

Over the past year, there has been a lot of speculation about the future of the office asset class. Second only to hospitality, office space has been most impacted by the pandemic over the past three years. This impact is only now being felt due to the expirations of long and short-term leases.

One of the first trends we have seen is a flight to higher quality buildings – increasing vacancies and sublease opportunities in “B” quality properties. In addition to building quality, employees are looking at office locations. Over the past three years, there has been a notable shift from urban centers and mass transit to suburban locations with access to amenities. Finally, employers are being forced to determine how their company will operate in a post-pandemic environment, defining what the workplace will look like going forward.

Pre-pandemic, work-from-home employment accounted for less than 5% of the office employment landscape. Today, approximately 70% of companies have adopted a hybrid work arrangement where some portion of the workweek/workday can be conducted from home. What was originally an outcome of health concerns for employees is now a requirement to retain employees in an extremely tight national labor market. The impact of this hybrid model has resulted in a reduction of square footage by approximately 10 – 15%. The impact is relatively minor, as employees are still demanding a specific workspace when working in the office.

Due to the organic growth of employment in the sectors that utilize office space, occupancy should be back to pre-pandemic levels in 2024 or 2025. Despite the contraction in office occupancy, rents have increased slightly here in central Pennsylvania and increased by roughly 4% nationwide.

In addition to the amount of space being occupied, the purpose of office space has changed. Historically, it was viewed as a place to house employees and conduct all functions of business such as accounting, sales, and administration activities. To a degree, success was measured by time spent in the office and dollars produced. The function of the office is now realized as a way of communicating corporate culture and values. Success is now being measured by employees’ sense of inclusion and collaboration.

Recently, many employers, office managers, and developers have begun putting greater focus on the physical aspects of the workspace. Early into the pandemic, investments were safety-driven such as touchless technologies, increased janitorial cleaning, and improvements to air quality with HVAC modifications. Now, emphasis is being placed on features you might experience in a restaurant or hotel lobby, including bright and engaging wall graphics; greater incorporation of glass in wall systems; inviting colors, textures, and patterns for walls and flooring; and increased plant-scaping.

The final way that the concept of office utilization has changed is the focus that time within the office should be meaningful, not simply completing a task. With the recent “Great Resignation,” the importance of collaboration and training has been identified as one of the meaningful benefits of being in an office environment. With so much workforce turnover experienced over the past three years, as well as new employees entering the workforce, time spent in meaningful, personal contact has never been more important. A tremendous amount of practical business learning and culture is communicated through day-to-day personal contact among team members. To facilitate this, office design trends are using more collaboration areas, casual seating, coffee bars, and meeting spaces to encourage that interpersonal connection. Flexible office utilization will take on greater importance allowing individuals and work teams to create their own workspace that combines personal satisfaction and organizational outcomes. Without any substantive change in the current low employment environment, the importance of location, building quality, design, and utilization will remain relevant.

Carbon Monoxide

Fri, 03 Mar 2023 20:24:12 GMT

Carbon monoxide (also called by its chemistry abbreviation, “CO“) is a byproduct of burning fossil fuels. Carbon monoxide is called the “Silent Killer” as it has no odor, taste, or other real indication that it is accumulating in your home. Carbon monoxide (CO) and carbon dioxide (CO ₂ ) are different, as both are chemical compounds but carbon dioxide has an extra oxygen atom. When you exhale, you are releasing carbon dioxide (CO ₂ ). Incidentally, plants inhale carbon dioxide and exhale oxygen.

Exposure to carbon monoxide can present as flu-like symptoms and can be deadly if exposure is long enough or at high enough concentrations. We occasionally hear of people running generators in their homes and then being found dead. I’ve also heard of faulty furnace, boiler, and water heater installations that have lead to deaths. In most cases, these deaths are traced directly to carbon monoxide exposure and, in almost all cases, could have been prevented. According to the Environmental Protection Agency (EPA), carbon monoxide (CO) is the most common cause of poisoning death in the US.

Any appliance or system that burns fossil fuels (such as gasoline, wood, natural gas, propane, fuel oil, charcoal, or kerosene) can generate dangerous levels of carbon monoxide under certain circumstances. Carbon monoxide can build up in places that are enclosed or simply have limited ventilation. Even if your home has no fossil fuel appliances, an attached garage or even a car parked in a driveway could allow carbon monoxide entry into the home. That is why all homes need a carbon monoxide detector.

Exposure to low levels of CO can cause mild headaches, feelings of fatigue, nausea, dizziness, and/or shortness of breath. Prolonged exposure to mild levels or even short exposure to very high levels can lead to loss of consciousness or death.

All fossil fuel appliances should be professionally serviced at least annually. This means furnaces, water heaters, boilers, fireplaces/chimneys, wood/coal stoves, gas clothes dryers, etc. A chimney that vents a water heater, furnace, boiler, or fireplace and is even partially blocked by debris or an animal/bird nest, can lead to the dangerous exhaust gases possibly re-entering the home. This is one reason why I recommend a level 2 clean/service be performed by a qualified professional on all chimneys.

If multiple members of your family feel ill at the same time while inside a building, this may indicate high levels of carbon monoxide. Pets will also be affected by carbon monoxide exposure, sometimes more than humans.

Besides an annual professional check-up of your home’s fossil fuel appliances, something else that you can do to help protect your family is to install one or more carbon monoxide detectors in your home. The current building code in PA (IRC 2018) requires carbon monoxide detectors be installed outside all sleeping areas (aka ‘bedrooms’). Carbon monoxide detectors typically cost between $20 and $60 and can be purchased at just about any hardware store or large retailers. Like smoke detectors (which have an approximate 10 year useful life), carbon monoxide detectors don’t last forever. Older units typically had a useful life of approx. 5~7 years and more newer units are good for about 10 years. If you have a carbon monoxide detector in your home and it’s more than 7~10 years old, it may not be providing any protection to your family. It needs to be replaced now. In my home inspection travels, I regularly find smoke and carbon monoxide detectors that are way more than 10 years old and should have been replaced years ago. Remember, pressing the TEST button on a smoke or carbon monoxide detectors only confirms that the unit is powered, NOT that the smoke or carbon monoxide detector will reliably work when you need it to. The interior sensors in these units decay over time (approx. 10 years).

Carbon monoxide is a health hazard because, once it’s inhaled, it combines with the oxygen carrying hemoglobin in the blood to form carboxyhemoglobin (COHb). This prevents needed oxygen from getting to your body’s organs, such as your brain.

Carbon monoxide exposure is generally measured in terms of parts per million (aka ppm). A CO exposure to 35 ppm over 8 hours is the maximum exposure allowed by OSHA ( Occupational Safety and Health Administration ). Just 2 hours of exposure to CO at 200 ppm can lead to fatigue, headaches, nausea, and dizziness. 2 hours of CO exposure at 800 ppm can lead to unconsciousness or death. Over 1,000 ppm CO exposure for 20 minutes or less can lead to death. As you can see, it is critical that if you are exposed to carbon monoxide that you act quickly. This means moving to fresh exterior air and calling 911.

Minutes can be the difference.

Spring into Action: A Guide to Surviving the Busy Lancaster Market with a Smile

Fri, 24 Feb 2023 15:09:36 GMT

Are you ready for a busy spring market in Lancaster County? I know I am. I am optimistic that we’ll get very busy finding new homes for our buyers and selling cherished homes for our sellers. This means it’s a great time to review some housekeeping tips to keep us in the good graces of our peers. You know, some tips to keep things running smoothly.

Let’s start with showing courtesies. Overlapping showings are back. The good news is that a listing that allows overlapping showings is going to have a fairly open schedule so you can get into the home when you want to get into the home. The challenge is that when you arrive at the property, there are three other groups touring at the same time. What if you are the one who opened the lock box, but showings are still taking place when you leave so you can’t lock up? A best practice would be to place the key back in the lockbox prior to leaving, but leave the door unlocked for the agents who are there. If you are the last one to leave a property that had multiple groups touring, then you are responsible for locking up, which may mean that you have to open the lockbox to get the key. Under no circumstances should you enter the property and lock the door to prevent other groups from touring.

If the listing you are showing does not have overlapping showings, but does have a full schedule, be mindful of your reserved time and let the next group in on time. We are all providing the same service to our buyers, allowing them access to a home they may want to purchase. Keep things positive and cooperative with your peers. Leave your card and provide feedback.

What about lock box access? We continue to have requests from agents who don’t use Supra who want special accommodations made to let them into listings. A best practice is to direct them the LCAR to get the Supra EKey. Do not ask scheduled showing agents to let other agents into your listing during their showing.

Communication is paramount for a listing agent. Of course, the seller can give you their particular instructions for handling offers, but there are some best practices that apply to most listings. Use Showingtime to let showing agents know if an offer has been received and to let agents know if there is an offer deadline. Use the agent remarks in Bright to reiterate offers and deadlines for agents who have not yet scheduled a showing. Respond to questions from buyer agents in a timely manner and confirm with buyer agents that their offer has been received. Communicate with agents who have submitted offers to let them know the time an offer will be presented. Communicate as soon as possible with agents who have submitted offers that their buyer did not get the house.

The spring market in Lancaster County is an exciting time for real estate professionals. By following these housekeeping tips, you can ensure that things run smoothly and professionally. From showing courtesies, to lockbox access, to effective communication, these tips will help you maintain good relationships with your peers and provide the best possible service to your clients. So, let’s get ready for a busy and productive spring market.

Mortgage in the Market– The Mix is Fading

Fri, 10 Feb 2023 20:18:35 GMT

Historically, we have always seen a great deal of variety in the market with mortgage programs buyers have used to purchase homes. The type of financing used to purchase is often tied to a buyer’s overall characteristics.

Traditionally, the mix of mortgages products used were Conventional, Federal Housing Administration (FHA), Veterans Administration (VA), USDA Rural Housing (USDA or Farmers Home Administration) as well as a variety of affordable housing programs such as Tenfold (formerly LHOP) and Pennsylvania Housing Finance Agency (PHFA).

Many first-time buyers are drawn to and need government-backed financing or an affordable-housing program to purchase a home due to limited financial resources or the inability to qualify for conventional financing due to overall financial inexperience; however these buyers can also be Veterans who earned the benefit by service to our country.

As professionals in the housing industry – whether on the mortgage side or real estate side, we all have one common goal which is being advocates for homeownership and creating as many opportunities as possible for our clients to achieve “the American dream.”

Unfortunately, the housing market of the of the past two years has created roadblocks and significantly less opportunities for buyers seeking homeownership utilizing any type of government financing and/or affordable housing programs.

In 2018 and 2019, 19% of Lancaster County buyers utilized either FHA or VA for financing for their home purchase. In 2020, that declined to 17.50% and in 2021, 12.00%. For year-to-date ending 9/30/22, the percentage of homebuyers using FHA or VA to purchase a home has decreased to 10%, almost 50% less compared to as recent as 2019.

The decline is usage of government financing for a home purchase is not due to a lack of qualified buyers seeking homeownership with government loans, but the lack of sellers willing to accept buyer’s contracts when government financing is the source.

The major reason sellers are not widely open to accepting government loans or affordable housing financing is that the guidelines require appraisers to look for specific criteria that could pose concerns for health, safety, or security risks. If any of these issues are included within the appraisal report, it is generally assumed that the seller must repair them prior to the sale.

Although these concerns may sound like a major deterrent from accepting an offer with government financing, most of the time these issues are small and require minimal attention from the seller. Most homes that have been taken care of and are fairly new (15-20 years in age), would unlikely have any issues noted from an appraiser that need to be addressed.

It’s understandable that sellers want the smoothest transaction when selling their home, but a more-favorable offer with a higher price or some other favorable characteristics shouldn’t be overlooked simply because the buyer is using financing other than conventional. These buyers can often bring something to a neighborhood or community that others may not – they can be Veterans who served our country, have skills or areas of expertise that bring value as a neighbor, or could be the family with children that brings joy to other families in the neighborhood.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

An Interview with LCAR's Executive Vice President, Mike Berk.

Fri, 03 Feb 2023 18:28:50 GMT

Join Richard Boas III, Chair of LCAR's Member Engagement Committee, as he interviews LCAR's Executive Vice President, Mike Berk. Together they look back on LCAR's previous year and discuss what's in store for 2023. You don't want to miss this exclusive interview brought to you by LCAR's Member Engagement Committee!

Chapters:

0:00 Introduction

1:58 Transitioning to LCAR

5:20 Member Benefits

9:05 Future Plans

Wholesaling

Fri, 27 Jan 2023 16:23:27 GMT

At one time what we now call “wholesaling” was performed by those who did not hold real estate licenses and who, for the most part, advertised on telephone poles: “We buy houses in any condition.” I concluded that the practice was an end of run around licensing requirements by those who were happy enough to take advantage of home sellers who were afraid of fees. The practice, again as I saw it, was rife with conflict of interest. We guide you to sell cheap so that we can sell high(er).

Years ago I did an article along these lines and in my preparation, I called many wholesalers. In almost each case, I was greeted by a message and told to leave a number. On occasion, I reached a live receptionist who took my name and asked my address. For each contact I made, I said that I was writing an article about the advantages and disadvantages of wholesaling and that I wanted the perspective from the wholesaler’s side. How many calls were returned? Zero.

At least twenty years ago, I contacted members of the Real Estate Commission to see what the Commission might do about wholesaling. I was told that since wholesalers acquire an equitable interest in real property, they can act as an owner. Since equitable owners (those with the right to purchase pursuant to a written agreement) can sell his or her property without having a license, so can these wholesalers. The problem is that these “equitable owners” take their equitable ownership with the intent of never actually taking title. The practice employed by many wholesalers is a pretext to circumvent licensure.

I proposed a remedy. Consider that those who hold power of attorney are also exempt from licensure if they are marketing property for their principal. He or she who holds power of attorney has the right to act on behalf of the owner. The license law, however, provides that an attorney-in fact, may not use that status to circumvent licensure. In other words, I can’t accept power of attorney status for all of my neighbors and friends simply for the purpose of marketing their real property. Only if I am appointed for the purpose of truly acting as an attorney-in-fact can I do so. Why not say the same thing about wholesalers who use the “equitable ownership” loophole. Provide that it may not be used to circumvent the law and only equitable owners who truly are obligated to purchase (with certain exceptions), may act in the absence of a license.

Wishful thinking. The loophole has not been closed.

Today, licensed practitioners have entered the wholesaling arena. Salespersons and brokers acquire an “equitable ownership” interest in real property and then market those interests for profit. I’ve even seen one licensee write on a Facebook post how much money she made over the price she was paying to the true seller. She was also explaining the concept of novation which, according to her, meant that a transfer tax had to be paid only on the “transaction from true owner to ultimate buyer” rather than on the two transactions involved. The explanation was wrong (these are very fact specific) and the real estate practitioner who made the post subjected to herself to myriad problems, assuming someone was looking.

Wholesaling may have a legitimate purpose of allowing those who do not wish to place their homes in condition for discerning buyers and who are truly desirous of selling as-is. And perhaps there are other reasons. If, however, there is a place for wholesaling, then substantial disclosure is imperative. The seller needs to understand that by engaging a real estate licensee with a fiduciary duty, he or she may learn the true value of the property offered and may come to understand what is in his or her best interest. The sellers who avail themselves of wholesalers should understand that there may be no fiduciary duty owed and should be encouraged to determine value independent of the wholesaler’s opinion. Wholesalers should not claim to represent the owner or indicate that the wholesaler is out to advance the best interests of the owner. To be clear, practices vary and each program should be carefully identified with clear disclosure and admonitions. A last word has yet to be written as to wholesaling, but, if you are inclined to do so, it should only be after consultation with legal counsel who can provide the benefit and legal opinion upon which you may rely, and who can provide clear disclosure to prospective sellers.

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

What Are You Wearing?

Fri, 20 Jan 2023 19:33:50 GMT

I have been in the workforce long enough, 43 years this year, to remember when what you wore on the job was almost as important as what you did at work.

Aside from anything requiring a set and standard uniform, my first real professional job came with a published booklet on workplace dress code detailing how one must present oneself in order to be allowed to work there. In both retail and corporate atmospheres, dress codes covered everything from the top of your head to the tips of your feet- and ladies always needed to be in heels. Nylons were an unquestionable absolute and they were only acceptable in black or beige. Dresses were required to the knee-- No pants whatsoever. Hair needed to be in what was described as a ‘natural’ color, meaning, black, brown, red or blonde, despite whatever color your natural hair really was. They meant no other hair colors in case you were going to try to get creative. Minimal jewelry was often described as ‘tasteful’.

For men, the dress code was simple...wear a suit. Men could take off the jacket. If a man frequently worked around machinery, his shirt needed to have short sleeves and the tie needed to be clip-on (so that they did not end up losing a limb or getting strangled) but in general the male uniform was a dark suit, a long sleeve white dress shirt, a tie, black dress shoes with black socks.

Things started to relax at workplaces in Lancaster in the 1980’s. Bigger cities, larger markets, and more progressive and creative industries had seen changes long before that, but we tend to be a bit conservative. Men began to wear sport coats without a tie, although an emergency tie was usually kept on hand. Women were much more behind the men in terms of permissible comfort, and the revolutionary female pantsuit was quite a leap forward. Men began hanging up their jacket or sports coat and began going around the workplace in just a shirt. Ladies' pantsuits slowly and eventually gave way to dress slacks with blouses and sweaters but often, just like the men, they kept a blazer or jacket on hand in case they had an important client or a meeting to attend.

Radical changes to workplace attire came in the form of two new concepts: the Logo company shirt and Casual Friday. At first, the Logo shirt was created for trade shows so that the company representatives could be seen and found by their clients in a sea of booths and displays. The company found that other staff members liked the shirts and wanted to have some too so often they provided them. Long before that, larger companies had been providing company ties, pins, t-shirts and things for casual or sportswear, but the new trend was generally an embroidered, better-quality dress or golf style shirts for men. It became acceptable to wear the company shirts to work, showing company pride, and with that came a more casual accompanying pair of slacks and shoes.

Casual Friday was at first born from marketing Hawaiian shirts and Levi’s Dockers, and as a way to boost morale in the workplace during times of recession when raises were off the table. Getting to dress down was part of team building efforts or even tied to community service or as an award for performance. According to an article in the Atlantic by Megan Garber, published May 25, 2016 (and I paraphrase) “Casual Friday was a gateway drug pioneered by Hewlett Packard and it gained force as a cultural phenomenon in the 1990’s when business casual became normalized.” Men began showing up in the office dressed for golf even if they were not going to go that day or did not even play. True Casual Friday’s for women meant jeans were allowed at work, but it took an unexpected worldwide phenomenon to make Monday through Thursday jeans acceptable.

The pandemic shut downs changed everything in terms of work wear and dress code. Workers sent home no longer had to worry about conforming and if they did at all, it was only on the top half and that was only when viewable on electronic device cameras. Those who still went into a workplace, which was largely, empty could wander around their ghost town office buildings in jeans or really whatever they wanted to wear like leggings, workout clothing, or the new all-inclusive term ‘loungewear’ (which are basically one step up from nice pajamas). Upon returning gradually to the new normality, the strict guidelines evaporated in all but the most conservative industries and of course those in industries where uniforms and clothing centric dressing was required.

In the 2022 real estate practice, attending a gathering of professionals and having 90% of those people in jeans is normal. Seeing someone in a full dress suit is not, unless they are a lawyer or very ‘old-school’ conservative. Most people will joke and ask them if they are going somewhere special later that day- and usually they are.

The concepts of individuality and personality have come along with the changes to the work wardrobe just as the permissibility of displaying tattoos, piercings and even rainbow hair colors have gradually seeped into the professional landscape. Diversity, equity and inclusion has brought us all an awareness of ethnic, cultural and racial differences, which are now allowed to be acknowledged in the way people dress and even style their hair. The bottom line is that in professional concepts the mantra has changed from ‘dress for the job you want’ to ‘I want to be judged for the strengths I bring to the table’.

One of the best ways that the pandemic changed all of us is the increased ability to be individual and creative in the way we clothe ourselves. If people find that they liked things the way they were before- at any certain point in time- they can now revert to the way that they liked things the best and go with that. However if they love the freedom to be situational and to decorate themselves by how they feel when they wake up that day, now they can. The freedom found upon coming out of a pandemic just may be the way we present ourselves to the world and having no one ask us “What Are You Wearing?”

Guard Railings and Hand Railings

Fri, 13 Jan 2023 20:11:25 GMT

People often get confused with the terms “guard railings” and “hand railings”. Guard railings are installed along the outer perimeter of decks, balconies, and porches and other areas where there is a change in elevation, such as along an upper hallway, and helps prevent someone from falling off the walking surface. A hand railing, on the other hand, is installed on a staircase or ramp to provide a graspable surface to assist traversing the staircase or ramp.

Modern standards call for guard railings where there is a drop to another horizontal surface of, at least, 30”. For residential settings, guard railings should be at least 36” high and have no openings within it wider than 4” (codes for commercial guard railings differ from those for homes). These openings may be between balusters or spindles or between the bottom of the guard railing and the walking surface itself.

The 30” difference in height requirement extends out 36” away from a deck or porch. For example, 20 years ago, if a deck’s walking surface was 28” above the immediate grade, even if the grade then dropped off steeply after 12” away from the deck, a guard railing may not have been required at the deck. With more recent changes to the IRC (International Residential Code), the above example would require a guard railing. Keep in mind that home inspectors are not code compliance inspectors, yet a good home inspector is very familiar with the building codes and stays current with their changes (a new version of the IRC comes out every 3 years) and applications.

Many older homes that I inspect have porches or decks that have one or more horizontal members only below the top railing. These, in almost all cases, have openings far wider than 4” and most often present an easy opportunity for a small child to climb the horizontal members, like a ladder, and fall over the other side. Even installing lattice on an older railing can still provide locations for small feet to be inserted to climb up and fall over. Rigid balusters can most often be readily added to provide the needed safety.

I sometimes even run across vinyl guard railings on newer decks that are quite flimsy and don’t provide much protection from someone bumping into the guard railing and breaking through. If the guard railing has too much flexibility, it may not prevent someone from falling through the guard railing and falling off a deck or porch. The strength requirement calls for no more than 4” lateral movement when 200 lbs. of force is applied. Most modern sturdy vinyl guard railings have either wood or steel inside the main vinyl components to provide strength.

Hand railings are needed at all staircases that have 4 or more steps. The walking surface of a deck or porch is considered a step, so even if there are only 3 more treads below the deck or porch, the staircase is considered 4 steps.

Proper hand railings and guard railings are a critical part of the home’s interior and exterior. They provide support to people, big and small, walking up or down staircases as well as helping to ensure that people can’t fall off a porch or deck or other change in elevation. Periodically checking the railings around your home can help ensure that they are solid and strong when you may need them most. Any damaged or loose railings should be repaired or replaced.

Your Job at Settlement

Fri, 06 Jan 2023 20:03:31 GMT

Settlement (or “closing” if you so choose) is the finish line, the end. And as the Agreement of Sale says, settlement is when the risk of loss passes to buyer. If the house burns down one minute after settlement, it is the buyer’s problem. Unlike fires, most potential problems can be eliminated at the settlement table, if not before.

Some potential problems will be eliminated by the title company. The Agreement of Sale says the title is to be “marketable.” The title company is engaged to determine that is so and also to guarantee that the lender has a priority lien. Do not expect, however, the title agent to determine whether a seller’s promises of repair have been properly performed or completed. Expect that the title company will be unaware of any provisions other than standard pre-printed ones. It is up to parties’ agents to determine that their client’s rights and obligations have been satisfied. If the Agreement obligates the seller to produce an approved septic permit at settlement, someone needs to make sure this condition is satisfied. I was involved in litigation once where an agent was handed such a “septic” permit by the seller. She diligently tucked the permit in the stack of papers at settlement. When ultimately reviewed, the permit made clear the approval for a holding tank and not a septic tank! The problem should not have been discovered after closing.

I, too, believe that it is the obligation of the agents to review the deed being conveyed. I have seen deeds with conveyances to tenants by the entireties (restricted to married couples) when the buyers were mother and son! Yes, that is a problem.

While you are not required to be an expert on deeds, a summary review is not that hard. If the buyer believes she is acquiring three acres but the deed says one, that is a problem. If the deed says that the seller is reserving regress and egress over the property, there may be a problem, depending on what was promised. Your job is to read the deed and ask questions if there is anything that strikes you as odd.

When I ask agents what their job at settlement is, the typical answers I get are: making sure that the parties bring their driver’s licenses, have wired funds appropriately and carefully, accompanying buyers to their pre-settlement walk-through, etc. Indeed these are the typical things you do, but, you should also be on the lookout for the atypical so they are caught before settlement concludes.

It’s amazing what can go wrong. I once was hired by a seller, days after sale, who could not understand why his settlement proceeds were about $10,000 lower than what was estimated. I reviewed the settlement statement that he had signed and noted a sale price $10k lower than the agreed price! Can you believe no one caught that at settlement! Settlement should be a happy time.

It is also the last time you get to catch a problem.

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

How You Gonna Pay For That?

Thu, 29 Dec 2022 17:00:00 GMT

Many individuals choose to invest in real estate outside of their primary residence because it’s generally known to be a stable and appreciating investment that can provide passive income for the future and even retirement. Additionally, many homeowners purchase second homes or vacation homes to enjoy life in a “home away from home.”

While some investors and buyers of second homes purchase with cash, many take on a mortgage for these purchases to balance their portfolios and keep their cash elsewhere within other investments or just on hand for reserves.

Although mortgage rates were generally higher when a home was not going to be a primary residence or not occupied by the owner, conventional mortgages were still available for buyers who chose to go in that direction.

Unfortunately, all of that changed in April of 2022.

An amendment to a stock purchase agreement between the US Treasury and Fannie Mae & Freddie Mac limited the percentage of mortgages than can be held for investment properties and second homes to no more than 7% of their total portfolio.

Fannie Mae and Freddie Mac essentially control all conventional/conforming mortgages in the United States, so this limitation has a direct impact on mortgage lenders nationwide.

These restrictions/limitations which were put into place effective April 2022, make it virtually impossible for mortgage lenders to be able to write mortgages on lower priced non-occupant borrower homes.

This is due to the increased pricing that Fannie Mae and Freddie Mac have put into place which now make these loans non-compliant for mortgage lenders to close as they are considered high-cost or higher-priced loans and now exceed limits set forth by the Consumer Financial Protection Bureau (CFPB). Loans that do not meet these guidelines are also known as “Non-QM Loans” or non-qualified meaning they do not meet requirements of Fannie or Freddie.

An example of this is as follows: Let’s assume a $150,000 purchase price investment property, 20% down payment for a loan amount of $120,000. To achieve the best possible pricing at an interest rate of 7.00%, it would cost the borrower 2.5 points (1 point is equal to 1% of the loan amount). In addition, a borrower would have lender fees for processing and underwriting of say $1200 which would then be a total cost for points and fees of $4200. The CFPB imposes a limit of 3% of the loan amount for points & fees for a transaction such as this which would be $3600. The only way for a lender to close this loan would be to take a loss of $600. A loan that exceeds the 3% is considered a high-cost mortgage. In addition, but more importantly, the Annual Percentage Rate (APR) on a mortgage such as this would be 8.497% which is considered a “Higher-Priced Mortgage Loan” (HPML) and deemed non-compliant by the CFPB since the APR cannot exceed 1.5% above the “Average Prime Offer Rate” (APOR) which would be 6.50% based on this scenario.

So essentially instead of Fannie and Freddie coming out and simply saying lenders can’t write these loans, they basically put pricing in place that make it impossible for lenders to do them with lower loan amounts and stay within the imposed limits for points, fees, and the APR limits. This will ultimately then allow them to keep below the 7% limits of non-owner-occupied mortgages within their portfolios.

Ultimately, the only options that exists for buyers of lower-end investment properties or second homes would be a cash purchase or a “Non-Qualified Mortgage Product” (Non-QM). A cash purchase is self-explanatory if a buyer has the means. There are lenders in the market that offer non-QM products, but the downside is that the rate is often substantially higher (double digits), and the underwriting requirements may be more difficult including higher credit scores or larger down payments.

Surprisingly these restrictions have not had a sever impact on the housing market yet since inventories remain low and many investors have the means to pay cash for their purchases. Assuming the restrictions remain in place indefinitely, there most likely would be impact to investor buyers, second home buyers and of course mortgages lenders being unable to write non-QM loans.

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

State of the Market

Thu, 22 Dec 2022 18:30:00 GMT

The November Market Stats for Lancaster County (MarketStats by Showingtime) show that the average Sold to Original List Price ratio was 101.3% for the month. Homes were on the market an average of 17 days and the Median Sold Price was $295,000, up 9.3% from a year ago.

29.2% of November’s closed sales were cash, 56.9% were conventional, 7.1% were FHA, 4.8% were VA and the remaining 2% were other.

Does this sound like a competitive market? Almost a third of sales were cash and less than 14% of sales accepted FHA or VA financing. Homes are still selling for over list price; they are selling quickly, and they are selling to predominately to cash and conventional buyers. It continues to be a very competitive market.

The definition of a balanced real estate market, that does not favor buyer or seller, is usually between five and seven months of housing inventory. If inventory levels exceed seven months, demand is low and prices are likely to fall which creates a buyer’s market. When inventory levels fall to less than six months, sellers have more control which results in a significant rise in housing prices which is a seller’s market (Texas A&M University Real Estate Center).

In the Lancaster market in November, there were 390 closed sales and an average of 460 active listings. This means there was just over one month of inventory available, which points to a very strong seller’s market.

I’m sure it is difficult to imagine a buyers' market right now. Five to seven months, or more, of inventory available, yet very few buyers interested. This was the experience during the great recession, but it is not even close to the current situation. Despite higher interest rates and counter to some of the national news about a declining real estate market, Lancaster remains a very strong seller’s market.

What does this mean for us as we head into 2023 working in Lancaster County? Monitor the monthly statistics to keep your finger on the pulse of our market. The market will continue to change as interest rates increase or decrease and as we begin to enter the spring market, which traditionally is our busiest time of year. Don’t expect the sky to fall, our inventory levels would have to skyrocket for the overall seller’s market conditions to wane. Be prepared to continue to manage multiple offer situations as both a buyer agent and seller agent. Encourage your buyer and seller prospects to jump into the real estate market. All indicators show that it is a great time to sell a home. There is little evidence showing that prices will have any reason to decline, so it’s a great time to buy a home as prices are still going up.

The bottom line is, don’t buy into the negative national news about housing. Housing markets are local and our market is strong and stable.

Does the PAR Standard Agreement Require the Buyer, Rejected by a Lender or Insurer, to Make Additional Applications?

Fri, 16 Dec 2022 15:58:28 GMT

It happens. The buyer makes a good faith mortgage application and does everything requested of her, and yet, her application is denied. If the date for securing a mortgage commitment has not passed does the buyer have an obligation to make another mortgage application?

That question was answered by the Pennsylvania Superior Court in a 1985 case, Ormond Realty v. Ninnis. The facts of that case date to August 1979 when the buyers made an offer, on a PAR Standard Agreement, that was contingent on mortgage financing. The agreement stated “buyers shall make a completed application to a responsible mortgage lending institution for the mortgage loan…within ten days from the seller’s approval hereof.” Sound familiar? It is not too much different from what we presently find in the mortgage contingency clause.

The court found that the buyers made a good faith effort to obtain the mortgage, but were unable to do so by the commitment date of October 20. A few weeks later, the buyers wrote to the broker holding the deposit funds stating that their failure to secure the mortgage by the commitment date meant that the agreement was null and void and so they were entitled to a return of their deposit (does that sound like a notice of termination?).

The Superior Court held that the failure to obtain the commitment rendered the agreement null and void and the buyers were entitled to their deposit money. Indeed, there are differences between that Standard Agreement and the present version. That agreement provided that if the loan cannot be obtained, the agreement was null and void. That language is not found in the present version though it is clear that the sale is “contingent upon Buyer obtaining mortgage financing…” So what happens when a buyer cannot obtain mortgage financing? Is the buyer obligated to make an application to a different lending institution? I hear some you answering “yes” and others “no.”

The difficulty comes from language in the present Standard Agreement that provides that “Buyer must continue to make a good faith effort to obtain mortgage financing” if the commitment date has arrived and the seller has not terminated. Yes, buyer must continue to make a good faith effort but does that include making a mortgage application to yet another lender? I argue “no” given the plain language of the agreement that provides that the buyer is to make “a mortgage application.” That is the language found in Ormond and it would seem that the court recognized that the plain meaning of “a” to mean “one.”

If a buyer does not obtain a mortgage commitment by the commitment date, the buyer’s good faith effort is to do what is reasonably necessary follow up on the original application to hopefully make that loan available, assuming it is possible to do so. If additional information is required by the lender, it must be provided. However, when the buyer hits the end of the road, the buyer is not obligated to make an additional mortgage application to some other mortgage lender of buyer’s choosing or one selected by the seller or a broker or anyone else.

A similar issue has to do with the buyer’s choice of insurer. Assume that the buyer makes a mortgage application and is granted a commitment. The commitment will require that the buyer to obtain insurance by the date of closing for the protection of the lender and buyer. What happens when the buyer’s lender observes knob and tube wiring and requires that it be removed? This matter too is addressed in our Standard Agreement where it provides that if a “casualty insurer providing insurance required by the mortgage lender(s) requires repairs to the property…” the buyer may seek the repairs to be performed by the seller, and if the seller refuses to do so, buyer may terminate. What if the seller says that she will not repair but will find an insurer willing to insure the property? Is the buyer required to accept that insurer and proceed with purchase? Borrowing from Ormond it would appear that the plain language of the agreement does not require the buyer to seek a different type of policy or a policy issued by an insurer not selected by the buyer. Had that been intended, it would be included in the agreement in plain and clear language.

This is an area of great confusion. Be on the know and take advantage of the Hotline when issues arise. And, when a dispute arises having to do with the issues addressed here, or any other issue for that matter, do not hesitate for one moment to suggest that your client engage counsel. Doing so will assure that you don’t become my client!!!

Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

Arc Fault Circuit Interrupters (AFCIs)

Fri, 02 Dec 2022 19:54:52 GMT

Since 2002, electrical standards have required a new device called an Arc Fault Circuit Interrupter (or AFCI for short) for bedroom outlets. An "outlet" is any place where electricity is tapped into it. It can be a receptacle, ceiling light, ceiling fan, hardwired smoke detector, etc. The 2008 National Electric Code (NEC) expanded AFCI requirements to include nearly all 120 Volt 15 and 20 Amp circuits in the home, including family rooms, dining rooms, living rooms, parlors, libraries, dens, bedrooms, sunrooms, recreation rooms, closets, hallways, laundry areas and similar rooms and areas. Areas that required Ground Fault Circuit Interrupter (GFCI) protection were not required to be AFCI protected as of the 2008 NEC. That changed with the 2014 NEC which added AFCI protection requirements for branch circuits supplying kitchens and laundry rooms. Pennsylvania is currently using the 2017 NEC.

AFCIs should not be confused with GFCIs. A GFCI is a device that can be in circuit breaker or receptacle form and detects potential electical leakage (a ground fault) that can potentially lead to an electrical shock. GFCIs are required in wet-prone areas including bathrooms, garages, kitchens, unfinished basements, laundry sinks and at the home's exterior.

AFCIs help prevent fires whereas GFCIs help prevent electrical shock. Arc faults and ground faults are two different things.

An arc fault can be thought of as a mini-lightning bolt in a few different scenarios. One of those scenarios can be if a single conductor (wire) is damaged and there is arcing between the breaks in the same wire. This can also be caused by a loose connection at a circuit breaker, receptacle, switch, etc. This is called a series arc.

Another scenario is where multiple adjacent damaged conductors are arcing to each other which is called a parallel arc or a 'line to neutral' arc. Arcing can lead to a very hot situation -- potentially reaching 10,000 degrees Fahrenheit -- which can easily ignite nearby combustibles including appear, insulation, wood, etc. This can lead to a house fire, destroying property and potentially killing people. According to the Consumer Product Safety Commission (CPSC), "Each year in the United States, over 40,000 fires are attributed to home electrical wiring. These fires result in over 350 deaths and over 1,400 injuries each year." Arc faults are one of the major causes of these house fires. This is why AFCI protection is now required in modern homes.

The photo shows melted wire insulation at a receptacle's side wire connections. One of the conductors connected to the receptacle came loose over time and led to series arcing resulting in melted wire insulation.

When wiring is energized, it heats up and expands slightly. The more electricity that flows on the wiring, the more heat and expansion occurs. Sometimes this wire expansion can over time lead to a loose connection since the wire is in essence 'pushing away' from the screw or terminal that originally held the wire in place. This loose connection can then lead to arcing.

If you look at a breaker panel of a home built between 202 and 2010, you will likely see one or a few AFCI breakers. If you look at the breaker panel of a home built after 2010, you will notice many AFCI breakers are installed.

AFCI protection has generally been done with special AFCI circuit breakers although AFCI receptacles are not on the market. AFCI breakers are larger in size than regular non-AFCI and non-GFCI breakers to allow room for the extra electronics inside them and include a test button. GFCI circuit breakers also have a test button incorporated. Different brands of GFCI and AFCI breakers use different colors of test buttons, but all GFCI and AFCI breakers will be clearly labeled "GFCI" or "AFCI" (usually on a little white sticker) or sometimes the abbreviations are actually spelled out on the device instead -- see the stickers on the devices below. Some newer breakers provide GFCI and AFCI protection and are now on the market and called dual-function.

The left side breaker is an AFCI breaker. The right side breaker is a GFCI. Notice that the labels specify their type.

The photo to the left shows an AFCI circuit breaker installed alongside regular circuit breakers. Notice the difference in size of the AFCI breaker.

AFCI breakers and receptacles have special electronics built into them which monitors the sine waves of the electricity's current and voltage. Excessive arcing disrupts these normal sine waves which can trigger the AFCI to jump into action ("trips") and shut off the offending circuit. Regular circuit breakers protect only against overloads and short circuits whereas AFCI breakers protect against overloads, short circuits and arc faults. Motors in the home, such as in a vacuum cleaner, will present arcs on their branch circuit as well. However, AFCI devices are designed to be able to differentiate between normal arcs and potentially dangerous arcs.

Think of hanging a picture on a wall. You hammer in a nail and unbeknownst to you the nail accidentally pierces wiring inside the wall. Whether it's a series or parallel arc, if the circuit is AFCI protected, the AFCI device should sense the abnormal arc and cause the AFCI device to trip. Besides the example above using a nail into wiring within a wall, some other examples of how wiring can be damaged include an appliance cord improperly run under furniture or carpet, wiring that is susceptible to mechanical movement or wear, etc.

The early versions of AFCI breakers also provided some GFCI protection but it was at a higher tripping-threshold (30-50 mA) than what electrical standards require for GFCI protection (5 mA). Dual-function AFCI breakers are designed to provide GFCI protection at this lower tripping-threshold meaning dual-function AFCI breakers can provide AFCI and GFCI protection in one device.

There are three different types of AFCI devices:

Branch Circuit Feeder AFCI Breaker -- basic AFCI breaker that detected only parallel arcing (between hot and neutral wires). These were the basic type dating back to 2002 when AFCIs were first introduced into electrical standards.
Combination Breaker AFCI -- an upgrade of the branch circuit feeder AFCI breaker that also provided series arc protection. This sort of protection can help detect arcs in things like damaged appliance cords plugged into an AFCI-protected circuit.
Dual-Function AFCI/GFCI Protection -- these are the type of modern AFCI devices that provide AFCI (series and parallel arcing) and GFCI protection. This technology provides the best of both types of protection . . . safety from things that can lead to electrical shock or fire.

In the photos above, you'll notice the little white pig-tailed wiring on the breakers. This white wire is the neutral conductor connection for the device to the breaker panel's grounded terminal bar. One brand, Square D, is now selling a new model of panel and AFCI breaker that no longer requires the pig-tail but instead the AFCI breaker's neutral side is designed to connect directly to the breaker panel's grounding bar.

So the next question may be about the AFCI's test button. The only recognized way to test an AFCI breaker or AFCI receptacle is to use the device's built-in "TEST" button instead of a plug-in tester. GFCI devices should also be tested using their "TEST" buttons. When performing a home inspection, inspectors do not test AFCIs in occupied homes as doing so will shut the power off to the affected circuits. This could include a computer or something else running that the inspector doesn't know about.

If there is AFCI protection installed but it was not tested, the inspector should note that in the report and note why they were not tested (such as 'the home was occupied'). In vacant homes, however, we do test AFCIs using their test buttons. Then we go back through the home to make sure there is no power at the receptacles, light fixtures, ceiling fans and hardwired smoke detectors in the areas where AFCI protection is required. Once this has been confirmed, we will reset the AFCI devices to re-energize those circuits. An issues that I sometimes find in homes built between 2002 and 2009 are hardwired smoke detectors not being AFCI protected. If the AFCI is tripped and the bedrooms' smoke detectors are still powered by the home (normally showing a green LED), these circuits are not AFCI protected as required. Modern hardwired smoke detectors have a battery backup so they are powered even if a regular or AFCI circuit breaker is tripped. From when AFCI protection was initially required for bedroom circuits (2002), hardwired smoke detectors in bedroom have been required to be AFCI protected.

Even if your home predates these modern electrical standards, AFCI breakers may be able to be installed in older breaker panels to provide extra protection for your home. AFCI breakers generally run between $30-$50 each and a qualified electrician can determine if AFCI breakers are available for the brand type of panel installed in your home and what the total cost would be. AFCI receptacles, however, can be added in older homes regardless of the type of breaker panel installed. When installed as the first outlet on a branch circuit, AFCI receptacles provide series and parallel arc protection for outlets downstream but will not protect the wiring between the first AFCI receptacle and the breaker panel, however. Overall an AFCI circuit breaker provides more protection than an AFCI receptacle. Only a qualified electrician should install AFCI circuit breakers or receptacles.

Nearby lightning strikes and some appliances were prone to cause nuisance tripping of some older AFCI (and GFCI) devices. Newer technologies make the nuisance tripping much less of an issue nowadays.

Take a Lawyer to Lunch?

Fri, 25 Nov 2022 19:30:00 GMT

Since the PAR Legal Hotline went in-house, I don’t get the thousands of calls each year that I once did, but I still get plenty. As you’d expect, the subjects are varied, but many callers seek advice about the provisions of a non-standard contract and how to explain it to their clients.

To these callers I will give an answer, but also a warning. The answer will hopefully reach the client, buyer or seller. The warning I give is that the agent with whom I’m talking is probably not going to give the nuanced answer I gave nor be equipped to answer follow-ups. Think of the game where a phrase is whispered in the ear of one person and passed along in a circle until the last person states the whisper aloud. It is always different than what was first uttered. Even though my advice goes from me to an agent and then to the client, a very short line, it will still be different. It’s like hearing about your upcoming surgery from someone who heard it from your surgeon!

I like examples and here is a good one. A buyer agent called asking my impression of an addendum to the agreement of sale that was not a standard. The addendum was short and simple. It said the sellers had 130 days to locate a replacement property and enter into a binding agreement of sale for it. If that didn’t happen, buyers got their deposit money back and the agreement was terminated. This addendum also set a date for settlement that was to be 30 days after sellers notified they had signed a purchase agreement.

There was lots to be critical of! It didn’t provide that the sellers would make a good faith effort to purchase a home or that they were even looking for a home within a price range for which they had mortgage approval, and that’s just for starters.

After addressing the fifteen or twenty things that I thought should be addressed with the buyers, I asked the agent a few questions. Are you writing this down? No, she hadn’t thought to do this and I speak more quickly than she can transcribe. Are you being paid any more for reviewing this legal document that was not standard and that you are not familiar with? No. How long have you practiced law? I didn’t ask that.

Here is what I suggested. Why not have your clients call me or another attorney who works in this arena. If you tell your clients that the form is not standard, that you never want to broach the unauthorized practice of law and that you think they will benefit from a brief legal review, the client is not likely to turn on you. Explain that you are concerned about advancing their very best interests. I do this all the time when I suggest that my clients engage brokers for all kinds of reasons. There are things you do that I do not and vice versa.

I suppose I could also advise the calling agent that I’ll charge him for my time and would he prefer to pay for the advice or have his client engage me and do so. It is only fair that the client paysay for legal advice though that’s a matter of choice.

When you say to a client “let’s get you to a lawyer who can answer this for us,” you're less likely to get backlash than you think. If a client refuses, emphasize, in writing, that you advised them to seek legal advice. Presumably your client is as capable of reading the form as you, so let them decide whether they are going to sign. It may be risky to review the form and offer advice but less so if you emphasize that you are not comfortable doing so and that a lawyer is needed. It is also good to identify lawyers to whom you can refer a client and who can turn around a question quickly and at a reasonable rate. They exist and can be life-savers for you and your clients! Best to all!

Copyright © James L. Goldsmith, Esquire 2022 All Rights Reserved. Mr. Goldsmith is an attorney with Mette, Evans & Woodside. He serves as outside legal counsel to numerous Realtor Associations and was a staple on the PAR Legal Hotline for many years. A substantial portion of his practice is dedicated to providing advice and counsel to real estate licensees. He defends real estate salespersons and brokers in civil lawsuits and licensing claims across the Commonwealth. He represent Realtors® in disciplinary cases conducted before the Real Estate Commission. Jim was one of the voices of the PAR Legal Hotline for the first 27 years following its inception in 1992.

Back to Basics: The First Steps to Homeownership

Thu, 17 Nov 2022 19:39:21 GMT

Believe or not, not everyone knows exactly where to start when it comes to buying a home. I know, I know, this seems like a big “duh” , but as Realtors®, we often take for granted our knowledge and sometimes assume that buyers know exactly what they need to do to buy a home. But the reality is, buying a home is a huge decision and a complicated process, and many buyers have no idea what they need to do or where they need to start to achieve the American dream. So where do they start?

Well, the first thing buyers tend to do before doing anything else is contacting a Realtor® either by calling a local office asking for an agent or seeking one as a referral.

“I’d like one of your finest homes, please”.

If only it were that simple. Typically, agents will meet with a potential buyer for a consultation. This is a great opportunity to not only inform them where they need to start, but to explain to them the whole home buying process from start to finish to help give them a sense of what to expect throughout.

So, before buyers even look at a home, they need to know what they can afford. You don’t want to be showing them million-dollar homes if they can’t afford it. And unless a buyer has enough cash lying around to outright purchase a home, they will most likely need to obtain a loan.

Que the lender.

Getting your financing in order is really the first and most important step before embarking on a home buying journey. But even this step can be confusing. Do buyers just walk into a bank and say, “May I have some money, please?” They could I suppose, but this is a good opportunity to coach them and walk them through this crucial step and explain to them what they can expect when they work with a lender. Inform them that if they have a financial institution that they are already comfortable with, they should consider starting there. Or better yet, if you know a lender you trust and have a great rapport with, refer them to that particular lender. Whomever they decide to work with, it’s always a good idea to use a local lender, as they will have a better understanding of the local market. It also makes communication easier when compared to an out of state lender in a different time zone.

Once they get in touch with a lender and provide them all of the necessary documents and information, they’ll know their price range and what they can afford. With this, the fun begins. Now you can determine what type of home to look for and where to look and start showing them homes. That’s really the first major step.

I know this all sounds like a no brainer, but for new agents in particular, it might not seem so obvious. It’s easy to forget that we aren’t just helping buyers simply purchasing a home, but also that we’re emotional support for them too in some ways. Our job is to make the home buying process as smooth and as stress free as possible. When a buyer has a bad experience buying a home, even if it isn’t because of anything you did or didn’t do, they will associate you with that bad experience. So guiding them through to that first step is crucial. If you show them a good first impression, then they’ll have confidence in you moving forward.

Clothes Dryer Vents: The Proper and The Improper

Thu, 10 Nov 2022 19:13:14 GMT

I continually run into confusion from homeowners and Realtors regarding what the proper venting material should be for clothes dryers. Statistics from the Consumer Product Safety Commission (CPSC) show that over 15,000 house fires and nearly $100 Million in property damage annually are related to faulty clothes dryer vent installations in the US. House fires related to clothes dryer vents are more common than most people believe but, luckily, are relatively easy to prevent. The inside of many dryer vents is extremely dirty and most people would have no idea until they either (1.) have a fire, or (2.) decide to finally clean out their clothes dryer vent years after it should have been done.

Clean the lint filter and the lint filter compartment

In addition to the easily removeable lint trap filter that comes with all clothes dryers, the compartment where the lint trap filter resides tends to fill with lint and this area rarely, if ever, gets cleaned. It can be difficult to access for most dryers but often has a cover that is secured in place with a few screws. Besides cleaning the lint filter each time a load of laundry is done, the area adjacent to or below the lint filter also needs to be cleaned out regularly. This often requires using a vacuum cleaner with a hose attachment, for example, after the cover is removed. Cleaning the lint filter AND removing the lint in the compartment adjacent to or below where the lint filter is installed is very important.

Improper Dryer Vent Materials

During a normal drying cycle, up to a gallon of water may be drawn out of the clothes in the form of water vapor. The purpose of the dryer vent system is to transport this water vapor and the lint that accompanies it, as well as heat, to a safe location outside the home. A commonly found yet improper type of dryer vent is flexible vinyl tubing. Vinyl is a type of plastic and which can easily melt and lead to a house fire. This material, most often white and ribbed, tends to allow for lint to readily accumulate inside of it. Lint is very flammable and all it takes is a small spark to ignite it leading to a house fire. The more lint that fills a clothes dryer vent, the more energy the clothes dryer consumes to try to dry the clothes as air won’t freely flow through the clogged vent material. This, in turn, causes the drying cycle to be much longer (maybe 2 or 3 hours) than normal and raises utility bills. The photo below shows vinyl (plastic) tubing.

Another improper dryer vent material that I routinely see installed is mylar foil tubing (see photo below). It is a flexible ribbed (slinky-like) shiny tubing that many homeowners and contractors have installed wrongly assuming that it is metal because it is shiny. Mylar foil tubing is not approved for use as a clothes dryer vent material and should not be used for this application. The photo below shows an installation of mylar foil tubing which actually runs behind a fixed wall covering. A new product on the market (DryerFlex) looks similar to mylar but is UL 2158A approved and is more rigid than mylar foil tubing. A transition duct is the piece of ducting that connects the clothes dryer to the actual clothes dryer vent.

If the mylar transition duct is UL approved, it will have a UL sticker on it stating "UL 2158A". If it has no UL 2158A sticker, then it should be assumed it is not UL listed and should be replaced with a proper rigid metal dryer vent material. The transition duct should be as short as possible to connect the dryer to the metal vent (no longer than 8'). The transition duct must not run within a wall, floor, or ceiling covering since it will not be able to be visually inspected and can't easily be cleaned

Something that I’ve been running across sometimes is that some builders installed 4” PVC drainpipe as the clothes dryer duct. At one inspection from several years ago, I even saw a black corrugated plastic drainpipe (normally used for draining water from downspouts) being used as the home’s dryer vent. While PVC is meant for plumbing and venting applications, PVC is not approved for venting a clothes dryer as it is not heat rated. PVC pipe should not be used for this application. The photo below from a recent home inspection shows vinyl tubing (left side) connected to PVC pipe (right side) with cloth duct tape. These materials are wrong.

The IRC (International Residential Code) section M1501 requires that clothes dryer vents be constructed of, at least, 0.016" thick rigid metal, have smooth interior surfaces, and shall not have sheet metal screws extending into the duct. The clothes dryer vent should meet the UL 2158A standard. Sheet metal screws penetrating into the material allow lint to get caught on the screws and possibly clog the vent over time (see the right-side photo below). Keep in mind, that a home inspection is not a code compliance inspection and that the AHJ (authority having jurisdiction) is the responsible party for determining/verifying code compliance. The home inspector is using these standards, however, as a reference to help protect his client from possible future hazards, such as a house fire. The first photo below shows the proper rigid metal duct material. Notice how this rigid metal duct looks nothing like the mylar foil material. This material can't easily be bent.

Dryer ventilation systems should terminate to the home’s exterior and have a proper exterior cover to help prevent water, birds, insects, etc. from entering the duct. The IRC also specifically forbids having an exterior screen installed on the dryer vent, like the vent shown to the right. These screens often catch lint and then block the dryer vent over time. Luckily, these screens can often be easily removed leaving the dampered or louvered cover in place.

Venting a clothes dryer into a garage, basement, attic, or anywhere else inside the home can lead to excessively high humidity levels, mold, as well as an increased fire risk. Also, a clothes dryer ventilation line should terminate to an area of the home’s exterior where it cannot be blocked by vegetation, snow, dirt, etc. and be at least 3 feet from doors and windows. The vent also should not terminate near an A/C or heat pump outside unit as lint can accumulate on the unit and prevent proper operation of the system.

Semi-flexible rigid metal ducting is recommended where the rigid metal duct material connects to the clothes dryer, however, the flexible pieces should never be installed within walls or ceilings due to their lack of access for cleaning. The photo below shows flexible rigid metal ducting. Again, notice how different this material below looks compared to the mylar foil ducting.

I sometimes find dryer vents that far exceeding 40 feet in length. In this case, I recommend that the vent system be modified to terminate to an alternate exterior location closer to the laundry appliances to allow a shorter run. Most standards call for clothes dryer vents to be no more than 35 feet in length, have few bends, and no kinks. The more bends in the vent that exist, the shorter the overall length should be. For every 90° bend, the vent should be shortened by 5 feet; for every 45° bend, the vent should be shortened by 2.5 feet. An exception exists if the clothes dryer’s manufacturer specifically permits a longer vent but, in most cases, the inspector does not have this documentation from the clothes dryer’s manufacturer. Some clothes dryer manufacturers will mention in their installation materials whether they allow an in-line booster fan to be used when there is no easy way to prevent a long dryer vent.

As part of a home inspection, the inspector should report whether the clothes dryer vent is visible, its apparent type and condition, and recommend modification if any of the safety issues noted above are found. If the vent is not visible (such as passing through walls/ceilings or insulation), the home buyer should verify that a proper rigid metal vent is installed and find out from the seller when it was last cleaned.

With every home inspection, I always recommend that the clothes dryer vent and exterior cover be thoroughly cleaned, at least, twice per year as preventative maintenance. This also reminds the homeowner to ensure that the vent hasn't come loose behind the dryer or at the louvered or dampered exterior termination point. In cases where the full length of dryer vent is relatively short and fully accessible, the homeowner can take apart and clean the dryer vent’s interior; this is made easier with a vacuum cleaner with a long hose attachment. In cases where the vent is long or located within a wall or ceiling, a professional should do the job. Many HVAC professionals and chimney sweeps also perform dryer vent cleaning and there are a few companies that specifically clean clothes dryer vents as their main business.

During a home inspection, in many cases, only a small part of the clothes dryer vent is visible and, sometimes, none of the vent is visible. Often, socks or other clothing have fallen behind the laundry appliances against the wall and these items can block sight of the dryer vent where it passes into a wall or floor. Installed insulation, ceilings, or walls as well as other nearby stored items can block visual access to the dryer vent material. Of course, home inspectors do not move insulation, disassemble walls/ceilings, or move appliances to perform the inspection so visual or physical access to the dryer vent is sometimes limited or totally blocked.

House fires related to improper or blocked dryer vents are easily prevented and a little bit of preventive maintenance can help save lives.

When was the last time you inspected and cleaned your clothes dryer vent? Your family's safety may depend on it.

2022 Member Luncheon Preview

Fri, 04 Nov 2022 19:01:27 GMT

It's that time of year again! Join LCAR members Lisa Naples and Richard Boas III as they tour the Wyndham Expo Center ahead of our 2022 Member Luncheon. The 2022 Member Luncheon will be held on Thursday, December 15, at 11:30AM and is open to ALL LCAR members.

�� : https://www.lcaronline.com/

This video presentation was made possible through LCAR's Communications & Member Engagement Committee.

What the Market Taught Us?

Fri, 28 Oct 2022 19:50:12 GMT

So, as we slide out of the crazy sellers’ market of the past several years, we have time to catch our breaths and contemplate. What are the new issues? What did we learn?

The answer to question one: none. The answer to question two: Hopefully a lot! Let’s examine.

In the crazy market it seemed that prices shot up daily. An accepted offer was bettered days later by a substantially higher offer that the seller wanted to take. This resulted in folks seeking to terminate accepted offers. In one situation I know of, a seller terminated an executed agreement on the advice of her listing agent because the buyer was two days late with a $3,000 deposit. Seller then entered an agreement with buyer 2 at the higher price. Seller was rewarded by a lawsuit filed by buyer 1 that took a year to resolve!

While this behavior may not occur in a “normal” market, there is nothing new about the issue of termination. There are provisions in the agreement of sale that say if something occurs the seller has the right to terminate; other provisions give the buyer the right to terminate. Many provisions that call for the performance of an act are not so instructive and say nothing about the right to terminate (e.g. as when a deposit is paid two days late). The appropriate tact remains the same today as it did 10 years ago: if your client wants to terminate suggest that she get the advice of counsel.

Other problems I’ve witnessed recently arise from the very formation of the sales contract. For example, seller counters the buyers offer and while that counteroffer is being considered the seller receives a second and higher offer. Can seller rescind the counteroffer not yet accepted? And what happens when the buyer-agent says “too late, the buyer signed the counteroffer yesterday.” This problem too is hardly new though I’ve witnessed it more frequently in the sellers’ market.

There were also some positives! It took a little time but sellers awoke to the power they enjoyed over the last few years. Suddenly deposits became meaningful. The check-box making a buyer’s deposit a liquidated damage in the event of default, was no longer seen as obligatory.

And then came the “sight-unseen” purchases. I’ve never witnessed that before, but again, the issues aren’t really new. Remember lecturing your kids about the danger of impetuous purchases?

The crazy market has, and will continue to have buyers skeptical of the honesty of the seller disclosure. Without inspections to catch what a seller may not have known, buyers are more likely to assume that sellers lied and that their agent let them down with the result that more suits are being filed against sellers and the agents. The refrain has become my agent made me waive my mortgage contingency; my agent made me waive my home inspection and all other contingencies; my agent told me I didn’t have time to come in from out of town to look at the property; my agent told me I had to double my intended deposit ….”

But folks, there is nothing new about agent competency. We all know agents didn’t create the situation. But because the stakes are so much higher, agents exposure to criticism is that much greater. Some of you recently invoked a practice that is age old for others; explaining the risks and making clear that the loss that may arise from any risk will be borne by the buyer. You may need to waive your home inspection in order to have your offer accepted, Mr. Buyer, but If you do, there is the risk that you will discover serious latent conditions after your purchase.

Another risk, accentuated by this market, is the limited time between contract and closing. This period was shrinking before our crazy market but its consequences became more significant. Items that might be repaired before settlement were deferred to post settlement with buyer being credited a sum in order to accommodate the fix. What happens when the subsequent fix costs three times what the parties anticipated?

Again, nothing new here.

Indeed, shifting markets impact the balance of power between buyers and sellers. Risks increase or decrease and agents scramble to adjust to the market conditions. But matters involving offer/acceptance/delivery, liquidated damages, time of the essence, fault and remedies have not changed.

I imagine many of you could argue that marketing has changed. How one advertises, how we deal with multiple offers, and other issues vary based on the market. While I focus on legal issues and risk reduction, I venture to say that marketing issues are also as old as the sun and moon. Share your thoughts.

Real Estate Appraisal Tips with Mandy Jankowski

Tue, 18 Oct 2022 20:54:46 GMT

Join LCAR member and local real estate appraiser, Mandy Jankowski, as she dives into the latest updates concerning Real Estate Appraisal in Lancaster County.

For more in-depth information, check out https://www.fanniemae.com/

This video presentation was made possible through LCAR's Communications & Member Engagement Committee.

Commercial Property Management; Rise & Shine

Thu, 13 Oct 2022 19:25:50 GMT

Nothing wakes me up quite like the sound of fire alarms in the morning. Just when it seems like I'll be having an idyllic Friday, made ever so much more enjoyable by getting to wear jeans and shoes that don't hurt and there exists the high probability of getting to do a little internet shopping after a nice lunch with a few girlfriends . . . a day filled with promise . . . and then they start. That oh too familiar strobe of shrill, pulsing, rhythmic blasts guaranteed to get even the laziest one in the office up and out of his fully adjustable rolling armchair and headed for the exit. In multi-tenant facility management, especially mixed use office and industrial facility management, the alarms signal a protocol of practiced routine things accompanied by a journey into the unknown. It may be something as simple as a kid whose Scooby Doo backpack decoration got jammed into the pull station during a game of "let's body slam each other up against the hallways" as he enters the classroom. Or it may be the apocalypse, or anything between those two scenarios is also entirely possible.

For the most part the teams of people who manage large facilities like business parks (in my case) but also in factories, medical complexes, multi-tenant manufacturing sites, shopping malls, convention centers and resort hotels know well in advance when pre-scheduled practice drills, the fire marshal's inspections, maintenance work and construction based tie-ins to the sprinkler system will happen -- all which have the expectation of audible fire alarms. The worst part of my job is those totally unexpected calls from people asking me why the alarms are going off. These come from tenants as they are mid-evacuation three buildings (and four city blocks) away.

Not knowing why and basically being clueless about what is going on when I have to coordinate the response and initiate a sequence of events to respond is like being brought into the game after the coach has let the QB stay in until the mid-fourth quarter and the score is 3-49. Plus on top of it, I have to be polite yet uncharacteristically brief . . . "thank you, I'll find out" click. As it turns out, people who are scared, stressed and shocked tend to want to go on and on and chat, and I'm in a hurry. So now I'm up and I'm talking while I move fast, preferably on a golf cart but too often on foot. At this point I am winging it all. I am moving but ready to pivot based on the most recent information I get. My location is based on who on my team I can reach as the minutes go by and the alarms keep ringing. I am moving rapidly between the area of the reported alarm and the area where the first responders need to be met in case I cannot reach anyone key to the response plan in which case I must meet the responders myself. I also need to know where else the alarms are sounding if they are not ringing where I am and try to determine where/why/how they started.

I smell the air for smoke, chemical odors or anything odd as I listen to the sounds above and beyond the 'normal' in my vicinity while feeling the building vibrations under my feet as I walk. Mind you during all of this I am on the cell phone both calling and receiving calls one after another. In any type of alarm event -- from an internal tenant driven evacuation, a partial or a full facility alarm situation -- in the back of my mind I have many coexistent and non-linear thoughts. Is this a "real" emergency? Is it a false alarm; and if so, from what source? What is it? Where is it? Are there injuries or worse? Do I have access gates that need to be opened for first responders? Who is near enough but not inside an event area (proximity) that may need to be evacuated? Primary are always the school children, the disabled, any pregnant women and on down the list. Knowing what other tenants and uses are located nearby and also adjacent to an event area is crucial. Sadly the only way to learn all of these things first-hand is from having worked through a fire, two floods, a bomb threat, an intruder and an explosion. Hopefully you will never have to deal with any of these, but I do urge you to always treat alarms with the respect that they deserve. Every event must be treated like the worst case scenario until you can verify that it is not.

The firemen/EMTs/police/bomb sniffing dogs, etc. all need to be met and directed . . . either to the event site or to the main fire control panel. Regardless, I already know what they will ask and what they will find helpful which is basically "just the facts, Ma'am" to start and remain alert as they may want details later.

From the time that I first became aware that alarms had started, I have already contacted our internal facilities people to check the fire panel read-out and the powerhouse central system computers to tell me where and what, to the best of their ability, they can detect. I've spoken to my emergency contacts for the tenants in the immediate vicinity; and based on that information, I discuss with my facilities guys the need to address mechanical systems interventions like possibly shutting down the HVAC all together or engaging ventilation to pull air out of the area or to increase the influx of fresh air. My main designated contacts in the different buildings give me line-of-sight info, and the guards also share information and I also need to share information with them. It's a fully fluid and purely reactionary chain of events learned over time. There is plenty of room for judgment calls, spot prioritizing and of course a lot of room for error.

In an alarm scenario on a typical 8 a.m. to 5 p.m. workday -- meaning without special events going on in the conference centers -- a full-facility evacuation affects nearly 2,000 people. So in our scenario they are now all evacuated outside, hopefully being counted and managed in their pre-set meeting spots by their own protocols. For the property manager, thoughts are also concerning those people and their new environment. Is it raining? Snowing? Freezing cold? How far are they away from the event area? Is it far enough? Do I need to have them moved? All the while the phone continually rings and rings through every call that I am already on and I need to be nice . . . and concise. And people need to be patient, which they are not. They will call you until you answer; and if you don't answer, they will just keep calling over and over until you do or they get the information they want elsewhere.

We have a team, and it is a wonderful thing when the team is in place and everyone is on their best game. Usually, however, emergencies happen at inopportune times like when key people are out getting parts or at LCAR in a meeting or having a day off hunting for deer, sleeping or even having fun at a local pub. None of those make for a masterfully cohesive team response. We sometimes have to press other staff or service people onto the response team. As may be needed, I may have to dictate a message and ask two security guards to start calling a long list of 80+ tenant contacts with one guard starting at the top of the list and one guard from the bottom of the list until all are reached. We may ask an employee who is usually in janitorial to become a 'runner' and physically go to dispatch message as our technical/trade employees are 'all hands on deck' and cannot be on their phones. We do not use standard traditional computers in any alarm or emergency situation. When people are evacuated, they are not at their desks reading email and neither are we. Despite technology where many people get email on their phones, it is not dependable enough to risk safety in actual practice. To this end, we carry hard copy contact numbers (cell phone) info 24/7/365 because we have learned from our prior experiences that the internal phone systems which 'forward' calls from desk to cell phone cannot be counted on if electrical power is in question. We have redundant electrical power; however, in some situations the only safe option has been to literally shut it all down.

Meanwhile the 911 response team of firemen, EMTs, police, etc., have all arrived and have been met and updated, guided either to the event area/staging area or taken to the powerhouse to address the central control equipment. When an event is the "real deal", meaning fire, bomb threat, chemical leak, an explosion, etc. - the fire captain will take over and decide what he needs, wants and basically the trajectory of the rest of your foreseeable future. He decides when the alarms get turned off. He decides the fate of the building(s), the space and the operations. He may even lock out everyone, meaning empty the facility until it is all declared safe and that has the unique power to freak people out the most. The illusion that the facility is under the control of anyone who typically manages it is gone; and no matter what has happened, the alarms herald a warning that things are not going to be calm or enjoyable for quite some time.

Or looking at it the way I like to . . . if it is a truly good and lucky Friday ad it turns out it was all a simple false alarm triggered by internal maintenance work during which the technician had the system "called out" or on "test" so that blessedly no flotilla of firemen are coming and after I let everyone concerned know that "all is well" and that they may return to their cubicles, offices and classrooms on this special Friday . . . I may still make it to lunch with my friends AND if this luck continues, I might actually get a showing request so I can do my real job.

Communication Etiquette

Thu, 29 Sep 2022 18:40:07 GMT

Whether it’s a relationship, government, the workplace, or somewhere in between, communication is everything. Without it, it all falls apart. And that holds especially true in real estate. Communication influences how smoothly a transaction goes, and can decide whether or not a transaction is ultimately successful. It also influences our business and how successful we are as agents. So you would think that with the modern convenience of computers, tablets, and smartphones, that we would have this communication thing down pat.

But that isn’t always the case.

I hear it from agents all the time: “So and so is terrible at communication. It takes forever for them to respond to me”. Sure, we’ve all been guilty of not communicating the best. Between running a business as well as just living our lives, forgetting to respond to an email or texting a client about an update can happen from time to time. But just like making a mistake, you don’t want to keep repeating it. This is all common sense. But there are still some things that we can practice to help our communication skills.

This day and age, there are so many different ways we can communicate with one another. Whether it be by mail, email, text, phone call, or carrier pigeon, if you need to get in touch with someone, there’s a way to do it. But it’s a good idea to use the appropriate form of communication for what needs to be communicated. For Instance, if it’s an urgent matter such as a hot water heater leaking during a pre settlement walkthrough, you might want to call the listing agent instead of emailing them about the issue. Just like it might be better to forward an offer via email than through text. You get the idea. Sometimes it makes sense to use more than one method for the same purpose. For example, if you email an agent an offer, it’s a good idea to call or text that agent to let them know that you emailed it to them. That way there is zero possibility that they missed your clients offer.

Being consistent with what form of communication you use is also important. If you’re working with an agent on a transaction and are constantly switching between text, email, and voice calls, it can be hard to keep track of important information if you ever need to fall back on a previous conversation. If you start out communicating using email, maybe try sticking with that. Same with texting and phone calls. This not only helps you keep track of conversations, but can provide time stamps for your conversations depending on the form of communication.

As important as it is to communicate well with other agents, lenders, title officers, contractors, etc., it’s just as important if not more so to have good communication with your clients. If your client sees you as being a poor communicator, you’re in for a world of trouble. Poor communication not only makes you look unprofessional in their eyes, but it can also have a severe negative impact on your business and your overall success. As we sell more homes, we get more referrals (at least that is the idea), so even if you see a transaction all the way through to the settlement table, if your client had a bad experience working with you then they are less likely to refer you to a friend or family member. And the number one reason clients have when they state why they had a bad experience working with their agent is that their agent was poor at communication. So it is extremely important to communicate with them. Anytime something changes during a transaction such as deadline being met, or a contingency being removed, it is wise to notify our clients immediately. Even if everything is going as smooth as sandpaper its always a good idea to touch base with a client at least once a week just to check in with them and let them know that things are still on track.

So what are some tips that ultimately we can use to be better communicators? One thing we can do when starting communication with someone, be it an agent, a lender, or a client, is to ask them what their preferred method of communication is. Everyone has their own preference when it comes to communication. So if an agent says they prefer to communicate via phone call, then that’s probably the best way to get a hold of them. And if someone doesn’t like using email, you may not want to email that person if you want to get information to or from them. Email in particular seems to be less and less popular, especially among newer agents. I know agents who flat out just don’t use it. But also given the amount of spam we all get on a daily basis, it can be easy to completely miss an important email even if you check it every ten minutes. So knowing how someone prefers to be communicated with can go a long way in keeping the dialogue going.

Again, these are just some helpful tips to hopefully help improve the movement of dialogue in your business. Because after all, communication is key

The Potential Dangers of Waiving Inspections

Thu, 22 Sep 2022 18:44:02 GMT

Part 2 of LCAR's Home Inspection Series

Now that we’ve been through this seller’s market for 2 years and seen so many buyers waive inspections and gamble on what they are buying, many home inspectors are seeing a negative result of this situation. In the past 9~12 months or so, I’ve received well over 25 calls from new homeowners who recently bought a home, waived their inspection, and then moved in and soon found problems that they feel were either not disclosed or were not accurately disclosed by the seller. They are calling me because they want a home inspection performed to document these issues as a first step to start suing everybody involved in the original home transaction, including their Realtor®, the seller, as well as the seller’s Realtor. The first inclination of a home inspector upon hearing this request will naturally be ‘no, I am not interested in getting involved in something that’. I’ve talked to several other home inspectors across the country who have received similar calls in the past year or so and they had similar reactions about getting involved.

Once I started hearing back in the spring of 2020, when real estate in Pennsylvania was forced to shut down for 2 months due to being considered “non-essential”, that more and more buyers were buying homes and waiving their right to a home inspection, one of my first thoughts was ‘this is going to come back to haunt some of these buyers and some will end up feeling that they were duped’. Many buyers at the time were putting offers in completely sight-unseen or sometimes only seeing the home’s interior via listing photos or a video. I performed lots of inspections once real estate was able to re-open in late May 2020 for buyers who had still never seen the home. Some who were out-of-town buyers had their first actual tour of the home via me FaceTiming the clients at the end of their inspection to provide a real-time summary and answer questions while I was still onsite.

Whether any of these buyers who are looking at bringing lawsuits against the Realtors and sellers involved will actually succeed remains to be seen. I would imagine that PAR has a form that required buyers to sign once submitting their offer with inspections waived that declared that their agent was to be held harmless if what I described above happened.

Another side of this situation has resulted in many buyers opting to have a home inspection performed after closing to find out what they bought. I’d estimate that maybe 30% of the inspections that I’ve performed in the past 12~18 months were these post-settlement inspections. We perform the same exact home inspection as if it was performed pre-closing. Of course, whatever issues that I find are now up to the buyer (the new homeowner) to address since they can no longer negotiate with the seller post-closing.

Just a few examples of things that I have found in these post-settlement inspections include:

1. Leaking roofs or roof coverings at or beyond their design life requiring full roof replacement.

2. Faulty electrical (much of which was obviously DIY work) as well as numerous Federal Pacific Electric (FPE) and Zinsco brand breaker panels that need to be replaced due to well-documented fire and safety hazards.

3. Multiple damaged foundations. One home that I inspected post-settlement appeared that its foundation was literally been struck by a car. This foundation wall had a section of concrete blocks pushed inwards approx. 18~24” approx. 20” above floor level which seemed to line up with a car’s bumper. This was a shared foundation wall (duplex) that abutted directly to the neighbor’s garage. In this case, the new homeowner actually went next door and asked their new neighbor who showed us the damage from their side. Yes, a car had definitely struck the wall from the neighbor’s side and damaged the shared foundation wall.

4. At least 2 dozen basements with water issues ranging from multiple small or large puddles (not related to plumbing leaks or a faulty sump pump) including 3 fully flooded basements. 2 of these basements had standing water up, at least, 4”. Several others had no standing water or puddles yet had moderate or severe mold growth on their foundation walls or fixed wall coverings (finished basements). Most of these buyers showed me the seller’s disclosures and the majority of these documents had answered “no” where it asks about prior water entry.

These examples show how important it is for home buyers to have a home inspection performed, even if it’s a post-settlement inspection performed right after closing. Of course, having the inspection performed as part of a sales agreement (before closing) is best since it most often allows the buyer to negotiate issues with the seller. Obviously, not every home that the buyer waived their inspections in order to buy will have major issues but, without a thorough inspection, you never quite know what a buyer is buying.

Caveat Emptor: Let The Buyer Beware

Thu, 15 Sep 2022 19:00:06 GMT

Part 1 of the Home Inspection Series

Let the buyer beware. The full Latin statement is here:

Caveat emptor, quia ignorare non debuit quod jus alienum emit

"Let a purchaser beware, for he ought not to be ignorant of the nature of the property which he is buying from another party.”

We’ve been selling real estate during an interesting time, these past two years. Some areas of the country have continued to use home inspection contingencies, but in Lancaster County, they’ve all but disappeared to allow buyers to be competitive when making an offer to purchase a home. As evidence of this change, several home inspectors have left the business for lack of work.

Buyer beware. In the sale of a home, the seller knows much more about the condition of the home than the buyer. The seller has a duty to disclose any known material defects in the Seller’s Property Disclosure Statement. In the past, the buyer relied on the Disclosure and a number of possible inspections to gain an understanding of the condition of the property before fully committing to the purchase. Without the inspections, buyers are relying only on the Disclosure to understand if there is a history of issues they are going to inherit.

So what happens when an issue comes to light after settlement? Buyer beware. It is a common knee-jerk reaction for new homeowners to feel like the seller duped them when something in their home goes wrong after settlement. As a seasoned Realtor, I know that things go wrong in homes all the time and that often when it occurs after a settlement it really is purely a coincidence and not a matter of the seller not disclosing a defect. Of course, sometimes it is a known and undisclosed defect.

This is not an article to offer legal advice. More of a reality check for what’s going on in today’s real estate market and in the homes of our clients, after the sale. If the well pump fails 3 days after settlement, whose problem is that? If the roof leaks 2 months after settlement, could the seller be responsible for a new roof? If mold is found in the attic 6 months after settlement, did the seller know? I think it is safe to say the answer is - it depends. Leave that to the legal experts.

If your buyer closed on a sale 6 months ago without getting a home inspections and then a cast iron waste line cracked, leaked and damaged their finished basement, they may want to blame the seller. However, they’ve lived in the house for 6 months at this point. They had both opportunity to fully explore their new home and opportunity to do their own damage.

This is all pointing to the benefit of ordering a home inspection after settlement. Not six months after settlement when they are fuming because they feel the seller didn’t disclose something. It should be scheduled for the day after settlement. This way they have a snapshot of the condition of the home at the time they are taking ownership, before their own wear and tear. This can give them a heads up of issues on the horizon to allow them the opportunity to prevent unpleasant surprises, like a leaking roof or a wet basement.

Having an inspection completed right after settlement is an alternative to having it done as a condition of the sale, with the important distinction that they can’t cancel the sale after settlement. This really does sum of today’s market: Buyer beware.

An Interview with 2022 LCAR President Greg Bardell

Thu, 08 Sep 2022 20:50:20 GMT

Join Richard Boas III, Chair of LCAR's Communications & Member Engagement Committee, as he interviews LCAR's current president, Greg Bardell. Together the two reflect upon the past year and discuss topics such as the current real estate market, recent changes at LCAR, and advice for new Realtors®.

Ground Fault Circuit Interrupters (GFCIs)

Fri, 26 Aug 2022 18:23:29 GMT

We've all seen them . . . they are normally located in kitchens and bathrooms, at patios and decks, among other places. They are the receptacles with the little TEST and RESET buttons. Some have red and black buttons, and some have buttons that match the color of the actual receptacle (often white or cream colored). We're talking about the trusty Ground Fault Circuit Interrupter or GFCI.

GFCIs come in receptacle form (first photo above) as well as circuit breaker form (second photo above). Each does the same thing. They are designed to help protect people from shock or electrocution when it comes to water and electricity contact.

GFCIs entered residential construction standards back in the 1970s. In 1975 they were only required for receptacles located in bathrooms and at most exterior locations. Over time, like most things in the building code, the number of required locations for GFCI protection increased. On February 12, 2022, the Commonwealth of PA moved up to the 2018 International Residential Code (IRC) which includes the 2017 National Electric Code (NEC). GFCI protection is required for 120 Volt 15 and 20 Amp receptacles located in bathrooms, garages, unfinished basements, crawl spaces, within six feet of sinks (such as laundry sinks), at the home's exterior, at receptacles that serve kitchen countertops, receptacles that power kitchen dishwashers and light fixtures in crawl spaces. This essentially covers all places that water and electricity can potentially meet. Notice that I didn't say that GFCI devices need to be installed at each of the above locations, but instead that these areas simple require GFCI protection. There is a difference . . . more on that later.

GFCIs work by monitoring the amount of electrical current on the hot (black or ungrounded) and neutral (white or grounded) wiring feeding the GFCI device. If it senses an imbalance between the two wires (such as 5 Amps on the neutral wire, and 4.5 Amps on the hot wire), it assumes that extra electrical current (0.5 Amps) is leaking (such as shocking someone) and should trip. GFCIs are designed to trip at an unbalance of 5 mA which is a pretty small level of current. GFCIs can trip in about 1/40th of a second. GFCIs do not require a ground (often bare or green insulated) conductor in order to function, so FGCIs can easily be added in older homes that were only wired with two-wire systems, such as knob and tube (K&T; pre-1950) and two-wire Romex/NM cable (mid-to-late 1940s to about the mid-1960s). In this case the "No Equipment Ground" stickers that come with GFCIs should be installed at the downstream-protected receptacles so that the home's occupants know they are not actually grounded.

The electrical code stipulates what receptacles inside or outside a home must be GFCI protected but it does not say that the actual GFCI devices (the 'resets') must also be located in these same areas. As mentioned above, where GFCI protection is required and where the GFCI devices must exist can be two different things. In many homes from the 1980s and 1990s, sometimes all of the exterior and bathroom receptacles were protected by a single GFCI device (such as a GFCI receptacle located in a bathroom or in the main breaker panel). Therefore, one GFCI device can protect downstream receptacles in multiple areas of the home. Most electricians nowadays will install GFCI receptacles in each bathroom and at each exterior receptacle. Generally modern kitchens will have two or more GFCIs installed. The garage receptacles, including ones on ceilings, are normally all tied to a single garage wall GFCI receptacle. This provides more convenience since the user only has to reset the GFCI right in the bathroom, kitchen, etc. versus having to go to a different area of the home to reset the GFCI if it trips.

One thing that the NEC does say pertaining to device location, however, is that GFCI devices must be installed in "readily accessible" locations. This means not requiring a tool, ladder, etc. to access and not located behind a permanent appliance, for example, but it generally means being able to see and physically touch the device by standing on the adjacent floor surface.

As part of a home inspection, per the ASHI (American Society of Home Inspectors) Standard of Practice part 7.1.A paragraph 9, "the inspector shall inspect ground fault circuit interrupters". By 'inspecting', it means to TEST them. The proper method of testing a GFCI is to use its own built-in test button. For a GFCI receptacle, pressing the TEST button will easily determine if the unit is working as designed. If it trips, good. Next press the RESET button. If it does not trip or reset, then something is wrong. It could be a faulty GFCI. Modern GFCI receptacles are designed to that if they are wired backwards (hot/neutral reversed also known as reverse polarity), they will trip but won't reset. This feature is meant to force the user to fix the wiring problem. Older GFCI receptacles could trip yet still have receptacles downstream that are still powered. The 'won't reset' feature is designed to prevent this.

For testing a GFCI breaker, again, press its TEST button. The breaker handle should move to the center location (it's 'tripped' position) and you should hear the breaker trip. Next fully turn off the breaker (from the middle 'tripped' position to the 'off' position) and then back to the ON position. If a GFCI breaker or receptacle won't reset or continues to trip once reset, this indicates a problem warranting the prompt attention of a qualified electrician.

One difficulty that often occurs for home inspectors is when testing receptacles to determine if they are GFCI protected, it may trip a GFCI device located elsewhere in the home. Finding the actual tripped GFCI to reset it can sometimes border on the 'nearly impossible' if it is located in a different room since we can't hear the actual 'click'. In some homes the tripped GFCI receptacle is located behind shelving, boxes, furniture or other clutter where the inspector would have no chance of ever finding it. If we can't see the GFCI, we can't test and/or reset the GFCI. Remember, home inspectors don't move the seller's belongings to perform the inspection.

GFCI breakers and receptacles should not be confused with AFCI (arc fault circuit interrupter) breakers and receptacles. GFCI and AFCI circuit breakers look very much alike and each has TEST buttons. GFCI and AFCI receptacles each have TEST and RESET buttons. GFCI devices are designed to help protect from shock or electrocution, whereas AFCI devices are designed to detect electrical arcing which could lead to a house fire. GFCI and AFCI devices will be clearly labeled on the device's front or side to differentiate one type from the other.

Money Belonging to Another

Fri, 19 Aug 2022 19:29:14 GMT

We all know the importance of placing deposit monies in an escrow account. Most of us know about the "next business day" rule. And while most of us know that a deposit check can be held until the next business day following seller's acceptance of an offer, few know why. If you are weak on anything I've referenced above, I suggest that you turn to the Rules and Regulations of the State Real Estate Commission, beginning at Section 35.321. Here you will find what you need to know about your responsibility in handling "money belonging to another".

So here's a test question: must you deposit a lot reservation fee in an escrow account and, if so, when? I'm talking about the check a buyer gives you to temporarily reserve a building lot while the buyer and builder negotiate a new construction contract. While lot reservations may be paid directly to a builder, many times the builder wants nothing to do with managing these funds and expects the broker to hold them. And usually these funds are fully refundable if the buyer walks away within a limited period of time. I know brokers who have expressed to me their preference to hold these checks rather than deposit them. For one thing, there's a fair percentage of buyers who change their mind about new construction and who want their reservation fees returned. If the buyer's reservation fee is in the form of a check that's been deposited, it may take weeks for that check to clear. If the check hasn't yet cleared, you run the risk that it may never clear though the refund you've given the buyer will!

A big question is why are lot reservation fees required? If the reservation check is not deposited and the buyer stops payment, there is no benefit to having it. And if it is refundable, it's not as though you're really holding anything at all! Why not just give the buyer a 10-day lot reservation in exchange for their promise to negotiate the purchase of a new home with a builder? I presume there is some psychological benefit to having the buyer post a check despite the fact that it's not particularly good collateral when held in a desk drawer.

Another problem, a bigger problem, with the uncashed reservation check is that it is . . . a violation of the Rules and Regulations! If you read the sections of the Rules that I have cited above, you know that when a broker receives money belonging to another, that money (check) must go into an escrow account within the next business day. The only exception is for deposits that accompany a buyer's offer or a tenant's offer to lease. In those cases, the duty to deposit the funds in escrow extends to one day after the execution of the lease or purchase agreement. No exception is found for lot deposits or anything else.

While holding lot deposits may make sense, you've probably got a problem if you're doing so. If your builder is willing to hold these checks, and they are made payable to the builder and not to your broker, you are not likely violating any Rule. You would want to make clear that the buyer's lot reservation will be paid to and held by the builder, despite how obvious that would seem.

I hope this helps. As always, I'm interested in your thoughts on the matter.

The Great Resignation

Fri, 05 Aug 2022 15:06:33 GMT

If COVID had a theme song, it may just sound an awful lot like Michael Jackson's "Man In The Mirror". Husky voiced and angry, a bit despondent and feeling all philosophical, alone with his thoughts in his room and wearing a weird outfit.

"I'm starting with the man in the mirror. I'm asking him to change his ways. No message could have been any clearer. If you want to make the word a better place, take a look at yourself and make that change."

Who among us does not know someone who changed jobs, got divorced, got a dog, got engaged, got married, had a baby, moved or did major renovations during the pandemic? Not many people simply stayed inside in their PJ's and shopped/read/played video games and binge-watched Netflix between Zoom calls and waiting 'til they were told it was safe to emerge. People did some thinking. "What do I want my life to be like when I get out again?" "Where do I really want to go when I get to go somewhere?" "Who do I want to spend my time with?" "How do I get there from here?"

The full social reemergence has not even fully happened yet. There are remnants of the sequestering all around us still. Clerks behind plexiglass and wearing a mask. People still working from home who do expect to one day be fully back in an office. Concern over planning big events because of another variant with a new age name and debate over boosters for our boosters when we are only at 65 percent immunization as a country. COVID rates of transmission, hospitalizations and deaths have become a tertiary, or even lesser, reporting category on the news. It depends on what else happened that day like war, the weather, who shot who and where in the all-inclusive 'Sus-Q-Valley'.

For the most part though, we are let loose again. Like bears in search of a good meal after hibernation, we want to experience things -- go places, enjoy life and be happy. We are free, right? Free to choose where and how we live, reevaluating how we pay for it and who gets to share it with us. The long interruption in our routines, the shutdown of all that was sacred from our favorite coffee shop or watering hole to where and how we celebrate milestone events all allowed us to choose what we may resume doing as if nothing ever happened and what things to start doing again . . . not because we always have, but because we WANT to.

Maybe the weekly meeting that was on your calendar for 15 years is not something you want to put back on your schedule because, as the organizational guru Marie Kondo recommends, "If it doesn't bring you joy, out it goes." Possibly you became interested in new things and want to expand upon the curiosity. Having a jam-packed schedule of commitments and obligatory events to attend keeps you busy and distracted and occupied as life flies by. When normal life stopped, some people found it unbearably awful while other people found it quite cathartic.

During or just after the pandemic started to recede, a number of retirements occurred in my segment of the industry . . . people who I never thought I would see go have in fact gone. Icons. Faces that I had known for so long that stilled seemed (to me) too young to 'retire'. I also never considered the concept of actually not working anymore. Our industry as a whole is a bit different in that regard from others in that there are not a magic number of years of service or an attainment of a certain age that says, 'it's time -- you can stop now'. But evidently there is. It is that time when what you are doing with the bulk of your waking hours is no longer being spent doing what it is that you truly WANT to do. That is the magic time to resign yourself to change and grow into a new version of you . . . at any age.

A large number of people have also felt themselves drawn to real estate. Of course, it is the most hip and coolest thing there ever was to do, but people want to be part of something that celebrates change, involves service, and makes people happy. Being a Realtor checks off so many boxes in a revitalized life that it is no wonder. There are also shifts from affiliated professions and trades to the seemingly endless array of roles that one can enjoy under this big umbrella.

This is not just about getting a different job, a replacement spouse, or a puppy to keep us company. It is more than musical chairs. We have all changed -- even if we still live in the same home with the same people and go to the same place for work that we have always gone. Even if we don't recognize it, we are each different. We are all older, living survivors of the plague.

That tends to change a person . . . hopefully for the better.

Seller Obligations In As-Is Sales

Fri, 29 Jul 2022 14:24:45 GMT

What's rarer than a sighting of Bigfoot riding the Loch Ness Monster under a rainbow during a blue moon? If you ask a Realtor® they might tell you it's a home inspection. Personally, I've been involved in only one transaction this year where a buyer obtained an inspection. That's not to say that no one is getting them, but they are a lot less common in recent years. That's just a result of this seller's market that we find ourselves in. If I had to summarize these recent months with one word, it would be "as-is", as every home seems to be advertising as such. And while for a seller not having to deal with a home inspection and selling your home as-is is obviously a big win, it doesn't mean they are exempt from any responsibility. So, what responsibilities do sellers have?

First, let's discuss the purpose of a home inspection.

The main purpose of a home inspection is to look at areas and aspects of a home for any issues that are not easily seen or even known by the seller. Inspections aren't meant for things that are easily identified by simply walking through a property. Most homeowners don't know every single little detail about their home, so there are always going to be items and issues that sellers are not aware of. That's where inspections come in. So now that we got that out of the way, let's get to those seller responsibilities when a buyer decides not to get one.

Let's start with the Seller's Property Disclosure. Regardless of whether a buyer obtains an inspection, sellers have to fill out and provide a copy of their property disclosure. Again, while a seller may not know every single detail about their home, serious buyers will look through these disclosures with a magnifying glass and a fine-tooth comb. So, for sellers it's important to make sure that these disclosures are filled out as accurately and as honestly as possible. Because again, even if a buyer is opting out of an inspection, any deceit on the seller's part with regard to the disclosure will find its way into the light eventually. And as their agent, you don't want any possibility of a buyer taking legal action after the fact against your seller or even against you for that matter for something misrepresented in the disclosure. Often times buyers use the Seller's Disclosure to help them determine whether they want to proceed with an inspection or even with an offer for that matter. So, making sure the disclosure is properly completed is key. Be sure to also reference the Agreement of Sale for seller's obligations as well as that lists what is required of a seller throughout the course of a transaction.

But aside from the Seller's Disclosure, sellers are expected to, well, maintain their property. That sounds like common sense, and it is, but it can be easy for sellers to assume that because they are selling their home as-is and without a home inspection, that they are AOK to convey their property no matter what the condition is. At the very least, buyers should be able to move into a home in the same condition that it was in when they submitted their offer. So, if something breaks down while the home is under contract, such as the water heater, dishwasher, AC system, etc., sellers should be expected to have those items repaired or replaced for the buyer. As-is doesn't give sellers a free pass to neglect issues like these.

Sometimes when moving out of a home sellers may happen upon an issue that they weren't initially aware of. For example, they might move a piece of furniture that has been in the same spot for 20 years only for its removal to reveal a giant hole in the wall. Again, another instance where sellers would be expected to correct an issue for the buyer. Whether it's a hole-in-the-wall, a leaking roof just unearthed of a bat infestation in the guest room, sellers have the responsibility to maintain and mitigate any issues that come to light.

So, when you're with your seller and you're celebrating their cash offer with no inspections, make sure to keep their expectations in check and let them know that they still have a responsibility to the buyer to keep the house in order.

Electrical Systems of Older Homes

Thu, 21 Jul 2022 20:45:00 GMT

Think about what homes from the 1920s had in them that required electricity. Then think about what we have in our homes now that depends upon electricity. There are some big changes, right?

Back in the 1920s, most of the home's circuits were lighting and a few basic appliances. Today we have multiple televisions, DVRs, computers, clothes dryers, electric ranges, air conditioners, microwave ovens, refrigerators, surround sound systems, video game consoles, and then add in the lighting circuits.

It doesn't take long to figure out that the electrical needs of the homes in the 21st century far surpass those needs of homes that were wired in the 1920s. Often while inspecting older homes, I will still find electrical systems that are considered antique by today's standards and can't reasonably or safely handle today's electrical needs. Long ago a 60 Amp electrical service was standard and could suffice for the home's needs of that era. For 40 plus years, a 200 Amp/240 Volt service has been considered standard for the average new single-family home. Most insurance companies will no longer insure a home with less than 100 Amp/240 Volt service, yet I still occasionally find 60 Amp electrical service in homes.

Fuse over-current protection still sometimes exists in these older homes. As the name implies, an over-current protection device (like fuses or circuit breakers) helps prevent too much current flow in a wire. Too much electrical current draw on a wire can be caused by a faulty appliance plugged into that circuit or may simply be too many appliances on that circuit. Electrical current flowing on any wire causes the wiring to heat up slightly. It is known how much electricity can safely pass on a given sized piece of wiring without overheating. Therefore, the National Electrical Code (NEC) has set standards for what size of electrical over-current protection different sized and types of wiring should have.

Once the amount of current flow exceeds what the size and type of wiring can safely handle, the wire can overheat; and in extreme cases can cause a fire. In some instances it has been proven that a fuse is less likely to fail, compared to an older circuit breaker, when the over-current device needs to act. While fuses are still considered a viable protection method in electrical systems, modern circuit breakers are more convenient when a circuit trips. No need to replace a circuit breaker when the device trips, unlike a fuse. Circuit breakers are more convenient in some regards such as once the breaker is installed it is simply reset when it trips. Once a fuse blows and needs to be replaced, one may improperly replace it with a higher rated fuse and thus introduce a new safety hazard. Some circuit breakers can jam when their mechanical components need to operate (open the circuit) whereas a fuse can't jam since it's really just a thin strip of wire inside the fuse.

For example, 14 AWG (American Wire Gage) copper wiring is safely rated for 15 Amperes ("Amps" for short). An ampere is a unit of measure for electrical current flow. Installing a 30 Amp fuse or circuit breaker on this 14 AWG copper circuit presents a possible risk of fire since the wiring may overheat if the circuit is taxed before the fuse blows or breaker trips. Circuit breakers generally do not instantly trip once it detects an overload but rather has a 'delay effect' if you will. It may take a circuit breaker 20 minutes to trip upon an overload, whereas there are slow and fast acting fuses. While I do see circuit breakers and wiring gauge that do not match from time to time, I see oversized fuses much more often as it is simpler for a homeowner to easily swap out one fuse for another. And yes, occasionally people are out of fuses and simply stick a penny in the fuse receptacle. As I am sure you have already guessed, a penny is in no way an over-current protection device and can certainly lead to a fire since the penny provides no over-current protection for the circuit.

Older breaker panels also can be a concern. Mechanical and electrical components tend to deteriorate with age. Some people are under the dangerous assumption that breaker panels and their components tend to deteriorate with age. Some people are under the dangerous assumption that breaker panels and their components have an unlimited life expectancy. The rule of thumb in the home inspection industry is generally 30 years for these systems. Ideally breaker panels older than 30 years old should be evaluated by a qualified electrician to make sure its breakers will still function if they need to trip, for example. Who knows if any of the circuit breakers have ever NEEDED to trip but didn't. Home inspectors don't remove circuit breakers from the panel, and it is possible that arcing or burn marks may exist hidden behind the breakers possibly signaling a hidden hazard. These characteristics can be tell-tail signs of dangerous issues existing. A qualified electrician can determine if these issues have occurred. If no issues are apparent, this can help put a buyer's mind a little more at ease.

The type of wiring in the home can also be an issue. Up to the mid to late 1940s, knob and tube (K&T) wiring was common. Knob and tube wiring on its own is not inherently a problem. It becomes a problem, however, when modified by unqualified people. This type of wiring consisted of two individual wires that were run independently and then joined where needed to power lighting, switches and receptacles. Today's modern wiring is commonly called Romex or NM (non-metallic sheathed) cable and includes all of the conductors together in one sheathed piece of wiring. Today's circuits should be grounded. Modern Romex wiring includes a bare copper grounding conductor. Know and tube wiring did not include a grounding wire. Knob and tube wiring is designed to be air cooled which means there should be no thermal insulation or other materials around the wiring. Also the size of the know and tube's individual conductors may be inadequate in some circumstances to supply today's electrical loads an, in my experience, tend to have unsafe junctions either to other knob and tube or to more modern wiring. It's not unheard of for knob and tube wiring to be missing its insulation leaving exposed wire conductors within reach. Just imagine if you're walking in an old basement and your head accidentally brushes up against uninsulated knob and tube wiring. Can you say OUCH??? That is after, and IF, you get back up after being shot across the basement with the shock of your life.

As part of a home inspection, the home inspector should report on the type(s) and visual condition of the accessible wiring in the home. Keep in mind, however, that most of a home's wiring is hidden within walls and ceilings or behind insulation which limits the inspector's visual access of the home's wiring to areas such as the basement and attic.

Knob and tube wiring is called that because there are ceramic knows (for securing the wiring to wood framing, for example) and ceramic tubes (for passing wiring through framing). The photo below shows knob and tube (K&T) wiring.

Several well-known insurance companies will not insure homes with active know and tube wiring. When I see knob and tube wiring, I use a voltage sniffer on both conductors to try to determine if they are still live (energized). If so, I take a photo to include in the home inspection report and make a note to the buyer and agent about its presence and explain its issues. I know of instances that buyers didn't find out that they were being denied insurance coverage until the day of closing. I recommend buyers check with the carrier they are planning to use to verify coverage soon after the inspection and not waiting until right before closing. If need be, get quotes from several carriers that will insure knob and tube wired homes. Doing this right after the home inspection can save you headaches down the road. Of course an alternate thing to do would be to have the knob and tube wiring taken out of service and have modern Romex wiring installed as an upgrade which provides grounded circuits.

A very common thing that I regularly find in older pre-1965 homes are ungrounded 3-wire receptacles. Older 2-wire ungrounded type receptacles should only be changed to modern 3-prong grounded type receptacles if the wiring between teh fuse box or breaker panel and the receptacle is also replaced with modern wiring and properly grounded. In many cases someone swaps out the older 2-wire ungrounded type receptacle with 3-wire receptacles but doesn't actaully replace the 2 conductor wiring with 3 conductor grounded wiring. This presents an unsafe condition since new people will assume the 3 wire receptacles are grounded. An example of this is homeowners plugging in surge protectors into the small 3-wire to 2-wire reducers that you can buy at a hardware store. Surge protectors require a grounded circuit. Plugging a surge protector into an ungrounded circuit (either a 2-wire receptacle or an improperly installed 3-wire receptacle) provides no surge protection.

Some other things you may want to consider with old electrical systems is having a qualified electrician install Ground Fault Circuit Interrupter (GFCI) protection at receptacles in wet areas such as bathrooms, kitchen counters and the exterior. A GFCI receptacle doesn't need to be grounded to properly function, so GFCI devices may be installed in place of ungrounded older 2-wire (pre-mind 1960s) Romex only if the receptacle is labeled "No Equipment Ground". While the National Electrical Doe (NEC) didn't require GFCI protection until the 1970s, adding GFCI protection in the wet areas listed above can help prevent a shock. GFCI protection is required in the above-mentioned areas in modern homes. The photos below show a GFCI circuit breaker and a GFCI receptacle.

This article isn't meant to scare potential buyers from purchasing an older home, but rather to enlighten the agent and client that issues may exist with the older home's electrical system, especially if the electrical system hasn't been updated in decades. Agents who routinely list older homes may want to keep these issues in mind and discuss them with their sellers prior to listing, just to prepare them. My advice is to have a thorough home inspection performed by a qualified home inspector and be prepared for the possible need for repairs or updates to an older system. Your client's life may depend on it.

Crazy Market Disclosure

Tue, 12 Jul 2022 14:56:51 GMT

Welcome to this unprecedented real estate market. The limited inventory of homes coupled with a great demand is causing fierce competition among buyers. So put on your armor and grab your sword.

On the battlefield there lays an array of homes that will include your likely objective -- some are dumps, some okay and perhaps there is a gem. Given the limited opportunity to sniff for clues, you will be in the inky cloak of darkness when it comes to making a choice.

The scroll I'm handing you (it's about six fee long when unfurled) is your offer. The terms, all but the property address, have been pre-printed. These terms exclude mortgage and inspection contingencies; the terms make clear that you are accepting "as is" what you see and don't see. It's sort of like the office holiday gift exchange except that your life's fortune is at stake. Hope you don't get a bad one!

Why the armor? Fending off other potential buyers is essential to acquiring a home in this market. Other techniques include feigning to be a home inspector and position going yourself by your prospective acquisition and loudly muttering about the horror loud enough to be heard by other prospective buyers. Use your imagination, think outside of the box. Best of luck.

DISCLAIMER (to be read at 100 miles per hour). The price you pay to acquire a home may be greater than its fair market value. Waiving inspection will result in your purchasing a property with defects that will cost a boatload to fix. Hair and teeth may fall out. Your real estate agent is not liable because he/she told you so; and it says so in the scroll.

Mortgage Contingency Review

Wed, 06 Jul 2022 17:07:04 GMT

I’ll warn you upfront, this is going to be a dry topic. This is a review of the Mortgage Contingency paragraph in the Standard Agreement for the Sale of Real Estate. More specifically, this is a refresher on the interest rates and discounts that should be entered in this contingency.

Money was very cheap for so long that we, as REALTORS®, did not have to be particularly mindful of the terms in the mortgage contingency. Interest rates were low and steady for years, but that’s now changed. Now we have to consider the risk of rates increasing between the time the offer is submitted and when the offer is accepted. Until there is a fully executed agreement, the buyer’s interest rate is not locked in. Is the buyer qualified to make this purchase up to the maximum interest rate you’ve entered in paragraph 8(A)?

What rates are you using for the interest rate vs. maximum rate in this paragraph? Are you allowing for any fluctuation in rate? These terms are important from the seller’s point of view when evaluating the strength of the buyer. If the maximum rate is lower than the typical going rate, then the seller may assume the buyer is not qualified for more and not very strong financially. Additionally, make sure the lender has approved the buyer for the maximum rate you have entered.

The next blank in this paragraph is the percent for discount points, loan origination, loan placement and other fees charged by the lender as a percentage of the mortgage loan. Points are back as buyers are trying to lock in as low of a rate as they can. If your buyer’s rate is conditioned on paying points, you should enter this percentage in paragraph 8(A).

Second mortgages are also back. If the buyer is financing 80%LTV with a 20%LTV second mortgage to avoid mortgage insurance, the second mortgage terms should be entered in 8(A).

Listing agents should communicate with buyers’ agents and lenders to fully understand the financing outlined in the Agreement so that the seller can accurately understand the buyer’s mortgage terms and qualifications.

For your reference, here is paragraph 8(A):

Paragraph 8 Subparagraph D relates back to the interest rates stated in 8(A). In this paragraph, the terms of 8(A) are satisfied if the maximum interest rate was offered by the lender, even if the Buyer chooses to float and the rate goes up and exceeds the maximum rate. The Buyer must lock at least 15 days before settlement (unless this number has been modified). Lastly, the Buyer gives the Seller the right to contribute financially to make the mortgage terms work for the Buyer. In other words, if the interest rate offered by the lender exceeds the Buyers maximum amount stated, the Seller can contribute financially to bring the terms back to what is stated. For example, the Seller can pay points (as permitted by the lender) on behalf of the buyer to reduce the interest rate to the maximum amount stated.

For your reference, here is Subparagraph (D):

If you still have some stamina to review more details about the Mortgage Contingency paragraph, take a deeper look at what is written in the Standard Agreement for the Sale of Real Estate Guidelines for Preparation & Use prepared by the Pennsylvania Association of Realtors®:

Here are the guidelines for 8(A):

Here are the guidelines for Subparagraph (D):

Why Would A Seller OR Buyer Choose Auction?

Thu, 30 Jun 2022 14:30:00 GMT

Auctions provide an opportunity for a seller to place their property into a competitive and exciting bidding scenario in which all the terms and conditions are determined by the seller. The seller selects whether the property is sold with or without a reserve, the day it will sell, the non-refundable down payment amount and even the settlement date. This eliminates any negotiation pressure on the seller because all bidders are competing on the same fair terms. Auction properties are usually sold "as-is", relieving the seller or estate the burden of repairs, updates or cash outlays.

Buyers come prepared to buy, providing the assurance that property will be sold at true market value. Like any expedient sale, this provides rapid liquidity, reducing long-term carrying costs, including taxes and maintenance. Auctions attract qualified and serious buyers because most auction terms require a significant non-refundable earnest money deposit.

Not all properties are auction-worthy, but certain properties and situations will benefit greatly. With the competition among buyers, auction price can often exceed the price of a negotiated sale.

What situations would warrant an auction? Death, divorce, downsizing, the need to close an estate, dissolution of a partnership, cash flow needs and business closure are all solid reasons to consider an auction. Many businesses and estates enjoy the benefit of liquidating the real estate and the equipment or personal property simultaneously.

Buyers can also benefit from auction purchases. Buyers have an advantage to determine their purchase price. Smart investments are made as properties are usually purchased at fair market value through competitive bidding. The buyer knows the seller is committed to sell, reducing the time it takes to purchase the property and eliminating long negotiation periods. In multi-property auctions the buyer sees many offerings in the same place at the same time. The purchasing and closing dates are known, and the buyers know they are competing fairly and on the same terms as all other buyers.

Tim Keller

H,K. Keller

717-879-0110

Lancaster, PA

tim@hkkeller.com | www.hkkeller.com

We Don't Talk About...

Thu, 23 Jun 2022 14:45:01 GMT

If you have kids or are a Disney fan, your answer may be Bruno. If you recently traveled to “Sin City” your answer may be Vegas – what happens there, stays there, right? But if you’re in Real Estate or Mortgage Lending, you may answer with “Mortgage Rates.” Ah yes, but good luck NOT talking about rates with consumers – it seems to be all they want to talk about – especially in the current rate environment.

In my years as a mortgage lender, it often becomes an opening question at social gatherings, family events and even the first question a potential client may ask when then call. How to answer the question is often delicate. Does the person asking the question really understand what they’re asking and what the response means? Suppose I answer with 5%. Are they immediately running calculations in their head on what a monthly payment may be on a $200,000 mortgage? Most likely not.

It’s often somewhat of an empty question – almost like when you ask someone how they are when you truly don’t care. As tempting as it may be to respond with a sarcastic answer of some type, I prefer to use the opportunity to reply with a question, “why, are you looking to buy a home?” As they say, ABC – Always Be Closing.

With mortgage rates rising, we are often faced with talking clients off the ledge and keeping them engaged with their home purchase. Historically, a mortgage rate at 6% or 7% is not going to bring the housing market to a screeching halt. We all know someone who has been in the industry when rates were in the mid-teens and I’m sure they’ll tell you people were still buying and selling homes.

Mortgage rates were undoubtably driven to artificial lows for a period of greater than two years and it does become difficult for consumers to digest the quick rise we have seen over the past few months. When the time comes and the dust settles, more consumers won’t have the sticker shock they’ve encountered over the past six months when learning rates have essentially doubled.

There isn’t any specific way to avoid the interest rate question or conversation but the best way to manage it is to shift the focus to payment and budget – ultimately that is what is going to drive a buyer’s decision to purchase a home.

Think about shopping for a car – when you go to the dealership, take the test drive, and then proceed with negotiations – you generally don’t ambush the salesman about the interest rate – you discuss the monthly payment based on your budget and financial resources for down payment, etc. This is the direction we need to shift towards with potential homebuyers.

Housing costs are a key component of any budget whether a renter or a homebuyer. Helping a client determine what that number is will lay the groundwork for establishing their buying power when it comes to homeownership. Even though mortgage rates are at a higher point now than the past few years, rents have increased as well so affordability may be somewhat parallel with greater benefits to homeownership compared to renting.

Taking the approach of crafting a monthly housing budget with an approximate 10-15% contingency range should then consider the variables when shopping for a home such as property taxes and fluctuating interest rates. This then creates a target purchase price which should essentially fall within their payment range even with interest rate fluctuation.

Having a target payment range, should help to lessen the focus on the current interest rate and as the buyer finds homes within the target price, a cost worksheet is compiled and presentation is showing a payment to focus on within the buyer’s range, not focusing on the interest rate. Mission accomplished.

Purchasing a home can be a longer-term process and doing a check-up every 30-45 days with an active buyer both on the mortgage side and home preference side will help to keep buyers engaged and within their realistic expectations. If mortgage rates change, adjustments can be made up or down as needed and if criteria change within their home preferences, that can be changed as well.

Even if mortgage rates continue to climb, remember, the interest rate on rent is 100%!

Now, let’s talk about Bruno….

Dan Ranck

Mortgage Loan Officer

NMLS #140989

HomeSale Mortgage, LLC

NMLS #1054689

Direct : 717.271.2400 | efax : 866.849.4320

dan.ranck@homesalemortgage.com | www.danranck.com

Content provided by HomeSale Mortgage, LLC for informational purposes only. The information contained herein (including but not limited to any description of lending programs and products, eligibility criteria, interest rates, fees and all other loan terms) is subject to change without notice. This is not a commitment to lend. HomeSale Mortgage, LLC NMLS# 1054689. Equal Housing Lender.

Inspection Accessibility & Home Inspection Readiness

Thu, 16 Jun 2022 14:06:39 GMT

A home inspection is a non-invasive visual inspection of the accessibly systems, areas and components of the home. There are times when certain areas of the home are inaccessible, and we can't inspect them. Sometimes there is shelving or other items in a bedroom closet preventing the inspector from physically entering and inspecting the attic. We can only inspect what we can safely access and see. For liability reasons, home inspectors do not move the seller's belongings, furniture, shelving, etc.

When I send email confirmations to listing agents, this email includes tips to forward to their seller to help them get the home ready for the inspection. Some of the items listed include ensuring safe physical access into the attic, crawl space and/or basement. Ensuring that the water heater, HVAC equipment, breaker panel, etc. are fully accessible meaning the inspector can stand on the floor immediately in front of these components, remove access covers (if applicable) and inspect the systems properly. Most sellers have no idea what a home inspector does, so I provide this information ahead of time to help educate the seller and to help ensure that we can fully inspect everything in a single visit to the home.

As part of the inspection, we also note the locations of things such as the water meter and its shutoff valves, the location of interior sewer cleanouts, the location of the gas meter (some are located in the basement in older homes) or fuel oil tank, etc.

If or when we can't access something, we note that in our inspection report and often include a photo (such as showing the pile of boxes in front of the breaker panel). Many times, the buyer will ask that we return once the seller has provided access to the area or system and the buyer often expects the seller to pay the re-inspection fee. The same happens in cases where a system isn't operational or a utility is shut off. If the gas or water service is turned off or there are circuit breakers in the OFF position, this prevents a full inspection. Again, for liability reasons, home inspectors don't assume we know why a gas or water valve or circuit breakers are off and turn them on. This can have bad consequences.

Over the nearly 20 years that I have been inspecting homes, several times I have witnessed buyers or their Realtors make assumptions that became seriously bad decisions. In one case a buyer's agent turned on a water valve behind a toilet against the verbal wishes of myself and the buyer. Within about 10 minutes, we noticed water dripping out of the basement's finished ceiling (directly below the toilet in question) onto the seller's collection of antique newspapers and photos. In another example, a buyer decided to turn on the gas valve at a water heater against my strong recommendation not to do so. Little did the buyer know that the flexible gas line to the water heater wasn't fully screwed into place (its threads were crossed) and natural gas quickly started filling the basement. When a client or Realtor makes a statement about wanting to turn something on (they assume we have the right to do so since we're permitted to do an inspection of the property), I remind them that it is still the seller's home and we can't make assumptions.

As a listing agent, preparing your seller for the home inspection ahead of time is a good idea. It ensures things can be properly and safely inspected in a single visit, helps prevent the cost of a reinspection and helps prevent possible delays in the home transaction process.

When YOU Sell

Fri, 03 Jun 2022 14:33:40 GMT

By "you" I mean you, the person holding the real estate license. And "sell" refers to the sale of property you own, alone, or with others. There are a number of issues involving you marketing your real estate, but I want to touch on just a few.

We begin with conflict of interest. Is it a conflict of interest to market and sell your property? No. Like you, all sellers generally want as high a purchase price as is reasonable, a quick sale and little expense, both pre- and post-settlement. As a seller, you want the same.

Conflicts arise when you introduce a buyer you represent to your property and when you act as a dual agent for any reason.

Now many of you understand this, instinctively. Yet there are those who do not. I very recently took a call from a young couple who had been working with a buyer agent for nearly a year. They made several offers which were rejected and were becoming desperate. At this point, in their fruitless search, their agent decided to sell her home. The agent did not list her property in the multi-list, and her broker was unaware that she was marketing her property. These naive first-time buyers decided to buy. How much of their decision was based on the "advice" of their agent is not clear, but I'm sure the buyers will ultimately conclude they were coaxed.

The agent wrote the offer. She identified herself as both the seller's agent and the buyer's agent, meaning that she was a dual agent. Further, she identified her broker as the buying and selling broker, making her broker a dual agent despite that the broker still had no knowledge of the transaction as it was not run through the office. If the foregoing weren't bad enough, consider this . . . the agent actually had the buyers commit to paying her a fee on top of the purchase price.

This scenario raises two major issues. First, how can you sell your own property yet claim an agency relationship, with corresponding fiduciary responsibilities, with the buyer? Did the agent advise the buyers to get an independent opinion of the property's fair market value? Did she even advise the buyers of the conflict of interest she had trying to represent herself and the buyers in the same transaction? Did she advise them to seek an attorney who could advise them?

Similarly, I've had cases where list agents seek to purchase their seller's property. This too is fraught with conflict as the seller will claim to have relied on your advice when setting the price and terms. Eventually, post-settlement, the seller may feel taken advantage of, and you know where that will go.

A safe rule, the only rule, is that you cannot have a personal stake in transaction yet claim to represent the other side. The conflict is insurmountable and would be a violation of not only license law and rules prohibiting conflict of interest, but also a violation of Pennsylvania's Consumer Protection and Unfair Trade Practices Law that allows courts to impose punitive damages on violators. Send the consumer to another broker or to their lawyer. Do not risk your license!

Second (as if the above is not sufficient reason to avoid dual agency in this situation), consider that many errors and omissions insurers will not insure claims that arise from the sale of property when the seller (or one of them) is the licensee involved in the transaction. Brokers, you should check with your E&O insurer to determine whether you have coverage when a licensee lists and sells his or her own property. Further, you should have a policy that requires every licensee to bring their personal transactions into the brokerage (whether fees are paid is up to you). When one of your licensees sells his own property, he will undoubtedly use a standard agreement of sale that will identify the licensee and perhaps your brokerage on it. It will prove an uphill battle to claim that your brokerage had nothing to do with the transaction if sued. If you are potentially liable for what your agents do, you should know what they do!

A Snapshot of Lancaster's Office and Industrial Market (May 2022)

Tue, 24 May 2022 18:46:22 GMT

Much has been said about the housing market being completely bonkers for quite some time now. They are not the only ones. Commercial and Industrial has seen its share of crazy too, albeit in different ways.

There seems to be no truly accurate barometer, except perhaps hindsight, to know when things will end or settle out from the pandemic. Everyone with ears has heard that interest rates are rising, everything, including money, is more expensive and that people are still working from home which means they are not working from work. Consumer goods are very high in demand and making them out of their assorted pieces and parts, storing them and distributing them is all the more difficult. That is the basis for the current Commercial and Industrial climate, lots of office that few need and not much industrial that everyone wants.

Let’s show what the numbers say in a snapshot of time from Bright MLS and LoopNet:

BRIGHTMLS.com on May 20, 2022

Search Area: LANCASTER COUNTY, PA

Search Criteria: Office and Industrial 2000+ square feet.

FOR SALE OFFICE: 12 offerings 2,000-43,672 Square feet. Prices $100K-$4.95M

FOR SALE INDUSTRIAL: 3 offerings- 1 in Lancaster City, 1 in suburban Lancaster and 1 in a County Borough location. Prices: $1.9M-$5,750,000

FOR LEASE OFFICE: 97 offerings 2000-80,000* square feet $5.00-$27.95 per square foot

FOR LEASE INDUSTRIAL: 30 offerings 2,000-121,000* square feet $4.95-$9.50 per square foot

*Note: Some spaces listed are only To-Be-Built

Note: Some buildings/spaces are doubly listed in the categories of both Office and Industrial if they contain a strong mixed-use component of having both office and industrial

LOOPNET.com (a public searchable site) on May 20, 2022

Search Area: LANCASTER COUNTY, PA

Search Criteria: Office and Industrial 2000+ square feet.

FOR SALE OFFICE: 9 offerings 4,698 Square feet to 26,890 Square Feet Prices $94,900-$4,950,000

FOR SALE INDUSTRIAL: 3 offerings 17,000-50,000 Square feet $1.9-$4.95M

FOR LEASE OFFICE: 39 offerings 2,000-46,000* Square feet Prices $5.50-$27.95 per square foot

FOR LEASE INDUSTRIAL: 9 offerings 2,000-228,648* square feet $5.00+ many with no price listed per square foot

*Note: Some spaces listed are only To-Be-Built

Note: Some buildings/spaces are doubly listed in the categories of both Office and Industrial if they contain a strong mixed-use component of having both office and industrial

Office choices abound in terms of size, location, amenities, condition, and class of space. Please understand that “Class” of space is not just how a property looks but is actually based more in how it functions. Industrial space is quite limited and a good portion of what is listed ‘on the market’ is not yet constructed. Industrial users struggle to get space in a timely way if they have a dilemma and/or need space quickly. Office rates have declined, and Industrial rates have increased to the point that in some cases, where it is possible, conversion of office space to industrial makes sense.

Spring Maintenance Tips

Wed, 30 Mar 2022 12:59:36 GMT

We've weathered another winter, and spring is now here. Baseball will soon return, leaves and blossoms are popping; and it's time to get out and see what winter did to your home. This article should help provide tips for needed maintenance around the home this time of year.

Have your air conditioning system professionally serviced to make sure it is ready for summer. Air filters should be replaced every 30 days (fiberglass type), every 90 days (paper pleated type) or yearly (large media type). I recommend using at least the 90-day pleated air filter. A dirty air filter puts extra wear on your air conditioning system. Ensure there is at least 24 inches of clearance on all sides of your exterior A/C compressor unit. Vegetation, stored items, etc. limit air flow that the A/C system's outdoor unit needs to work properly. The outdoor unit should have nothing but empty space within 24 inches of its sides and 6 feet above it. A/C systems should only be run when the exterior temperature is at least 60 degrees Fahrenheit.

Perform a general exterior inspection of your roof, grading, gutters/downspouts, trim, siding, etc. Winter can do interesting things to your home, and it is best to find and fix anything that may increase the chances of leakage or other damage before it can happen. Make sure your roof covering, roof flashing, stack vent boots, ridge venting and trim are in good condition. Damage to any of these items can spell a leak which could also result in mold. Check for rotted wood around door and window trim. If uncomfortable on a ladder, call a professional. Make sure your gutters and downspouts are clear and discharge at least 4 feet from the foundation of your home, porch or deck.

Wait until the threat of freezing temperatures has passed before you turn on your exterior hose bibs or connect your hoses.

Ensure that your home has sufficient insulation in the basement, crawl space and/or attic. The current insulation standard as of 2018 for attics in our area is R-49 minimum. This corresponds to approximately 14 inches of cellulose, 16 inches of fiberglass batt insulation or 20 inches of blown-in fiberglass. Thickening your attic insulation makes it more difficult for heat from living space to penetrate into your attic in the winter or for attic heat to find its way into your home's living space in the summer. Access panels to unfinished attics should also be insulated yet almost never are since these locations are a common cause of heat gain or heat loss. Based upon my experience, most homes could benefit from more attic insulation to help lower utility bills and increase interior comfort. Adding more insulation will pay for itself if done properly in the form of more interior comfort and lower heating and cooling costs. Some utilities also offer rebates for homeowner energy upgrades such as adding more insulation.

Ensure that your sump pump is working properly. During spring and summer, prolonged rains or heavy thunderstorms are not uncommon. You want to be sure that your sump pump can do its job. If your sump pit has no pump installed but does have water accumulation, have a proper sump pump installed with a check valve, and ensure that its drain discharges outside at least 4 feet from the foundation. You may even consider a battery backup for this system in case thunderstorms knock out your power. This is especially important in finished basements. Keep in mind that many areas have ordinances or codes that forbid discharging sump pumps into the public sewer. Sump pumps should only be drained to grade in your yard.

Performing these proactive measures in the spring will allow you to enjoy more time outside relaxing and less time working.

Mother May I?

Mon, 28 Mar 2022 14:39:04 GMT

Getting a mortgage approval for a home purchase may often seem like a daunting feat to some. However, any good mortgage lender should provide clear and specific guidance to borrowers throughout the entire process of the "seven deadly sins" to be aware of. Perhaps seven deadly sins may be a bit harsh, but providing specific information on "dos and don'ts" should provide the opportunity for a borrower to play "Mother May I" with their mortgage lender to ensure the smoothest possible financing experience throughout the home buying journey.

There are multiple "blunders" that can derail a mortgage, and setting proper expectations with buyers from the beginning can help mitigate any catastrophe. We'll explore some of the most damaging.

Employment and Income

Employment and income stability are significant factors in mortgage qualification. For an individual in the midst of the mortgage process or even someone thinking about buying a home sometime soon, a new opportunity could derail their qualification depending on the details of that opportunity and the impact of any change.

In some cases, going from a salaried position to an hourly may impact qualification if the hours would vary from week-to-week or if a significant part of compensation would now be from overtime. Let's say a borrower was salaried at $60,000 per year or $5,000 per month. Their position changes to hourly at $25.00 per hour for a 40-hour work week with a guarantee of 10 hours of overtime per week at $37.50 per hour. Working those hours would equate to an annual salary of $71,500. Even though that number is higher, only the base 40 hours of $4,333 could be used for mortgage qualification since there is no history of the overtime earnings, even though they are guaranteed. You need a minimum of 12 month's history of overtime to use it as a qualifying income for a mortgage.

Another example of an immediate derailment is going from a W2 employee to an independent contractor. A borrower who is a W2 employee with an annual salary of $80,000 can use that $80,000 as qualifying income. If their employer approaches them and proposes they change their compensation to $100,000 and make them an independent contractor or 1099, that initially sounds very favorable with a presumed $20,000 raise. Unfortunately an independent contractor/1099 employee is categorized as self-employed. Even if it is the same line of work, two-year's filed tax returns would be required.

Borrowers often have multiple jobs. In some cases, they may have two full-time jobs instead of one full-time and one part-time if the earning potential is greater. This situation needs to be approached delicately if in the process of buying a home or if it's on one's radar sometime soon. Income can only be considered from multiple jobs if it has been received consistently for two years. In some cases, receipt for one full year can be considered provided some other factors are also considered.

Transfer and Receipt of Assets

Unfortunately we live in a society now where physical cash is often frowned upon, and it's no different in the mortgage industry. Generally speaking, all funds used toward a home purchase need to be sourced and seasoned -- sourced meaning where did the money come from; and seasoned meaning has it been in the account for a defined period, usually 60 days.

Bank statements and asset accounts are reviewed in great detail, and any deposit deemed to be "large or unusual" will most likely need to be sourced. If the funds cannot be sourced, they will need to be excluded from a borrower's assets.

Anonymous services such as CashApp, Venmo, PayPal, etc. have gained popularity and can tend to cause issues with sourcing of funds. Although the $1,200 that a friend sent to you via CashApp to repay you for sporting event tickets may be legit, the funds most likely will need to be excluded and deducted from a borrower's assets.

Additionally, excessive transfers between multiple accounts can cause great headaches for a borrower by needing to provide significant additional documentation to the lender. In some cases funds from a transferred account may lead back to an unacceptable/unsourceable deposit and derail the entire transaction.

Credit Inquiries and New Accounts

With a new home comes the need for new furnishings -- living room, dining room, bedroom, appliances and more. The excitement of wanting to fill the new home with all these items will most likely need to be put on hold until after the loan closing. Once buyers are under agreement to purchase, many of them become visionaries on decorating which leads to furniture and appliance shopping. Because these retailers want your business, they often offer great financing incentives such as no payment, no interest for 12-36 months. Although on the surface this is appealing and sounds simple enough, it's just not that easy. Any financing such as this not only requires a credit inquiry which can damage your credit score, but it's also new debt. A new credit account with no defined payment is calculated based on 5 percent of the outstanding balance. That $10,000 in new furniture which may not have any payments for three years is calculated as a $500 per month liability by the mortgage lender, and a payment that significant could surely kill a deal.

Although there are indeed other blunders that can cause issues with a mortgage transaction, the key is having a lender who discusses the "dos and don'ts" with the client and has the same conversation again and again. Even though it's often reiterated several times, there will still be some individuals who follow their own path without comprehension, and then we can only hope for the best.

Dan Rank

Mortgage Loan Officer NMLS #140989

HomeSale Mortgage, LLC NMLS #1054689

Direct: 717.271.2400 efax: 866-849-4320

dan.ranck@homesalemortgage.com www.danranck.com

The Art of Giving Feedback -- 2022 Edition

Thu, 24 Mar 2022 17:44:34 GMT

He's just not that into you. Sure, he like your remodeled kitchen, your heated in-ground pool and the oversized bidet you have in the master bathroom that plays Johnny Cash's "Ring of Fire" when you flush it. But your location is kind of a deal breaker for him. He just doesn't do long distance relationships. This isn't going to work.

Oh, I'm sorry. I didn't see you there. Don't mind me. I was just giving feedback for a showing that I had three days ago. The listing agent wouldn't stop hounding me for it. I told him I'd get it to him when I get it to him, but he just couldn't wait. So annoying.

Does this sound familiar to you? Of course it does. Nothing is more annoying than waiting days for a buyer's agent to provide feedback on a showing. OK, so maybe there are more annoying things out there, but waiting for feedback is definitely up there. It's certainly a pet peeve of mine. And it's not just waiting for feedback that can be annoying, but also the feedback itself . . . or rather the lack thereof. What good is giving feedback days after a showing if all you're going to say is 'not interested'? How is that helpful in any way? Answer: it's not.

The good thing about ShowingTime -- you, know, that app that lets you set up and schedule showings -- is that all of the heavy lifting is already done for you in regard to submitting feedback, assuming of course the listing agent has it set up to do so for their listing. So there's really no excuse to delay in submitting feedback as the app will prompt you to submit feedback after your showing with a standard template that it uses. You know the one:

Is your client interested in the listing?

Rate your overall experience (excellent - bad)

Opinion on price:

Rate the listing (1-5)

Additional comments:

It's a simple template that takes very little time to complete. Sure there are other templates out there as many of us use our own, but I think it's safe to say that this is the one that is most commonly used among agents. So why are so many responses blank? Laziness. Agents just don't want to be bothered filling out a questionnaire, especially if their buyers aren't interested. But as insignificant as you think your feedback may be, it can be invaluable to a seller. So saying your buyers aren't interested and then leaving everything else blank just doesn't cut it. Why aren't they interested? Is it price? Is it the shag carpet in the basement? Or is it because the next door neighbor likes to sit on the front porch drinking wine coolers in his Speedo? Sellers need to know. Be honest and specific. Sometimes our buyers don't let on what they like and don't like about a home. So ask. Personally, I like to ask my buyers at the end of every showing what I should give to the listing agent for feedback.

And if you don't like filling out those questions -- and let's be honest, those questions could be better -- then text, email or even call the listing agent with your buyer's feedback. At least it's something. Typically agents with interested buyers will tend to give feedback rather quickly. It's safe to assume if an agent takes a day or more to get feedback to you that their buyer probably isn't interested. But however you decide to provide feedback, and no matter how interested your buyers may be in the property, make sure to provide feedback in a reasonable amount of time.

So what is a reasonable amount of time you ask? Well, a safe bet would be to provide it the same day as your showing, but certainly within 24 hours. Anything beyond that and you're entering unprofessional territory. Agents should not have to track you down and beg you for feedback. But what if you never received a prompt to provide feedback in the first place?

I've heard comments from several agents over the past few months expressing frustration about the lack of feedback on their listings. I've experienced it, too. But I've also heard comments from agents who have claimed to have never received a prompt to provide feedback in the first place. Upon further investigation it appears in several of these instances that it was an issue with the settings. Sometimes when an app or program updates, it can cause the settings to change or reset. I know I have personally had an instance where I was not being properly notified of showing requests after a recent update, so I had to go back into my settings and re-enable them. So after any kind of update, double check your settings to make sure that you're able to receive notifications. If it's your listing, make sure your settings are properly set so that the feedback template is being sent out to showing agents.

Look, I get it. You're busy. I'm busy, too. And with the market the way it is right now with homes selling as soon as the sign hits the yard, it's easy to think that feedback isn't important. But no matter how busy you are, or how crazy the market is, there is always time to submit feedback. It takes a lot of work to get a home presentable for a showing. The least we can do is let the sellers know, tactfully of course, what our buyers like or don't like about their home. While filling out showing questionnaires can feel like you're just going through the motions, it is an important aspect of our business and one that sellers rely on when trying to sell their home.

Working with a FSBO

Wed, 23 Mar 2022 13:55:27 GMT

The main reason homeowners opt to sell their home without a Realtor is to save money. According to the 2021 NAR Profile of Home Buyers & Sellers , 36 percent of For Sale By Owners (FSBO) did not want to pay a commission fee, 30 percent sold it to a relative/friend/neighbor, 8 percent had a buyer contact the seller directly, 56 percent did not want to deal with an agent, 1 percent said their agent was unable to sell the home, less than 1 percent could not find an agent to handle the transaction and 10 percent cited other reasons.

With the majority of FSBO's not wanting to pay commission and/or not wanting to deal with an agent, this can be a tough seller to work with as a buyer agent. One of the biggest challenges to working with a FSBO is getting them to cooperate and agree to pay your buyer agent commission, which given their motivations for not listing with an agent makes sense.

So how do you proceed if your buyer finds a FSBO of interest or you discover one that may meet their needs?

To start, did you know that NAR has "References" for "Working with FSBO's"? Click here for the link.

The "References" include links to articles, reports, brochures, ebooks and more, all relating to FSBO's. Much of the material is related to converting a FSBO to a listing. Given the brisk pace of the current real estate market, by the time a seller has started to market their home for sale, it's probably too late to convert them into a listing. They're likely getting bombarded with showing requests from buyers and agents alike, or at least enough interest to lead them to believe they are on the right track.

However, the "right track" is really just an illusion. The FSBO should be able to secure a buyer in this market. After all, there is a tremendous surplus of buyers. But there are many other considerations that make the FSBO sale less successful than a listed property sale. There is a great article by Keeping Current Matters that outlines the FSBO pitfalls titled "Why Selling Your House on Your Own in 2021 Is a Mistake" . Here are some highlights from this article:

The seller's safety is at risk with no way to qualify the people they are meeting with and allowing into their home.
The FSBO does not have the same online listing exposure of a licensed Realtor. This is important because this is where the buyers are.
Negotiations aren't for amateurs. The FSBO will negotiate with the buyer, the buyer's agent, the home inspector (maybe) and the appraiser.
How does the FSBO know a buyer is qualified? As active agents in this market, we've all received the inflated offer to purchase a home from a buyer with an FHA mortgage or 3 percent down conventional mortgage that will never appraise. We know this is a risk, but does a FSBO?
The FSBO is assuming all liability for the sale.
The FSBO will make more money by listing with an agent.

Click here for a full link to the article.

The bottom line is that when you're searching for homes for your buyers in this market, you will likely encounter a FSBO or two. You should be prepared to work with them and be prepared for their perception of you. Understand that they are either trying to save money by not paying a Realtor and/or don't want to work with a Realtor at all. So how do you proceed? I'm going to consult another article in the NAR "References" titled "Can You Buy a FSBO Home With a Real Estate Agent?" . This article offers the following steps once you find a FSBO your buyer wishes to see, and I've added a few more:

Contact the FSBO seller and ask them to sign a fee agreement. From my experience, this is easier said than done. Some may be prepared to offer a buyer agent commission, others will say something along the lines of being negotiable with paying commission depending on your offer. There will be some who simply won't consider paying any commission.
Be prepared to explain to the FSBO seller the benefit of working with you, a Realtor. This includes professional management of the full transaction, preparation of all contracts, scheduling of settlement and a resource to get their sale to the settlement table. This is a start to demonstrating your value to the seller and making a case for them to pay your commission.
Prepare your buyer with the prospect of paying your commission fee if the seller is unwilling to pay it.
Be prepared to do all the work. There is no way around it . . . if you are representing a buyer in a FSBO sale, you are going to be facilitating the entire sale. You will be communicating with both the buyer and the seller throughout the transaction. Some go very smoothly, others are a bit more bumpy. It will give you more respect and appreciation for co-op sales when you do not have to communicate with both buyer and seller and you split the work load.
Always be professional. The FSBO seller does not have to act professionally, does not have to comply with licensing law and does not have a code of ethics, but you do. Don't react poorly to bad behavior, always maintain your professionalism.

Click here for the full article.

In conclusion, FSBO's make up a small percentage of sales, but it's large enough that you should have a plan to work with them if you find a home that meets your buyer's needs. Ask your broker and colleagues for tips and advice if you need it, and consult with the NAR "References" to brush up on all things FSBO.

Preparing Your Listing for Real Estate Photography

Wed, 16 Mar 2022 16:18:40 GMT

According to the National Association of Realtors, 97 percent of all home buyers start their home search on the internet. That's why it is important to properly prepare your listing for professional photography. You never get a second chance to make a first impression.

When potential home buyers are viewing your property online, they want to envision themselves in that home. A clean and decluttered home gives the appearance that the home is well maintained and cared for. The more a buyer believes they need to do to make it their own, the less they may be willing to offer on the house. Don't leave money on the table when a few hours of cleaning, arranging and decluttering can help your sellers receive beautiful, appealing photographs for an attractive real estate listing and a faster sale!

Having your listing photographed is usually the last step in the listing process before it goes on the market, so following the guidelines below will also put your listing in ideal showing condition.

General tips when preparing your listing :

Clean the whole house (vacuum carpet, mop hard floors, clean countertops, clean windows).
Declutter as much as possible. Less is more.
Remove personal photographs (or replace with general landscape/object photographs) when possible.
Remove small floor rugs to reveal actual flooring and get a cleaner look.
Put all clothes in closets.
Laundry rooms/closets are often photographed and should be as tidy as possible. Clothes should be removed from any glass-front dryers.
Consider removing some furniture to make the house appear more spacious.
Sometimes it's inevitable that boxes, etc. need to be moved around from room-to-room. A good tip is to use a single room that is photo-ready, like a bedroom, to be photographed first and then move any items into that room so that the photographer can shoot the rest.
If you plan to include aerial photography or video, please try to schedule your photographer on non-trash collection days. Photographers are not allowed to move trash cans and recycling bins from neighboring properties.
Garages and closets are not typically photographed, so it's a great place to temporarily stow items from view.
Photographers generally follow a standard "shoot list" for each property. If you or the homeowner want to highlight specific areas of the house, like electrical panels, hot water heaters/air handlers, fixtures, etc., you should let your photographer know in advance.

Checklist -- Area By Area

Exterior, Front Yard & Backyard

Close all garage doors.
Remove cars from driveways and the front of the house so they are not visible in the photographs.
Attend to landscaping (mow the lawn, remove leaves, shovel snow from the driveway/walkway, etc. depending on the season).
Remove dead foliage and empty planters.
Remove trash cans.
Remove or roll up visible water hoses, ladders and other tools.
Remove toys and playground supplies.
Clean and arrange outdoor tables, chairs, etc. and fluff cushions.
When applicable, clean the pool area and remove the pool cover when in season. During the off-season, remove any debris from the pool cover.

Interior

Turn on all lights and replace any bulbs that are dim or burned-out.
Open window curtains and sheers.
Open slats on vertical window blinds. Blinds may be raised or lowered, as long as they are uniform throughout the house.
Turn off televisions and computer screens.
Hide remote controls.

Entryway

Remove coats and backpacks from entryway hooks and put them in a closet.
Remove shoes.
Remove clutter (keys, wallets, papers, etc.) from an entryway table.

Kitchen/Dining Area

Clear countertops -- less is more. Items like soap dispensers, paper towel rolls, dish towels and sponges should all be stowed.
Leave a couple of stylish items on the counter (a coffee maker or a bowl of fruit).
Hide all dishes; place dirty dishes in the dishwasher.
Remove any items from the kitchen sink.
Hide garbage cans and recycling bins.
Clear the front of the refrigerator of magnets, postcards, photos, etc.
Clear dining table. Consider having a vase of fresh flowers on the table.
Straighten all chairs and space them evenly.
Remove children's chairs or high seats.

Living Room

Remove magazines, papers, mail and random clutter.
Arrange books and art in bookshelves so it looks tidy.
Remove toys.
Remove clutter and clean interior of the fireplace.
If the fireplace has a glass front, clean it.
Arrange furniture pillows.
Hide and/or arrange cables from TV, stereo and other electrical devices where possible.

Bedrooms

Make the beds, including decorative pillows/shams if available.
When visible, edges of bedding and sheets should either be tucked in neatly or hung straight.
Pillows should be wrinkle-free, fluffed, matching and arranged neatly.
Remove personal belongings like pictures, clothing, electronics and clutter.
Remove trash cans.
Clean under the bed and remove items that may show in the photos.

Home Office

Clear desk.
Hide and/or arrange all the cables.
Hide papers.
Arrange items neatly on a bookshelf.
Remove personalized items.

Bathrooms

Clear and clean countertops and sinks. A decorative soap dispenser can remain.
Toothbrushes, hairbrushes, makeup, etc. should all be removed.
Remove waste baskets, hampers, toilet brushes and plungers.
Put toilet seats down.
Remove shampoo, soap, etc. from showers and tubs.
Remove all old and/or unmatched bathroom towels. Matching, nicely folded towels may remain.
Remove floor mats.

Pets

As much as we love pets, there should be no evidence of them in your home.
Remove food and water bowls.
Place pet beds, litter boxes, cat towers and toys out of view.
Clean pet hair from furniture.
Whenever possible, pets should be placed in a room that will not be photographed or "taken for a ride" while the photographer is working. Cats have a way of showing up in photographs unbeknownst to the photographer (under a bed, on top of a cabinet, etc.).

A good photographer will always tour the house before they begin shooting to make sure that everything is in its place and "photo-ready". They should be more than willing to move and hide items as needed, but a well-prepared property will ensure that your photographer can produce the best results, stay on schedule and deliver your photos in a timely manner. It's always a good idea to tour your listing prior to your photography appointment to make sure that everything is to your satisfaction. Remember, professional photography not only best markets your property, but it's also a reflection of your brand. The better your property looks online, the happier your homeowners will be . . . and the more likely they may be to recommend you to their friends and family.

Rule No. 1 -- There Are No Rules

Tue, 08 Mar 2022 16:20:17 GMT

This is hardly so. But, as rules lead to order, that should be a good thing. Rules keep us from crashing into each other at intersections and help us determine when title is acceptable in a real estate sale.

Bright-line, clearly worded rules should be easy to follow. Life, however, rarely presents a simple set of facts like we might see in a hypothetical put to us in the classroom. Thus we try to bend the rules to make them apply to the facts at hand, or some try to bend facts to fit the rule.

As lawsuits get resolved, our courts, aided by the advocates' well-reasoned (or not) positions, fashion exceptions or even different rules to control unique situations. All of this means that the application of rules goes well beyond placing round pegs in round holes and square ones in square holes.

What I mean is best illustrated by several similar cases in which I am representing listing brokers. What the cases have in common is that buyers have not paid initial deposits on or before the due date. Upon advice of listing agents, this caused the sellers to terminate the agreements. In each of these cases, the listing agent was aware of a higher offer waiting in the wings.

Before diving into the remaining facts, let's explore a few rules. A basic rule is that a failure of timely performance of a "material" contractual obligation is a breach of an agreement. A breached obligation may be overlooked if it is minor in that it didn't cause the non-breaching party to suffer any loss and it is insignificant to the transaction. Does it matter if the buyer made a mortgage application two days late if the buyer is approved and the transaction goes to settlement without any extension? We would say that this breach is not "material". But when the agreement also provides that "time is of the essence", another rule holds that any failure to meet a deadline is a breach. And then there is the rule that entitles the non-breaching party to terminate when the other has breached.

The application of these general rules means that the sellers in my cases were seemingly justified in terminating agreements where the buyers were late in making their initial deposits. But facts are never so simple as I have stated them.

Let's add further to one of these late deposit situations. There the listing agent texted the buyer agent complaining that the original $1,000 was late. He went on to say that if it and a not-yet-due second deposit were paid by a certain date, the seller would be satisfied and would not terminate. The buyer agent, relying on this text, obtained a bank check from her buyer and was delivering it to the listing agent when she received the text "you're too late; the agreement is terminated". Do you still believe the late first payment of $1,000 justifies termination?

The added facts lead to the application of yet another rule! It is referred to as "promissory estoppel". It provides that an exchange of promises that causes one to rely cannot be pulled. Here the buyer relied on the seller's demand and thus should not have the promise (I won't terminate) pulled. That the buyer secured funds for the second payment earlier than required is significant and demonstrates that the buyer and seller were both benefitting from the exchange. Courts will also apply this doctrine when the promises leading to the changed conduct are oral.

And there are more rules to consider! A general rule holds that in some situations a party will have waived the other party's untimely performance. While the seller could have terminated, he did not. This is not an easy rule to apply and calls for very close scrutiny of the facts. It is usually applied when both parties ignore the dates for more substantial periods.

So what's my point? First, things aren't as simple as they seem. Second, one should never make clear pronouncements of law simply because a bright-line rule seems to have been crossed. The practice of law is much more than an application of facts to rules. It is nuanced and shaded and not as simple as the listing agents in our example assumed. I have located court opinions that hold that a late deposit is a basis for termination and other opinions that hold that a late deposit is not a basis for termination! It's not that one or several of these judges were wrong; the facts vary and therefore call for the application of different rules. Slight differences can lead to profound outcomes.

Consider further the practical outcome of termination. Assume the seller had the legal right to terminate and does so. The buyer then files a lis pendens and a lawsuit claiming that the missed payment was de minimis , justified based on some conduct by the seller or for any other rule or reason. Now the seller is unable to sell to the second buyer for that higher purchase price. Consider further that buyer two files a lis pendens to protect her from having the property go to buyer one! At this point does it really matter whether the seller had the right to terminate the agreement with buyer number one? Are we in the business of proving ourselves right regardless of the practical consequences?

I provided the example to a class of Realtors at a recent seminar. I was shocked to hear several days later that I had announced a new rule that a late deposit is not a breach of the agreement. For those of you who think I had said so, re-read this article! Rules are shaded by fact.

Commercial (and Residential) Disparity . . . Old vs. New

Tue, 01 Mar 2022 15:16:46 GMT

One of the things I know best in my professional life is dealing with 'old' spaces. The polite terms for old space are adaptive re-use, time tested and even the trendy but often applicable mid-century modern. That would be the middle of the last century, which started with 1900. So what qualifies as old space? It's not as simple as an actual age. Generally, enough time has had to pass that much more functional buildings exist in the same market with features more cohesive with today's needs. In Realtor classes we all learned this as Functional Obsolescence. In this market (Lancaster County specifically), that is a big qualifier as there are a plethora of technically functionally obsolete buildings being used with tremendous success and prosperity both for their owners and tenants. There is room for all types of buildings, just as there is room for many different styles of homes.

On a trip to brunch a few weeks ago with my relatives through the Lancaster County hinterlands, I noticed a larger-than-anticipated number of small, neatly kept trailer park communities. I commented on how well maintained and orderly these communities seemed to be and how there was obviously pride of ownership for the occupants in the details of how they had personalized and outfitted their homes. Someone in the car asked why they still exist in this day and age when there are so many other options that are more efficient and better constructed. This led to the discussion of choices and preferences and why things appeal or make sense to some people and make absolutely no sense at all to others.

Often it comes down to some very simple elements. Where and how you work and live or operate your business is driven largely by the two overriding factors of location and money. Tertiary, and lower in priority, are the amenities. Just as there are needs and wants in a home, there are absolute must haves and then lesser priority 'it sure would be nice to have...' elements in a building for a business. There are those who will always, no matter how much a place does not work for them, stay put and deal with the situation. There are others who will move through the stages of growing a business -- from the ground up by starting in a basement or garage through leasing their first real commercial space to expansions and then purchasing a building. The same applies to those who get their first home while single and then move through a succession of homes as they go through the myriad of life changes, starting small and going bigger and bigger until it is time to go the opposite way, smaller and smaller.

Just as there are homes built in the newest and most technologically advanced ways with programmable systems that are controllable by cellphones and computers with state-of-the-art energy efficiency and a green impact, there are also new commercial buildings being erected with much the same focus. These new options will appeal to organizations with the desire to operate with maximum efficiency and with a focus on environmental stewardship. Sometimes it is also seen as inherently valuable to a company to be able to present their business as having the means to pay for all that shiny new responsibleness. This is the perception theory of "if you want to continue to be really successful, keep looking really successful". Other companies, especially in Lancaster County, do not mind a bit of austerity; and sometimes they even underplay the bold display of success as they may believe that their clients most appreciate doing business with a company that practices and exhibits principals of practicality and function. Here, unlike many places and likely to some extent because of our heritage, it is not always seen as a good thing to be 'proud'. There are any number of theories as to why people live where they live and work where they work.

Take for instance that some people love old homes. They want to tinker, preserve and maintain; or maybe they just like the feeling of history. Alternatively, some people dream of a new home. New appeals from the custom design to making their own original dirt to the more modern esthetics and amenities. There is no right or wrong. In between the old and new is the broadest range of lifestyle choice homes that are pre-existing but not quite old homes. That explains the multi-billion-dollar home renovation contractor industry, the stores and the plethora of entertainment channels devoted to making-over and customizing an existing home.

As a company decides to leave a location, it opens up a space for another company to move in and make that space work for them. Over time this may happen every few years, every few decades or once or twice a century. A strong building with solid fundamental engineering can be adapted to suit the needs of multiple operations just as a three-bedroom home with a two-car garage can fit a single person or a fairly large family. So what about limitations? Some prime elements in today's commercial building, aside from the obvious key location issue, are ceiling height, power, climate control, docks, doors and parking.

In a nutshell -- for a new and perfectly ideal commercial/industrial building, you are likely to get an easily accessible location ideal to highways with simple and easy-to-maintain exterior materials to assure a professional and well-maintained facade for appearances. Parking for visitors and key associates at the 'front' office door, all fully ADA accessible and with pleasant but low effort landscaping. Offices connected directly to the production area which has high ceilings, multiple docks and at least one drive-in door. Room out back for trucks to load and unload and a bit of flat, paved area for trucks to side load off and more parking for the shop/production employees. Extra room out back for the invariable stuff you don't want inside, and room to place a roll-off dumpster. Bathrooms for both office and shop (separate) and obviously full HVAC capability. Other mechanical musts include ventilation, compressed air capability, three-phase power, water and sewer and energy efficient lighting and customizable security. All of this, of course, with state-of-the-art, technologically controllable remote access.

An older or even a good old building will have some of the above, and the rest will be adaptation and compromise. Before beginning a search, it is best to determine exactly what items a building absolutely must have and which things would be great but can be done without. In some ways it is not that much different from a residential wish list, but in practice it really is different. Work has to function while life just wants to be happy.

WWW = Who, Where & Why

Fri, 25 Feb 2022 14:09:36 GMT

The World Wide Web, or internet as most of us call it, drives our everyday lives in so many ways. Sadly it's safe to say that life as we know it would be difficult without it.

Those who are aged 50+ have somehow managed to make it through half their life without the internet. This group was still able to research information, find their way to destinations, book travel reservations, shop for needless gadgets and get groceries. And, yes, there was even the luxury of meeting people and dating when your true colors usually showed much more quickly. For those who are under 25, much of their life was developed through the internet.

Real estate and mortgage lending also existed before the internet; but today, like many industries, both would most likely struggle to survive without it.

The technology of the internet provides consumers access to a wealth of information and resources that can often spawn both favorable and unfavorable results.

From the mortgage lending perspective, online lenders can be a dime-a-dozen and generally have one main focal point -- marketing. They market for your attention, often through teaser interest rates or some other catchy gimmick or name. Service is rarely their top priority because they are more about quantity than quality.

Although online lenders may try to capture a consumer with something in their bag of tricks, it can often end up being more costly to the consumer, especially if a deal is delayed or falls apart due to inefficiencies.

Many real estate agents have expressed their discontent working with buyers who have a pre-approval from an online mortgage lender. Although some online lenders could certainly be reputable, listing agents are often hesitant accepting an offer from a buyer with an online lender due to the increased potential risk of fallout.

Some specific factors of an online lender that borrowers may want to consider include the following:

When conducting any type of business via the internet, there can be an increased risk of fraud, scams and illegal business practices because of not knowing who you are dealing with. Many of us have seen those official looking emails from banks or online retailers asking us to click the link to verify our account or change our password. Some may be legitimate, some are not.

The "loan officer" could be anywhere in the country and may not be familiar with or an expert in the local area market. In many cases a local expert will have the knowledge to provide a buyer with their best financing options.

The virtual loan officer may not be available when needed or may be difficult to contact. Most local loan officers provide their direct contact information, usually a cellphone number. They are generally available whenever buyers need them or at least have a local team member to back them up.

Some online lenders want to capture a credit card for an upfront fee for an application, appraisal, credit check or other expenses. Although they technically shouldn't charge any fees without providing proper disclosures to clients, they often do this to gain commitment from the buyer. Most local lenders will not charge anything up front and will only charge buyer-applicable fees when they find a property to purchase.

It's very common for online lenders to advertise very low rates to entice you to fill out an application. Once they get a full application, run credit and get the process started, they will tell you that advertised rate is not available to you. Most local lenders will request that you complete a full application and collect necessary documents to verify your information before quoting you an interest rate. This allows the local lender to provide you with a more realistic rate that you qualify for based on your credit history and income, rather than a teaser rate from an online lender to suck you in.

Online applications can sometimes be difficult to understand, and it may be tough to have your questions answered by calling a 1-800 number. Most local mortgage lenders can meet with you face-to-face if you so choose or have a personal conversation with you over the phone to ensure you know what is being asked and why. And they can immediately address any questions or concerns that you may have.

The loan process can sometimes offer challenges depending on a variety of factors, including the property appraisal, home inspections that can impact your mortgage and who knows what else. An online lender may require you to call a 1-800 number or call center that has limited business hours and is closed for the weekend or holiday. Most local loan officers will provide you with their personal phone number -- usually their cellphone -- and you can often call, text or email them at virtually anytime day or night and even on the weekends.

Service with a smile. Being able to work with a mortgage professional who can sit across the table from you builds rapport, trust and confidence in the entire mortgage process. Most importantly, it provides the human element so you know that individual is working in your best interest to get your mortgage financing done, and you can look forward to moving day into your new home.

The internet is indeed a valuable tool that enhances our everyday life in many ways. But when it comes to mortgage lending for the largest purchase of your life, know W ho you're talking to, W here they are located and W hy they will ensure a smooth financial transaction from contract to close.

Dan Rank

Mortgage Loan Officer NMLS #140989

HomeSale Mortgage, LLC NMLS #1054689

Direct: 717.271.2400 efax: 866-849-4320

dan.ranck@homesalemortgage.com www.danranck.com

Look Who's Watching

Wed, 23 Feb 2022 14:17:45 GMT

Do you ever get the feeling that you're being watched? Your ears twitch, the air gets cold, the hairs on the back of your neck stand up, all accompanied by this strange feeling that you're not alone. Well, that's because you're probably not alone. Thanks to modern technology, there's a good chance someone somewhere is watching and recording you. No, not in a creepy way . . . at least I hope not.

We live in a world where cameras are everywhere. Go to just about any public place and you'll see them. They're in stores, restaurants, parking lots, schools, libraries, businesses, government facilities, and the list goes on. Fact is you'll have more difficulty finding a public place that doesn't have security cameras. We're all pretty much used to it anymore. It's at the point where we don't even notice they're there. But one thing I think a lot of agents don't realize is just how many homes have security systems with some kind of recording device.

Now, there is some debate on what is legal and what isn't when it comes to recording people in your home. There's definitely some gray between the black and white. I'm not a lawyer, so I'm not going to go into all that. But what I will tell you is that regardless of what is and what isn't legal, there is a good chance that when you're walking through a home, there is a camera watching you. So why am I telling you this?

Well, mainly I just want to make you more aware, particularly when you're showing a home . We should all be careful with how we conduct ourselves when walking through a property. This is true no matter what the circumstance is. We're professionals after all, and it's our duty to act as such when inside someone's home. But still, I'm sure many of us have had a listing when the seller got upset because of something that happened during a showing. Maybe a buyer broke something, said something inappropriate or maybe the buyer's agent didn't follow showing instructions properly. And I'm sure many of us have also been contacted by a listing agent because of something that happened during our showing. I once had a buyer I was showing a home to break a closet door handle only to have the listing agent contact me while we were still in the home to tell me that the sellers witnessed the buyer do it in real time.

But just as important as how we physically conduct ourselves, it is also what we say. It's a good idea, and frankly common sense, to not discuss offer details when showing a property. Sometimes buyers get excited when looking at a home they really like. And because of that, they will want to discuss potential offers before they have finished their showing. I would advise against that as you don't want to unintentionally let the seller in on the details of your offer. So a good rule of thumb when showing a property is to always assume you're being watched, even if a home is vacant. Because nowadays the walls actually can talk.

These things are important, but listing agents should also make sure they are properly informing the buyer's agent of on-site security. I think that's a given, but you'd be surprised just how many listings don't properly mention on-site security. Even if you include everything properly in the MLS, it is not a bad idea to remind the buyer's agent prior to their showing of on-site security . . . especially if there is an alarm code that needs armed and disarmed. That's another article entirely.

So next time you're touring a home with your clients and you get that strange, ominous, other-worldy feeling that you're being looked upon, stop . . . tilt your head up . . . and say "cheese"!

There Is Help Available for Your Sellers When Completing the Seller's Disclosure

Thu, 17 Feb 2022 13:39:17 GMT

Would you agree that the worst part of the listing paperwork for your sellers is completing the Seller's Property Disclosure Statement (SPD)? It's a long and tedious document with some confusing questions and some poorly worded sections. It's no wonder that it is rare to find one that is totally complete. If only there was an easier solution.

There are, in fact, companies that specialize in assisting sellers in completing this disclosure. I gave two of them a test run to see what the process was like. The first was Glide. Glide is a transaction management platform available at glide.com. They offer a free version that does allow you to send the SPD and Lead Paint Disclosure (LPD) to your seller. The paid version has a more comprehensive transaction management program. I set up my home address in Glide and sent the disclosure to myself to get the full experience. The process is very easy. Rather than receiving an 11-page document with tiny writing and thousands of boxes to check, you work through one small section at a time. If you answer a question with a yes, another box opens so that you can write an explanation. If you haven't answered a question, you can't move forward with the next question which prevents a seller from skipping sections.

When every question has been answered, a copy is sent to the listing agent and is available in your Glide portal. It does not automatically allow the seller to initial and sign. You, as the agent, can add initials and signatures to the document within the Glide portal and resend the document to your seller for signature, or you can upload the pdf into your primary signature program. The biggest disappointment with the final document I received is that it is the 2016 version of the SPD instead of the 2021 version. I asked support at Glide if they were planning to update their forms with the latest version. They responded that they were planning to update the PA forms but did not provide a timeline. They did say they would send an email to me when it's been updated. Overall, this program would be easy for any seller with basic computer skills to use.

The second program I tested was Sellers Shield at sellersshield.com. Sellers Shield offers free disclosure completion with optional legal protection that the seller can purchase. It is $199 for one year paid now or $299 paid at closing, $249 for two years now or $349 at closing, or $1,200 for three years now or $1,500 at closing. It includes both the SPD and LPD. I set it up to send myself a disclosure to complete to get the full experience. The process of answering questions is very similar to Glide. It doesn't allow you to continue if you haven't completely answered a question. As a benefit, Sellers Shield has integrated signing after the form is completed so you do not need to add initials and signatures manually. Thankfully it also has the 2021 SPD rather than the 2016 version. There are additional resources available as you complete the form, with definitions and videos to watch for a clearer understanding of the questions. The only drawback or catch is that they try to sell their protection three times during the process of completing the documents. This would require you, as the agent, to prepare your seller for this sales pitch so they understand it is optional and not necessarily something you are endorsing.

I think it is clear that the only option between the two right now is Sellers Shield since Glide is using an outdated form. Once Glide updates the form, it will be a strong option. Glide does not sell any coverage for future lawsuits, but they do provide sobering statistics to put some fear into the seller in hopes of getting them to answer the questions honestly. They state that alleged failure to disclose is the number one cause of home sale lawsuits, and the average dispute costs sellers over $25,000 to resolve. I recommend checking these programs out for yourself. I think your sellers will appreciate the easy process of completing a very cumbersome document.

The opinions expressed in this article are those of the author and do not reflect the opinions or views of LCAR or its members. This is not an endorsement of any product.

Inspections

Tue, 08 Feb 2022 15:16:15 GMT

MAWSA Water/Sewer Connection Surveys

Tue, 01 Feb 2022 14:58:20 GMT

When selling a home where Manheim Area Water and Sewer Authority (MAWSA) supplies public water or public sewer service, a survey is required before closing can occur. The purpose of the survey is to ensure that the water and/or sewer service components meet MAWSA standards. A MAWSA survey is not a home inspection. Even if a buyer waives all contingencies, MAWSA still requires the survey. In instances where the survey isn't completed prior to closing, MAWSA escrows $3,000 on the seller's side of the settlement sheet until a passing survey can be completed. The settlement company handles the escrow.

MAWSA provides water to Manheim Borough as well as portions of Penn Township and Rapho Township. MAWSA also provides sewer service to Manheim Borough and a portion of Rapho Township.

A MAWSA surveyor makes a quick visit to the property to document the water meter's installation, whether a dual check valve is installed in the proper location and whether shutoff valves exist in the proper places upstream and downstream of the water meter. A dual check valve is used to prevent possible backup of the home's water back into the utility's system which could lead to system contamination. Shutoff valves isolate the water meter should it need to be serviced or replaced. The surveyor also checks to ensure that there are no leaks from the water meter or the adjacent shutoffs, as well as making sure the water supply line into the building is either copper or another approved material. The water meter should also generally be located with five feet of the home's foundation.

In cases where there is lead or steel pipe or fittings in the water supply line adjacent to the water meter, MAWSA requires that these be upgraded to modern approved materials such as copper. Also, if a dual check valve isn't installed (or is located in the wrong location) or one or more shutoff valves are missing, repairs are required before the survey can be signed off as a "pass".

If MAWSA also provides sewer service to the property, the surveyor will also need to visually confirm whether a sump pump discharges into the sewer line, as well as if a floor drain is connected to the sewer line. Sump pumps should discharge water only to grade outside the home so as to not add additional water to the sewer system. Basement floor drains can potentially back up in the home if there is an issue with the sewer line, so MAWSA wants these sealed closed.

In basements with finished wall or ceiling coverings, tracing sump pump drain pipes can be rather difficult or next to impossible if they don't run directly outside from where the sump pit is located. The surveyor does not move the homeowner's personal property (shelving, stored items, appliances, etc.) nor does he move ceiling or wall coverings or insulation to access the water meter or any of its components or to trace sump pump drains, for example. It is up to the property owner to provide safe unobstructed access for the survey to occur. The water meter, shutoff valves and the check valve should each be fully accessible and should not be located behind a fixed wall covering or behind an access panel that is too small to fully access all components.

The settlement company or lawyer handling the closing is normally the party ordering the survey with MAWSA although the property owner or their Realtor may also order the survey. The survey should be ordered at least 10 days prior to settlement so the survey can be performed and any repairs, if needed, can be completed in time so that closing isn't delayed.

Once MAWSA sends the survey order to the surveyor, he will then contact the party listed on the work order (normally either the property owner of record or their Realtor, should that information be provided by the party ordering the survey with MAWSA) to schedule the survey appointment.

The onsite survey generally only takes a few minutes, and the surveyor will need access to the basement and/or other area where the water meter exists and where the sewer line exits the building in order to take a water meter photo and document the above-mentioned items.

After the survey is performed, the surveyor submits the report back to MAWSA. Should the survey fail, MAWSA will then inform the contact person of record or their settlement company to let them know specifically why the survey failed. Any questions about the survey should go directly to MAWSA, not to the surveyor.

Also, MAWSA doesn't dictate who pays for any needed repairs as it is up to the buyer and seller and their Realtors to work out those details, but the repairs should be performed by a licensed plumber. Repairs are required before a second survey visit can occur to confirm that the repairs were completed, and MAWSA will be updated that the property's survey is now a 'pass'.

MAWSA charges a fee to the property owner for the transfer of the water or water/sewer account which is generally paid at closing, and the cost of the survey is included in this fee. If additional visits are needed for a passing survey -- such as to confirm a repair has been made or if access isn't provided into the home after an appointment was confirmed with the homeowner or their Realtor -- an additional fee is charged to the property owner by MAWSA and paid at closing.

An Odd Year

Tue, 25 Jan 2022 15:16:30 GMT

If the title is catchy, so be it. But this article is not about strange times. Actually this article has everything to do with 2022 being an even year . . . and that means it is license renewal time.

In about four months the calls will begin. Some of you reading this, and many more who are not, will need help because licenses were not renewed for one reason or another. Practicing on an expired license is the unlicensed practice of real estate and can result in fines. It can also result in a cessation of your practice while you run the bureaucratic maze seeking to have your expired license renewed. This article is a reminder to get it done, get it right and avoid these problems altogether.

Begin now by creating automated reminders . . . use whatever tickler system you prefer. If you are a broker/manager, it is also the time to send reminders to all of your affiliated licensees. Better yet, require that all of these folks submit copies of their applications or provide you with other written verification that their applications have been submitted. Advise that those who have not timely submitted their renewal applications will be barred practicing and will receive no commissions for licensed activities performed during the period of their non-licensure. Brokers can earn fines and black marks on their records for failing to supervise, and that includes failing to supervise the licensing process.

Don't wait until the last minute. No explanation needed.

Again, make use of your tickler system to set reminders for post May 2022 reminding you to verify whether your license, and those of your affiliates, has been renewed. If a license has not been renewed, make a written inquiry in any way you can and save a copy of that inquiry for your records.

Even if you've done everything properly but you did not receive your license (and with the last minute influx of renewal application and the uncertainty of the PALs system, there will be problems), you can be held to account. You have a duty to assure that your license is renewed; and should you fail to follow up, there will be the likelihood of penalties. If you can establish that you were diligent in your follow-up, it is more likely that any unlicensed activity shortly following May 31 will be forgiven.

Licensees, keep your broker in the loop. This will be to your advantage should your license not be renewed and the Commonwealth takes you to task. Brokers, check records for renewal as often as possible and assure that any licensing issues are corrected or at least sufficiently addressed. You will want to demonstrate a good faith, diligent effort.

All of the above is also a guide to use when a licensee is transferring affiliation. It happens all of the time -- the transferring agent begins to list and sell for the new broker, yet the records reveal a continued affiliation with the prior broker. Don't let this happen.

Follow through is critical. Don't let the Commonwealth catch you! It's far better to discover licensure issues yourself. It demonstrates what the Commonwealth expects, and that is diligence on your part.

Happy New Year and best to you all!

Home For The New Year

Fri, 21 Jan 2022 15:07:14 GMT

Once again we find ourselves in the midst of a brand new year. The holiday season is now behind us, and we are coldly in the middle of another winter. Seemingly this dawn of another year has come upon us in much the style of the last . . . more at home and not as socially out-and-about as we had hoped. Who can't remember where they were when they rang in the new year 2000? 22 years gives us all a finite measurement -- both in our business lives and of course personally. Many things look quite different now, hindsight being 20/20.

22 years ago we went about our lives free from so many of the fears that permeate our daily lives today. We shook hands, hugged and cheek-kissed hello with nearly everyone we ran into. We had meetings in person willy-nilly. The only people who wore masks were working in an operating room. Domestic terrorism was something that happened in countries like Ireland. The second amendment seemed fairly simple to understand. If a parent showed up at a soccer game with a gun in a holster on her hip, it wasn't questioned. Even the winter was just plain cold, and the summer was simply hot. Spring involved flowers blooming and pleasant sunny days, and Fall was crisp and cool. The seasons were orderly and predictable. In many ways, so was life. California's mountains caught fire every year, but the fire stayed where it was supposed to -- up in the hills and didn't bother anybody. I remember watching it burn in San Bernardino as a little girl and was told that it was natural, the rejuvenation of life and that all the woods would simply grow back again. Now the fires blaze and consume everything in their wake, and nothing can stop them.

22 years ago most residential Realtors still put clients in their car and drove them around, sometimes for days on end. The Realtor was the conduit to all of the information, the source, the means and often in-and-of themselves the destination. The Realtor was the key for the largest transition that a family could make.

2022 began just like every new year with a countdown. Familiar music, fireworks and confetti rained down . . . and for a few minutes which most people saw on TV, if they were still awake, things seemed like they might be different. It did not eclipse the cacophony of turmoil that surrounds us. At the millennium New Year, President Bill Clinton was in office. Now of course we had political turmoil and a sense of uncertainty as we looked ahead nationally. In hindsight things seemed easier to debate back then based on sensationalism, titillation, drama and where you found yourself in your own personal mindset. But everyone clearly understood the basic dynamics. They were quite domestic. Today we find ourselves inundated with worldwide and domestic virology reports, hospitalizations and awash debates about vaccinations and mask mandates. Impending foreign war is part of the news cycle, our government cannot agree on literally anything and none of us wants to hear of one more mass shooting. So now, instead of mainstream TV news which was our source of information back then, we check the weather on our phone and binge watch a series of dramas that takes us away from the real world for a little while.

The most obvious change for the Realtor in the 22 years since we celebrated the millennium new year is technology. No longer does a couple who wakes up one morning to find themselves expecting an addition to the family decide over breakfast to move up to the bigger home and say, "I need to call our Realtor Edith on Monday morning and have her start this process!" One or both of them is probably searching on Zillow before they even firmly decide to move. Then they take a few virtual tours, choose a home and then schedule to see it and get pre-approved on their phone. What they don't realize is that it is probably already under agreement, their pre-approval is at best conditional and they really do need Edith (and a good lender they can trust and a home inspector) to get this job done right.

The one timeless thing that has not changed in the last 22 years, or the 20 before that, or the 20 that will follow, is that the most important thing to us all, both professionally and personally, is the sense of home. No matter how much time passes or technology changes or the weather defies logic or what sicknesses befall us, home is the one place we count on the most. We want to, and now more than ever need to, love our homes. The concept of working from home was completely foreign to us 22 years ago when we thought of home as a place to return to at the end of a day. Today home is often where people work and live, and ever more our home is literally the center of our lives.

So as I wish you a happy 2022, remember that what we do -- whether we find homes for people to live in or homes for people's businesses -- our industry is at the heart of what is good and truly important in our world. As we adapt and change with our industry, home will always be a place of security and sanctuary no matter what else goes on in the rest of the world.

Noted

Tue, 11 Jan 2022 14:14:25 GMT

So you're meeting with some buyers for a showing. They're excited because after several letdowns they think they may have finally found their dream home. And you're excited because they're excited. As you walk up to the front door, you take in the beautiful landscaping and the smell of flowers in bloom dotting the side of the driveway. Your buyers then anxiously wait as you wrestle the key from the lockbox. The key ejects, you unlock the door, turn the handle, open the door . . . only to be greeted by an alligator sleeping in a cat castle. You scream, your clients scream, the alligator screams . . . and mayhem ensues.

You quickly flee the home desperately looking up the number on your smartphone for animal control. You ask yourself how an alligator could have possibly gotten into the home as there are no signs of forced entry. This doesn't make any sense. As you wait for animal control to arrive, you call the listing agent to tell them about the horror you have just witnessed. As you frantically explain the situation, the listing agent cuts you off and says, "Oh, that's just Buttons, the sellers' pet alligator. He's harmless." You angrily reply, "Why didn't you tell me the alligator would be present during my showing?!?!?" The listing agent responds, "Well, if you had read the agent notes in the MLS, you would have known that the owners have a nocturnal pet alligator named Buttons who will be present during showings . . . and he also likes belly rubs."

Obviously this scenario is an over-exaggeration, although I'm sure someone somewhere at some point has entered a home with an alligator in it. But the point is, if the buyer agent had simply read the agent notes prior to their showing, they wouldn't be heading home in soiled underwear right now.

Look, I get it. We're all busy. And when you're busy, it's easier to just turn on auto pilot. How many of us have scheduled a showing without knowing anything about the property other than its address? I'm sure we have all done that at some point. I'd be lying if I said I didn't. But as minute a detail as it may seem, double checking the agent's notes section on the MLS listing is something we should all be doing. After all, that section is there for a reason. Whether it be to inform agents of an offer deadline, preferred settlement date for the seller or the fact that the homeowner has a pet alligator named Buttons that likes belly rubs and will be present during showings, those notes often provide important details and insight about a property. Often the agent notes will tell you what you need to know without having to call the listing agent to glean the information from them. But as important as it is to make sure you are checking for notes, it is just as important to make sure that as the listing agent you are leaving them.

We've all had those listings where our phone is ringing off the hook. Agents want to write offers, and they have questions that go with those offers. Have you ever had more than one agent ask the same question about your listing? If only there was a more convenient way to communicate that to them and mitigate the parade coming out of your phone's speakers. Hmmmm. You get my point.

So the next time you schedule a showing, or at the very least before you submit an offer, look up the property on the MLS and see if the listing agent has anything noteworthy to read. You might just save those satin silk undergarments of yours.

Update That Disclosure!

Tue, 28 Dec 2021 14:25:30 GMT

The typical failure to disclose lawsuit avers that the seller, from the beginning, intentionally or recklessly failed to reveal the true condition of the property. A number of these suits, however, turn on what the seller learned after listing the property. Lawsuits based on failure to reveal recently acquired information usually name the listing salesperson and/or broker as a defendant.

Sellers and their listing agents learn of problems after listing as a result of a potential buyer's inspection of the property. When a transaction fails after the buyer has completed an inspection, the inspection report, to the extent it reveals conditions that should be disclosed, necessitates revision of the disclosure form. A suit based on failure to update a disclosure is more easily proven than an omission in the original disclosure. Consider the fact that the report will find its way into the court room! Consider also that a listing agent is required to reveal defects not revealed by the seller. How can the listing agent claim to have not seen the telltale inspection report?

Threatened litigation is another post-listing "defect" that frequently fails to make it to the disclosure statement. This can happen for a number of reasons. Perhaps the property was subject to an agreement of sale that failed. If there is no release, the possibility of suit exists, especially when threats of suit are exchanged. In one case where the seller terminated the agreement of sale (buyer was late with a deposit), the buyer's attorney sent letters to both the seller and listing agent indicating that he would be filing suit on his buyer's behalf in order to enforce sale to that buyer. Though the property subsequently came under agreement of sale to a second buyer, the second buyer was never notified of the threat. Imagine what happened when a lis pendens was filed frustrating the second buyer's purchase! You can also imagine what damages would be claimed if the second buyer had sold her home and now was without a residence.

Here's a tip to help you avoid omissions or changes that should be reflected on the seller's disclosure. Before a seller reviews the agreement of sale with you, have the seller read the disclosure statement and initial/date each page to reflect that there are no changes to the disclosures. Of course, should changes be necessary, make them. If this is done with every offer under consideration, you will more likely avoid disclosure issues and suits.

Best to all and a happy, healthy and prosperous 2022!

2021 LCAR President Tom Blefko's Banquet Speech

Wed, 22 Dec 2021 15:16:00 GMT

The following is a transcript of 2021 LCAR President Tom Blefko's speech at the Annual Banquet & Volunteer Luncheon on December 16th at the Wyndham Expo Center:

Good morning! This is certainly a little different than last year at this time when I gave my induction speech to a camera that was sitting on top of my desk at work in front of an audience of ZERO. Little did I realize at that time what our Association and industry was about to experience over the next 12 months.

We were forced with making drastic changes in the way we conducted our business. Just think about some of the following things that we've all had to deal with:

Presenting multiple offers became the new norm when taking a listing. I know in my office that one listing received 32 offers in two days.
Inventory levels across our country reached historic lows as we struggled to get our buyer clients into properties that fit their needs.
We scratched our heads when we would receive multiple offers, all substantially over list price; and we questioned the value of the CMA that we spent hours preparing.
Then there was the entire appraisal industry that was left struggling to make sense of what they were seeing with skyrocketing appreciation rates.
It was not out-of-the-ordinary for listing agents to receive agreements from buyers who had never stepped foot on a property.
And our commercial practitioners struggled with office leases as more and more companies sent their employees home to work remotely -- and who knows if that will change.
Companies started to rethink how they were communicating with their agents, and agents started rethinking how they were communicating with their clients.
Supply chain issues stood the building industry on its head, only to be followed up by the cost of materials going through the roof.
Because of the pandemic, our buyer clients are now reevaluating and questioning what is important to them in a property which is causing us to question our own assumptions of what is important in a property.
The elevated use of Coming Soon and Office Exclusive listings as a marketing strategy continued to gain in acceptance and popularity much to the dismay of some in our industry.
And how could I leave 'Zoom' off this list. This program and other similar apps have become standards in our industry where just 18 months ago we didn't even know they existed.
And finally, on the national level, multiple lawsuits have been filed this past year against our industry that may cause us to change how compensation is paid to agents in the future.

Through all of these industry changes, you, the members of LCAR, have adapted, embraced and welcomed the challenges. I tip my hat to you.

On the Association home front, we have accomplished a lot that I am proud of:

We revised LCAR's Code of Conduct to more accurately reflect changes that have occurred in our industry over the past couple of years. This document serves as a guide for our members when interpreting NAR's Code of Ethics which makes us all more professional.
If you haven't noticed already, we've undergone a rebranding which is reflected in the new logo that you see here today and our new mobile-friendly website which went LIVE yesterday and you can access at www.LCARonline.com .
We are in the beginning stages of communicating with you, our members, in ways that we've never done before. Before you leave here today, be sure to friend, follow and connect with our various social media platforms.
We continue to raise more money for LCAR-PAC so that we can invest in our relationships with political leaders so that real estate issues will always be front and center.
We also had a record-setting year raising money for Transitional Living Center as we continue to support their fine efforts in working with those within our community struggling with housing issues.
And after 47 years, our Executive Vice President, Frank Christoffel, retired. Frank was there at the infancy of our Association and helped grow it to what it is today -- a strong Association with over 1,700 members and affiliates. We now have a large void to fill, but I'm confident that our new President and Board will be up to the task of finding that perfect individual to take his place.

Before I finish, I do have some people that I would like to thank.

I want to thank the staff at LCAR for doing a phenomenal job during this year of transition. They have handled it like true professionals.
It has also been a privilege to work with the many men and women who make up our Board of Directors, Association Operations and all our Committees. You are truly the backbone of our organization.
I would like to thank the LCAR membership. Many members during the year reached out to me with comments, advice and suggestions that helped me mold and shape LCAR into a better organization.
And finally, I would like to thank my HomeSale family for allowing me the time to devote to our Association. Without your support, I couldn't have done this.

It has been my honor to have had the opportunity to serve LCAR; and I know, as I take a step back, we are in good hands as we continue to blaze a path into the future. Thank you.

LCAR Banquet & Volunteer Luncheon

Tue, 21 Dec 2021 18:55:38 GMT

The LCAR Banquet & Volunteer Recognition Luncheon was held December 16th at the Wyndham Expo Center. 2021 PAR President Chris Raad installed the 2022 LCAR Officers -- President, Greg Bardell; President-Elect, Joe Younger; Secretary, Jeff Peters; Treasurer, Tom Weik; Immediate Past-President, Tom Blefko -- & Directors Richard Boas III, Brian Davison, Christina Diehl, Logan Hutton, Mandy Jankowski, Mike Julian, Corinn Kirchner, Debby Moore, Lisa Naples & Maria Rojas.

Brenda Crosby of Berkshire Hathaway North Pointe received the Elaine Vehovic Volunteer of the Year Award. Dan Berger, Jr. of U.S. Commercial Realty was named the Commercial & Industrial Council Member of the Year. Doug Foltz of Coldwell Banker Realty was honored as the Distinguished Service Award Recipient, and Tom Blefko of Berkshire Hathaway North Pointe received the Realtor of the Year honors. Click here to view the award presentations.

The following offices received the 2021 LCAR-PAC Awards: Small Office, Rohrbach Real Estate; Medium Office, Century 21 Home Advisors; and Large Office, Berkshire Hathaway, Centerville.

Donna Giovingo presented Roger Steffy, TLC Director, with a record-breaking check for $35,500 from the proceeds of the September 21st TLC Fundraiser at Clipper Magazine Stadium.

The winners of the five $100 cash door prizes were Jeff Kurtz, Scott Lee, Josh Packer, Ken Pederson & Marlena Stoltzfus.

2019 LCAR President Richard Boas, Jr. served as the Master of Ceremonies, and the following is his formal introduction of 2022 LCAR President Greg Bardell and Greg's acceptance speech.

Richard : Greg moved to Lancaster County from Thompsontown, PA in 1984 to attend Millersville University and study Clinical Psychology. After getting his degree in 1988, he worked for two years in the mental health field before getting his real estate license in March, 1990. This move was not well received by his mother even though his father was a new home sales manager for a local home builder and real estate WAS the family business!

After selling only one home in his first full year in the business, he went on to create a guaranteed sale program that sold almost 2,000 homes over a 25-year period and operated throughout Pennsylvania, Maryland and Nebraska.

In 2005 he climbed Mount Kilimanjaro in an effort to raise money to build housing for an orphanage in East Africa – something he has referred to as a life-changing experience. After returning from Africa, he was accepted into Lehigh University’s MBA program from which he now holds a master’s degree in Business Administration, as well as two graduate certificates – one in Project Management and a second in Corporate Entrepreneurship.

In 2010 Greg entered the real estate Brokerage business and went on in 2014 to open the first Realty ONE Group real estate office east of the Mississippi River. His daughters, Grace and Emily, joined him in the family businesses after both graduated from the University of Pittsburgh in 2016 and 2018.

In addition to being the Broker/Owner of Realty ONE Group Unlimited, he is also the Regional Executive Director for the Mid-Atlantic region which he and his team have grown to 43 offices, 1,000 agents and over $2 billion in sales since 2016. In 2021 he acquired the Master Franchise development rights for 23 Caribbean nations for Realty ONE Group. He and his team expect to build out that region as well over the next five years.

Greg began serving on the LCAR Board of Directors in 2017, and today we induct him as our 2022 Lancaster County Association of Realtors President. Ladies and gentlemen, please join me in welcoming Greg Bardell.

Greg : Thank you…good afternoon and welcome! I have been a member of LCAR for almost 32 years, and it is truly an honor to be elected as President of the Association for the year 2022. But we have much to do.

2021 and 2022 are truly years of transition for our Association. We are dealing with issues we haven’t had to deal with in almost 50 years. As appreciative as we are for the work that has been done in the past and the people sitting in this room who did it, we now must recreate ourselves as we look to the future and prepare us for the challenges we face today and in the years to come.

So much has changed in so little time. We were subject to the Governor’s non-essential business shutdown in 2020. In 2021 we have been impacted by some of the decisions stemming from NAR. And finally we are dealing with the departure of our Executive Vice President who served our Association for 47 years.

Today, our membership is younger than ever, more connected than ever and larger than ever with over 1,600 Realtor members. At the Association level, we are having to find new ways to communicate and new ways to operate our Association to meet all these changes and challenges.

To that end, we have created several new initiatives to improve transparency, improve engagement with our members and our political leaders, improve the interaction between agents in transactions and improve how our Board of Directors functions. The six objectives for 2022 are as follows:

Continue what we started in 2021 with utilization of our social media platforms and our new website to better drive communication and engagement.
Recast the roles and responsibilities of our Board Members by decentralizing decision making and control. Individual Board Members will have greater involvement and oversight of committees that do the work of the Association.
Form an Owner-Manager Council to review and discuss important issues affecting our local market and our daily practice here in Lancaster.
Expand the role of our Governmental Affairs committee to be more active in our engagement with local, state, and federal officials on all matters affecting real estate practitioners and our consumers.
Look to create an Education Committee to oversee the courses and activities of our real estate school by offering more training and promoting further education for our membership.
Last, but certainly not least, hire a new executive vice president to lead our Association into the next decade.

We have a very busy year in front of us, and we need your help. There are many opportunities to get involved. We still need more members on the Communications and Member Engagement Committee, we need help on our Community Outreach programs, we want more input and participation in governmental policy at the local, state, and federal levels, and finally our professional standards – the ethics and standards of practice that we abide by every day.

The next time you ask, “What is LCAR doing for me?” I would ask you, "What have you done for LCAR?" Now is your chance. There are so many ways to be involved, so many ways to make this Association better. But it is up to all of us. To that end, I would like you to do a few things when you leave here today. Go back to your office and share this message that change is in the air. Challenge your office members to join us on social media and follow what is happening. Take an interest in what the Board is doing. Pay greater attention to what the committees are doing. And attend more Association events and activities.

This Association exists to represent YOU, your interest, your careers and the interest of your clients. Now is the time. Please get involved, stay involved and participate in protecting the business we all love.

Before I leave you today, there are some important thank yous that I need to make.

All the LCAR volunteers - The work you do is important and appreciated. Thank you for the commitment of your time and all your efforts throughout the year.
The LCAR staff – you are some of the best in the business and a large part of who we are and what we are is because of you. Thank you for all your work during this difficult year.
Pennsylvania Association of Realtors Officials including President Chris Raad who is here with us today. I am a big fan of PAR. The work you do, the relationships you have with our state legislators and your dedication to our membership is noted and appreciated. Thank you!
Local, State & Federal Legislators here today - Thank you for all your work to make our industry an essential business in Pennsylvania. For many of us, our careers span generations such as is the case with my own. We thank you for doing the heavy lifting to get us back to work!
Frank Christoffel III - What a special man. After 47 years at the helm of LCAR, your dedication to the real estate agents, brokers, owners and to Lancaster real estate consumers. We are better because of you and cannot thank you enough for your life’s work. Thank you, Frank!
Finally, Tom Blefko - And we thought 2020 was a rough year! 2021 proved to be a year of great uncertainty and instability, but you steadied the ship and you led our organization with an amazing amount of skill, dedication and class. I know we are competitors, but we are also friends. You were the right person, at the right time and did exactly the right job. Thank you, Tom, for all that you have done.

I wish you all a happy and peaceful holiday!

Thank you!

Showing Fails

Tue, 07 Dec 2021 21:21:27 GMT

If you’ve been a Realtor for at least a month, you’ve probably had some sort of showing fail. Something did not go smoothly for you. There are just too many variables to control with pets, stairs, keys, safety, people and houses. I thought I was going to talk with agents and collect the 10 best showing fail stories. Instead, I posted a request on Facebook for these stories and got way more than 10. It’s hard to choose, so I decided to include all of the stories from our local agents (and one home inspector), mostly active agents and some retired. Instead of the top 10 stories, I realized that there are 10 themes that the showing fails fit into. And some of the stories actually fit into more than one theme. Here goes . . .

1. Vacant / Not Vacant

House was listed as vacant. Still knocked on the door and got no answer. Walked in and a guy yelled out asking who we were. I explained and he said, “I’m just in the shower, you can come on up.” We decided to just look at the downstairs and skip viewing the upstairs. ~ Sherry Kenderdine

As we entered the last bedroom, there on the floor fast asleep was a homeless man. Without missing a beat I told my buyers a homeless man does not convey. ~ Diane Dilworth

2. Stairs

Does rolling down the attic stairs and landing on a concrete slab count? ~ Sherry Kenderdine

I slid down the stairs and broke my leg. Cancelled 7 more showings for that client. Never did sell them anything. ~ Kris Lundquist

Showing my sweet clients and their kiddos a home. The stairs were slick from our dew-covered shoes, and I fell the ENTIRE flight of stairs — praying I wouldn’t take out their kiddos like bowling pins. ~ Jennifer King

I was showing a town house to a sweet, single dude when I was newly licensed and thought it was necessary to deck out in stilettos, form-fitting dresses and the whole nine yards. I slipped down the ENTIRE FLIGHT of stairs; and yes, my dress ended up almost above my head in a not-so-lady-like manner with carpet burn all over my legs. He was gracious, helped me up and we continued on with the showing. Walked out into the yard and my heels sunk the entire way into the soft ground, and I proceeded to fall flat on my face. Only my pride was hurt, and he ended up buying the house . . . so all is well that ends well. And I don’t wear heels or tight dresses to showings anymore. ~ Melanie Musser

My very first video tour several years ago. I was super nervous as it was all new technology to me. I was shaking. All was going fine until I dropped my phone on the way up the stairs from the basement to the first floor. My phone flew apart into like three pieces. By the time I got it all back together and rebooted, my buyers in Florida were completely freaking out and trying to figure out if they should call 911. They thought I fell down the stairs. ~ Kendra Rhinier

3. Humbling Incidents

I had a showing on St. Patrick’s Day in Summit Hills. It had just snowed, and the house was vacant. It was one of the houses on a hilltop. Anyway, I was of course in a suit and leather shoes. As the buyers who I was meeting for the first time pulled up, I slipped in the snow and slide down the driveway. Anyway, I chose to walk up the grass to get in after introducing my snowy self. ~ Ryan Quindlen

I walked into a HUGE spider web entering a home! My clients told me the spider was on my back, and I started screaming and shaking my hair and body all over! ~ Donna Giovingo

I was showing a home that had a working, vintage elevator with a manual gate. Buyers opted to take the stairs, but I decided to give the elevator a go. When I got up to the second floor, the gate wouldn’t open and I couldn’t get out. Of course I started to panic, frantically pulling on the gate and I may or may not have yelled “help” until the buyers opened the door behind me in the rear of the elevator. The “in” door was not the “out” door on the second floor. ~ Cheri Bushong

4. Cats

Well I was on the listing side, but someone showed my listing. I got a frantic call from the seller who said the agent failed to close the closet door which had a sign on it because there was a floor board missing. Their cat ended up in the floor and they were frantic wondering if they were going to have to rip up all the hardwood to rescue their cat! All worked out in the end, but it’s a clear example why you should obey seller signs even if you don’t understand why. ~ Nancy Keller

Ohhh forgot this one . . . I was showing a house in Mountville on a cold evening, and the cutest cat greets us at the door when I unlocked. Rubbed up against me and just let itself in like it belonged there. About an hour after the showing I get a frantic call from the seller asking whose cat I let in as they don’t own any cats . . . I apologized profusely and explained that she just let herself in like she had lived there her whole life. ~ Melanie Musser

5. Naked Men (far too many of these stories, IMO)

Showing a multi-unit apartment building, and all tenants confirmed the showing. Opened one apartment with my buyers on my heels only to see a man sleeping at 1:00 in the afternoon completely naked on the bed. Needless to say, I asked him not to see us out! ~ Wendy Stauffer

About 10 years ago I had a showing set up in the morning. Rang the bell and nobody answered. Unlocked the door and started to walk in. A man came running downstairs in his underwear saying that they had accepted an offer the night before. No one told me — this was back when the showing agent was supposed to call us with updates and cancellations. ~ Donna Giovingo

After being told the property was vacant for my showing, I knocked once upon arrival (habit even when I am told the house is vacant). I turned the key only to be greeted by a NAKED man still towel drying from his shower. My clients were speechless. I was startled! The very nice man said with a smile and a welcoming hand gesture to please come on it. I said thank you but I will reschedule! ~ Julie Diener

It was a tenant-occupied home in Bausman. I had used Supra for access, and we had already looked at the living room and kitchen before heading back the hall to the bedrooms. As we started back the hall, I heard something and called out, “Hello?” No answer . . . I cautiously proceeded and called again. No answer. As we rounded the corner, we saw the bedroom door was open and a naked boy was sitting on the bed smoking a joint. He waived at us and said, “Hi.” I apologized, and we quickly left. ~ Tracy Seiger

6. Clandestine Meetings

Not showing related, but home inspection related . . . walked in with the buyer and her agent to find a teenage girl playing hooky with her boyfriend in her bed. ~ Matt Steger

I was showing in Chelsea Manor — a go and show. Walk in, and it’s vacant. My clients say, “Sounds like the shower is on.” I yell, “Hello.” I hear some commotion and someone yells, “Please wait outside, just using the shower.” Five minutes later a man and woman come outside and apologetically let us in. Hmmmm. ~ Ryan Quindlen

I was at a showing, the seller wife confirmed the appointment. As usual I rang the doorbell, knocked and then entered. We started showing the home and talking to my clients when I heard a “hello”. Apparently the wife did not inform the husband about the showing, and he was with his ????? Needless to say, I kept my clients in half the house so they could make a getaway without too much embarrassment . . . . ~ Lori Weaver

7. Keys

One time I was showing a house and the only way to get to the front door was via the deck. The slats were “maybe” a quarter inch apart. You guessed it . . . just as I held the key to unlock the door, I dropped it. It fell down perfectly between the slats. Of course there was no access to under-the-deck, nor was I going under there even if there was! Had to eat Humble Pie as we could not gain access to the home for the showing. ~ Jennifer King

I was showing an old farmhouse in the winter, so it was already dark outside. I jiggled the key out of the lockbox just as it slipped from my fingers and fell in a tiny crack between the deck and the threshold. Buyers were determined to get in though, and they were fully amused by this situation. Thankfully the detached garage was unlocked, so we found some long metal thing. The three of us worked together to fish that darn key out in the dark, and we finally got it! To this day, they bring that up as the best showing experience, especially when I show them homes in the dark . . . they’re now looking for their next home! ~ Stephanie Torres

8. Drugs

One time I was showing a home in the City and of course the tenants claimed they were not aware of our showing. So we proceeded to just boldly enter, only to realize we were in the middle of a drug deal going down! ~ Jennifer King

I had buyers of new construction. Some finishing tile work was still happening after closing. While Mom and I were doing a tour of the house, we had forgotten about the guy. The door was closed to the bathroom; and when we opened it, we found said tile guy shooting up in there. Mom closed the door as quickly as she opened it and just looked at me. “Was he doing what I think he was?” Needless to say, he did not finish the tile job. ~ Kendra Rhinier

The first building I ever listed and sold was a pizza parlor on the first floor and a frat house on the upper floors. The first showing was a horrible day-after-party atmosphere with a lot of bongs, gross congealed food and sticky floors with half consumed cans of stale beer literally everywhere. The owner had to threaten to tell their parents (who had signed the lease) to get them to clean things up and keep it ‘decent’ until it sold. ~ Althea Ramsay Carrigan

Southside of Lancaster. As we walked out on the front porch to leave, we saw a drug deal happening on the corner. I saw the people look at each other. They loved the house, and it was affordable for them. All I could think of to save the sale was, “And it’s within walking distance to the local crack dealer, too!” I never heard from them again. ~ Robert Horning

9. Just Funny

I had an open house with the Realtor asleep on the couch. I completed the showing with my clients, and the Realtor never woke up. ~ Lori Weaver

Years ago we used to go on tour to see agents’ new listings. I was a brand new agent, and we all piled into cars to see a townhouse in East Hempfield. Everyone walked into the house on the left, and I walked into the house on the RIGHT! The owners were eating breakfast and I said, “Good morning.” I then proceeded to go up the steps and check out the second floor. I came back down and told them that they had a lovely home. They said thank you. When I was getting back in the car, the other agents were asking me which house did I go in???? Oops! ~ Rina Aliotta

When you’re showing a home and spot your own face defaced on the refrigerator . . . I did not know the sellers and am still unsure how they got one of my grocery list pads, but I wrote them a note on it and put a new business card beside it. ARRRR. ~ Cheri Bushong

10. Faulty Homes

My husband was a new agent and showing a FSBO. The client and their parents walked out onto the deck. The buyer couple walks off the deck just as the deck gives way from the house as they ride the deck down about a story off the ground. Thankfully my husband and the parents were OK. To this day my husband tests the deck before anyone steps out onto it! ~ Wendy Stauffer

If I was meeting a buyer at a property, I would try to run through it before they arrived. So I went to a flip on Laurel and closed the door behind me. I tried to open up just before the buyer arrived, and I panicked. I could not get out . . . not with a key or with pushing and pulling. The windows . . . they were painted shut. Once the buyer arrived, we were able to eventually open up just enough for me to climb out! This was before cell phones and before we dressed more casually — I was in a skirt suit. ~ Lena Hohenadel

Click here to see a video that accompanies my article on Showing Fails.

Lisa Naples, Berkshire Hathaway HomeServices HomeSale Realty

Facts, opinions and information expressed in the Closing Comments Blog represent the work of the author and are believed to be accurate, but are not guaranteed. The Lancaster County Association of Realtors® is not liable for any potential errors, omissions or outdated information. If errors are noted within a post, please notify the Association. Posts represent the author’s opinion and are not necessarily the opinion of the Association.

2022 Outlook: New Construction

Mon, 29 Nov 2021 21:24:39 GMT

The year is quickly coming to an end, but that doesn’t mean the craziness of the housing market will end once we flip the calendar to 2022.

Economists and housing experts say they’ve seen signs of a cooling market in November which is good news for home buyers who are struggling in this seller’s market. But the long-term forecast has come into better focus in just the past few weeks. It’s predicted by many that future home prices will not surge as high as they did in 2021, but they will likely continue to rise — projected to climb by another 16 percent throughout 2022.

So how has new home construction fared over the past year, and what does the future hold? Builders across the country continue to see strong demand from potential buyers, thanks to record low resale inventory (in September inventory decreased by 22.2 percent over the past year — slightly lower than the 25.8 percent drop in August).

New Construction Update

Many buyers are seeing new home construction as the solution to their home buying problems. And in many scenarios, it is the best solution for their housing needs. We have taken on many new clients in recent months as a result of buyer frustration with low home inventory and back-to-back bidding wars. Some of the buyers we’ve been working with will get the keys to their new homes in just a few weeks.

But it goes without saying that new home construction has dealt with its share of challenges in the face of today’s market — from material and labor shortages to price increases and shipping delays.

Andy Toms, our Director of Production, shares his expert insights below on the biggest obstacles experienced in recent months and what he and his team have done on the production side of the business to get buyers into their new homes sooner versus later.

Material Shortages

Raw material availability is driving some manufacturers to suspend production of some products and put the ones that they are producing on allocation to their distributors. This creates an even bigger supply and demand imbalance that is also adding to price increases. At the same time, we have seen very little relief on product lead times; and in some cases it is still 10 times longer than before the pandemic.

Price Increases

We have seen some relief in lumber pricing. However, we are still experiencing material increases on many of the products that go into the construction of a new home — products such as windows, doors, materials with resins/plastics (PVC pipe, fiberglass bathware) and aluminum to name a few.

Labor Shortages

The labor shortage has affected both the manufacturers’ ability to produce product and ship it. This continues to be a problem locally as well . . . trades with a heavy workload but not enough employees to get it all done and stay on schedule.

Trucking/Delivery

This continues to be a major concern. With many products and materials sitting in cargo ships, manufacturers have moved to flying jets around the world to pick up the parts/materials they need to produce their product. However, this is very costly and adds to the pressure of increased manufacturing costs. The current shipping situation is a major contributor to the long lead times that we are experiencing for many products.

The Pricing Pivot

Current market conditions continue to impact new home construction pricing. The challenges shared by Tom are driving much of the instability, and this adds another layer of complexity when launching new neighborhoods.

The reality is this — the home price today may not be the home price tomorrow. To address this fluidity, some builders are changing the way new neighborhoods are rolled out to prospective buyers.

Home plans and pricing are historically released to the public before a neighborhood is open for business. Today plans may be released, but pricing may not be shared until closer to the sales window to avoid buyer frustration with changing costs.

Rolling out a new neighborhood without all the typical information can be frustrating to buyers. It’s understandable as they’re anxious for all the details. The key is for builders and agents to be completely transparent with buyers. Explain the reasons for the price fluctuations and why it’s especially challenging during these times to put a firm price tag on many homes and new neighborhoods.

Feature Flexibility

Another thing for new construction buyers and agents to be aware of in this unprecedented market is product availability. Again, clear communication and setting the buyer’s expectations are keys to avoiding confusion during the home building process.

Product availability could, at times, affect what a builder can offer a buyer for their home features. If a product such as windows, appliances, plumbing or lighting fixtures is delayed due to supply chain issues, a builder is authorized, per the builder/buyer contract, to make a product substitution as long as the replacement product is of equal value and performance.

Consultants at our Design Studio are in-the-know regarding any product availability challenges. Their job is to help guide buyers with selections that will not only best fit their lifestyle and personal taste, but also will not delay the construction timeline.

In It Together

No matter what 2022 holds for us, there will be ups and downs, successes and defeats. But working together with buyers to make their home buying dream a reality — and make the experience as smooth and seamless as possible — should always be the priority.

Bill Patrick, EG Stoltzfus Homes

Homes for the Holidays

Mon, 22 Nov 2021 21:26:08 GMT

We are fast approaching Thanksgiving, Christmas and the New Year. Many agents I know like to take a break during the holidays and spend time with family and friends. Nothing wrong with that, and there’s no better time.

But if you’re busy and want to stay that way with a full pipeline of new listings to put on the market, don’t sleep your way through this coming Holiday Season. There are great promotional and advertising vehicles and ideas that make sense during the holidays that just may help you score big for sellers and yourself. If you have a listing that’s just about ready to hit the market, don’t delay. Look around and take advantage of the unique holiday atmosphere, events and functions.

Geographical farming of a neighborhood or area is a bit “old school”, but the holidays are a great time to make some contacts. Everyone is in a more relaxed mood, and notifications can be sent by mail detailing upcoming events such as a Christmas tree raffle, one-on-one visits by Santa or Mrs. Claus for children or grandchildren, Toys-For-Tots pick-up by your local real estate expert, open houses for existing listings, homemade holiday bread deliveries . . . the ideas are endless.

Tales of unique real estate transactions are best described through actual experience, and this was one of my most successful. It was October of 1987 and I was in the third year of a good start to my real estate career. I had just learned that one of my best friends, who lived in my farming area, was relocating to Memphis and would be enlisting my help to sell his Lancaster home. This particular Holiday Season there were a couple of homes in my friend’s neighborhood that were slated to be on a “candlelight tour” which is what gave birth to a novel idea. Since his home was always decorated beautifully inside and out, we thought why not ride the coat tails of the candlelight tour, put up some open house signs and see what happens.

This was before buyer agency, and the market in 1987 was pretty good. Traffic for the candlelight tour and the open house was heavy, and I ended up with two of my own buyers extremely interested. They both had homes to sell, so it was a race to see which of their homes sold first.

I listed both of their homes, co-brokered the eventual buyer for one, sold the other buyer’s home myself and sold that buyer another home in the same neighborhood. All total, I closed five sides of business off of the one open house in early December. MERRY CHRISTMAS!!!!

So make the best of the season. Candlelight, warm fireplaces, soft lighting and holiday trimmings always make for great showings. We know there will be buyers out there. Use the Holidays to your seller client’s advantage, and yours!

Tom Weik, Kingsway Realty

What’s New With LCAR

Thu, 18 Nov 2021 21:28:27 GMT

Boy, a lot has happened over the past year — some good, some bad, with a little bit in-between. The market is still as caddy wampus as ever; and depending on who you ask, that is either a good thing or a bad thing. But what you might not know is that LCAR is undergoing changes of its own and getting a much needed facelift.

Earlier this year, a Member Engagement Task Force was created. Consisting of several members of LCAR, and in particular members of the Communications Committee, this Task Force was, well, tasked with the goal of coming up with better ways of engaging with its members, agents and affiliates alike — specifically finding new ways to reach our membership. Traditionally this has been achieved through email. Whether it’s to notify members of an upcoming event, a blog post or just relevant news and information pertaining to our industry, email has been the go-to, tried-and-true method of communication for decades now. While email is great, especially back in the 90s and early 2000s when that’s all there really was to easily communicate to hundreds of members simultaneously, a lot has changed over the past 20 years with new methods of communication available.

Again, email is great and it certainly has its uses. But if you’re like me, you get dozens of emails a day . . . and let’s be honest, a lot of it is spam. So when LCAR sends out an update or a blog post, it’s easy to just scroll right past it without giving it a second look. I know of instances when an agent wasn’t even aware of an event or an update because they didn’t notice it had been emailed to them. And that’s a problem. So the question became, how can LCAR better reach its members, and how can LCAR make it easier for members to engage with the Association? And thus, the Member Engagement Task Force was formed.

Without going into too much detail, LCAR is set to embrace modern times come 2022. In addition to the emails you’re used to seeing — because let’s be real, email isn’t going away any time soon — you can expect to see a stronger presence on social media. LCAR is poised to be more involved with Facebook, Instagram, LinkedIn, Pinterest and YouTube. The goal, again, is to help better reach our members and provide them with more opportunities to be engaged with the Association. So when it comes to events, industry news, blog posts, etc., you will have more avenues to access information and interact with what’s happening around you.

Speaking of blog posts, the Communications Committee is also getting a revamp of sorts.

For those unfamiliar, the Communications Committee is in charge of writing those fantastic blog posts you see every week . . . like the one you’re reading now! But not everyone prefers to consume information through written words, so the Communications Committee is going to be the Communications and Member Engagement Committee starting next year. And while we will still continue to write blogs and articles, we’re also going to be shooting videos, pictures and anything else we can think of to make our content more engaging and accessible to our members. And of course this means utilizing the social media platforms mentioned earlier. The Committee is still looking for volunteers; so if you like to be creative and are looking for ways to be more involved at the Association, the Communications and Member Engagement Committee just might be for you. Email lcar@LCARonline.com if you’d like to be a part of transforming LCAR’s communications in 2022.

But wait . . . there’s more! Not only is LCAR evolving how it reaches its members, but it’s also evolving the way it looks, too. In addition to finding new and better ways to communicate and engage with its members, the Member Engagement Task Force, with the help of a third party marketing company, has come together to design a new logo and website. Yes, you heard that right . . . LCAR is getting a makeover.

The new logo looks terrific. And while the current website is functional, it is a bit outdated . . . anyone familiar with Windows 95 knows what I’m talking about. The current website looks fine and it certainly serves it purpose, but how often are agents actually on it? Personally I may find myself on it two or three times a year which isn’t a lot. So when coming up with ideas for a new and improved website, we wanted to not only change the way it looked and bring it in line with modern times, but also to improve its utility and how it functions — make it easier to navigate and provide useful tools for agents to take advantage of and get more use out of it.

So when exactly can you expect to see the new logo and website? Well, you won’t have to wait too much longer. The new logo will be unveiled and the website launched at the Annual LCAR Banquet. If you still haven’t registered, the Banquet is being held at the Wyndham Expo Center on December 16th from 11:00 a.m. to 2:00 p.m. The registration deadline is December 8th — click here for details, and be sure to check out the awesome facility preview .

We are excited to finally be able to show off these changes that are the result of nearly a year’s worth of hard work . . . and what better time to show them than at the Annual Banquet. Hope to see you there!

Richard Boas, III, Berkshire Hathaway HomeServices HomeSale Realty

Keeping Water Out of Your Home

Tue, 09 Nov 2021 21:36:36 GMT

Water is the biggest issue when it comes to damage within homes, and there are various ways it can get in. Luckily there are also things homeowners can do to either prevent it or address it quickly if it happens.

Roof Leaks

Most roof leaks are due to either torn boots (at plumbing or radon vents) or improperly installed or maintained flashing.

Stack vent boots have a rubber portion that seals around a vertical vent pipe. The rubber wears over time with UV from the sun being the common cause. It often starts as a small split alongside the pipe, and this split can allow water to readily enter the home. Homeowners should either inspect their boots, hire a roofer to check them or make a quick inspection of the attic to see if any traces of daylight are entering where the roof penetrations exist. If you see daylight, rain water can potentially enter, too. Replacing stack vent boots is easy and inexpensive for a qualified roofer.

Roof flashing is installed where there are roof penetrations, changes in roof angles or where siding/roofing materials meet in order to help prevent leakage. Stack vent boots, as discussed above, are a method of flashing as well as step, counter and kickout flashings. Roof flashing is most often metal. Once a roof covering like shingles is installed, much of the flashing is covered up. Flashing exists at chimneys, the intersections of roof and siding, etc. Along with t\he roof covering material, a qualified roofer can inspect the exposed roof flashing on a regular basis. Homeowners should look for traces of daylight in attics where roof penetrations and changes in roof angles occur. Many skylights leak due to either improper installation of the skylight or improperly installed flashing around the skylight. Roof leaks can lead to serious mold problems in attics and in living space walls and/or ceilings.

Backed up gutters due to leaves and debris can lead to leakage along the fascia and soffit. If there are large trees nearby, gutters/downspouts should be cleaned regularly. A gutter covering product is also a good idea. Trees that overhang your home should be trimmed away so they don’t drop leaves and branches that can potentially damage the roof.

Plumbing Leaks

A leak can occur any place where plumbing or plumbing fixtures exist. This includes supply or drain pipes as well as sinks, bathtubs/showers, toilets, refrigerators with a water line for a water dispenser or ice maker, etc. In my home inspection travels, I often find toilets that are loose from the floor. This can lead to hidden leakage and damage to the floor structure under the toilet. Homeowners should look under sinks, make sure that the toilets are secured to the floor and check ceilings under toilets, bathtubs/shower, etc. for water stains or mold. Sometimes it takes a good deal of water to notice a leak on a ceiling, especially if there is insulation above the ceiling. Insulation can absorb water like a sponge and keep you from seeing a visible ceiling stain/leak for a period of time.

In some cases access to the plumbing is very limited. Much of a home’s plumbing is hidden within walls or behind insulation Jetted tubs, for example, should have an access panel provided to access the tub’s motor and its plumbing. I often find no access panel at jetted tubs although they are supposed to be present in case of future maintenance, inspection, resetting a GFCI, etc. Filling the tub, running the pump and then inspecting the visual plumbing and pump is a wise move assuming an access panel does exist.

Basement/Foundation Leaks

Most wet basements are due to water entry from the exterior. Improper exterior grading, uncovered basement window wells and faulty gutters/downspouts are the most common causes. If the earth within five feet of the home’s exterior perimeter doesn’t channel water away, the water may have an easy way to enter the basement.

I recommend that basement window wells have plastic covers installed to help prevent these areas from filling with water and then leaking into the basement. Plastic covers are inexpensive and can be found at hardware stores. Larger plastic covers can also be installed over basement egress window areas.

If gutters are overflowing or improperly pitched or downspouts discharge along the foundation, water can easily enter the basement. It’s the same thing for sump pump drains that don’t discharge well away from the home. Ideally downspouts and sump pump drains should discharge at least five feet from the home . . . even further is better.

Even a normally dry basement can be damaged by water if there is a sump pit ready to overflow with water but no pump is installed . . . I do see this occasionally. Even if a sump pump is installed, if there is debris and water in the sump pit, if the pump is faulty or if there is a power outage, the pump can’t do its job. Sump pump drains should discharge well away from the home and not into the sewer line. Many cities, boroughs and townships have ordinances preventing sump pumps from discharging into the sewer. Homeowners should manually check their sump pump periodically either by manually lifting the float or pouring sufficient water into the pit to start the pump. Assuming the pump runs, go outside and check to see that the discharged water is well away from the home. A pump discharging a foot or two outside the foundation often allows the water to trickle back to the foundation and soon back into the sump pit to be pumped out again in a never-ending cycle.

I also recommend that all homes with a sump pump have a backup pump system installed, especially if the basement is finished. The most common is the battery backup type which uses a trickle charger to keep the battery ready; however, if your home has public water, a water-powered sump pump is also available. It does not require power and can still function in a power outage.

Anywhere water damage exists inside a home, mold can also occur within 48 hours which can in itself be a serious health hazard. Any water and/or mold damaged building materials such as drywall, insulation, trim, etc. should be properly replaced by a qualified contractor.

Matthew Steger, ACI, WIN Home Inspection

Serve Yourself

Wed, 03 Nov 2021 20:42:06 GMT

One of the best things about pre-pandemic life for me was service. It gave me a sense of purpose, accomplishment and social interaction. Often it correlated only loosely to my day-job and other times it was just a positive continuation of real estate related activity, but almost always more meaningful. Because I work alone in terms of my day-to-day pursuit of clients and customers, I enjoy the team approach of committees and the sharing of ideas with a group united toward a common goal.

In hindsight I see that I learned much more than I ever bargained for about the differences between not-for-profit and for-profit entities, community and human services, and even about the basic habits of showing up and getting busy. I also learned about how much the long-established institutions and the basic human services that we all count on to be there, without thinking about them, rely on those who show up to participate and give of themselves.

Now as we begin to emerge from the pandemic with the optimism of a bear who had the foresight to hibernate with a stash of snacks, we are just starting to see the shift of priorities in people and institutions about how they spend and give of their time. A reevaluation has started, and it is not over.

I see it at my Rotary where our club of over 200 people is seeing attendance at an unheard of 25 percent. People got out of the habit of showing up to our weekly meetings come snow or sleet or any of the other similar postal worker slogans that also don’t seem to apply any longer. At Toys-For-Tots many of the most stalwart volunteers are getting older, are tired and are just going to move somewhere warm and take a little more time for themselves and be with their own families at the holidays. People who spent lifetimes in professional careers that demanded almost every fiber of their attention and time have reevaluated and announced retirements. It is time to take stock and put our attention and our time to what is truly important.

People in droves have decided to literally sing “take this job and shove it” and they have gone back to school, changed jobs, chosen new careers and dramatically altered their life plans. Real estate is looking particularly alluring to those seeking a change, and let’s be honest . . . who can blame them? It is amazing. It is the very best of all of the things that those of us who are driven to change the world seek every day. I still maintain that service is the key to success, and through LCAR we have a way to come together to make ourselves and our Association stronger and more cohesive.

I got my LCAR committee sign-up form, and I actually wished I was able to check off more committees than I have time to do with actually having to work a real job. I have found the varied and assorted task forces, panels, planning retreats and boards over the years to be some of the best ways to spend my time . . . time spent with some really interesting, insightful and giving individuals. One of the very best ways that you can expand yourself and your affiliations as a Realtor, Associate Broker or Designated Broker is to be active and serve at our own Association and be focused on what we all care about most. I look forward to emerging from this thing stronger, more focused and yes, a little hungry. In reevaluating what I enjoy, what I believe in and what I feel is important to creating a future that I want to live in, I plan to spend my time doing what I love. No one ever said that in service you don’t personally benefit . . . in the very best ways of giving, you always do.

Althea Ramsay Carrigan, Burle Corporate Park

Selling an Oilheat Home

Fri, 29 Oct 2021 20:44:59 GMT

In Lancaster County about 30 percent of residences — thousands of homes — still heat with oil. With those numbers there is a good chance you’re listing one of these homes or will soon. Sometimes you might encounter a prospective buyer who prefers a different kind of home comfort system or expresses outright objections to purchasing an oilheat home.

HEATING OIL: THE BENEFITS

Despite some lingering misconceptions, heating oil actually offers homeowners several key advantages:

Control. You own your fuel supply, and it’s on your property at all times. You decide when to buy it and when to use it.

Efficiency. Modern oilheat systems have come a long way. In fact, they now offer efficiency ratings as high as 95 percent. Bonus . . . an oilheat system works well with a smart thermostat which drives down heating costs during winter.

Flexibility. When it comes to choosing a fuel provider, you have options. You can shop for an oil company based on price, service, reputation, local ownership or whatever else is important to you.

OVERCOMING SOME COMMON OBJECTIONS

As a Realtor, you may have heard buyers offer up a range of misgivings about oilheat homes. Here are a handful of the more common ones, along with options for overcoming the objection:

“I’m worried heating oil isn’t safe. What if the tank catches on fire and burns down my house?”
Actually, oilheat is a safe fuel that will not explode or ignite in its liquid form. You could drop a match in an oil tank and it would extinguish.

“Homes that heat with oil smell like oil.”
The truth . . . a properly maintained system should NOT emit odors. In fact, an odor is the warning an oilheat system gives you when it needs service.

“What if I run out of oil in the middle of a cold snap?”
The reality . . . when you work with a reputable provider, you’ll have access to an automatic delivery option which means you’ll never run out of fuel.

“The walls behind the radiators in an oilheat house are always dirty.”
Radiators offer moist heat which makes the air feel warmer and prevents overly dry conditions in your home. One byproduct is that dust in the room sticks to walls because of that moisture, but it easily wipes off.

ACCENTUATE THE POSITIVE

Given the percentage of oilheat residences in the Lancaster region, area Realtors will either be listing these homes or showing them to prospective buyers for the foreseeable future. By understanding the benefits of oilheat — and having some key points to allay common, often misplaced concerns — Realtors will be better positioned to serve their clients.

Jennifer Goldbach, The Rhoads Energy Family of Companies

Let the Bidding Commence

Wed, 27 Oct 2021 20:47:02 GMT

If you’ve ever attended any type of auction or even watched one on TV, you can feel the energy, excitement, anxiety and thrill as the auctioneer is ripping off words and numbers up to 400 per minute. Compare that to the average of a professional speaker at 150 words per minute, and it can be difficult to follow the bouncing ball.

Participating in an auction to buy a classic floor lamp or some retro collectible can be fun, but what about buying real estate at an auction? Unlike the $50 baseball card, bidding on real estate where a few hundred thousand dollars or more is at stake puts due diligence front and center.

It may be easy to pay that $50 for the baseball card by simply reaching into your pocket, but paying for a house that you are the winning bidder on can offer some additional challenges.

Obviously there are some buyers looking to purchase real estate at an auction who have cash in hand . . . much more than just the $50. Well-capitalized individuals with the needed resources simply pay up when they are the winning bidder, but that doesn’t mean individuals seeking a mortgage to pay for their real estate purchase are just left out in the cold.

Obtaining a mortgage to purchase an auction property is possible; but as the buyer, you need to be well-informed, well-prepared and have a little bit of a thick skin.

Whether looking to purchase a home the traditional way or through an auction, the first and most important step is to have a solid mortgage pre-approval. You truly need to understand your financial qualification and all associated costs plus have the greatest possible certainty that you will be able to obtain the needed mortgage. This is often best achieved with a local mortgage lender who you can have on your speed dial and is reachable within a relatively short period of time. Online lenders half-way across the United States are generally not the best outlet.

When exploring an auction property, you need to obtain information regarding the terms of the sale. The terms should spell out what is expected of the winning bidder relating to the initial deposit, costs and fees the buyer is responsible for, expectations of the timeline to finalize the transaction and any other important details pertaining to the transfer of ownership. In most cases the buyer is 100 percent responsible for understanding all details and adhering to them if they are the winning bidder.

Upon winning the bid, you will need to provide an initial cash deposit usually equal to at least 10 percent of the purchase price. This is usually required within a few days of the auction and would need to be certified funds — a cashier’s check or bank check. This initial deposit is usually NON-REFUNDABLE and will be applied to your total costs at closing.

In most cases the transaction would need to be completed within 30 to 45 days. This should be spelled out in the terms; but this means if you are obtaining a mortgage, you should let your lender know immediately that you were the winning bidder so they can get to work on their end. Typically the mortgage process would be the same as a traditional purchase — completed application, provide updated personal documents, appraisal, underwiring, title, closing.

Another key point to keep in mind when obtaining a mortgage for an auction property is that your purchase is generally “as-is” — meaning the home needs to be in suitable condition to obtain mortgage financing. Getting a government-insured mortgage such as VA, FHA or USDA Rural Housing is probably not the best idea for an auction property purchase as they have additional property condition requirements that an auction seller is not going to address. Even with conventional mortgage financing, you still want to be aware of potential issues such as the roof and any leakage, foundation or structural issues or incomplete renovations just to name a few areas of concern. Outdated shaggy carpet or a Brady Bunch era kitchen should not be a concern.

Be aware of what costs tied to the auction purchase fall completely on the winning bidder. This should be spelled out in the terms of the sale, but one example of the most common cost surprise is the transfer tax. Generally speaking the 2 percent transfer tax with the sale of real estate is split evenly between the buyer and seller. With an auction purchase, the buyer most always pays the full 2 percent. The auctioneer’s commission to sell the property can be as high as 4 percent of the winning bid; and again, the winning bidder could be on the hook for that as well.

Going down the path of obtaining mortgage financing for an auction purchase can be easily achieved with proper planning and preparedness for perhaps a few curve balls along the way. Partnering with a mortgage lender who has some experience financing auction properties can help the process be a bit smoother. That 10 percent deposit isn’t coming back to you, and the seller and the auctioneer are generally not going to care if you didn’t understand the details. If they provided accurate information and it was fully disclosed in the terms of the sale, the seller has the advantage.

Dan Ranck, HomeSale Mortgage, LLC

Mortgage Loan Originator
NMLS #140989
Direct: (717) 271-2400 / efax: (866) 849-4320
dan.ranck@homesalemortgage.com / www.danranck.com

2021 LCAR Golf Outing

Fri, 08 Oct 2021 20:48:48 GMT

The Annual LCAR Golf Outing was held October 7th at Meadia Heights Golf Club.

A big thank you to the sponsors of this year’s event — Belco Community Credit Union, Caliber Home Loans, Carwile Insurance Agency, Ephrata National Bank, First American Home Warranty, Fulton Mortgage Company, Guaranteed Rate, Rob Hess Kingsway Realty, Hommati, HomeSale Mortgage, HouseMaster Home Inspections, M&T Bank, New American Funding, Rhoads Energy, Turnberry Construction Group & Unruh Insurance Agency.

A check for $1,193 is going to the Central Pennsylvania Food Bank from the event proceeds and cash contributions.

Congratulations to the following winners:
First Place Foursome : Sayre Long, David Fuchs, Joey Wildasin, Tom Long
Second Place Foursome : Ron Burkhart, Adam Burkhart, Matt Campbell, Josh Berczik
First Place Mixed Foursome : Dawn Cooper, Erik Egland, Julie Englert, Andrew Wesler
First Place Second Flight : Rob Hess, Omar Fisher, Rick Stendler, Chad Heller
First Place Third Flight : Doug Nedimyer, Ian Cannon, Doug Hummer, Craig Hummer
Closest to the Pin : Kevin Kozo, Joyce Herr, Keith Shaub, Joey Wildasin
Long Drive Male : Brad Zimmernan. Long Drive Female : Daneen Zug-Whiteside
Yellow Ball Contest : Matt Steger, Brian Maloney, Jim Bretz, Mike Strickler
Playing Card Contest : James Ream, Jack Depew
Go For The Green : Rob Hess
$150 Gift Card donated by Lombardos : Rob Horn

Click here for a look at some moments from this year’s tournament.

We Want You

Thu, 07 Oct 2021 20:50:28 GMT

We do. We want you to volunteer with LCAR. We are a member-driven organization, so we want your input to help us be the best we can be. We want your voice, your feedback, your opinions and your input. The best way to get the most out of your membership with LCAR is to volunteer on a committee. This is not a big commitment. Most committees meet one time a month, some are less frequent, and some require more meetings. You’ll get the hang of it.

When you join a committee at LCAR, you will get more out of it than you put into it, always. You get to know your colleagues from any and every brokerage better, not just your own. You build relationships and friendships. You will get an insider look at the real estate industry with information about important topics that will affect your business. You will get to know what LCAR does for you, and you will be able to make a difference in what LCAR will do moving forward.

There are 10 committees looking for members in 2022. You can request to be on one or more specific committees, or you can live on the edge and indicate that you have no particular preference. Take a look at the descriptions of each committee and see where you would like to spend your time.

The Member Engagement & Communications Committee is in the process of revamping LCAR’s social media presence. You can contribute to this committee without having to write articles like this one. You can create videos, take photos and use your imagination to create social media content.

Interested in the role our PAC plays in local, state and national policy and politics? You may want to join the Government Affairs Committee. You’ll get up close and personal with your current local representatives and candidates. At best, it is reassuring to get to know these politicians, at worst it is eye-opening. Totally worth the time, which is one meeting per month with the exception of candidate interviews.

Did you enjoy the recent TLC fundraiser at Clipper Magazine Stadium? That event raised a record-breaking amount this year to benefit Transitional Living Center and was completely organized by the Community Partnerships Committee. They did an outstanding job and could always benefit from having new members on the committee with a fresh perspective.

LCAR is your organization. Sign up for a committee and get involved . . . you’ll be glad that you did.

Please sign up by October 22, 2021. Click here for the sign-up form and committee descriptions.

Lisa Naples, Berkshire Hathaway HomeServices HomeSale Realty

Transitions

Tue, 05 Oct 2021 20:52:17 GMT

“There is nothing more difficult to take in hand, more perilous to conduct, or more uncertain in its success, than to take the lead in the introduction of a new order of things.” — Niccolo Machiavelli

As Realtors we take the lead in helping people to transition in all states and stages of life. Working with business owners in the pursuit of finding or divesting of homes for their business is no less monumentally impactful than discovering, or leaving forever, the family base. Commercial and industrial practitioners work with new, existing and long-established companies at every stage of professional development to approach that next step with a sense of order and purpose. Very little in life is as dreaded and more hated than change, even good change. It is procrastinated about, fought over and evaded more than just about any other human condition. Even if the situation is bad, sometimes taking the next step to correct it is just too huge a leap to consider until it absolutely has to be done. This is sometimes where the distress call goes out and in comes the Realtor on a white horse. OK, not really. The Realtor usually arrives in a nice but not too over-the-top fancy sedan or SUV . . . a Mercedes/BMW if he’s older or well established, a truck if he’s playing it casual/rustic/hands-on, or a Cadillac if she’s old-school, but I digress. The process of learning where the issues lie is key to figuring out how to fix the problem. The inevitable changes have already started in motion.

The types of customers and clients commercial, industrial and retail specialists work with may be anything from a person who makes crafty widgets in their garage to a business owner of an established small business or a growing company, partnership, conglomerate, multi-location chain store, non-profit entity, educational institution, medical facility, governmental service, boutique, store, restaurant, bar . . . the list goes on and on. Some businesses have special needs for obvious and transparent reasons. An inventor in his basement has outgrown his 300 square feet and literally must go to the next step in order to have enough room to make a go of it and realize his dream. A company with 10,000 square feet of warehouse that sits empty month-after-month needs a tenant. Each and every situation has a unique and solvable solution, even if that fix means things must change.

Every situation, just like every Realtor, is different. Often times if you get good at something, it becomes easy. At one time it was not so easy, but through trial and error you got good at it. Not that you want to brag or anything, but you are pretty much a specialist at your specialty. Change comes when your client, who you worked with in your best mode, has a friend/relative/neighbor/staffer with a need in another arena. Maybe, just for example, you are the go-to person among your set for working with automotive-related businesses. One of your biggest and best dealers really wants you to help his sister’s manicurist’s son find a place for his comic book collectors business. Attitude being everything, you may find yourself excited at this prospect as being fun and exciting, or you may be looking around for someone to hand this off to ASAP. Maybe you don’t have that luxury because there is the overriding desire to maintain the original professional relationship. Maybe you need to get back to your roots and remember what it is to be outside that niche.

In order to keep the pipeline full, we need to work with as many people as possible, stay in touch and be relevant. We do this to be top-of-mind when change does come forward. Just like the residential practitioner who farms his area by dropping off pumpkins in the fall to each house and drops by with seed packets in the Spring, commercial agents have farming practices, too, which when possible involves golf, sports or clubs, service or volunteer activities and sometimes involves adult beverages (which can be coffee . . . just saying). It can also be through the use of social media as a way to stay center-focused for when needs arise. Some savvy users may seldom even mention what they do for a living overtly, but it is known. It’s simple . . . people like to do business with friends. People like to go to their friends for help.

Dealing with a mature and established business owner who wants to sell his business and retire is a far sight different from working with a company that has outgrown its location and wants to evaluate buying or leasing in order to find that perfect building. The salon that wants to move from an at-home location to a single presence building requires a whole different mindset from the doctor’s office that has lost some partners and needs to downsize. The key to all of these is listening more than you talk. If you are to take someone forward toward their next iteration, you need to (eventually) know where they have been, where they want to go, when they need/want/wish/hope to go there and, of course, how they are going to financially contribute to this process.

There are no (only) right answers or a how-to-guide on helping people with their monumental changes. Objectivity, perspective and practicality are key tools in the Commercial Realtor’s arsenal. Often it is said that the non-residential sectors are cold and emotionless, but often they are just more about mechanics and purpose. If and when a client is overwhelmed, it is often the professional who can guide them back to the things that through early discussions were laid out as must-have items. If you have heard the phrase ‘Buyers are Liars’, it is not meant to be mean, sometimes people don’t even know what they need because they haven’t seen it yet. Maybe they aren’t capable of dreaming as big as they need to, or maybe they have champagne taste and a Boone’s Farm budget. Sometimes what they say they need is actually just what they want. Other times what they want just plain does not exist.

Transitioning takes time, and coincidentally (insert sarcasm) so does Commercial and Industrial Real Estate. Nothing is worse than having a client with unrealistic expectations and poor planning skills. It makes for stress on everyone involved, and that lack of good business acumen is often a bad omen. I’m not talking about rational, realistic and entirely possible time constraints and crunches. I mean the client who has put off the inevitable for literally years and now wants it all to be found, settled, retrofitted . . . oh and up and running, too . . . in 60 days. That is likely not going to happen, and I don’t care how good your agent is.

More and more people, however, are trying to transition by themselves. I cannot tell you how many calls I get — almost always at lunchtime or at night, because people have day jobs and think they can do this in their spare time — from unrepresented laymen and laywomen with absolutely no clue what they need or want or have to have. They have no idea how the pricing works, what zoning means, why a municipality is important or about any number of crucial details. I tell them, “You do not want to do this alone. Get yourself a broker.” And I mean that . . . being a Realtor sometimes means guiding people on their way. One way or another, it all comes back.

Althea Ramsay Carrigan, Burle Corporate Park

The End of Freon

Fri, 18 Jun 2021 16:45:06 GMT

Freon, also known as R-22, is a refrigerant that has been in use for many decades; but since the “Clean Air Act of 1990” became law, the federal government has mandated its gradual demise. As of January 1, 2020, the production and import of Freon is now officially banned in the United States. Most homeowners have no idea that this happened; and therefore, most of them are not prepared for the future potential high costs associated with maintaining older air conditioning and heat pump units.

Prior to Freon, other types of refrigerants like ammonia were engineered for use in refrigerators; however, many of these early refrigerants were found to be toxic and flammable. Freon was invented by DuPont in 1930. Starting around 2003, most (but not all) new A/C and heat pump systems were manufactured to use Puron R-410A as their refrigerant instead of Freon. Puron complies with federal laws. Generally only Puron-using A/C and heat pump equipment have been manufactured after 2010, although a few companies did make A/C and heat pump systems that utilized R-22 after that year, but the equipment was shipped uncharged, with no Freon, from the factory. Equipment that uses Freon cannot be converted to Puron as these systems are engineered differently — Puron systems run at a much higher pressure than Freon. A simple swap-out of refrigerants is not an option. Many older chest and upright freezers and dehumidifiers also use Freon.

When inspecting homes with older R-22 based equipment installed, I always educate my clients on the Freon and Puron scenario in an attempt to prepare them. After January 1, 2020, when Freon-based equipment needs to be recharged due to a an issue like a refrigerant leak, only Freon recycled from old equipment will be available. This means Freon will be in increasingly short supply and more expensive per pound as we move further and further past 2020. Most residential A/C and heat pump systems use between three to eight pounds of Freon. The average price of Freon is between $100 to $200 per pound as of 2021 according to multiple HVAC professionals that I surveyed. If you go outside and look at your A/C or heat pump unit compressor manufacturer’s tag, it will include information about the type of refrigerant it uses. It will list either “R-22” or “HCFC 22” (Freon), or “R-410A” (Puron). Also Freon should only be worked with, reclaimed and properly disposed of by a qualified licensed contractor.The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.

Freon Tag:

Puron Tag:

Refrigerants allow the movement of heat energy using a refrigeration cycle which allows the refrigerant to change states from liquid to gas and vice versa. Compression or expansion of a refrigerant allows it to become hot or cold. This basic principle is how air conditioners, heat pumps, dehumidifiers and refrigerators/freezers work. They don’t create “cold” . . . instead they move heat.

A/C and heat pump systems have a general design life of about 15 years. Since R-22 equipment is now over 10 years old, putting money into a new A/C or heat pump system is often wiser than spending it to repair older cooling equipment. Of course newer A/C and heat pump systems are much more efficient with higher Seasonal Energy Efficiency Ratios, or SEER, than older systems, too, due to technology improvements. Even with a perfectly functional Freon-based A/C or heat pump system, starting to budget now for replacement of the older Freon cooling system to new Puron equipment is wise.

Matthew Steger, ACI, WIN Home Inspection

Following the Playbook That Doesn’t Exist

Tue, 07 Apr 2020 18:45:13 GMT

How to Thrive in the New World of Selling Real Estate

So how is everyone coping with this new normal in real estate sales? I know we’re all focused on everything ‘virtual’ right now (i.e. showings, tours, document signing, Zoom meetings, etc.), but probably in a relatively short period of time we will be getting back to some semblance of how we conducted business in the past.

During my quarantine period, I’ve read a lot of articles and listened to a bunch of podcasts about how the real estate market has been affected by the COVID-19 pandemic and how it will more than likely emerge on the other side of this crisis. While no one can claim to be 100 percent spot-on with every prognostication they make, there are enough positive signs that indicate once we get through this period that real estate will probably be one of the shining beacons that gets this country back on stable economic ground.

As a real estate agent, how will you emerge from this crisis? Are you using your time wisely and honing your skills, or are you reading and watching every negative online article and newscast that cause you to go into a deep depression?

Years ago I ran a number of marathons to test my endurance, strength and will. One thing I learned during the training process was that in order for you to get stronger and run farther, you had to put stress on your body and mind. There were days that I wanted to quit my training because it was taxing me beyond what I thought were my physical and mental limitations. But I carried on because without the stress, I couldn’t improve my chances of completing the race.

The same thing applies in these uncertain times in real estate. We are being stressed right now — probably more so than at any other time in our lives. You have a choice on how you react to negative events and stress that happens around you. You can either let it consume you, or you can look these events in the eye and prepare to fight and get stronger. What is your choice going to be?

Here are some ideas to help you power through these next couple of weeks. I don’t think you will find anything surprising on this list; however, their significance during this time has increased exponentially.

Get personal with your Customer Relationship Manager (CRM). You do have a CRM, don’t you? If you’re like most agents, you know how to enter basic information into it like a client’s name, address, cell phone number and email address. Now what? CRMs have features that most agents don’t even know exist . . . ways to help you become more productive and stay on top of your business. Open up the ‘Training’ section of your CRM and start at square one and complete ALL the training. Your excuse in the past has been that you don’t have time to learn all the bells and whistles . . . but what’s your excuse now? In case you need a starting point, here are some popular CRMs for you to consider:
Top Producer
Wise Agent
kvCore
IXACT Contact
Boom Town
Referral Maker

Find your inner movie star . Now is a perfect time to learn to get comfortable in front of the camera. We are all carrying around an incredible marketing device in our smart phones — a built-in video camera. This versatile device makes it easy to record and publish short clips of you exhibiting your real estate knowledge while shining a light on your personality. “But I’m uncomfortable with how I look in front of a camera.” Get over yourself . . . no one cares. The more you hit the ‘Record’ button on your camera and talk, the more comfortable you’ll get. BTW — throw away that script or teleprompter . . . if you know your topic and speak from the heart, you’ll get much better results. BTW #2 — don’t expect perfection. You’re going to mess up and get tongue tied . . . have fun with it. Here are some video apps for you to consider and help you get started:
Videolicious
Windows Movie Maker
FlexClip
Filmora
WeVideo

Reach out and touch someone . . . as long as you are practicing safe social distancing. Humans are social creatures by nature. When we are forced not to socialize, we become a little antsy. During this time of ‘Stay at Home’ mandates, learn to socialize in different ways. Pick up the phone, call a past client and ask them how they are making out being forced to stay in the home that you sold them. It sounds a little funny, but it’s true. They’ll appreciate not only the humor, but also hearing your voice. Is there someone in your neighborhood who is elderly or experiencing tough times? Contact them and ask how they’re doing. Older Americans are especially susceptible to being adversely affected by COVID-19 and could be afraid to make a routine trip to the grocery store. Offer to make the trip for them. Set a goal of at least five phone calls a day like this. It will not only raise their spirits, but also yours as well.

Reading is fundamental . If it’s been awhile since you have read a book, start today and spend at least 30 minutes with your eyes affixed on the written word. Reading cannot only stimulate your mind and improve your focus, but it also has even been determined to help you reduce stress. Experienced any stress lately? I thought so. Here are some recommendations of some books that I’ve read recently:
Extreme Ownership: How U.S. Navy Seals Lead and Win by Jocko Willink and Leif Babin
This is Marketing; You Can’t be Seen Until You Learn to See by Seth Godin
Nuts! — Southwest Airlines’ Crazy Recipe for Business and Personal Success by Kevin and Jackie Freiberg
Ninja Selling; Subtle Skills. Big Results. by Larry Kendall
Crushing It; How Great Entrepreneurs Build Their Business and Influence — and How You Can Too by Gary Vaynerchuk

Social media’s new importance . Over the last three weeks, traffic on social media sites has skyrocketed. Facebook experienced bandwidth issues last week because of the explosive numbers it was experiencing. With more time on their hands, people are learning to use social media to connect, interact, sell, buy . . . and just about anything else you can imagine. As an industry we are going to emerge from this time to find out that not only has social media increased in importance, but it will also now be essential to our business. If you have been an infrequent user of social media for your business, take the time to learn the various platforms and start an implementation plan. If you are using social media, take it to the next level. Most platforms have tips and training links right on their sites. Immerse yourself in the ‘How To’s’ and get up to speed . . . and do it quickly.

As you begin to see the numbers for COVID-19 cases flatten out across the county and our country, emerge from it stronger and better prepared because you embraced the stress. The famous movie actor John Wayne once said, “Courage is being scared to death, but saddling up anyway.” Let’s all saddle up.

All the best!

Tom Blefko, Berkshire Hathaway HomeServices HomeSale Realty

None of the companies mentioned in this article should be construed as a recommendation by LCAR.

The Home Inspection Report -- Who Does It Belong To?

Tue, 17 Mar 2020 18:41:38 GMT

In the past there have been articles about the confidentiality of appraisals and who is entitled to them . . . sounds like a perfect segue to also discuss home inspection reports since there is apparently much confusion in the real estate industry. Realtors and home inspectors are bound by separate and sometimes very different and contradictory laws and regulations in the Commonwealth of Pennsylvania.

In most cases the buyer of a property under agreement hires his or her choice of a home inspector to thoroughly evaluate the home’s major systems and provide a written report on his findings. Although some Realtors refer, and sometimes are the ones choosing the inspector for the buyer, the legal business relationship is actually between the buyer and the home inspector. An inspection agreement is the legal contract that binds the client and the inspector. The inspection agreement documents the particulars of the inspection (property address, client name, date/time of the inspection, performed services and their fees) as well as the remedy process should the client claim the inspector missed something, etc.

The companies that provide Errors and Omissions (E&O) insurance to home inspectors are the ones who declare what sort of legal jargon must be included in our inspection agreements. Without a signed inspection agreement for a particular home inspection (unique to the particular client, address and date/time), the inspector has no E&O coverage for that particular inspection. The inspector’s E&O insurance protects the client but also protects the inspector, both Realtors involved and, to some extent, the home seller. The agreement, ideally, should be signed before the inspection commences. I always email my agreements to the client days in advance so the client has time to read the agreement, add a service they want performed (if not already shown on the agreement), and/or ask any questions.

The inspection agreement also documents what Standard of Practice (SoP) and Code of Ethics (CoE) the inspector is using to perform the inspection, such as the Standard of Practice and the Code of Ethics of the American Society of Home Inspectors (ASHI). The ASHI SoP, for example, documents what systems and components in the home must be inspected and what is considered beyond the scope of a home inspection. I feel that sending the inspection agreement to the client ahead of time helps set reasonable expectations of the inspection process.

The home inspection agreement also specifies who will receive the inspection report. Inspection agreements include verbiage where the client may give permission for the inspector to provide a copy of the report to the client’s Realtor. Should the client refuse to allow the inspector to provide a copy of the report to their Realtor, the inspector is not legally authorized to release the report to anybody but his client. Over many years inspecting homes, there has only been one instance when I had a client refuse to give me permission to release the report to his Realtor. It was an odd situation, and I didn’t ask questions. Of course when the buyer’s agent called asking why I didn’t email him the report, all I could answer was that his client refused to give me permission to do so.

Section 12(A) part 4 of the PA Standard Agreement For The Sale of Real Estate had an interesting change as of January 1, 2019 stating, “All inspectors, including home inspectors, are authorized by Buyer to provide a copy of an Inspection Report to Broker for Buyer.”

This is where things start to become contradictory depending upon what role you have in the home purchase transaction. The above excerpt implies that the inspector has automatic permission to give a copy of the report to the buyer’s agent. However, PA Act 114 and the ASHI Code of Ethics (and the inspector’s own inspection agreement) specifically require the inspector to get his client’s permission to provide a copy of the report to the client’s agent. It’s a very rare occurrence, but if the client refuses to give the inspector permission to provide the report to their agent, the inspector is legally bound to not provide it to anyone else. So what happens next? Sounds like it’s time for a lawyer to answer this one.

Next, the ASHI CoE specifically states that the inspector may only provide the inspection findings (the report) to his client and may not provide the report to the seller or listing agent.

ASHI Code of Ethics part 2C — “Inspectors shall not disclose inspection results or client information without client approval. Inspectors, at their discretion, may disclose observed immediate safety hazards to occupants exposed to such hazards, when feasible.”

The PA Home Inspector Compliance Law (Act 114) requires PA home inspectors to adhere to the Standards of Practice and Code of Ethics of the association to which the inspector belongs. The wording of PA Act 114 states:

7508 part 3(B) Confidentiality — Except as otherwise required by law, a home inspector shall not deliver a home inspection report to any person other than the client of the home inspector without the client’s consent. The seller shall have the right, upon request, to receive without charge a copy of a home inspection report from the person for whom it was prepared.

The inspector may not provide the report or even discuss the findings with the seller or listing agent unless the client provides written permission. The client is the one who paid for the inspection and signed the inspection agreement, so the inspector’s legal duty is to his client. If the inspector were to go against the above requirement, he would be in violation of his own agreement contract as well as the ASHI Code of Ethics and PA Law (PA Act 114). Changes to the PA Standard Agreement For The Sale of Real Estate (which took effect as of January 1, 2019) in section 12(A) part 5 states that: “Seller has the right, upon request, to receive a free copy of any inspection Report from the party for whom it was prepared. Unless otherwise stated, Seller does not have the right to receive a copy of any lender’s appraisal report.”

In a few instances a day or so after an inspection a listing agent or seller may call or email me asking how the inspection went. As noted above, all that I can respond is that I work for my client and that I have a confidentiality clause preventing me from discussing the inspection with anyone but my client. Imagine calling a doctor and asking how someone else’s medical exam went? There are provisions in PA Act 114 and the ASHI Code of Ethics that allow the inspector to inform a seller or tenant of a major safety issue, such as a gas leak, for example.

The PA Act 114 wording excerpt above does include the home seller’s right, upon request, to receive a copy of the inspection report, but it must be obtained from the person for whom it was prepared . In other words, if a seller wants a copy of an inspection report, the seller must ask for and receive it directly from the inspector’s client. The inspector cannot legally provide any portion of the report (verbally or in writing) to the seller or listing agent. Again, the inspector’s business relationship and legal confidentiality responsibilities rest with his client.

Most home inspectors include a copyright in their reports as well since the report is the inspector’s intellectual property. The report belongs solely to the inspector and the inspector’s client. I had an instance recently when a buyer terminated their sales agreement due to an appraisal issue. By then the listing agent and seller had already received the inspection report from the buyer. The listing agent then contacted me asking permission to include my report in his MLS listing of the property. In other words, he wanted to use my inspection report to market his listing to other potential buyers. Of course the answer was ‘no’. The report is not the property of the listing agent or the seller; and even if the sales agreement is terminated, the report does not become the listing agent or seller’s property to use for their own financial gain. Also, the report could potentially fall into the hands of a third party with whom the inspector has absolutely no business relationship with, nor a signed inspection agreement. If this happened and an E&O lawsuit ensued between the original home inspector and this third party with whom the inspector had no business relationship, I wouldn’t be surprised if the listing agent (and/or the seller) who decided to share the report with others would be included as a part to this lawsuit.

Matthew Steger, ACI, WIN Home Inspection

Underwriting Guidelines

Thu, 12 Mar 2020 18:39:53 GMT

When a buyer is obtaining a mortgage to purchase real estate, the loan will eventually go to a dark and lonely place known as underwriting. I’m being a bit facetious, but the connotations surrounding “underwriting” are less than stellar. This also doesn’t top the list of what homebuyers get excited about when they are in the market to purchase a home. Regardless, underwriting is a necessary part of the process that all loans need to go through. I’m quite certain most of you reading this have had potential deals fall through during underwriting when an issue seemingly came out of nowhere to rob you of a happy transaction between the buyer and seller. The purpose of this article is to educate you on what happens in this dark, scary place known as underwriting. It should also shed some light on what I think a good lender should be doing initially to make this dreaded underwriting process a little bit more predictable.

When a buyer gets an initial pre-approval, there is a plethora of information that is taken from those buyers. Depending on the medium that is used (telephone, electronic, in-person), you may or may not have documentation to back up what they are saying. The more proactive a buyer is with getting their documentation to the lender, the easier it becomes for a lender to spot any potential problems.

One thing a lender can do after a pre-approval is completed, with or without supporting documentation, is run the loan through an Automated Underwriting System (AUS). Freddie Mac and Fannie Mae have their own AUS’s that most lenders utilize when determining if a buyer will qualify for the loan. USDA has their own automated underwriting system known as the Guaranteed Underwriting System (GUS). These automated underwriting systems hold the answers to what will need to be done to satisfy all of the requirements to get the loan to the closing table.

Many Realtors and consumers alike can rattle off some of the basic, relatively accurate assumptions of the mortgage process. For conventional loans you can go to around 43 percent for your debt ratios, for FHA you can go to 50 percent, etc. While these “myths” don’t really tell the full story, they aren’t horrible rumors to have out in the public. The truth of the matter is that the golden ticket for a mortgage isn’t your debt ratio, and it isn’t even your credit score. The key is that the AUS gives you a green light! Without that green light, you will have to get a non-traditional mortgage product to make your deal work.

A proactive lender is always a good lender. Assuming that the information is accurate up front, the AUS gives the lender the answers to what will be needed through the underwriting process. The attention to detail is always important as a number of factors can dictate what is required in underwriting. For example, the findings will state what is needed with regard to paystubs, tax returns, W2’s, etc. The AUS findings will also explain what is needed to document and utilize any overtime, commission or bonus income the buyer may receive on the loan application, provided they have a two-year history with their employer. The information given in the AUS findings should help make the process a little simpler and a little clearer for the buyer.

It is also of the utmost importance for buyers to be transparent and honest up front. Recently I had a transaction where a buyer told me the funds for closing were coming from her 401k. About a week into the transaction it was discovered that the funds for closing were coming from her husband’s 401k, and he was not on the loan due to credit reasons. We had to re-run the findings showing that gift funds were being used for closing instead of the buyer’s own funds, and it asked us for $2,500 in reserves. We were able to satisfy that requirement, but it led to more back-and-forth with the client than was desirable.

The goal of the initial AUS process is to essentially have all the information up front. In a perfect world, this information is communicated to the buyer, and he or she provides all the documentation that is needed as soon as possible. The underwriter’s job at that point becomes easier as they simply need to verify everything that was submitted to satisfy the AUS requirements. When the lender is proactive and the buyer is transparent, it should make for a hassle-free underwriting process, a clean mortgage approval and a happy settlement day for everyone involved.

David Fuchs, Traditions Mortgage

VA Loan Changes in 2020

Tue, 10 Mar 2020 18:01:39 GMT

Using VA Financing is an excellent program for Veterans to purchase a home with some advantages that non-Veterans do not have access to. The most appealing feature to a VA loan is zero down payment or 100 percent financing.

A VA mortgage has a “funding fee” that is added to the base loan amount unless a Veteran is deemed exempt through disability. This determination is on a case-by-case basis and is indicated on the Certificate of Eligibility.

The VA funding fee recently increased and is now as follows:

For first-time use, the fee has increased from 2.15 percent of the base loan amount to 2.30 percent of the base loan amount. The fee for subsequent uses has increased from 3.30 percent to 3.60 percent. These fee increases will remain in place for two years and in 2022 return to the levels they were in 2019 and remain there through September 30, 2029 and are expected to decrease again at that time.

For specific questions and details on other information pertaining to use of a VA loan, contact a licensed mortgage loan officer.

Dan Ranck, HomeSale Mortgage, LLC

Mortgage Loan Originator
NMLS #140989
Direct: (717) 271-2400 / efax: (866) 849-4320
dan.ranck@homesalemortgage.com / www.danranck.com

What You Need to Know About NEW Changes to PAR Forms

Thu, 05 Mar 2020 19:00:05 GMT

When I first started in the real estate business, the standard agreement of sale was 1 1/2 pages long. There was only one addendum, and that was only used for FHA transactions. That was it! Oh how things have changed!

Today’s PAR (Pennsylvania Association of Realtors) forms library contains over one hundred forms, and they are constantly being updated or revised by PAR’s Standard Forms Committee.

The latest round of changes went into effect on January 1, 2020. If you didn’t know that changes were made or you haven’t taken the time to understand how the changes may affect your clients, it would behoove you to spend some time and get up to speed.

Let’s first take a look at the list of forms that have changed:

Standard Agreement of Sale of Real Estate (PAR Form ASR)
Buyer (Tenant) Agency Contract (PAR Form BAC)
Broker’s Fee Agreement (PAR Form FHA)
Manufactured Home Community Rights Act Notice (PAR Form MN)
Non-Exclusive Buyer (Tenant) Agency (PAR Form NBA)
Residential Property Management Agreement (PAR Form PMA)
Listing for Rent Contract — Exclusive Right to Rent Real Property (PAR Form XLR)
Listing Contract (Seller Agency Contract) — Exclusive Right to Sell Real Estate (PAR Form XLS)
Listing Contract — Exclusive Right to Sell and/or Lease Commercial Property (PAR Form XLSC)

Before you bemoan the fact that this list is close to 10 forms long, the changes can be summarized into three main areas of concern.

Sales Agreements will call more attention to items that may or may not be included with the sale of a property — specifically, hard-wired security systems, thermostats, solar panels and windmills.

While the agreement now lists these items as ‘included’ in the sale, PAR also added a new clause that reminds buyers, sellers and their agents to carefully look around the property and address items that may be fixtures or personal property and could become a point of contention as settlement approaches.

While we’re spending some time on the ‘Fixtures and Personal Property’ paragraph in the agreement of sale, it would probably be a good idea to reacquaint yourself with what ‘IS’ included.

There is also a new paragraph in the agreement of sale devoted to a relatively new phrase called the ‘Internet of Things (IoT)’. The paragraph states that if the seller has personal devices (i.e. cell phones, personal computers, tablets) that are connected to IoT devices that are included in the sale of the property, they will disconnect and clear all relevant data prior to settlement. It also warns the seller not to try to access IoT devices left on the property after settlement.

Sellers also agree to restore IoT devices to their original settings, change passwords or codes, update network settings and submit change of ownership and contact information to device manufacturers and service providers.

Buyer and Tenant Contracts now contain a new warning to clients about recordings on a property.

The contract warns them not to record oral communications without having the consent of all parties. In addition, a clause was inserted that reminds the buyer that the property may be under surveillance and that private conversations should be held elsewhere.

Seller and Landlord Contracts also contain a notice about recordings by both parties.

The seller is encouraged to secure all personal and confidential items because the buyer or tenant may want to record their experience. In addition, there is a notice that recording conversations of others could be a violation of wiretapping laws, and the seller or landlord should seek legal counsel if they chose not to deactivate their monitoring device(s).

In today’s world agents will encounter more and more ‘Smart Homes’ with IoT devices. You owe it to your client, be it the buyer or the seller, to make them aware of their obligations and responsibilities under the newly-worded PAR contracts.

If you have questions or concerns, I would encourage you to discuss them with your broker or legal counsel.

Tom Blefko, Berkshire Hathaway HomeServices HomeSale Realty

Pending, Active Under Contract or Undisclosed Contract?

Thu, 27 Feb 2020 18:58:09 GMT

It is a brisk market; and after years of sellers’ market conditions, agents are accustomed to the speed that homes can sell. Listings can be changed to “pending” within hours of hitting the market. However, not all listings are updated quickly when an offer is accepted.

According to Code of Ethics and Standards of Practice of the National Association of Realtors, Article 3, Standard of Practice 3-6: Realtors shall disclose the existence of accepted offers, including offers with unresolved contingencies, to any broker seeking cooperation.

In other words, showing agents should be notified of an accepted offer prior to showing a property. This can be done with these two status choices in Bright MLS:

ACTIVE UNDER CONTRACT
Properties in which:

Listing has an accepted contract (Agreement of Sale) with contingencies.
Property is available to show and accept backup offers with contingencies.
DOM/CDOM does not accumulate.

PENDING
Listings of property in which:

Listing has an accepted contract (Agreement of Sale) and has not closed.
Seller does not want any more showings or backup offers.
DOM/CDOM is paused and will not accumulate while in this status.

At the very least, if a showing is scheduled prior to the status change in Bright MLS, the showing agent should be notified by phone, text or email of the existence of an accepted offer. A quick way to make sure no showings slip through the cracks is to immediately update the showing instructions in ShowingTime to “Refer to Listing Agent”. The appointment staff will log the details of the appointment request and inform the agent that the listing agent manages appointments. Or Showing Desk can mark it as “No More Showings”, and you will not be notified of the appointment requests. In addition, once an offer is accepted, if showings are to be discontinued, make sure you cancel any scheduled showings as soon as possible.

Lisa Naples, Berkshire Hathaway HomeServices HomeSale Realty

Misconceptions of Being a Realtor

Wed, 12 Feb 2020 18:56:37 GMT

So you just got into real estate, or maybe you’re thinking about getting into it. And why not? Depending on who you ask, it’s a great profession. You can be your own boss, work your own hours, and of course you can make a lot of money. You’ll also meet many great people along the way. We are in the business of building relationships after all, but it’s not all lilac and gooseberries. To most people they look at Realtors and think that we have the easiest job in the world. We sleep in til noon, drive our hover-cars to the office, sell a house, then take a vacation for the last 364 days of the year. OK, so maybe I exaggerated a little bit . . . they don’t make hover-cars yet. But still, there are many misconceptions about being a Realtor. And if you’re new to the profession, or if you or someone you know is thinking about getting into the biz, then it’s good to know what some of these misconceptions are as they can help you keep your expectations in check. So what are some of the most common misconceptions? Let’s conversate.

Financial Investment . It’s true that compared to many other businesses, starting out in real estate requires is a smaller financial investment. You don’t have to buy space to set up a store or spend thousands of dollars on college. But it is an investment nonetheless. You are running a business after all; and aside from the money spent taking classes and getting licensed, there are many other expenses that need to be considered. There are association fees, broker fees, MLS fees, continuing education , vehicle expenses, advertising, business cards, as well as other general expenses like office supplies just to name a few. One expense most often overlooked is health insurance. That in itself is a major expense. We don’t have the luxury of an employer footing most of the bill for us. And sadly many agents choose to opt out of health coverage altogether because of how expensive it can be. All of these expenses add up. So it’s wise to have money saved prior to selling full time, because it may be a few months before you sell your first home. Speaking of which . . .

Ease of Getting Business . People think that getting business is easy peasy lemon squeezy when really it is tedious devious pomegranate mysterious. It’s assumed that when an agent gets licensed that the phone starts ringing and people start lining up at the door wanting their business. But that’s just not how it works. If it did, then everyone would be a Realtor. And when you’re new to the business, you won’t have the luxury of referrals. Sure, you’ll get the occasional one here and there, but they’re generally not consistent. Referrals take experience, trust and time. So when newly licensed, you need to devote more resources to advertising, making phone calls and more time just meeting people. You have to put yourself out there. And yeah, you’re going to get rejected. It’s just how it is. But you have to be comfortable being uncomfortable. Smooth seas don’t make good sailors.

Commission . There is an assumption among many that Realtors get paid salary or even hourly. People don’t realize that Realtors get paid solely by commission. But for those that do know that, they assume that Realtors get most, if not all, of the commission from selling a house. I’m sure I’m not the only one who has had someone assume you get the entire six percent and comment on how nice that must be. Sure, that would be nice. But that six percent, or whatever the percent from the sale of a home may be, usually gets split several different ways. Typically half gets split between the buying and selling side. And that half can get split even more as brokers get a cut. They need to keep the lights on so that you have a place to hang your hat. Many, if not most, real estate companies have their own advertising department that is separate from an individual agent’s advertising efforts. And they’ll often get a cut, too, because advertising isn’t free. While how much of that cut the agent gets is different depending on how much experience they have, how much business they do or who their broker is, newer agents tend to get a smaller cut when they are new, but they’re also getting less money from selling those homes. And if you are used to getting a paycheck every week, it can be a difficult adjustment starting out. As mentioned before, it may take a while before you sell your first home. You may go through stretches when you sell a few homes in a single month, only to go through a stretch of a few months when you don’t sell a home at all. When you do get your commission checks, they’re not going to have any taxes taken out, so you need to budget yourself and put money aside from each check you receive because Uncle Sam wants his cut, too.

Time Investment . This goes a couple different ways. While it’s true you have more flexibility with your schedule being a Realtor, you’re also always “on call”. If you have a buyer who wants to write up an offer at 8:00 p.m. on a Saturday night, then you need to be there, or at least have another agent represent your client in your stead. You can never be the reason a client doesn’t get a home . . . that just can’t happen. Even when you’re on vacation, you are still working to some extent. There is also the investment put into transactions that ultimately fall through. Sometimes in this business you can do everything right and still have an unsuccessful transaction. It’s a mighty tough pill to swallow to spend weeks or even months on a transaction only to have nothing to show for it. Maybe you spent time preparing a listing presentation only to have the listing go to another agent. Maybe you show a buyer 20 homes only for them to decide that they want to rent. It can be frustrating sometimes; and if you aren’t patient, then you aren’t going to succeed.

These are undoubtedly the most common misconceptions. And of course, there are always exceptions to the rule. And this article isn’t meant to deter anyone from getting into real estate; its only intent is to address some of the myths that are out there. And just because you’re starting out, it doesn’t mean that you aren’t going to be successful right away. There are many new agents who bust right out of the gate and are able to make great success for themselves. But you still need to have realistic expectations and not assume that you’re going to set the world afire your first year or two.

Richard Boas, III, Berkshire Hathaway HomeServices HomeSale Realty

Radon Testing & More PA DEP Protocols

Fri, 07 Feb 2020 18:52:36 GMT

In Pennsylvania, professional radon testing and radon remediation (aka mitigation) is governed by the PA Department of Environmental Protection (PA DEP). The PA DEP has set standard radon testing protocols as documented in the PA Radon Act which must be met for professional radon testing. These protocols ensure that professional radon tests are performed to set standards and help provide quality control for accurate radon testing. All professional radon testing professionals in Pennsylvania must be certified/licensed by PA DEP and submit a Quality Assurance (QA) plan as part of the process to become certified/licensed. PA DEP audits radon testing and radon remediation professionals on a regular basis to ensure that we are following PA law (the radon testing protocols) and our QA plan, as well as checking our records for compliance and reporting requirements.

It doesn’t matter if a home is in the city or out in the country . . . or if a home is brand new or 200 years old . . . all homes should be tested as any age, location or style of home can have high radon levels. All homes have some level of radon gas in them. The only way to know your home’s radon level is to perform a radon test. I have been performing radon testing in the Lancaster and surrounding areas since 2002 and have found high (over 330 pCi/L) and low (less than 1 pCi/L) radon levels all over the area in all types, locations and ages of homes . . . and yes, even high levels in some homes with no basements.

The main part of the radon test protocol that PA DEP uses is called “Closed House Conditions”. These protocols must begin at least 12 hours BEFORE the radon test begins, not when the inspector arrives to start the radon test. This is why it is a good idea for the radon test professional to contact the homeowner or occupant a day or so before the radon test starts in order to review the PA DEP protocols with the homeowner so the home is ready when the inspector arrives. Getting to the home and finding the home is not ready (such as doors or windows open) may delay, extend or prevent a radon test from starting at that time. The type of radon testing technology to be used (continuous monitor, activated charcoal, etc.) will determine if the test can still start (assuming closed house conditions are corrected then and there). The time duration will need to be extended, or the test must be rescheduled for a later time. Of course this can present an issue if the sales contract’s inspection contingency is nearly over.

Since time is of the essence when buying a home, short-term radon tests are generally used during this process. A short-term radon test is any radon test between 2-90 days in duration, but are normally 2 or 3 days for a real estate transaction.

Closed House Conditions Include the Following:

All solid exterior doors (not just those in the basement) must be kept closed other than normal entry/exiting starting 12 hours BEFORE the radon test begins and throughout the radon test’s duration. When the homeowner needs to enter or leave the home, exterior doors should be only opened momentarily. If the homeowner will be moving during the proposed radon test period, the radon test will need to be rescheduled . . . since doors will be open to move furniture and belongings out, closed door conditions cannot be met. Occasionally when doing a radon test in a brand new home, the builder has yet to install locks on all doors. Sometimes the holes are drilled for bolt locks, for example, but no locks are actually installed at that point. Of course the holes need to be filled (closed up) for the radon test to start. Storm doors and screen doors do not count as solid entry doors, and garage doors are not considered main entry doors either.
All exterior windows (not just in the basement) must be kept closed starting 12 hours BEFORE the radon test begins and throughout the radon test’s duration.
Central heating/air conditioning systems should be run normally for at least 24 hours before the test and during the test period. Normal operation would be setting the thermostat between 68-75 degrees. For vacant homes this helps ensure normal air flow through the home as if it were occupied. For occupied homes this allows the homeowner to remain comfortable with normal air flow. Window and wall mounted A/C units may only be run in circulation mode before and during the radon test. If the A/C unit has no exterior vent or circulation mode, window/wall A/C units may not be run at all before and during the test. This can create an issue in hot weather if the homeowner wants to keep the home cool; however, wall/window A/C units that vent with the exterior will prevent an accurate radon test since exterior air will enter the home.
Fireplaces, wood/coal/pellet stoves, etc. should not be operated during the radon test unless it is the home’s only heat source. Fireplace dampers must also be kept closed for the radon test starting 12 hours before and throughout the radon test’s duration.
Other appliances such as clothes dryers, kitchen range fans, bathroom exhaust fans, etc. can be run normally. Whole-home vent fans (sometimes mounted in a hallway ceiling in homes from the 1960s or 1970s) should not be run before or during the radon test. Ceiling fans, portable fans, portable humidifiers and portable dehumidifiers should NOT be operated on the same level/story of the home as the radon test is being performed.
If the home already has a radon remediation system installed, it must be running at least 24 hours before the test starts. Yes, we test homes with radon systems already installed, and from time-to-time we still find high radon levels even with the systems running. This is why it is important to test a home even if you think you don’t need to because you see a radon system already installed.
Radon testing equipment, including any stand or work table that the device is located on, should not be touched or moved. When the radon test is placed, the installer will note where specifically the unit(s) is placed to ensure it is still in that location when he later retrieves the radon test. Continuous radon monitors (CRMs) have built-in motion/tamper sensors that will tell the inspector if the unit has been tampered with during the test.

PA DEP sets specific standards on where in the home the radon test should occur. Ideally the test should occur in the basement (unless it has a low ceiling or dirt floor and, therefore, is not ‘easily finished’), and it should be located away from exterior walls, doors and windows. The center of the basement is best but is not always feasible with situations like continuous monitors that need to be plugged in for power.

The test equipment should not be touched, moved or otherwise disturbed. As noted above, continuous monitors indicate to the inspector if the unit has been interfered with. When the tester data is downloaded (if continuous monitors are used) and indications of tampering are noted, PA DEP protocols require the inspector to void the radon test. This is because the inspector cannot provide any quality assurance that the test is accurate and the results are valid.

When I contact the homeowner a day or so before the radon test, I review the above protocols with them, ask if any pets or small children live in the home and if they go down to the basement. I explain that pets or small children can interfere with the radon test device and end up causing the test to be invalidated. Approximately 15 years ago I performed a radon test and downloaded the test data. The data showed 28 instances of tampering — the unit was moved or bumped 28 times during the test period, and the unit was unplugged three times. The radon test table had been moved about 10 feet from where I originally positioned it. When I asked the homeowner, she claimed her cat was the culprit. Of course the radon test had to be invalidated, and the home buyer was not happy with the homeowner. If and when a radon test has to be invalidated, PA DEP states that the radon testing professional may not provide the test results to our client. This is why I explain the basics of the radon test to the homeowner ahead of time and make sure pets and small children will not be able to access the radon tester. We want to perform an accurate radon test meeting PA DEP protocols and need to do so only one time.

I also leave signage inside the home’s exterior doors to remind the homeowner/occupants about keeping doors/windows closed, not interfering with the radon test equipment/test table, etc. As part of my QA plan, I also use a “Radon Test Agreement” that spells out the above-mentioned radon protocols that were reviewed on the phone the day before with the homeowner. The homeowner/occupant signs and dates the form (I drop it off when the test starts and pick up the signed form when I come back to retrieve the radon test) confirming that all radon test protocols were met. This signed form and no indications in the test data of interference allow me to validate a radon test per PA DEP protocols and provide the test data to my client. When we get routinely audited by the PA DEP, they review our records to ensure that the signed agreements and all other radon testing paperwork is in order and that PA DEP standards have been met.

Matthew Steger, ACI, WIN Home Inspection

More Inspection Headaches

Fri, 31 Jan 2020 18:48:06 GMT

After 29+ years selling real estate, you think you’ve run into every scenario, right? Ah, not so. Every day is a new day! And that’s what we do . . . we solve problems.

Inspections always seem to be the bane of our contracts. Agreements, the inspection clause in particular, are written to lean toward the favor of the buyer. Buyers can pretty much get out of a contract if the property has a splinter sticking out. And recently, though the Agreement did not fall apart, we did run into a stumbling block that was new for me.

The buyer and seller agreed at contract ratification to have some inspections done. As it turns out, the day after the inspections, a Saturday, my sellers went to the basement and found a radon machine. All well and good, except a radon test was not in the agreed upon inspections. The seller called me to confirm and asked a “what should we do” question. I should note here that there was a mitigation system installed a few years ago by a professional company. I called the selling agent who was not aware the buyers (who had booked their own inspections) had paid for a radon test. I called the inspector and left a message that the buyers didn’t have authorization to do the test, and I understood he wouldn’t have known that.

How many of us have the buyers book the inspections? How many of us do not attend whole house inspections? This is a great argument and reminder to all of us to confirm with the inspector what tests are being administered and to attend the inspection, or at least part of it.

So there is a system in . . . what’s the big deal you ask? Well, suppose there was no system in the house and the results showed a high level of picocuries? And suppose the sale fell apart? Now the results are a disclosure in the database, and the sellers are on the hook for a costly mitigation system.

You’re probably all wondering how I counseled my sellers. I couldn’t very well tell them to “pull the plug” on the machine, although I suppose I could have and been well within legal rights. After all, as I was told, “waived means waived”. As it turns out, the sellers unplugged it and removed it from the basement on their own.

We all try to avoid backing ourselves into corners, and we all try to be ethical and honest. Had my sellers not called me, and had there not been a system in place, the ending could have been quite different.

Nancy Sarley, Berkshire Hathaway HomeServices HomeSale Realty

Interim Tax Bills

Mon, 20 Jan 2020 18:43:51 GMT

Many times when a client decides to build a new home or do a renovation loan that requires approval from the local municipality, they will be subjected to an Interim Tax Bill. Although this is a difficult situation to explain, you should always prepare your clients to receive an additional one-time tax bill in these situations. Interim Taxes are assessed when there is an increase in the assessment on a property which would have taken place before the next tax billing cycle.

The bad news is that the Interim Tax Bill will surprise the client . . . unless they are prepared for it. If you can set the expectation up front and give them the information in advance, you can avoid this. No one is suggesting the clients will be happy when you explain to them that they will receive a separate tax bill. That being said, if you prepare them for it up front, they won’t be nearly as upset about paying the Interim Tax Bill. You also come across as more knowledgeable, and I’m quite sure the clients will appreciate that.

Another question that can arise during a construction purchase or a renovation loan is ‘how much will my new tax amount be’? The truth is that the taxes will be paid based off the assessment amount which will be determined by the local tax assessor upon completion of the work. Usually the most accurate estimate can be obtained by looking up the Common Level Ratio for the county in which the home is located. The Common Level Ratio represents the average ratio between the assessed value and the fair market value (appraised value/sales price) in each particular county. This can vary drastically between counties; but using the Common Level Ratio factor will typically yield the most accurate estimate of what the new property taxes will be, which will also help to figure out what the Interim Tax Bill will be for your client.

For me, the best way to explain an Interim Tax Bill is to give an example. Let’s say you have a client who is closing in August on a new construction loan. In this scenario the school tax bill will have been paid at closing for just about the entire year. Assuming the construction is completed on December 1, there would be an Interim Tax Bill due from December 1, 2019 through July of 2020 based on the new assessed value. The school taxes for the land have already been paid for that year, but the school taxes on the improved value of the property have not been paid. A prorated school tax is needed for about 8 months (December 1 – July 31) since the improved value of the property is only relevant once the improvements have been completed. The same concept applies with the local and county taxes, but those taxes run on a different schedule than the school taxes (typically January 1 – December 31). The date of the closing and the time frame for construction are important pieces of information to have when estimating the Interim Tax Bills.

If the home was completed in October, you would receive an Interim Tax Bill for two months (November and December) for the county and township areas and another Interim Tax Bill for eight months (November – June) for the school tax.

As you can see, if you have a buyer who is doing a construction loan or if you have a past client who is doing an addition to their home, there are many factors to consider. The key is to inform them and prepare them for all of the variables that are coming in their transaction. Utilizing your resources with title companies and lenders will help you come up with the most accurate estimates regarding the taxes that the buyer will pay on the completed property, as well as the Interim Tax Bill they will receive. For buyers considering new construction, this should be a conversation that happens very early on in the process so that a clear expectation is set. As a Realtor, providing this information will show your value and knowledge as you proceed toward a smooth closing!

David Fuchs, Traditions Mortgage

Know Your Listings

Mon, 13 Jan 2020 18:41:09 GMT

“You mean to tell me that house I just listed has a helipad?” Huh, I was wondering why helicopters kept landing in the backyard. Does this sound like you? I sure as heck hope not. I couldn’t imagine an agent not knowing there was a helipad on a property they had listed . . . or any type of structure for that matter. But believe it or not, there are many agents out there who don’t know their listings as well as they should. Because if they did, then this article wouldn’t exist; and we’d be reading about the vagaries of lockbox manufacturing or something or other instead. So what exactly seems to be the problem?

It’s simple — agents are listing properties without knowing exactly what it is they are well, listing. You see this a lot with larger properties that have a lot of acreage. It’s not uncommon for large properties to have more than one detached structure like a shed, cabin or even an outhouse (those are still a thing); and those structures can be spread acres apart from one another. Sometimes you’ll see it with condos, like when a unit comes with amenities that the agent is unaware of. You’ll see it with utilities as well, like not knowing the correct type of heating system the home has, what the correct electrical amperage is or if the property is located in a flood zone. So why has this been so common lately?

There are several reasons; but really, it mostly comes down to laziness. Agents aren’t asking enough questions; and when they do ask, they aren’t verifying what sellers are telling them is accurate. Heck, even sellers don’t always know everything about their own home. After all, we’re not all experts in everything . . . and we’re not expected to be. But we still have an obligation to make sure that we are representing our sellers and their properties as honestly and with as much correct information as possible. Sure, there are situations when it can be difficult to obtain information on a home. An example would be when you’re working with a POA on an estate. Chances are the POA doesn’t know a lot about the home because they probably haven’t lived there in a long time, or it could be that they never lived there at all. And that’s ok. If you don’t know, you don’t know. But you need to disclose that, and let whomever may be interested in your listing know that they or their agent needs to verify the information for themselves. So why is not knowing your listing such a big deal?

Well for starters, representing incorrect information on your listing, even by accident, can potentially derail a transaction. The buyer thinks they’re buying one thing only to learn that what they’re buying isn’t what they thought it was because it’s not what they were told. Almost nothing is worse than investing a lot of time in a transaction, only to have it fall apart because the listing agent incorrectly represented that the shed in the backyard came with the home. And even if a transaction doesn’t derail, it can create distrust and animosity between buyer and seller and make for a tense transaction and a settlement that feels like an episode of Jerry Springer.

But another factor that is often not considered is inspections. Misinformation — or a lack thereof — can make a home inspector’s job difficult. For example, a home inspector goes to inspect a condo unit, and included with the unit is a garage. However, when the inspector gets to where the garage is located, they see there are four garage bays with one of those four garages being assigned to the unit they’re inspecting. The only problem is there is no marking to indicate which one is the correct garage. So naturally the inspector looks to the buyers and the buyer’s agent, but the buyers and their agent are unsure which garage is correct since they aren’t familiar with the property. So now the listing agent gets involved . . . and you can see where I’m going with this. A home inspector can’t do his job properly and will end up doing a disservice to the buyer if they don’t have all the information they need.

The lending side is often not considered. Having incorrect information represented on your listing can affect a buyer’s loan. For instance you will often see HOA and condos used interchangeably. You’ll even see them both represented on the same listing at times. You’ll also see agents get modular and manufactured homes mixed up and represent the incorrect one. Sure, at the end of the day the lender needs to verify that all of the information is correct, but making sure that the information is right from the get-go can help prevent any potential issues. So what can we do?

Well for starters, we need to verify that what we are being told is correct. If the seller says they have a sump pump in their basement, then we need to go down there and make sure. And if that means walking through a dark, cob web infested, dirt floor . . . and probably haunted basement because I’m pretty sure I felt something grab my shoulder . . . to verify that it’s there, then that’s what it takes. Again, there is a lot to know about a home. And yeah, there are going to be times when we represent something incorrectly or times when we just don’t know. That’s called normal. No one expects you to know where the tree came from that was used to make the basement handrail. And if they do, I don’t want to know that person. But at the end of the day, we owe it to our sellers to represent them and their home as honestly and with as much correct information as possible. Nobody wants to work with an agent who can’t get the basics down.

So the next time you’re at a listing appointment, take that extra time. Verify if the stove is gas or electric; make sure the electrical panel is 100 amp; then grab your hiking boots, a compass, your favorite scented insect repellent and start trekking through that 23 acre forest to look for that decommissioned barn you were told was once a thriving moonshine operation . . . and hope that you don’t get mauled by a bear in the process.

Richard Boas, III, Berkshire Hathaway HomeServices HomeSale Realty

Hazard or Hype?

Tue, 07 Jan 2020 18:00:40 GMT

January is National Radon Awareness Month, so this is a great time to discuss what radon is, why it can be hazardous and how you can determine if your home has high radon levels.

From my experience as a home inspector, radon is an often confused subject among many real estate agents, home buyers and homeowners. I hear many agents tell their clients not to worry about radon or that radon is not real. Well, radon is indeed a real thing — it’s number 86 on the periodic table of elements. Am I bringing back memories of high school chemistry?

According to the U.S. Environmental Protection Agency (EPA), radon exposure is the second leading cause of lung cancer after smoking. Approximately 20,000 Americans die from radon-related lung cancer annually. The use of tobacco substantially multiplies the risk of radon-related lung cancer (by a factor of approximately 15 times).

Radon is a radioactive gas born from the normal break-down of uranium and other elements in the ground. Radon has no smell or taste, and you can’t tell its concentration in your home without a radon test. As a normal part of nature, substances within the earth rise to the surface; and radon gas is one of them. Some amount of radon is present in almost all homes; and according to the EPA, south central PA has the highest indoor average radon concentration. This conclusion is based upon many years of real data collection from licensed radon testers across the country.

How does radon get into my home?

The EPA recommends that every home be tested for radon. The vast majority of radon emanates from soil. Radon can enter the home in various ways. The most common way is through cracks and voids in foundation walls and floors, and to a lesser degree via well water and building materials. We all know warm air rises, so radon gas is also affected by indoor ventilation such as the stack effect.

The stack effect relates to warm air rising within a structure and the need for replacement air to take its place from beneath. The stack effect can be driven by the type of heating in the home, direction and force of exterior winds, open vents and flues and other combustion appliances. The space beneath a basement is most often the source of much of the replacement air. Since this space is in direct contact with the earth and radon most commonly emanates from the soil, this is the common transport mechanism.

Some real estate agents and homeowners are erroneously under the belief that radon levels can’t be high in a city home or if the home is built on a concrete slab or over a crawl space (no basement). While a high radon level is often in a house with a basement, this is not always the case. The same goes for the home’s age as high radon concentrations have been measured in 200 year old homes and brand new homes. All homes should be tested for radon.

What on earth is a “picoCurie”?

Radon concentrations are most commonly measured in picoCuries (pronounced peek’o-cure-ees) per Liter of air and abbreviated as pCi/L. A ‘Curie’ is a unit of radiation measurement named for Pierre and Marie Curie. Radiation is all around us. Much of it naturally occurs from sources such as space and inside our bodies, but also comes from many other places such as radon and medicinal soures (like X-rays). There is much more radiation exposure from radon and X-rays than from nuclear power plants, cosmic rays, etc. Since breathing is the easiest way for a gas to enter the body, lung cancer is the primary result of radiation exposure from radon.

Any level of radon (and radiation) can be a health hazard, but the U.S. EPA has compiled a considerable amount of data relating to radiation exposure and results on the body. The EPA has set 4.0 pCi/L as the Recommended Action Level for radon. If a radon test result is 4.0 pCi/L or higher, radon remediation is recommended by the EPA. Radon levels below 4.0pCi/L can also be unsafe, but reduction methods in some cases can be difficult under this level. Even if a radon test shows low concentrations, simple things like remodeling a home, weather-stripping doors or windows, reglazing windows, replacing HVAC equipment or nearby blasting can change or create new entry points of radon into the home or affect internal drafting. In cases where one of the above is done, performing another radon test is recommended.

What is used to measure radon?

Continuous Radon Monitor (photo courtesy of Sun Nuclear Corp.)

ePerm (Photo courtesy of Rad Elec. Inc.)

Activated Charcoal Test Kit

Radon concentrations can be tested using several different devices, including continuous radon (CR) monitors, e-Perms (Electret), activated charcoal (AC). These are the three most popular testing devices. Each has its own advantages and disadvantages although the continuous monitor is the most common technology used for professional radon testing during a home transaction.

Since radon concentrations depend on air movement to properly and reliably test for radon in a structure, the EPA has come up with specific standards for testing called “closed house conditions”. These conditions must exist to help limit exterior effects and ensure reliable test results. The EPA defines “Closed House Conditions” as all of the home’s exterior doors and windows (not just basement windows) kept closed starting at least 12 hours prior to the start of a radon test. This does not mean close the windows and doors once the inspector arrives to start the radon test. Exterior doors can be opened and closed momentarily for normal entering and exiting the home during the test. Central heating or A/C systems must also be run normally beginning 24 hours prior to the test and for the test duration (thermostat set to approximately 64 to 70 degrees Fahrenheit). This helps ensure real life occupancy conditions in the home. Whole-house fans and window or wall-mounted A/C units (unless running in circulating mode) must not be operated during the radon test since they exchange air with the exterior. Chimney flue dampers should also be closed, and fireplaces should not be used during the radon test unless they are the home’s only heating source.

When the inspector arrives to drop off and retrieve the radon test, he will do his best to verify that closed house conditions have been met. The inspector will communicate with the seller or home’s occupant a day or so prior to the start of the test in order to review PA DEP (Department of Environmental Protection) radon test protocols and answer any questions. This communication is made before the radon test starts, because the radon test protocols begin before the inspector even arrives to place the radon test.

Most, if not all, certified radon testers have the seller or occupant sign a radon test agreement which explains the test criteria and is also a form of quality control. This form helps ensure that the owner or occupant understands the radon test protocols and affirms that they won’t interfere with the radon test. Should any evidence of test interference be noted, the radon test must be voided per PA DEP rules since the results cannot be relied upon for accuracy. PA DEP regulates radon testing and remediation in the Commonwealth of Pennsylvania.

The EPA has specific requirements regarding where in the home radon testing can occur. This is related to things such as proximity to windows, vents and outer walls, as well as near sources of moisture like kitchens, bathrooms and laundry rooms. The PA DEP has set protocols for professional radon testing and remediation professionals in Pennsylvania; some of the Pennsylvania protocols are more stringent than what the U.S. EPA requires. PA DEP requires that radon testing occurs in the lowest possible living level. This normally is the basement unless there is a dirt floor or the ceiling height does not allow for normal living conditions.

What if a radon test indicates a high radon level?

If the radon test result is high (4.0 pCi/L or higher), remediation (also called mitigation) can be successful in lowering the home’s radon level in most circumstances. The most common method of remediation is a sub-slab depressurization system. To put it simply, one or more holes are drilled in the foundation slab (such as the basement floor); a small amount of dirt is excavated under the slab; PVC pipe is installed with a radon fan; and this system vents to the exterior away from doors and windows. Radon fans can only be placed in an attic or exterior of the home. Radon fans cannot be installed in the home’s living space or in the basement. Since inspecting homes I have seen many improper radon system installations. The PA DEP has specific requirements about how and where radon systems can be installed, and they’ve created a standard for this type of system (the “PA Radon Mitigation Standards”). Professional radon remediation systems in Pennsylvania must be installed to these standards. The cost of a professionally installed radon remediation system in our area is normally in the $800-$1,200 range. Remediation system designs and their pricing can vary based upon the home’s layout, the initial radon test result, type of system installed, etc.

Who performs a radon test and remediation?

The PA DEP requires that all individuals performing professional radon testing or remediation be licensed by the Commonwealth. A homeowner or builder can perform radon testing and remediation in their own homes; however, a PA DEP licensed radon tester should be used for a home transaction to ensure a non-compromised test performed to PA DEP standards. Any changes to an installed radon remediation system should only be performed by a licensed radon remediator as well. Contractors (plumbers, electricians, etc.) who are not PA DEP licensed for radon remediation should never modify remediation piping or radon fans as this is against the law in PA. Minor changes to remediation pipes and fans may cause the system to not work properly or may raise the radon concentration within the home. The PA DEP updates its list of licensed testers and remediators each month. This information can be obtained from the PA DEP website; click here or call the radon hotline at 800-23-RADON.

Matthew Steger, ACI, WIN Home Inspection

Can You Airbnb?

Mon, 16 Dec 2019 15:36:58 GMT

The Lancaster County Planning Commission drafted and released Short-Term Rental Regulation in early 2019 in their series of Community Planning Tools that were created to assist municipal officials with a variety of planning topics. With the increasing popularity of short-term rentals, municipalities are under pressure to regulate them. The Planning Commission offers a template for local municipalities to use when addressing ways to regulate short-term rentals. Click here for a link to the Short-Term Rental Regulation.

Popularly referred to as airbnbs or vrbos, internet-based short-term rentals (STRs) are an increasingly popular approach to owning a real estate portfolio which is a shift from what used to be limited to long-term rentals. Municipalities are tasked with managing this newer phenomenon. According to the Short-Term Rental Regulation, there are six key considerations that municipalities should evaluate when addressing zoning:

The residential character of the neighborhood and property maintenance . Owner-occupants within residential neighborhoods are concerned with the impact that short-term rentals will have on the character of the neighborhood. Neighbors are also concerned that without an owner present, the properties will not be well-maintained.

Revenue . Municipalities recognize that short-term rentals are an opportunity to generate tax revenue.

Fairer competition with licensed lodging . Lancaster County is a tourism hub with many existing bed and breakfasts and hotels/motels. These traditional lodging establishments collect a room tax and are subject to various state and local licenses and oversight.

Protection and safet y. Regulation would ensure that short-term rentals meet proper health and safety standards.

Impact on affordable housing . There is the potential that the numerous short-term rentals remove too many units from the year-round rental housing supply.

The Short-Term Rental Regulation states, “A balanced approach to address concerns on both sides of the issue is the trend. Neither outright prohibition nor absence of regulation are typically used as a means of addressing this use by any of the benchmarked communities. The trend is generally a type of compromise with oversight by local government.”

Many municipalities within Lancaster County have passed zoning regulations pertaining to short-term rentals. For example, New Holland Borough has prohibited short-term rentals in most zoning districts — click here . Beware of this when working with clients specifically searching for properties intended to operate as a short-term rental. Contact the municipality to confirm what the limitations and guidelines are, and ask about proposed zoning changes.

Other considerations mentioned in the Short-Term Rental Regulation include the fact that municipalities are legally permitted to prohibit short-term occupancy in single-family areas. It is important to understand the tax requirements of short-term rentals and whether there could be Americans with Disabilities Act (ADA) requirements.

Lisa Naples, Berkshire Hathaway HomeServices HomeSale Realty

Got Mold?

Mon, 18 Nov 2019 15:34:27 GMT

Mold is a natural part of nature and is all around us. It helps leaves or old fallen trees break down, it gives blue cheese its taste and it can help save lives (penicillin). Problems with mold can exist, however, when certain types are present around susceptible people or high spore counts exist in structures. Mold does not have to be one of the toxic types in order to injure or cause illness in a person; non-toxic mold (considered allergenic or pathogenic) can also make people sick.

The most common part of the body that is affected by mold tends to be the respiratory system, although certain types can cause skin or eye problems in addition to other parts of the body.

Evidence of high concentrations of mold inside a home is almost always a sign of two things — water or a lack of ventilation, and very often it is both. Plumbing, foundation or roof leaks can exist for a period of time before the occupant notices the problem; and by then, a great deal of mold damage may already exist behind wall or ceiling coverings. Discoloration on a ceiling that appears dark may actually be a sign of a much larger amount of mold on the reverse side that is protected from ventilation. Studies show that the presence of water on materials like drywall for as little as 24-48 hours is enough to allow mold to start growing.

What are mold spores?

Mold spores are like tiny seeds, and they are floating in the air all around us. They stick to most surfaces in our homes. When you add moisture to these areas, it can allow the growth process to start. Think of a seed in the dirt . . . the seed can remain in dirt for a period of time doing nothing until water is introduced. If these surfaces remain dry and within good ventilation, the tiny spores can remain on these surfaces for an extended period of time with little to no issue.

The most common places that I find mold in homes when I am performing a home inspection are attics, bathrooms and basements. The presence of mold in an attic is often caused by one or more of the following issues: 1) unsealed openings such as where wiring, plumbing or ductwork enter the attic or at the attic access location between the attic and living space, 2) a roof leak that was left unrepaired for a period of time, 3) inadequate roof/attic ventilation, 4) bathroom exhaust fans discharging into the attic, or 5) inadequate attic insulation, including the attic access panel or door.

All ventilation systems should terminate to the home’s exterior. If a bathroom or kitchen ventilation fan discharges into the attic, even just above the soffit venting, the warm, moist air from these conditioned spaces tends to condensate on the underside of the cooler side of the roof that faces away from the sun. This portion of the roof generally stays cool longer each morning and these cold surfaces will allow for condensation just like a cold bathroom mirror during a hot shower. In most cases, it is easy to reroute bathroom or kitchen exhaust fans beyond the home’s soffit or through gable end siding. If the vent tubing runs above attic insulation, an insulation sock should be installed on the exposed vent tubing to prevent condensation within the tubing in the winter. Otherwise, condensation can run back down the tubing and drip back into a bathroom through the fan for example.

A properly vented attic will allow the warm and moist air from the living space to exit to the exterior through the ridge venting and not within the attic, as well as help preserve the life of many roof types and lower the amount of energy needed to heat and cool the home.

During my home inspections, I always recommend that the client periodically checks around all accessible plumbing to look for small leaks. A small leak is often easier and inexpensive to repair and will most often cause less damage to occur than a full-blown burst pipe. A small leak undetected may lead to mold growth and/or insect infestation.

Mold growth in basements is most often related to exterior drainage and grading. Downspouts should drain at least four feet from the home’s foundation, and the exterior grading should encourage drainage away from the home. Having your inspector also perform an infrared inspection of a finished basement is recommended since even if no mold is visible in the accessible areas, this extra inspection could indicate if there is unforeseen recent or active water infiltration occurring behind those fixed surfaces that could potentially lead to mold in the future.

So what if you see mold?

Don’t panic. A qualified and properly trained mold professional can perform mold testing. The person performing the mold testing should have mold-specific errors and omissions insurance (E&O). Basic home inspector E&O insurance alone specifically excludes mold.

Mold testing generally consists of one or both types of sampling techniques. A swab test will determine what type (or types) of mold exists specifically on the surface where mold, or suspected mold, is visually seen. This is often on a wall or ceiling. Air sampling will entail measured amounts of air being pulled into a special plastic testing cartridge and will give a general idea as to what type(s) of mold(s) exit in the tested area/room as well as the spore count(s). If no visible mold exists, air sampling will probably be the only test able to be performed. When air testing is performed, an exterior reference sample is required so that the lab analyzing the samples has something to compare the interior air samples to. Since there is no set standard as to most mold types and spore counts, the exterior sample sets the ‘standard’ to allow comparison with the interior air sample(s).

As an example, an exterior air sample shows 150 spores per cubic liter of air of type A, 50 spores per cubic liter of air of type B and 0 spores of mold type C. Interior air samples show 180 spores per cubic liter of air of type A, 1,500 spores per cubic liter of air of type B and 2,000 spores per cubic liter of air of type C. The analysis would indicate that the sources of mold type B and C are within/inside the home. There is no recognized standard regarding what is safe for mold spore counts, assuming none are the types considered to be toxic. Since mold counts and types vary depending upon where you are located and what time of year it is, the comparison between indoor and outdoor samples is used. Of course any spore count of a toxic mold type in the home would be an issue.

Mold types are commonly broken down into three types: allergen, pathogen and toxic. An allergen is the most common type and may affect certain people who have sensitivities to specific molds. Pathogenic molds are ones that most often affect people with an immune-deficiency such as those who have certain illnesses. Toxic molds are the most severe and will most likely affect anyone who comes in contact with it.

Someone who has no known allergies can actually acquire an allergy to a type(s) of mold simply from exposure to it over time. You could have 10 people in a room with a certain type of mold and possibly only one or two people who have an allergy to that type may show symptoms whereas the rest of the people may show no symptoms. If a toxic mold type exists in that room, chances are good that just about all 10 people would show some adverse reaction or symptoms over a period of time.

After the testing is performed, the mold tester sends the testing samples to a certified lab for analysis. Once the lab report is received, the next step is most often to consult a qualified indoor air quality specialist, industrial hygienist or a qualified mold remediation professional should the lab report indicate high interior spore counts. Some local companies who specialize in cleanup after fire or flood may also be qualified for mold remediation. Of course also addressing the source of the water moisture or lack of ventilation must always be part of any mold remediation process and should be performed as soon as the problem is determined to help minimize the damage.

Keep in mind that mold detection and mold testing is considered well outside the scope of the American Society of Home Inspectors Standard of Practice. In other words, mold is not part of a home inspection. If a home inspector sees visual evidence of mold during an inspection, he should note this in his inspection report and recommend evaluation and/or removal of the mold and any affected building materials such as drywall, trim, carpet, insulation, etc. by a qualified mold professional.

Don’t ‘bleach it away’!

Many people assume that bleach is the be-all-end-all of mold cleanup, but this simply is not true. Some mold spore types may be eradicated using bleach; but many types may come right back, and others will not be affected at all by bleach. Bleach may simply mask a mold problem for a short period of time, and the mold problem may get considerably worse.

Some mold types need to be professionally treated to ensure that the spores can’t grow back again or are fully removed. I’ve seen some homeowners spray chlorine bleach on ceiling mold and appear to remove the mold only to see the mold come back a few days later. If mold is observed growing on bathtub caulking, it very well may be able to be cleaned with certain bathroom cleaning products or even by simply removing the caulking. If visible mold growth covers 10 square feet, professional remediation is often needed to properly address the mold problem. An improper treatment may actually encourage further growth into a larger mold problem.

Mold growth on certain household surfaces may be able to be removed. An example would be surface mold on wood studs that could be sanded. Other surfaces like drywall need to be completely removed once they get wet and moldy since the cellulose that exists in paper is the very food that mold needs to grow and thrive. If mold grows on books or drywall, these materials need to be carefully removed from the home to help ensure the mold spores don’t get disturbed and released into the home’s air. When building a new home, for example, rain water often gets into the partially constructed home before it is fully closed up by siding, roofing, windows, etc. The home should be allowed to fully dry before any insulation, drywall, flooring, etc. are installed.

You can’t typically determine the type of mold simply by its color. Mold types come in all different colors from black and yellow to green and brown to orange. If you see what appears to be mold growth in the home, that is a sign that something needs to be done promptly . . . time to call in a professional. A delay could put the home’s inhabitants in jeopardy for health problems and possibly lead to the home not being able to be occupied.

Matthew Steger, ACI, WIN Home Inspection

Listing Liberties

Tue, 12 Nov 2019 15:27:57 GMT

How are we all doing with Bright MLS these days? Love it or hate it, Bright has opened a few doors on the Listing Input Sheet that we did not have Pre-B.

For example, I should now be able to look at a listing and see whether the property has a first floor master, what the flooring is in each room, what level each room is on, and so much more.

I only use those three examples because they are particularly important. How many times do we have a buyer who has a specific need due to any multitude of reasons? How many of us take a few “Listing Liberties”? With all these fields to input, I should be able to look at a listing and see if this property could possibly meet my buyers’ needs. Are we doing our sellers justice if we skip some of these important pieces of information? I don’t want to waste my time, your seller’s time or my buyer’s time by going to see a property that simply won’t work. Nor do I want to get your seller’s hopes up only to tell the listing agent that the property won’t work because my buyers have severe allergies and nothing was mentioned about pets. Information that may not be important to us could surely be important to buyers.

Listen, I get it . . . the idea is to get buyers into the house. But please, please complete the Input Sheet to the best of your knowledge. Don’t check “rancher” if it’s a “bilevel”. Don’t check “See Comments” and then skip making a comment. We’ve been hired to do a job. We are well paid to do it. Let’s do it right.

Nancy Sarley, Berkshire Hathaway HomeServices HomeSale Realty

Advertising Guidelines

Thu, 07 Nov 2019 15:24:31 GMT

So your listing just went active, and you want to let the whole world know. Well hold on there buckaroo . . . there are some things you need to know before you go and advertise your listing on Tinder.

I think it’s safe to say that we all take advertising for granted sometimes. We probably don’t always put as much thought into how we represent our business, our broker or our clients as much as we should. I’m sure most of us are aware that the PA Real Estate Commission can impose fines and disciplinary action on licensees for violating advertising guidelines, but I’m sure some of us out there don’t always take it very seriously. Well, I’m here to tell you why you should take it seriously and to refresh your mind on what some of these guidelines are.

The first thing a licensee needs to do before advertising any home is to obtain the seller’s permission to do so. That permission comes when filling out the listing contract beginning at section 24 of page 4 which goes over the seller’s consent to allow their home to be advertised to the public. Permission needs to be granted for not only public advertising such as on the internet or the newspaper, but also for whether they will allow an agent to put a sign in their yard. Believe it or not, not all sellers like having a giant metal (*cough* often times rusty) sign blocking their flower bed.

So you have the seller’s permission, now you’re good to go, right? Yes . . . but no. Well sorta. When advertising a home, agents need to follow specific guidelines. First and foremost, agents need to accurately and honestly promote a property and all of its features. Two inches of standing water that accumulated in the backyard after that rain storm is not a swimming pool. And that outhouse on Uncle Larry’s property that he refuses to take down even though buyers have complained about it is not a storage shed. You get the idea. You also need to make sure that you don’t market a property and get accused of redlining or steering. For example, you cannot indicate that a property is within walking distance of a church as that could be seen as discrimination to buyers who don’t practice the religion of that particular church.

But aside from how you promote the property itself, you need to know how to represent yourself and your broker in your advertisement. For instance, any advertisement by a licensed salesperson must include the business name and telephone number of the employing broker. A licensee’s name and number cannot be larger than that of the broker. And speaking of names, licensees cannot use a nickname unless that name has been registered with the Commission. So as much as you might want to be known as ‘The House Whisperer’ (I call dibs), your nickname needs to be registered and approved first.

But what about teams? Agents are allowed to advertise as a team; however, certain requirements must be met to ensure total compliance. On all advertisements, team members must be listed using the team member’s licensed or Commission-registered nickname.

You should be aware of what your broker’s guidelines are as well. Many brokers have their own company-specific guidelines they require agents to follow. For example, they may require you to use certain fonts or colors when you advertise.

So let’s say you broke an advertising guideline . . . what kind of punishment might the Commission impose? Failure to comply with the Commission’s guidelines can result in fines, as well as disciplinary action such as suspension of the license or even termination of the license entirely. Obviously being a repeat offender can result in harsher disciplinary action.

I could go more in depth about what all of the rules and guidelines are; but if anything, this article should serve as a good reminder to always be aware of how you advertise. It’s always good practice to consult your broker before publishing an advertisement. They can verify that your advertisement meets not only their company specific guidelines, but also the Commission’s as well; and that will eliminate the chance of committing a violation. Better to be safe than sorry.

If you would like to know more, click here for more information.

Richard Boas, III, Berkshire Hathaway HomeServices HomeSale Realty

FHA Condo Spot Approvals

Mon, 04 Nov 2019 15:18:36 GMT

On October 15th, HUD announced that they are allowing “spot approvals” on single units for FHA loans within a Condo Association that otherwise would not allow FHA financing. This means that a single unit in a condo association that is not FHA approved could theoretically qualify for an FHA buyer. Of course this could potentially be a big boost for condominium owners looking to sell as it would drastically increase their buyer pool. It would also benefit buyers who can only qualify for FHA loans as they would be able to expand their search. This all sounds wonderful; but as you may have guessed, this is not as simple as it appears.

The FHA Condo Approval method was developed by HUD to give some assurances that the Condo Associations were financially stable and properly managed. Essentially, it has been a risk management tool to guard against potential foreclosures on FHA insured loans in Condominium Associations. Just because HUD is going to allow spot approvals does not mean that they won’t require the same information from the Condo Association. The difference here is that they will put the onus on the lender and the Condo Association to document all the specifics on the Association — many of which are difficult to obtain.

One of the major hurdles to completing a spot approval is that the lender needs to obtain and document how many of the units are financed with FHA loans and how many units are owner occupied. This information will be very difficult to obtain as the HOA most likely would not know that. Also, FHA won’t provide lenders with that information. It will require extreme cooperation with the HOA in order to make a spot approval really come to life.

The time frame of getting a Condo Association approved (different from a spot approval) can be anywhere from a few weeks to a few months . . . it all depends on how readily available the information is. The challenge with the spot approval is that all the same information will be required. If — and this is a big if — the information can be obtained by the lender and the HOA, there is another variable as far as how long it will take to get the spot approval completed. Many people in the mortgage industry do not feel as though they will be able to find this information, and that raises concern about the logistics of actually obtaining a spot approval on a sole unit.

I think that most of us can agree that having more FHA approved condos will be a good thing for buyers and sellers alike. The real challenge with this new change is how the lenders are going to verify the information that FHA will require for a spot approval. With any new change comes a learning curve, and this is no different. As everyone begins to put time and energy into spot approvals, more issues and difficulties will be drawn to light. Also, success stories will be shared which will hopefully guide others in the right direction. With a change such as this, it is important to remain patient and limit expectations if you are attempting to get this accomplished for a potential seller or buyer.

David Fuchs, Traditions Mortgage

Sewer Line Inspections

Tue, 15 Oct 2019 14:16:57 GMT

A home’s sewer line is something that homeowners never think about, yet a blockage can spell disaster. Your sewer line is a lateral sewer pipe (often 4 inch PVC or cast iron) that connects your home’s plumbing fixture drains (such as toilets, bathtubs, sinks and showers) to either your public sewer system or onsite septic system. In most cases, it relies only on gravity, so it should have a slight downward pitch away from your home. In some cases an underground ejector pump in your yard helps the sewage reach the sewer system in the street.

The older the home, the greater the possibility is of hidden damage or blockage to this underground pipe. Tree roots love to grow into sewer pipes which can lead to partial or complete pipe blockage. It would be rare that a homeowner would ever have an inkling that tree roots were partially blocking their sewer line until they notice that the home’s sinks, toilets and bathtubs all begin to exhibit slow draining. A slow drain at a single fixture often indicates a partial clog at a specific sink or bathtub. Seeing an area of bright green grass in your yard when the rest of your lawn is burnt out is a sign of sewer line damage.

Sewer pipes are an out-of-sight and out-of-mind thing for homeowners. Luckily most licensed plumbers and septic professionals can inspect your sewer line to determine its condition. In many cases, sewer pipe damage or blockage can be quite expensive to repair since it often entails excavating your yard to access and replace the sewer pipe.

As part of my inspections, I always recommend that my clients consider having their home’s sewer line scoped/inspected before closing, especially if the sewer line is cast iron or clay as these materials were used in older sewer lines. Cast iron was still often used into the 1970s in some areas, while most homes built after that have only PVC sewer lines underground. In some cases you may only see PVC drain pipe inside your home, yet cast iron may still exist underground.

Even if there are no trees presently in your yard, it doesn’t mean there may not still be underground roots hidden from view. These hidden tree roots can still damage a sewer line long after a tree has been cut down. The plumber can access the sewer line’s interior via a drain cleanout within the home or even a vent stack on the roof. The sewer scope, as it’s often called, has a camera in it allowing the plumber to snake the camera through the underground sewer line and determine if there are blockages between the home and where the pipe connects to the city or township’s sewer line or septic tank. A sensor exists on the scope allowing the plumber to pinpoint the blockage location above ground where it’s visible via the scope’s camera.

Yes, I recommend this type of inspection be done with septic systems, too. Quite often a septic inspection only includes the tank and drain field and not the lateral drain pipe. What you don’t know about your underground sewer pipe can hurt you in terms of an expensive repair. In some cases a blocked sewer pipe can also allow a backup into your home, and stored items and appliances in your basement could get damaged by water and sewage . . . not something you ever want to come home to.

The inspection of underground plumbing (including your sewer drain line) is well outside the scope of a home inspection as defined by the Standard of Practice of the American Society of Home Inspectors (ASHI). This is why I recommend that my clients take the extra step of hiring a licensed plumber to inspect the sewer line. A sewer line inspection generally costs less than $500. If your home is close to the street, the cost may be a bit lower; if there is a considerable distance between your home and the street, this cost may be higher. Having knowledge now can prevent headaches later.

Matthew Steger, ACI, WIN Home Inspection

iBuyers Are Knocking at Our Door - Part II

Mon, 23 Sep 2019 14:14:07 GMT

In Part I of this blog post which you can read about here , we reviewed what an iBuyer was, how they operate and what type of seller would want to utilize their services. When agents learn about iBuyers for the first time, they have a tendency to think, “How can I compete with this?” After all, these companies can hand sellers a proceeds check in as little as two weeks with no hassle.

The emergence of iBuyers has actually provided agents with a great opportunity to evolve and strengthen their business.

Here are six strategies for agents to not only beat iBuyers but also to grow their business:

Nurture your database and sphere of influence . If you don’t have one, start one. If you do have one, start taking it more seriously. Agents need to start fishing for the consumer further upstream before they hit the national portals; because once they latch onto a site like Zillow.com, it may be too late. Touch your database on a continuous basis and differentiate yourself by offering better service, more personalized care and a stronger one-on-one relationship. If they know, like and trust you, you’re more likely to earn their business.
Spend some time determining your Unique Selling Proposition (USP) . What sets you apart from other agents and iBuyers? If you can’t answer that question, you need to spend some time figuring it out. What service(s) do you offer that others don’t? What makes you special? If you can answer these questions, you’re well on your way to creating a USP. But you’re not done yet. You need to continuously communicate it to your database and sphere of influence (see #1).
Embrace technology and utilize it to your advantage . Stop making the excuse that you don’t have time to learn a Customer Relationship Management (CRM) system. Find the time. Automate your systems so that you can contact more people in less time. Find ways to use technology so that existing clients have more control and visibility over transactions. The more clients know what is going on in a transaction, the less fear and uncertainty they will experience.
Hop on the bandwagon with iBuyers . Don’t act like they are the enemy. Take the time to learn how their models work so that you can be ready to explain the points of difference between your service and theirs. Oh by the way, many iBuyers utilize agents when reselling the homes that they purchase. Some will even pay referral fees to an agent’s brokerage for recommendations. The more you know about how iBuyers operate, the more you will be able to compete and even profit.
Market hyper-locally . The big iBuyer players need to advertise on a national scale. They’re throwing a large net into the ocean trying to catch a few fish. Agents on the other hand have an advantage because they don’t have to try and attract clients outside of their market area which is usually geographically confined. If you haven’t learned how to advertise on Facebook, Google or Instagram, start now. These platforms allow you to target market at a very reasonable cost.
Become an expert at navigating the complex transaction . The only thing I can say for sure is that the real estate transaction isn’t getting any easier. The agreement of sale continues to grow in length; more and more addendums are added to the PAR standard library of forms every year; and governmental regulatory disclosures seem to increase with each passing decade. Your clients are looking for certainty and security. Take the time and become a student of the transaction so you can guide clients through the storm that is a real estate transaction.

iBuyers may not appear on our doorstep tomorrow; but they are coming. Prepare now to arm yourself and be ready . . . there has never been a better time to up your game.

Tom Blefko, Berkshire Hathaway HomeServices HomeSale Realty

Emergency Egress

Thu, 19 Sep 2019 14:08:32 GMT

Modern building standards require sleeping areas, ‘bedrooms’, to have secondary egress methods in case of emergency. Most people commonly use the term emergency egress, and it most often occurs in the form of a window meeting specific size requirements in each bedroom.

Some homeowners decide to finish their basements, many without the required permits. As of 2004 most cities, boroughs and townships require a permit to legally finish a basement, although some only require permits if the finished basement will include a bedroom(s), a bathroom(s), etc. You need to check with you AHJ (authority having jurisdiction) to find out what they specifically require for the type of work you are planning to do. Many homeowners see the whole permit requirement as overburdensome, but permits are designed to ensure the work is done to code with safety in mind.

Getting a permit alerts the AHJ (city, township or borough) that you want to do specific work on your property, inside or outside your home; and it also puts the inspection process for the AHJ’s code enforcement arm into action. Most cities and townships in PA don’t perform their own code-compliance inspections but rather farm this duty out to third party companies certified by the International Code Council (ICC). The ICC is in charge of maintaining and updating the building code which gets updated every three years. For our needs, we are referring to the International Residential Code (IRC). As of October 1, 2018 in Pennsylvania, we are now on the 2015 IRC. Prior to that date, the Commonwealth of Pennsylvania was still on the 2009 IRC.

When you apply for a building permit, you pay a fee and submit paperwork to the city or township stating what work you want to perform. For cosmetic projects like painting, carpeting, replacing cabinets, modifying non-structural walls, etc., permits are normally not required. However, if you are adding a shed, rewiring or replumbing your home or finishing your basement, for example, permits will most often be required. Although we are on a Uniform Construction Code (UCC) in PA, some requirements still do vary slightly by city or township, so contacting your local AHJ before the work starts is wise. The UCC was passed over 15 years ago to ensure that all cities, townships and boroughs in PA are using the same basic residential code. Prior to that, most areas in PA had few to no building codes. Once a building permit is obtained and the work is started, the AHJ will most likely schedule one or more inspections. This ensures that the work is being done to code. For plumbing, wiring, etc., this inspection is normally done before wall coverings are installed.

During a home inspection it is wise for the inspector to point out to his client the areas of the property that may have been recently added/remodeled such as a shed, deck, sunroom or even a finished basement. The client would then be wise to contact the city or township before closing to verify whether proper permits were pulled and confirm the final code inspection(s) was performed. It is outside the scope of a home inspection, however, for home inspectors to check for permits. It appears that some sellers leave the “Additions/Changes” section of the seller’s disclosure blank when it is very apparent that some major changes were recently made. Sometimes the MLS mentions these big changes although the disclosure omits them completely.

I know of specific instances when the seller finished a basement, etc. with no permits; but in each case the townships or cities ‘got wind of this’, possibly when the new buyer got permits for something else. The current owners were then required to deconstruct the work that was done with no permits, such as unfinish a finished basement back to its original non-finished status. This is not what a new homeowner wants to deal with when buying a new home with an illegally finished basement.

One critical topic that many homebuyers and sellers, and even some Realtors, don’t know about pertains to emergency egress. The term emergency egress is not found in the code, but rather emergency escape and rescue opening (EERO) is used. The term says it all . . . rooms or areas of the home that may be used as sleeping areas must have multiple ways out in case of emergency.

The door or window provides escape from the room or home in case of an emergency like a fire, and it also allows for fire personnel to enter and rescue occupants via the same door or window. In most cases the EERO is a window to the exterior, although doors can serve this function as well. The door does not need to go directly outside but may run to a different area of the home. If the EERO is a window, it generally must be at least 5.7 square feet in size. This size allows a firefighter wearing full apparatus to enter and rescue the home’s occupants.

Beside the 5.7 square foot opening requirement there are also requirements for a 20 inch clear-opening width and a 24 inch clear-opening height. All three requirements must be met independently of each other. A 20 inch by 24 inch window does not meet the 5.7 square foot requirement. However, an exception to the 5.7 square foot opening does exist — if the opening is at grade or below grade, the opening size may be lowered to 5.0 square feet since a ladder will likely not be needed to access this area.

In everyday life we don’t think about the doors and windows in a home, but we need to plan ahead and be prepared in case a fire were to occur. If you get woken up at 3:00 a.m. and your home is filled with smoke, you likely will be in a panicked state and may not think straight due to the imminent danger. This is not when you should be planning how to escape the home. The building code is designed to have these safety features already built in for you before you ever realize that you need them.

If a fire was in your hallway or staircase, you would need an alternate way to escape. This is where EERO comes into play. Any room that can possibly be a sleeping area (bedrooms, habitable attics, basements whether finished or not, living rooms, family rooms, etc.) needs to have EERO. If you were sleeping in your basement and the staircase or the hallway just beyond the basement staircase was on fire, you could easily be trapped in your basement. With no properly sized window or door to the exterior, your chance of survival is minimal.

Windows should be less than 44 inches above the floor to allow children and short adults to escape. You need to be able to open windows (not painted shut), and they should stay up when opened. Sometimes when inspecting homes I find windows that are painted shut or the window’s bottom sash won’t stay up when opened. Either could prevent an adult or child from escaping. This is why home inspectors need to call these issues out and recommend repair. A window or door acting as a sleeping area’s EERO will do no good if the door or window won’t open. Also, bars should not be installed over windows for the same reason. Windows and coverings over window wells must not require a key, special tool or special knowledge about how to open and operate the opening. I occasionally find windows that are screwed shut in a way to help prevent a burglar from entering. This would prevent a child or panic-stricken adult from opening the window and escaping a fire.

Most new homes built in the last 10 years or so will typically have an egress window(s) or bilco doors installed in basements which would generally allow the basement to be finished in the future. In most homes older than that, there is often no sufficient egress existing in the basement. In older homes with daylight basements, for example, proper windows and door(s) will very likely already exist.

In summary . . . as home inspectors and Realtors we need to keep these requirements in mind when talking to our clients, especially if the client expresses interest in remodeling their new home to finish the basement or if the seller recently finished the basement before listing the home for sale. Checking with the local jurisdiction’s code/building department is a wise first step.

Matthew Steger, ACI, WIN Home Inspection

Representing a Buyer in New Construction

Thu, 12 Sep 2019 14:00:49 GMT

Why can’t real estate ever be simple? We constantly hear from the people around us just how easy and glamorous our profession is. We sell one home a year and we’re set for life; because that’s how it works, right? Well if it truly was that easy and glamorous, then everyone and their Uncle Larry would be selling real estate. And if your Uncle Larry is anything like mine, he shouldn’t even be allowed inside a house, let alone sell one. But the truth is that our profession is seldom, if ever, simple. And it doesn’t get much more complicated then when you’re representing a buyer in new construction.

On paper it sounds like it should be simple. You pick a plot of land, tell the builder what you want them to build, then throw a bunch of money at them until you have a house. Oh boy, if only that was the case. So why is new construction so complicated? I’m glad you asked . . . because you did ask, right?

To begin with, a lot of planning has to be done before construction can even begin. You need to get pre-approved, find a lot, select interior and exterior options, finalize and sign off on home plans, execute the construction agreement, make your mortgage application and settle on the lot. That’s all before a single brick can even be placed.

But before we talk about what you can do to help your buyer through the process, we should first take a look in more detail at some of the complexities associated with building a home.

Site location and condition
Location can have a huge impact on home construction, and site conditions can vary widely. Wooded areas, for example, can increase the cost of spending significantly if trees need to be cut down. And don’t just assume that building on a clear, flat surface means that everything will be peaches and punch. It is often what lies beneath the surface that causes the most problems. You can have a beautiful, flat parcel of land picked out only to quickly find out that you’re digging through solid rock. To protect themselves, builders will have allowances for certain conditions. For example, a builder may have a rock clause in place where they will pay up to a certain amount for having to dig up rock; but once that allowance is met, it will be up to the buyer to pay for anything more. Location can also affect your utilities. Is the parcel located near an existing sewer or water line? Or will you have to install a well and septic system? What about electricity? And don’t forget that stormwater runoff has to be accounted for as well. Buyers need to be aware of all of this.

Financing
Construction loans could be an entire article on their own, and I don’t feel like putting myself to sleep trying to write one. When getting approved it is important to understand what type of loan it will be. How will the buyer get paid? Will they get paid in draws where they get portions throughout construction? Or will they get paid at final settlement with an end loan? Every lender has their own process and idiosyncrasies, and buyers should understand the type of loan they are getting.

Municipal Approvals
Permits, permits and more permits. Nowadays you can’t pierce a shovel through dirt without getting executive approval. Ok . . . it’s not that bad, but you get what I’m saying. So before construction can even begin, proper permits need to be acquired; and permits cost money. Whether it’s a building permit or a certificate of occupancy, everything needs to meet code and be approved by the local municipality. Inspections need to be done on a regular basis to ensure that everything is being done correctly and, most importantly, safely.

The Builder
Believe it or not, all builders are not the same. I know . . . I know . . . I couldn’t believe it either. And each one has their own style, options and procedures. Buyers should understand how a builder operates and conducts their business so that they can better choose who they feel comfortable with and who better suits their style and budget. No matter how good the builder is, sometimes they will face issues of their own as material shortages and weather occurrences can delay a project by several weeks. Not to mention, there are a lot of people involved in building a home and as such, mistakes are not uncommon. We are only human after all.

Change Orders
This one deserves its own category. Change orders are a foe of every builder and listing agent. Buyer picks out everything they want only to change their mind on 20 different things from floor finish to paint colors to light fixtures. But in order to change something, a change order needs to be filled out; and builders charge for change orders. Agents need to emphasize just how important it is that the buyer is 100 percent positive they are satisfied with their selections before signing anything.

Final Walkthrough
Sometimes everything can be going great . . . that is until walkthrough. Buyer finds a speck of paint missing that is so small you would need a Hubble Telescope to see it, yet they managed to find it as if it was lit up like Times Square. Builders strive for perfection, and at the end of the day that’s all they can really do. However, there’s usually going to be something to critique. Buyers need to be realistic and understand that it’s a new home, not a perfect home.

So what can you as an agent do to help better represent your buyer and make the entire process easier for them?

The first thing you should do is manage your buyers’ expectations. Buying a home is stressful enough, but building one is even more so. We tend to act on emotion rather than logic. So it’s imperative that you sit with your buyers and explain to them the entire process in detail from start to finish. Let them know what’s standard and what’s an upgrade. Let them know there are going to be bumps in the road. Help them understand that there is no such thing as a perfect home, and trying to achieve perfection will only drive them crazy. We need to act as a buffer for our buyers and be the voice of reason.

You should also understand the builders’ expectations as well. This will help you help your buyer to better manage their own expectations. Then when a surprise does crop up, you and your buyer will be better equipped to handle it. Know the builder’s visitation policy and be present during all visits with your buyer.

You should also take notes . . . lots and lots of notes. It’s a long process, and diligent note taking is crucial. Sometimes the smallest details are the most important, so having a reference is important.

And last but not least, communicate. Be in constant communication with the builder and your buyer so everyone is on the same page at all times.

I’m sure there is a lot more that could be said, but this should help give you some things to consider and some general ideas on how to approach and represent your buyer in new construction.

Richard Boas, III, Berkshire Hathaway HomeServices HomeSale Realty

What’s Your Rate?

Wed, 28 Aug 2019 13:57:36 GMT

I think I speak for most lenders when I say that the question “what’s your rate” always makes me cringe — especially when that is the first question a potential buyer asks. The main reason it concerns me is that even though it is such a simple question, it takes the right pieces of information to accurately quote a buyer’s interest rate. The loan program, term, loan-to-value, property type and credit score are just a few pieces of information we need to accurately quote a rate for any buyer. Although this comes as a shock to some buyers, we do need to make sure they qualify for a mortgage before discussing what interest rate options they actually have. With that being said, some of us throw out hypothetical scenarios such as “Say you have perfect credit and are putting 20 percent down on a conventional loan, what rate would I be looking at today?” Sometimes this may get you in the door, or it might result on the door getting slammed in your face depending on your mortgage company’s pricing on any given day.

A quote on an interest rate today could be meaningless in as little as 24 hours if there are drastic changes in the market. It is always important to inform the buyers that they are getting a quote as opposed to their rate being locked in. Most lenders require you to have an agreement of sale on a particular property to lock the rate, although some lenders have programs where you can lock a rate prior to getting a ratified contract. Also the amount of time you lock a rate for can also impact the pricing. Typically the longer you need to lock the rate for the more expensive it can be to get that rate your buyer really wants.

Another common question that lenders get is “does that rate have any points?” This is another important factor in answering the interest rate question. One point is simply one percent of the loan amount and is a charge for a lower interest rate. In an age when everything is just an internet browser away, many of the larger, national online lenders will advertise rates that require points. It will depend on the buyer’s personal situation as to whether or not it may be sensible to pay points to get a lower rate. On the other hand, a buyer could opt to take a higher interest rate and receive a credit toward their closing costs. If you can’t tell by now, the “what’s your rate” question isn’t as black and white as most buyers think it is.

There are laws regulating advertising in mortgages (Truth-In-Lending Act), but it is still easy to misinterpret what is actually being offered. If an interest rate is advertised, it is also required that the terms of the loan (30-year, 15-year, Adjustable Rate, Fixed Rate, etc.), including the APR, are also disclosed. If the buyer is not familiar with what an APR actually represents, they can easily think that the interest rate they saw online shouldn’t cost any points. I think I speak for most lenders and Realtors when I say we are probably all more comfortable working with local people who we know and trust to get the job done. With that being said, we all still have to sift through the smoke-and-mirrors approach given by many of the larger internet lenders across America to prove to the buyers that they are actually getting a fair deal on their mortgage.

An often overlooked factor when it comes to interest rates is the property type the buyer is purchasing. For example, multi-unit properties, investment properties, second homes and condominiums may all have pricing adjustments depending on the amount of money that is put down on the transaction. If the buyer doesn’t relay all the information to the lender, it can result in an incorrect quote which can become problematic for a number of reasons. Truth is, if the lender does his or her job and slows the buyer down, gathers all the information and asks the appropriate questions, the buyer will get an accurate quote of what can be done for their situation.

The amount of competition in the mortgage industry today is high. Margin compression has cut profits industry-wide; and every single deal is important to each originator, processor, underwriter and manager. We work in a relationship business where trust is earned over time based on the job you do and the service you provide a Realtor and their buyers. Be careful of the lenders who are out-of-town and just doing what they can to get the deal. A lender in Nebraska probably doesn’t care if they frustrate your buyer throughout the process or if they don’t return your phone calls regarding the mortgage commitment letter you haven’t received. “What’s your rate” isn’t something I consider a relationship building question as it’s obviously transactional. Don’t be afraid to explain to your buyers the importance of relationships, accountability and availability when they shop for their mortgage as you help them navigate the purchase of their next home.

David Fuchs, Traditions Mortgage

Procuring Cause

Thu, 22 Aug 2019 13:54:43 GMT

If you Google “procuring cause” you will soon see that it is a murky and gray area of the practice of real estate. “Procuring cause” is defined by NAR as a series of events, unbroken in their continuity, that result in the desired objective (i.e., generally, the sale of property). Procuring cause is important to Realtors because it determines entitlement to compensation . . . it is the basis of our commission income.

If you Google it, you will find examples of arbitration and litigation pursued to determine which agent is owed compensation. This is a common battle in almost all counties in Pennsylvania and throughout the country. However, it is not a common dispute in Lancaster County. In Lancaster the agent who writes the offer is the procuring cause. If you did not know that this is an abnormal approach, be forewarned. The counties surrounding Lancaster have a different approach to procuring cause, and you must be prepared if you and your clients venture into other counties.

For example, if your client wanders into an open house in Berks County and loves it, then contacts you to write an offer, you may not be entitled to the commission. The agent who hosted the open house may argue that the commission is theirs because they were the procuring cause. This goes for visiting new construction open houses as well. There are limitless scenarios that could jeopardize your commission payment due to procuring cause. Sometimes the buyer’s agent writes the contract, negotiates the contract and then is informed in a “by the way” manner that they will not be receiving a commission.

To avoid this unwelcome surprise, coach your clients who are shopping in surrounding counties with some do’s and don’ts of house hunting. They should inform you first of any open houses they plan to attend or any new construction communities they are considering. You can make calls prior to their visit to make sure it is known that you are the procuring cause. A follow up with email to the other agents will keep your communications documented if there is a future dispute. Your buyers should not contact other agents directly. Let them know that you are able to get answers to any questions they may have.

Buyers who have signed a Buyer Agency Contract may discover too late that they owe their buyer agent a commission after a chain of events occurs following their interactions with another agent that leads to a sale that may or may not have excluded their buyer agent. Buyers may be exposed financially by making calls and appointments that they think are harmless. Take the time needed to communicate the importance of limiting their communication to just you, their agent.

You may use PAR’s Cooperating Broker Compensation Agreement prior to the submission of your client’s offer to confirm with the listing agent that you will be paid the stated compensation.

Don’t be surprised with a commission dispute . . . understand that Lancaster County is an anomaly of procuring cause, and take precautions when working in other areas.

Lisa Naples, Berkshire Hathaway HomeServices HomeSale Realty

Social Media & Ethics

Mon, 12 Aug 2019 13:47:57 GMT

As reliance on cold-calling and door knocking becomes a thing of the past, digital marketing is rapidly becoming the go-to choice for lead generation and building and maintaining trust among former and future client bases. It is important to be cognizant of how our social media presence reflects on each of us as Realtors and how it reflects on our brokerages, our clients and our industry as a whole.

Here are two common mistakes agents are making online and ways to ensure ethical compliance:

Failure to properly identify oneself . According to NAR, required identification includes agent name, brokerage name, brokerage address and phone number, and the broker’s name (click here ). This identifying information needs to be readily apparent on all of an agent’s social media platforms. If the app does not allow for the information to be viewed on the main profile page, then it should be accessible to a user within one click. It would be wise to do a thorough sweep of all your social media platforms periodically to ensure you are identifying yourself and your brokerage properly.

Sharing another agent’s listing without permission . The primary concern here is violating or appearing to violate Article 16 of NAR’s Code of Ethics . Article 16 states, “Realtors shall not engage in any practice or take any action inconsistent with exclusive representation or exclusive brokerage relationship agreements that other Realtors have with clients.” To my knowledge there are yet no case interpretations to refer to, though NAR’s manager of Professional Standards and Administration advises getting verbal permission from the listing agent prior to sharing anything from his or her listing on your social media (click here ). Again, it would be wise to read Article 16 thoroughly to ensure you are not violating any ethical guidelines. Furthermore, Bright MLS heeds this advice, stating in Section 2.7 of its Rules & Regulations, “A listing shall not be advertised by any Participant other than the listing Participant without the prior consent of the listing Participant except as provided in Section 16 relating to advertising of active listing information on the internet.” (Section 16 refers to IDX participants and sharers). Our local rule is clear . . . before you post anything on your social media regarding another agent’s listing, you must have permission from that agent.

The best thing to remember with your social media presence is that YOU are responsible. Whether your brokerage has a social media policy is secondary to this. It is up to you as a Realtor to maintain compliance. Ethical guidelines apply on and off the internet; so if you would not say something in person, don’t say it online!

Jennifer Augustine, ReMax Pinnacle

Termination vs. Release . . . What Form Should I Use?

Wed, 07 Aug 2019 14:55:30 GMT

A month ago you were so happy. Your buyers wrote an offer on a property, and the offer was accepted. Off to the races you went, figuratively speaking! Escrow funds were deposited, the mortgage process began and inspections were lined up. Then the dreaded phone call from your buyers . . . Mr. Buyer lost his job, the property has structural problems, buyers are getting divorced . . . we’ve heard them all. And with it goes that sinking feeling in the pit of your stomach.

We’ve all been there. And many times there is nothing we as agents can do about it, so we move on. But there’s a procedure to move on . . . forms MUST be completed, the Agreement of Sale must be made null and void and escrow money has to be returned . . . to someone.

Two forms are available to deal with these circumstances; but depending on said circumstances, only one is appropriate. First let’s review the forms.

NOTICE OF TERMINATION OF AGREEMENT OF SALE

This form should be used only if NO ESCROW money has been received. It must be signed only by the terminating party and must cite the reason, supported by a breakdown in a term or paragraph in the Agreement. It also puts buyers and sellers on notice that from this day forward, buyers and sellers are releasing everyone from further liability pertaining to this contract. I’m not particularly fond of this form myself. I want everyone put on notice and everyone to sign something acknowledging the demise of this Agreement.

NOTICE OF TERMINATION OF AGREEMENT OF SALE / AGREEMENT OF SALE RELEASE AND DISTRIBUTION OF DEPOSIT MONEY

This is a two-part form, both on the same sheet of paper. As above, the termination portion requires only the signature of the terminating party and the reason for termination and supporting term/paragraph. The second part of the form (Release and Distribution) addresses the amount of deposit money held and the distribution of that money — will all of it go back to the buyer, or will the seller get a piece for their trouble (that’s a whole other article)? As long as there is money held in escrow and the agreement has no hope of resuscitation, you MUST use this double form to end this contract and distribute the deposit. This form also puts everyone on notice (as above) that all parties are released from further liability pertaining to this Agreement of Sale. I personally like this form better for the reasons stated above. I want all parties to sign and acknowledge a document that ends a contract.

The Termination stops the Agreement of Sale. The Release discharges EVERYONE from liability.

No one ever likes to see an agreement go “south”, but they do. When that happens, make sure your paperwork is all in order.

Nancy Sarley, Berkshire Hathaway HomeServices HomeSale Realty

iBuyers Are Knocking at Our Door

Tue, 18 Jun 2019 14:11:55 GMT

There is a trend that is taking off across the country that may radically transform how real estate agents conduct business in the years ahead. More and more sellers are considering selling their home to an iBuyer rather than engaging the services of a real estate sales professional. Well-funded companies are utilizing an iBuyer platform and are tempting sellers with quick cash. Make no mistake about it, even though this service is only available in larger markets right now, iBuyers are coming to Central Pennsylvania; and when they arrive, will you be ready?

What’s an iBuyer?

iBuyers are not actually people, but companies like Opendoor, Offerpad and Zillow. They receive requests for an offer from a potential home seller online then evaluate what a home is worth and make an instant cash offer. Sellers that accept iBuyer offers can usually settle on their property in as little as two weeks.

How do iBuyers calculate an instant offer price?

Most iBuyers use some form of Automated Valuation Model (AVM) to compute the offer price. It is kind of like a Zestimate that is found on Zillow. The iBuyer’s AVM takes into consideration a lot of different variables such as square footage, property amenities, age of structure and area transaction data. They also usually ask the potential seller a number of questions designed to uncover potential pricing red flags.

How close is the iBuyer instant offer to true market value?

Well . . . that depends. I can almost certainly say that it’s not true market value; but it’s close (and getting closer). Add a 6-9 percent fee for the convenience of an iBuyer service plus the cost of repairs to get the property ready for the market and you’re getting into the right ballpark.

Isn’t iBuying another name for home flipping?

Nope. Typically home flippers try to buy a distressed home from a seller who is desperate to dump the property then make major renovations and resell it.

iBuyers usually are more focused on homes that are in good condition and only need minor repairs or touch-ups to bring the home to market.

Home flippers focus on making a profit. iBuyers aren’t as concerned about making a profit as they are with earning fees for their service.

Other than a seller asking for an instant offer from an iBuyer, what is the process like?

When a potential seller requests an instant offer from an iBuyer, the homeowner is also usually asked some questions about the condition of the home:

Have you made upgrades to your home?
Are there special amenities that would enhance the value of the home?
Are you willing to make some repairs to get your home ready for the market, or would you prefer the iBuyer service to take care of them?
How soon do you want to sell?

After the initial contact online, the iBuyer will conduct a complete home inspection to assess the market readiness of the home. Then they will input all this information into the AVM and ***POOF*** an instant offer is generated.

Why do sellers choose to engage iBuyers versus a traditional real estate agent?

The thought of fast CASH is very appealing to a lot of sellers. What kind of seller? Hare are a few:

The ‘Family Issues’ Seller — We’ve all been there. A couple is going through a divorce and are at each others’ throats and just want to move on. Maybe the home has been inherited and is part of an estate which consists of seven children spread across continental North America. Cash in two weeks sounds pretty good.
The ‘Relocated’ Seller — If your new job in Raleigh starts next week, leaving behind a vacant home for a couple of months while it is being sold can cause real stress.
The ‘High-Strung’ Seller — It’s hard to believe, but some sellers don’t relish the idea of packing away the kids and dog into the SUV every time a strange person traipses through their home over the next couple of weeks.
The ‘I’m Building a New Home’ Seller — If you’ve ever tried to coordinate the settlement of your existing home with one that is going to take seven months to build, well, you get the issue.
The ‘I’ve Got Two Vacant Apartments in My Investment Property’ Seller — Every day those apartments sit vacant, it is burning a hole in the landlord’s pocket.
The ‘I’m Not Very Handy’ Seller — To some sellers, the thought of patching holes in drywall – or – fixing a toilet – or – painting two bedrooms – or – replacing a light fixture, is not their idea of fun.

Obviously, not all sellers fall into one of the above categories; and there will continue to be plenty of situations that need and require a qualified real estate sales professional. However, iBuyers are real. They will secure a little bit of the market. It’s not a matter of ‘if’ they will start issuing instant offers in our area. . . it’s a matter of ‘when’.

How will you react and what will you say when that potential seller you’re sitting across the table from drops the following on you for the first time, “I’m considering taking an iBuyer offer instead of listing with you.”

Stick around . . . Part II of this post will give you some tips to not only compete with iBuyers, but also to win the listing and create raving fans.

All the best!

Tom Blefko, Berkshire Hathaway HomeServices HomeSale Realty