When Buyers Get More Realistic

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When Buyers Get More Realistic: Shifting Trends in the Housing Market22

The housing market is seeing a shift, signaling opportunities for buyers. While inventory remains tight, changes in buyer behavior and market trends are creating a more balanced landscape. Here’s how buyers are navigating this evolving market.

Current Market Conditions

Low Inventory Levels

In July 2019, there were 1,387 active listings. By July 2023, this number dropped to 553, reflecting a 60% decrease in inventory.

National Trends

On a national scale, housing inventory has increased by over 30% year-over-year, marking the largest jump since 2017.

Interest Rates

Mortgage rates have fluctuated, climbing from around 3% at the beginning of the year to approximately 5.5%–5.6%. These rates are influencing buyer and seller behavior alike.

How Buyers Are Getting More Realistic

Adopting Contingencies

Buyers are increasingly relying on contingencies, such as home inspections, to protect their investments. These clauses allow for careful evaluation of properties, reducing risks during the escrow period.

Slower Pace of Transactions

With fewer bidding wars and reduced competition, buyers have more time to evaluate properties and negotiate terms.

Leveraging Escrow Protections

Escrow plays a critical role in ensuring fair transactions. In Pennsylvania, earnest money is held in compliance with the Real Estate Licensing & Registration Act (RELRA), safeguarding buyer and seller interests.

The Role of Contingencies

Why They Matter

Contingencies protect buyers from unforeseen issues, allowing for deposits to be refunded if specific conditions aren’t met.

Impact on Sellers

While contingencies may seem to favor buyers, they ensure a fair process for both parties, reducing potential disputes.

Conclusion

When buyers get more realistic, they make smarter decisions that align with evolving market dynamics. By using contingencies, understanding escrow procedures, and leveraging current trends, buyers can approach the homebuying process with confidence.

Contact Realty Network Group for expert guidance in navigating today’s real estate market!

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How To Buy & Manage Your First Investment Property

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It’s exciting when you decide that it’s the right time to grab your first investment property. However, if you’re new to these kinds of purchases, it’s also intimidating. Fortunately, as our experts understand, you can handle everything properly if you know how to approach it.

Finding the Right Investment Property

The Market

Calling the housing market hot can feel like an understatement. The median sale price for residential properties in the US was just over $408,000 at the end of 2021 and home prices across the country year-over-year (YOY) still exceed 20%, according to CoreLogic. In the Greater Scranton market, median home sale prices have been trending up at a YOY rate of 13.8%, more than the increase from a year prior (July 2020 to July 2021).*

By and large, prices have trended upward for the past few years and it isn’t uncommon for buyers to spend over list price, with some going for many thousands above list.

However, the price can vary throughout a particular area. Overall, each neighborhood can come with its own vibe and price point. As a result, where you buy matters, both from a cost and desirability standpoint.

When searching for investment properties, be sure to partner with one of our real estate professionals. They can help navigate the particulars of purchasing a home in Northeastern Pennsylvania. 

Features of Desirable Properties

When looking for investment properties, you need features that appeal to renters. For example, ValuePenguin notes that 53% of consumers want a home office over an extra bedroom. In some areas, open floor plans may typically be preferred. For downtown properties, a parking space might be a necessity, too.

Since traffic can be challenging, finding a location near convenient roadways or close to critical amenities like stores or medical centers (or even pizza!) is also essential. That way, renters won’t have to go far to get what they need.

If you’re looking at family-sized residential investment properties, then choosing one with exceptional school ratings is a smart move. That’ll make the home more attractive to parents, increasing its potential value.

The same goes for homes with large yards. Whether it’s parents or renters with dogs, having outdoor space may be high on the list. If the yard isn’t in great shape, making some outdoor improvements may be all it takes to elevate its curb appeal.

For instance, you could connect with local contractors to install a new fence, if it’s allowed by your homeowners association and/or the local municipality. Ensure they’re licensed, insured and check for underground utility lines. Next, read reviews online. Then, reach out to discuss your needs and get a quote. While the average price can vary (and it usually does in this market with distribution and supply issues that contractors typically encounter), the size, materials and location play a role, so get several estimates in advance to ensure you’re in the ballpark.

Managing the Investment Property, Beginning with Forming an LLC

Before getting into the investment property business, make sure you’ve set up a limited liability company to operate under. This will help protect you from personal liability, as well as confer tax benefits to you. You can accomplish this relatively simply by using a formation service. Once you find the right property, then you’ll need to determine how to manage it. Usually, you have two choices.

First, you can operate as the landlord, and as such, you’re responsible for all activities relating to the lease property. Along with advertising the property, you’ll screen tenants, collect rent, handle maintenance calls and more. In some cases, that also means enforcing the lease – a task that often lacks enjoyment and may not always go as planned – and handling evictions, if needed. It’s a full-plate for sure, but it’ll allow you to keep all of the profits too.

Second, you can hire a property manager. By using this approach, you’ll end up with less profit in exchange for support handling the property. The property manager will handle practically most everything, including screening tenants, accepting payments, tackling repair requests and the like. They’re also an ally for lease enforcement, ensuring you don’t have to address violations directly unless an eviction becomes necessary.

Which option is best depends on how hands-on you’d like to be along the way. While you’re always involved, a property manager reduces your burden in exchange for a fee, giving you access to support and expertise. However, if you’re confident in your capabilities, that may be unnecessary, as many investors manage their own properties.

* statistics from the Greater Scranton Board of REALTORS® (July 2020-July 2020)

 

[This content is compliments of Fix It Dads.]

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What’s A Real Estate Broker? And What Do I Do When I Find One?

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What Is a Real Estate Broker—and How Do They Differ From Other Agents?

In today’s competitive housing market, having the right real estate professional in your corner can make all the difference. But if you’re asking yourself, what is a real estate broker, you’re not alone. Many buyers and sellers aren’t clear on the different roles and responsibilities in real estate.

In this guide, we’ll break down what a real estate broker is, how they compare to other real estate professionals, and why working with the right one can help you navigate a successful transaction.

What Is a Real Estate Broker?

A real estate broker is a licensed professional who has met additional education and testing requirements beyond those of a standard real estate agent. Brokers are qualified to manage their own real estate business, supervise other agents, and handle complex real estate transactions.

Unlike real estate agents, who must work under a broker’s supervision, brokers can operate independently. They often oversee contract compliance, provide legal guidance to agents, and manage the day-to-day operations of a real estate office.

Types of Real Estate Professionals

When entering the real estate market, it’s helpful to understand the different types of professionals:

  • Real Estate Agent: A licensed individual who helps clients buy, sell, or rent property. Agents must work under a broker.
  • REALTOR®: A real estate agent who is a member of the National Association of REALTORS® and adheres to a strict code of ethics.
  • REALTOR® with ABR® Designation: A REALTOR® who specializes in working with buyers and has earned the Accredited Buyer’s Representative (ABR®) credential.
  • Real Estate Broker: A professional who has completed additional education and training and is licensed to operate independently, supervise agents, and manage a brokerage.

What Do Real Estate Brokers Do?

A broker can perform all the duties of an agent—such as listing homes, showing properties, and negotiating offers—but they also handle:

  • Supervising real estate agents
  • Overseeing contracts and transactions
  • Ensuring compliance with state and national regulations
  • Managing a brokerage firm

Some brokers work directly with clients, while others focus on operations and team leadership.

Why Work With a Broker?

You don’t necessarily need to work with a broker directly, but there are advantages to doing so—especially if they’re actively involved in client services. Real estate brokers often bring:

  • More experience and training
  • A deep understanding of market regulations
  • Enhanced oversight for complicated transactions
  • A higher level of professionalism

Dianne Montana, Principal Broker for Realty Network Group, explains, “The dynamics of real estate have changed significantly over the past five years, but the standards of practice remain the same. I enjoy helping our talented professionals thrive and succeed.”

Finding the Right Real Estate Professional

So, what is a real estate broker, and should you work with one?

That depends on your situation. If you’re a first-time buyer, a REALTOR® with an ABR® designation might offer the most support. If you’re selling a complex property or want added oversight, working with a broker could be the right choice.

Ultimately, choose someone who listens, understands your goals, and has a proven track record. When you find the right fit, you’ll gain a true advocate in your real estate journey.

Let’s Talk

Whether you’re buying or selling, the professionals at Realty Network Group—including licensed real estate brokers—are ready to help you move forward with confidence. Reach out today to get started.

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NEPA’s Most Walkable Communities

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Discover NEPA’s Most Walkable Community

If you’re dreaming of settling down in a walkable community, Northeastern Pennsylvania (NEPA) might not be the first place that comes to mind—but it should be. While much of the region is known for its rural charm, pockets of walkability are growing. And in today’s world—where remote work, lifestyle balance, and convenience are top priorities—walkable communities are becoming more desirable than ever.

Summer is a fantastic time to explore what NEPA has to offer. (Okay, maybe early autumn with cider donuts and crisp evenings is technically the best, but let’s give summer some credit.) From scenic trails to revitalized downtowns, this region has more to discover than you might expect—especially on foot.

Why A Walkable Community Matters More Than Ever

In recent years, homebuyers have started thinking differently about the spaces they live in. Remote work has made flexible home layouts more important. Privacy, quiet spaces, and room to focus have pushed many buyers to rethink the once-popular open floor plan. But beyond the home’s layout, where it’s located matters just as much.

That’s where the concept of the walkable community comes in. When you live somewhere that lets you walk to the coffee shop, grab a bite to eat, run errands, or hit a nearby trail—life just feels a little easier. Less time in the car, more time outside, more time connected to your neighborhood.

While many NEPA towns are car-centric, there are a few gems where you can live, work, shop, and play without needing to drive everywhere. Below are four of the most walkable communities in Northeastern Pennsylvania, each with their own unique vibe.

Pittston: Revitalized River Town

  • Location: Northeast of Wilkes-Barre, southwest of Scranton, in Luzerne County
  • Access: Route 11, near I-81 and the northeast extension of the PA Turnpike
  • Walk Score: 76
  • Highlights: Campbell’s Ledge for hikes, Lackawanna River Heritage Trail nearby
  • Parks: Riverfront Park, Sullivan Park, Jefferson Park, James Clark Park, Albert West Park
  • Amenities: Restaurants and shops throughout Main Street and across the bridge in West Pittston

With a strong focus on downtown revitalization, Pittston offers a vibrant small-town feel with the perks of a walkable community. Whether you’re grabbing brunch, enjoying river views, or strolling to a local event, it’s easy to enjoy life on foot here.

Dunmore: Quiet Charm on Scranton’s Edge

  • Location: Directly east of Scranton
  • Access: Interstates 81, 84, 380/80 and the Casey Highway all accessible from town
  • Walk Score: 74
  • Highlights: Walkable neighborhoods near Marywood University and Dunmore Cemetery
  • Parks: McHale Park, Sherwood Park, Saint Anthony’s Memorial Park
  • Amenities: South Blakely and East Drinker Streets offer a variety of dining and retail options

Dunmore offers all the convenience of a walkable community without the hustle of a big city. You can enjoy peaceful neighborhoods, beautiful walking routes, and easy access to both Scranton and natural green space.

Tunkhannock: A Small-Town Walkable Community

  • Location: Northwest of Scranton in Wyoming County
  • Access: Route 6 and Route 29
  • Walk Score: 61
  • Highlights: Boutique shops, welcoming atmosphere, and a growing downtown district
  • Parks: Riverside Park, McCord Park, Lazybrook Park
  • Amenities: Tioga Street and Bridge Street offer great access to stores, eateries, and entertainment

Tunkhannock’s walkable downtown has become a major draw for new residents and tourists alike. While it’s a smaller borough, it packs a lot into just a few blocks—and walkability is central to the town’s charm.

Old Forge: Pizza, People, and Pedestrian Perks

  • Location: Southwest of Scranton
  • Access: Close to the PA Turnpike, I-81, and Route 11
  • Walk Score: 59
  • Highlights: Famous for pizza, easy walk to eateries and stores
  • Parks: Limited park space, though surrounding areas offer green space
  • Amenities: Great access to restaurants and shops on Main and Oak Streets

While some errands may still require a car, Old Forge offers a compact and convenient setting for day-to-day life. If you’re looking for a walkable community with big flavor and small-town energy, this might be your spot.

Looking for a Walkable Lifestyle in NEPA?

Finding the perfect walkable community in NEPA takes local knowledge, market insight, and a deep understanding of what walkability means for your lifestyle. Whether you’re relocating, downsizing, or searching for a place that lets you park the car and enjoy the fresh air, these four towns are worth exploring.

Let’s talk about your goals—and find the walkable neighborhood that fits your next chapter.

 

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Can a House Fail an Appraisal?

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When we talk about a house “failing” an appraisal, we’re usually referring to a situation where the appraised value falls short of the agreed-upon purchase price. Appraisals are conducted to determine the property’s fair market value, which lenders use to decide how much they’re willing to finance. In cases where the appraisal value is lower than expected, it’s typically up to the buyer to make up the difference, renegotiate the purchase price, or let the deal fall through. This discrepancy often impacts first-time buyers or those without a substantial down payment, who may not have extra funds to bridge the gap.

The Impact of a Low Appraisal on Financing

Lenders only approve loans based on the appraised value, so if a house fails to appraise, they may lower the loan amount accordingly. Let’s say a buyer agreed to pay $300,000 for a property, but the appraisal came in at $280,000. In this case, the lender might only finance a loan based on the $280,000 figure. This leaves the buyer responsible for covering the $20,000 difference out of pocket if they still wish to purchase the home under the initial terms.

In competitive markets, buyers might agree to a clause where they cover any shortfall between the appraisal value and purchase price, often referred to as an appraisal gap guarantee. This is becoming more common as buyers face pressure to secure homes in markets where bidding wars drive up prices above appraised values.

Options When a House Fails an Appraisal

  1. Renegotiate the Price: Buyers can try to renegotiate with the seller to bring the price in line with the appraisal.
  2. Increase the Down Payment: If the buyer can cover the gap, they might increase their down payment to satisfy loan conditions.
  3. Provide Additional Comps: Sometimes, agents can submit comparable sales data that may influence the appraisal review, especially if they believe there were overlooked factors that would affect the home’s value.

In Pennsylvania, real estate transactions can also use the Appraisal Contingency Addendum (ACA), which allows buyers to exit the deal if the home doesn’t appraise at a minimum value set in the sales contract. This contingency gives buyers protection, particularly in cases where financing may become problematic due to a low appraisal.

What Can Lead to a Low Appraisal?

Several factors might cause a home to fail an appraisal, including:

  • Overpricing in the Market: Bidding wars or optimistic listing prices can sometimes result in purchase prices above market value, especially when demand outstrips supply.
  • Condition of the Home: If there are visible issues, such as outdated systems or deferred maintenance, the appraisal might reflect these deficiencies.
  • Neighborhood Comparables: Appraisers use recent sales data for similar properties to help establish a home’s market value. If comparable homes have sold for lower prices, it could drag down the appraisal.
  • Timing of Sales: If comparables are outdated or reflect a past, lower-priced market environment, this can also lead to a lower appraisal in a more competitive, appreciating market.

Lender and Buyer Agent Strategies for Low Appraisals

Loan officers and buyer agents often step in when a low appraisal threatens the transaction. Angelo Ambrosecchia, Loan Officer with Guild Mortgage, explains that there are ways to structure the loan to maintain affordability for the buyer even with a low appraisal. For instance, if a buyer is prepared to put down 20% but the home appraises lower, the lender might adjust the loan-to-value ratio slightly, adding a small PMI cost to balance the overall funds required from the buyer. This approach allows buyers to keep their out-of-pocket expenses stable without forfeiting the deal.

Buyer agents can also appeal to the appraiser, asking for a review of additional comparables that may better match the property. If the appraisal remains unchanged, the buyer’s agent may negotiate a price reduction or seek creative financing solutions to keep the deal moving forward. Every strategy aims to close the deal without compromising the buyer’s financial position.

Can a House Fail an Appraisal but Still Sell?

Absolutely. In many cases, buyers and sellers can work around a low appraisal. By negotiating the terms or adjusting financing, they can proceed with the sale even if the house fails to appraise at the purchase price.

A house failing an appraisal does not automatically mean the deal is dead; it simply introduces a new phase of negotiation. With strategies in place to address these gaps, both buyers and sellers can find ways to keep transactions moving forward. However, buyers should always consult with their agent and lender to understand their options and decide on a path that aligns with their financial capacity and long-term goals.

For buyers and sellers alike, knowing what to do when a house fails an appraisal is invaluable. With insights from loan officers and experienced agents, buyers can navigate these scenarios confidently and pursue their dream homes with informed strategies.

For a related topic, see Why would I need an appraiser?

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Top 3 Reasons To Purchase A Home

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The later part of this year might bring about some stabilization in the way of a more balanced market, but don’t expect one favoring buyers anytime soon. As inventory shortages continue, and they will, prospective homebuyers are attempting to determine if they should stay in the game. Others have doubts and aren’t sure if they should join the quest for homeownership either. There are many reasons to purchase a home, and now is a great time to start planning.

The anticipation of homeownership can be intoxicating for some. Recent months have been a prime example of this in our region of Northeastern Pennsylvania. With homes sold on par with the previous year (843 versus 853, respectively), and inventory struggling to see the light of day (1.29 month’s supply), there’s an element of hysteria to real estate transactions these days. Certainly, the pandemic was a catalyst for the surge in activity, but make no mistake about it, our housing supply had already been depleted prior to 2020.

WReasons To Purchase A Home That Might Not Be Ideal

Before we reveal why now is a good time to buy, there are a couple reasons we caution some to re-evaluate their situation before purchasing a home. These reasons include those facing upheaval in their lives, those who must remain nomadic for the sake of their job as well as anyone who struggles to cover their monthly expenses.

If your life is a little frantic today and you’re going through transitions, purchasing a home might not be the best course of action. If you’ve undergone more change than you care to admit, renting may provide you more freedom and less stress. It’s also favorable for those who need to move promptly due to work. Homeownership can only create headaches for these successful itinerant types, who could potentially sit on the sidelines waiting longer than expected for their home to sell.

Finally, owning a home comes with maintenance, presumably a mortgage, taxes, insurance and occasionally other fees or costs. If you presently grapple with covering your expenses and debt, purchasing a home isn’t a path you should pursue until your situation changes for the better.

Obviously, renting in particular situations just makes sense! Doesn’t a seller’s market, the likes of 2022, qualify as one of those instances? Not necessarily. In fact, since the “lockdown dam” ruptured in June of 2020, rents have been rising too.

Reasons To Purchase A Home Now That Make Sense

Yes, glaring issues in our economy such as inflation, the increasing costs for food and gas, among others, create barriers to buying (we can’t minimize them), but opportunities exist for those looking to enter the market, especially for the first time. They remain even in the midst of a supply shortage.

Homebuyers, now is the perfect time to pursue homeownership, especially if you don’t need to sell and your rental rates are continuing to climb. Purchasing property is advantageous, and in the majority of cases, will be the smarter play over leasing. Here are the top three reasons why buying your first house (or likewise, continuing to own one) now makes sense.

1. Stability

Because the landscape for buying and selling is more volatile recently, having a meticulous plan of approach is essential. Before you commit to taking on a mortgage, understand your finances and prepare them appropriately. The first step toward investing in your future in real estate is stability.

If you’re grounded in your finances, with trace amounts of bad debt in your name, and you have the ability to afford a home at a particular price point in addition to the closing costs that are associated with it, you’re in a good position to invest. If you have a nest egg or emergency fund, you’re in a superb position. Of course, having excellent credit gives you a competitive advantage and firmer stability still.

2. You’ve Been Squandering Your Extra Money

If you’re looking for safer places to store your loot, you should strongly consider building equity by purchasing a home. Homeownership forces you to produce equity. On the other hand, renting makes it easier to spend your extra cash rather than invest it. The money you’re putting into a home will come back to you as your property appreciates over time.

In 2021, we witnessed homes appreciate by roughly 19% and they should sustain 5-10% through year’s end. Housing appreciation in the Greater Scranton area registers 13.1%, year-over-year for April.* According to the latest numbers from CoreLogic from March, homes have appreciated by 20.9%, year-over-year. It’s a great time to make an investment in a home!

3. Feel At Home

As a result of owning property, you can create something that’s truly yours. Would you like to renovate? You can. [Make sure to check with your local municipality or borough first.]

Want a bigger say in lifestyle decisions? Make them for yourself and your family. Need increased privacy? You’re in the driver’s seat. You can make additions to your property to make it more secure. You can erect shrubs and fences. Alter the landscaping or design of your residence, because you can – you’re captain of this ship. Don’t worry about the logistics! Homeownership means less restrictions and limitations and more freedom.

Why not own a place you can call home, when it’s all said and done? As a prospective homebuyer, especially a first-time one, you have the ability to invest in your family and create a foundation to build on, for their stability too.

What’s more, homeownership statistically creates a better environment for children. There are many intangibles produced when a child has a safe and affordable place to live. Furthermore, homeownership drives your local economy and has the potential to enhance your community. For every two home sales, one job is generated, increasing economic mobility.

If you’re looking for housing, don’t give up hope. Our region might be slightly oversaturated with buyers, but that continues to improve. What we can expect six months from now is anyone’s guess, but we’re approaching a more balanced market in the months ahead.

At the moment, it’s a great time to buy, and if you’re in the position to do so, will you take the steps necessary to join those who find homeownership very rewarding?

* statistics from the Greater Scranton Board of REALTORS®

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3 Things to Know Before You Buy Your First House

So you’re ready to buy your very first house! While becoming a homeowner is an exciting journey, there’s much to consider and prepare before you actually buy a house. Your life plans, career, finances and preferences in a home will all be factors that affect the kind of house you can buy. It also affects where you want to live. To help you navigate all these factors, read on to learn about the three most crucial considerations when buying your first house.

Money Matters

Buying your first house​ is no small endeavor, especially when it comes to money. You’ll want to start saving up as early as possible so that you can afford a down payment. However, after that, chances are you’ll need to get a mortgage to pay for this house over time. A common plan of payment is a 30-year fixed mortgage, which holds fixed principal and interest rates, meaning you’ll pay the same amount over the life of the loan (30 years). This is one method of paying off a mortgage, so do your research and discover what works best for you. There are other mortgage options available too such as FHA, VA, among others.

Additionally, you will want to take a close look at your finances, specifically credit and debt, as these factor into your mortgage eligibility and interest rates. When making moves to purchase a house, you’ll want to ensure that you’ve paid down as much debt as possible and that your credit score is the highest it can be. Avoid other large purchases and refrain from switching jobs when buying your first house​ as well.

Your Future is a Long-Term Game

Your future plans should be taken into account before buying your first house​, as you’ll likely live in this house until your mortgage is paid off. Will you need to pay off any past loans, like car payments or student loans? If so, you may want to research or consult a financial planner on how to juggle paying for multiple long-term payments.

Do you want children in the future? Do you think you’ll help pay for your children’s college education? Although that may be years into the future, it’s crucial to consider everything you might possibly be paying for. Many financial aspects like paying off a mortgage or college tuition are a long-term game, so starting a college fund when you decide to have children is a great way to prepare financially for the future. It can be taxing to pay for several significant costs like college tuition and mortgage payments at the same time, as well as any other loans.

Needs Come Before Wants When Buying Your First House​

Next, you’ll want to consider what you need and what you want when buying your first house​. Perhaps you need at least three bedrooms or even more if you plan on starting a family. You may need an open concept floor plan with ample room for seating, for example, if you like hosting. If you have a dog or plan on getting one, a backyard is a great asset to have. If you are self-employed, a house with enough room for a home office is necessary. Read our tips on launching a home-based business while moving to a new home.</p>

You will also want to think about where you’ll want to reside. Depending on the state or city, houses will vary in cost. If you want a house in a large city, it’s going to cost more than a house in a very rural area. Explore and research the cost of living in different areas and what will work best for you. Remember the difference between needs and wants, as your very first house might not have everything you dreamt of. Luckily, you can always renovate or add on to your home in the future to make it your perfect home. Maybe flex space is an option for you?

 

Purchasing your first house is quite an accomplishment, but a lot of preparation and financial planning needs to be done beforehand. By considering these three factors, you set yourself up for a smooth homebuying process.

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Why Would I Need A Real Estate Appraiser?

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As a homeowner, why would I need the services of a real estate appraiser? And is one needed if I already have a business relationship with a REALTOR®? These are great questions, but before we dive in and answer them, let’s establish what we mean when we say “appraisal.”

For our purposes here, we’re not concerned with commercial real estate appraisals. These are a whole different animal and are sought after less than residential ones in our region. By appraisals, we’re referring to an accurate estimate of a home’s current/fair market value (emphasis added). We’ll break down the difference between this and how we understand a comparable market analysis, but it’s safe to say appraisals hold much more weight. Furthermore, an appraisal, which is required by a homebuyer’s lender, for instance, is completed by a licensed appraiser and not solely a real estate agent.

While some homeowners, who are looking to sell their home, might request from a REALTOR® what’s called a comparable market analysis (CMA), it’s critical to recognize the distinction between it and an appraisal. While agents might use methods of comparison similar to appraisers, they aren’t licensed appraisers with no motivation for the sale of the property. Generally speaking, CMAs are for agent purposes (listing a home for sale, data to support a buyer’s offer) and appraisals are for lending purposes. Read more about their differences here.

Regardless of the business relationship you have with a real estate professional, unless he/she has a license to appraise property in that state, his/her assessment on what a property is worth won’t hold water with the mortgage lender actually making the investment on the home on your behalf (whether you’re the homeowner or mortgagor). Not all appraisals involve banks though. “There are many reasons someone would hire an appraiser,” exclaims Maria Muchal Berta, Owner/Certified Real Estate Appraiser for Chiave Appraisal Group and Associate Broker with Realty Network Group. “One reason is if a buyer is using cash to purchase a property, meaning there are no banks involved in the transaction. It gives the buyer a piece of mind knowing they’re not overpaying for a property. Other common reasons for hiring an appraiser include divorces, settling estates, refinancing, applying for home equity loans, appealing tax assessments or they’re just curious about their home’s worth.”

We hope this elucidates why someone might need the services of a real estate appraiser. It’s a complicated market out there! Make sure you have the right people and tools at your fingertips. If you need further clarification regarding homebuying, look into this resource.

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New Home, New Career

Launching a Home-Based Business While Moving

Becoming an entrepreneur is an exciting time, but it does require a lot of work. And if you find that you need to move at the same time to have a bigger workspace to suit your needs, it can be doubly challenging. It’s not an easy feat to start a home-based business while moving at the same time, but you can do it!

Here are eight tips on how you can accomplish both:

  • Make sure you select the right location. Make a list of everything you need close by for your personal life and then also for your business. That might be proximity to your shipping partners, an airport if you need to travel frequently, your suppliers or whatever else that might be. We have success with our clients who are relocating. We can help you find the perfect place!
  • Hire a professional moving company. Yes, you can do it all yourself and it will be cheaper, but it’ll take a lot of time and effort, which would be better spent on establishing your new business.
  • Plan ahead so that you don’t have too much workload when moving into your new place. The last thing you want is more stress piled onto everything else, so keep the days surrounding your move free of calls and deadlines as much as you can.
  • Get your business registered at your new home-office address. An LLC might be a good option for you, but make sure you check the filing requirements by state, as these can vary. This will allow you to work on your new venture without having to worry about any legal implications. You’ll also need the proper registration to claim tax deductions for expenses related to starting your business.
  • Sign up for continuing education. It’s easy to get bogged down in the day-to-day details of running your business. But if you keep investing in building your skills, it will help you make better business decisions and ensure long-term success. There are plenty of online degrees available in business or accounting that you can fit around your work schedule. 
  • Invest in state-of-the-art technology. Your old laptop might have been good enough for downloading music and email, but when you start a business, having the right tools will be a productivity game-changer. Invest in phones, screens, tablets, computers and any other technology you might need – keep it up-to-date.
  • Design a business plan to map out your long-term vision. By putting all of your ideas down on paper and going through the assumptions that back up all of your financials, you can troubleshoot potential problems before they arise. A business plan is also crucial if you need to go to investors or request a bank loan.
  • Stay on top of your accounting. Many entrepreneurs end up with stacks of crumpled invoices in a drawer and find themselves overwhelmed when tax season comes around. There are plenty of easy-to-use software options available today to set you off on the right foot from day one and make sure you don’t fall behind.

We hope that this post has provided you with some insights and tips on starting a small business from home while moving. You’re now ready to join the millions of entrepreneurs, who decided to pursue their dreams as well. Good luck with your new endeavours!

 

[This content is compliments of TidyHome. Image for this post – Unsplash]

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Understanding the Home Inspection Process: How Long Does a Home Inspection Take?

Buying a home is an exciting journey, but it’s also one that comes with responsibilities. The inspection phase is crucial for ensuring your dream home doesn’t come with hidden nightmares. A home inspection helps buyers gain valuable insight into the property’s condition before moving forward. But how long does a home inspection take, and what should you expect? Let’s break it down.

Why Home Inspections Matter

The inspection phase allows buyers to assess a property objectively. After your offer is accepted, a home inspection ensures you’re making an informed decision. Electing inspection contingencies protects you, providing a clear picture of potential issues that may need addressing before finalizing the purchase.

Key Factors That Determine How Long a Home Inspection Takes

The length of a home inspection can vary. On average, a standard inspection takes two to three hours, but several factors influence this timeframe, including:

  1. Home Size
    Larger homes require more time to inspect due to additional rooms, systems, and features.
  2. Property Age
    Older homes might take longer as inspectors carefully examine aging systems and structures.
  3. Complexity of Systems
    Homes with unique features, such as pools or additional outbuildings, may extend the inspection process.
  4. Additional Inspections
    If the buyer opts for specialized inspections (e.g., radon testing, mold, or pest inspections), this will add to the overall time.

Choosing the Right Home Inspector

Selecting a competent and trustworthy inspector is crucial. Here’s how to identify the right professional:

Seek Recommendations

Ask friends, family, and your real estate agent for trusted recommendations. Look for inspectors affiliated with organizations like the American Society of Home Inspectors (ASHI) or InterNACHI.

Conduct Interviews

Ask potential inspectors about their experience, certifications, and approach. Ensure they can provide sample reports and references.

Verify Credentials

While licensing requirements vary by state, reputable inspectors often hold certifications and carry insurance to cover potential errors or omissions.

What Happens During a Home Inspection?

Home Inspectors

A home inspection involves a thorough examination of the property’s systems and structures, including:

  • Roofing and Exteriors: Checking for leaks, damage, and proper drainage.
  • Plumbing and Electrical Systems: Inspecting for functionality and safety compliance.
  • Heating and Cooling Systems: Assessing HVAC functionality and efficiency.
  • Foundation and Structural Integrity: Identifying cracks, settling, or other red flags.

The inspector documents findings in a detailed report, often including photographs and recommendations.

Should You Attend the Inspection?

Yes, attending the inspection is highly recommended. Here’s why:

  • Learn First-Hand: Observe the inspector’s findings in real time.
  • Ask Questions: Address concerns or seek clarification about specific issues.
  • Understand Maintenance Needs: Gain insights into routine maintenance to preserve your home’s condition.

If an inspector discourages your presence, consider it a red flag.

Post-Inspection: Reviewing the Report

After the inspection, review the report with your real estate agent. Key areas to focus on include:

  • Major Defects: Structural issues, roofing problems, or faulty systems.
  • Safety Hazards: Electrical risks, mold, or pests.
  • Negotiation Opportunities: Use the findings to renegotiate terms with the seller if necessary.

Avoiding Conflicts of Interest

Ethical inspectors focus solely on assessing the property’s condition and should never offer to perform repairs for flagged issues. Their role is to provide unbiased evaluations, ensuring you can make informed decisions.

Final Thoughts: How Long Does a Home Inspection Take?

While the process may seem lengthy, the average home inspection, lasting two to three hours, is an invaluable step in buying a property. This limited timeframe ensures peace of mind, offering clarity on your investment. Your real estate professional will guide you through this critical stage, helping you make the best decisions.

If you have additional questions about inspections or other aspects of the homebuying process, Realty Network Group is here to help. Contact us today to connect with experienced agents who prioritize your interests.

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