Tag Archive for: Homebuyer

What Does “Move-In Ready” Really Mean?

,

Ah, those were the good old days! When you could move right into your home, set up shop, and begin life anew. Leaving the closing table and settling into a home immediately is certainly an added bonus, especially when the new homeowner doesn’t need to tackle any significant work. Unfortunately, this isn’t an option for everyone. And quite frankly, even in years past, move-in ready living wasn’t as common as it perhaps is today. So what are the advantages of buying a move-in ready home, and what does move-in ready really mean?

Define “Move-In Ready”

Let’s look into the latter, first. In real estate, “move-in ready” refers to properties that require little to no repairs and would be classified as being in good condition. Often these homes have functioning utilities and are plugged into them. They might also have more modern touches, such as updated fixtures, appliances, and fresh paint. Essentially, the new owner wouldn’t necessarily need to undertake any work to bring the house up to snuff before occupying it. Modern homes frequently fall into this category, as they’re built or renovated to meet the needs of today’s buyers.

Is The Home You’re Considering “Move-In Ready”?

If it’s important to you, you’ll want to assess whether a home you might consider purchasing is ready for immediate occupancy. There’s a barometer of evaluations that a prospective homebuyer can utilize to gain a better sense of a home’s status. Obviously, there are a number of visual tests that someone can perform while previewing a home. First, the exterior of a property should be canvassed. Taking into account the condition of the landscaping, siding, windows, and roofing provides a sense of how the upkeep has been and when upgrades could be necessary.

Next, a buyer would want to consider not only the structure of the home as well as its exterior, but its interior health too. What shape is the flooring in? What’s the status of the major appliances? Has the home been repainted recently? Is the home relatively clean? Are there any signs of insect or pest infestation? The prospective party would also want to know if the home was updated in any way and if the security features, like smoke detectors or cameras, were installed properly and functionally. In many cases, move-in ready homes overlap with modern homes that feature sleek designs and state-of-the-art systems, providing convenience and appeal.

Finally, buyers should always request a copy of the seller’s property disclosure, if one exists. This is where they can discover what issues the seller knew about and what remedies, if any, were taken to correct them.

Advantages Of Buying “Move-In Ready”

While there could be reasons why moving on from a “move-in ready” home is the wiser choice, such as budget flexibility or making significant changes and tailoring a home to your specific tastes, it often resides with a person’s lifestyle. When financial considerations don’t hinder the home-buying process, a buyer might need to move quickly on a purchase. They might not have the time to pursue renovations because of a demanding work schedule or other commitments. Thus, the ability to immediately occupy a property is one sure advantage for buying a move-in ready home.

Another advantage of buying something that’s move-in ready is some added peace of mind. Typically, move-in ready is synonymous with well-maintained. These properties present lower risk, as hidden issues are generally less likely to rear their ugly head. Additionally, many modern homes marketed as move-in ready often feature energy-efficient systems and high-quality finishes, reducing the likelihood of costly repairs or upgrades in the near future.

A further benefit of purchasing a move-in ready property might be the new owner’s ability to refrain from either renovating areas of the home themselves or overseeing projects as they’re being performed by licensed contractors. Move-in ready homes, especially those aligned with the design and functionality of modern homes, provide buyers with convenience and a home that’s in line with current trends. Finally, a move-in ready home will appeal to a larger pool of buyers, which would be of benefit to a buyer if they needed to quickly resell a home soon after they themselves purchased it.

To Wrap Things Up

Move-in ready homes are usually modernized and align with some of the current trends in the industry, but they won’t entice everyone. Whether you’re a homeowner potentially looking to sell or a buyer searching for a property that will suit your needs, you’ll want to have some familiarity with what makes a home move-in ready and how this information could affect your situation. As always, it’s important to work with a trusted guide who has your best interests in mind. Modern homes, especially those marketed as move-in ready, often present an ideal opportunity for buyers seeking convenience and minimal maintenance.

The licensed professionals at Realty Network Group are experienced and equipped to handle a variety of scenarios as they relate to your home, whether it be move-in ready or not.

/by

Why the Mind of a Buyer Agent is Important

Understanding the Mind of a Buyer Agent: What Today’s Buyers Should Know

For those entering the housing market, especially first-time buyers, navigating the complexities of real estate can feel overwhelming. Many buyers aren’t entirely sure what to look for in a home or in a real estate agent. This is where a buyer’s agent—a trusted advisor in the real estate transaction—becomes indispensable. Not only does a buyer agent prioritize the buyer’s needs, but they also “make a continuous and good faith effort to find a property” that aligns with the buyer’s goals and budget, as long as no other contractual obligations are in place.

Why Trust and Communication Matter in the Buyer Agent Relationship

The relationship between a buyer and their agent should be founded on trust, built from the initial meeting. A buyer agent’s commitment is to protect their client’s interests, ensuring confidentiality, negotiating on their behalf, and safeguarding them from pitfalls. As Ann A. Sheroda, Associate Broker with Realty Network Group, highlights, “Buyers have to be able to get in touch with you, their buyer’s agent. When they can’t, there’s frustration, distrust, and, quite frankly, a sense of abandonment.” Successful real estate transactions are rooted in strong relationships; a trusted buyer agent fosters this bond, ensuring the buyer feels supported every step of the way.

In the mind of a buyer agent, the top priority is ensuring that the buyer’s experience is smooth and informed. An agent committed to communication and transparency will be an invaluable guide, from understanding market conditions to making smart property decisions.

Protecting Buyers’ Interests: The Core of a Buyer Agent’s Role

In a competitive market, buyers need an advocate who will help them secure the best property for their needs and budget. A buyer’s agent plays a critical role in this, acting as the buyer’s safeguard throughout the process. “It’s the buyer’s agent who needs to protect their client,” Sheroda emphasizes. “If they won’t, who will?” From recommending reputable lenders, title companies, and inspectors to ensuring the contract terms favor the buyer, an agent’s responsibilities extend far beyond the initial search. For instance, they coordinate property inspections to ensure that potential issues are addressed before closing, preventing buyers from investing in a money pit.

The mind of a buyer agent and their connections provide clients with access to trustworthy professionals who help secure a seamless transaction. Sheroda shares, “If a buyer previews six homes that aren’t suitable, it’s our job to show them more until we find the right fit.” This commitment reflects an agent’s dedication to the buyer’s goals rather than rushing the process.

Why Every Buyer Should Have Representation in Today’s Market

With home prices at record highs and mortgage rates fluctuating, it’s critical for buyers to have someone in their corner. A buyer’s agent not only helps clients find suitable properties but also negotiates on their behalf and advocates for them at each stage of the transaction. Representation has become a must-have for buyers, particularly given the financial stakes in 2023’s housing market.

However, entering a buyer-agent relationship without care can have drawbacks. Sheroda points out that unresponsive agents can leave buyers feeling neglected. “It’s frustrating when you can’t reach your agent, and flexibility on their part is essential,” she says. Good buyer agents prioritize communication, understanding that if they’re not committed to their client’s success, they risk failing them during one of the most important purchases of their life.

Buyer Beware: The Risks of Poor Representation

One of the worst situations a buyer can face is feeling trapped in an agreement with an agent who doesn’t meet their needs. Lack of communication, poor availability, and a disregard for the buyer’s best interests can leave a buyer feeling unsupported. This can be particularly damaging when unexpected challenges arise in the home search or during contract negotiations. “Don’t think dealing with the listing agent is the answer,” Sheroda advises. In Pennsylvania, a listing agent can represent both buyer and seller through dual agency, but this often results in a less personalized experience. Instead, a dedicated buyer agent ensures the client’s needs remain the top priority.

The Importance of Trust in Real Estate Guidance

In her 17 years of experience, Sheroda has seen many scenarios where clients felt pressured to make an offer. She advises buyers to avoid purchasing out of urgency. “I once had a client considering a property that needed significant repairs, and I advised them to walk away,” she recounts. Sheroda’s client appreciated her honesty, understanding that her guidance was based on the client’s best interests. A good buyer agent provides objective advice, even when it means advising a client not to make an offer.

Sheroda advocates for a “trial by error” approach to selecting an agent. Buyers should find someone they feel comfortable with and who they trust to act as their advocate. “If I weren’t licensed, I would still use a buyer’s agent,” she says, underscoring the value of an agent’s expertise. With insights on market conditions, negotiation strategies, and networking, buyer agents offer comprehensive guidance from the initial search to settlement.

Selecting the Right Buyer Agent: Key Questions to Ask

When choosing an agent, buyers should consider asking about their experience, availability, and area of specialty. A good agent has a network of reputable professionals, from lenders to inspectors, ready to assist in the homebuying process. Buyers can also benefit from interviewing an agent’s past clients to learn about their experience and reliability.

Here are a few essential questions for potential agents:

  1. How long have you been licensed as a real estate professional?
  2. Is your schedule flexible, and does it align with mine?
  3. What’s the typical timeframe for buyers you work with to find and purchase a home?
  4. Do you specialize in certain areas or types of real estate?

Why Buyer Agents Matter in Today’s Market

Buying a home is one of the most significant investments in a person’s life. Working with a buyer agent who prioritizes trust, communication, and the buyer’s best interests makes all the difference. A trusted advisor helps clients avoid common pitfalls, negotiates on their behalf, and connects them with the resources they need to make an informed decision. An effective buyer agent is not only an advocate but a resourceful partner who helps buyers achieve the best possible outcome in their home search.

For anyone considering entering today’s competitive market, an experienced buyer agent is a critical asset, ensuring that each step of the journey is informed, strategic, and supportive. With the right agent, buyers can navigate the complexities of real estate with confidence and peace of mind.

/0 Comments/by

Buying A Home? Consider These Four Things First

The most important things for homebuyers to consider when purchasing a home are:

  1. Being able to afford a home based upon one’s situation in life
  2. Not over-paying for a home based upon its market value
  3. A home’s location – What do the neighborhoods, school districts and surrounding area look like?
  4. A house’s age and the age of its components

Notice how security is an aspect you can’t ignore with the prospect of purchasing a home. It’s only natural to have hesitation about buying a home as it’s a big investment. Furthermore, feeling a sense of security goes beyond the financial commitments, which are required from buyers as they move forward with their purchase. If you lack security, you’ll be without peace taking another step toward homeownership. It’s also important to note that three of these four considerations listed above directly relate to money.

Tops on the list is paramount, because if your circumstances in life won’t allow it, you can’t or perhaps shouldn’t purchase a home. Home affordability comes in all shapes and sizes. What might be affordable to buyer A, isn’t feasible to buyer B. Being able to afford a home relates to the ability to budget properly for each and every cost associated with the purchase. Your debt-to-income ratio might be the surest way to prove to yourself as well as a lender, you’re able to follow-through with a home purchase. Besides your debt-to-income ratio, you should also reflect upon how much of a mortgage you can afford? You may be approved for borrowing a certain sum, but that doesn’t necessarily mean you should take on that loan. The underwriters who dabble in rating an applicant’s ability to purchase will ultimately examine a buyer’s gross income, outstanding debt, assets and liabilities. They’re going to probe to see what demands have been placed on the buyer’s income. They’ll also forecast, as best they can, to ensure the bank’s ability to get paid back in the future isn’t at risk.

Secondly, buyers and sellers have been more cautious with the drastic increases in home appreciation since the onset of the pandemic. While the pandemic has vanished, home prices continue their upward climb. Since the beginning of COVID, when real estate sales were restricted, home prices have risen 54.8% in the Greater Scranton market.* A market recently named as the most affordable in the country. Again, while there are sales to be had right now, in fact we’re entering a time of the year where homebuyers will discover some of the best premiums around, buyers should exercise prudence. How long do they intend to live in the place they’re thinking about buying? Their offering on a property may not align with its value and might place undue hardship on the homeowner, if they need to sell a few years after their purchase. We would recommend living in a home for at least seven or more years at the risk of taking a loss. Though homes are generally a solid investment, there are no guarantees. If you need the freedom to move at a moment’s notice, within a shorter time frame from when you purchased the home, you might want to refrain from buying until your circumstances change.

For some buyers, a home’s location is the first litmus test it must pass. If the setting isn’t appealing or the property – though it has virtually everything the buyer is looking for – is in a non-ideal section of town or the purchaser has a family/children and thus schools are high on their list, then it’s hard to overlook locale. We would suggest reviewing pros and cons of various listings as it relates to their whereabouts. You can’t change their bearings, so start there and rate how important distances to work, school, daycare and shopping are, for instance. Look into traffic patterns and noise levels in particular parts of town. If school districts are important to you, target homes in the districts you would prefer to live. Scope out the home’s surroundings. Catch a glimpse of the area on the weekends, during the week, day and night. Is the neighborhood kid or pet friendly? Is the home in a walkable community?

Finally, the vast majority of homebuyers aren’t acquiring a new or newer construction home, one that’s less than ten years old. Being that many buyers are moving into a house that has been around the block, we’d certainly recommend a home inspection as a contingency to the purchase. Besides that, over time, a home’s elements begin to display patterns of behavior and likewise, deterioration. What parts of a home should you keep your eyes on? Windows, roof, HVAC (heating/cooling) system, foundation, to name a few, but again, call in the professionals, such as a reputable home inspector. They’re more than capable of assessing the age of a house’s components/appliances. A few decades after the construction of a home, repairs become more common, and thus as a prospective buyer it’s important to understand what your yearly maintenance/repair costs might resemble.

 

* Greater Scranton Board of REALTORS® stats; median homes sales for March 2020, October 2022

/0 Comments/by

When Buyers Get More Realistic

,

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!

/0 Comments/by

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

,

The search for a home begins online. It has for some time. In fact, consumers are surveying the terrain and pouncing on anything that hits the market like a school of piranha, unsure of when their next opportunity to eat will surface. You can’t blame homebuyers either. Today, the ones that remain, still looking to purchase, have repeatedly struck out in their attempts for homeownership. Now, feeling the pressures of inflation, higher mortgage rates and rising home prices, they’re looking to get in before the door closes on their “must-haves” and what they can afford.

The winds of a housing shortage have shifted, new listings with a slowdown in purchases have given way to more selection – finally some welcomed news for prospective shoppers. Yet the search becomes very real for them as they exit the digital environment, previewing actual houses, and doing so in a more urgent manner than buyers did only three years ago. Buyers should rely on the services of a real estate professional whenever possible, because representation is critical for protecting the interest of buyer-clients, especially in this market. And you probably have questions.

What type of real estate professionals exist today and what do they look like? There are four main distinctions homebuyers should be aware of, and they are: real estate agents, REALTORS®, REALTORS® with an ABR® designation and Brokers.

  • Real estate agents – Independent contractors who are connecting buyers and sellers and are licensed to help others rent, buy or sell real estate. Licensure requirements vary from state to state. These professionals should not be confused with REALTORS®, but regularly are.
  • REALTORS® – Licensed real estate agents who are also members of the National Association of REALTORS® (NAR) and must likewise adhere to this organization’s code of ethics. These professionals can include real estate appraisers, salespeople, Brokers and more.
  • REALTORS® with ABR® designation – Members of NAR who have a particular skill set and frequently work with homebuyers in their day-to-day business. These professionals are usually more in accord with the trends affecting buyers and are equipped with knowledge to help their buyer-clients succeed.
  • Brokers – Licensed professionals who further their education, and if they so desire, can open their own real estate firm, hiring independently contracted agents to work under them. They perform many of the same tasks as the agents they hire, but there’s a distinction between the two.

A handful of real estate agents become Brokers after a period of time in the business. Often those pursuing licensure as a Broker are ready to dedicate more study to this field. They’ve firmly planted themselves within the real estate turf surrounding them. Having said that, real estate agents who aren’t Brokers can and are certainly encouraged to dedicate more time and study to the business as well.

What is it like to be a Broker? “The dynamics of real estate have changed significantly over the past five years, but the standards of practice remain the same,” emphasizes Dianne Montana, Principal Broker for Realty Network Group. “I enjoy working with a talented group of professionals, helping them thrive, ultimately paving the way for our clients to buy and sell successfully.” Being a Broker allows for additional independence (more than solely being an independent contractor), but with that comes greater responsibility. Brokers are responsible for supervising the agents in their Brokerage and ensuring the office/company is in compliance with national and state real estate laws and regulations. Real estate Brokers face their fair share of liability as well, and as such, it’s important for Brokers to possess an advanced skill set in order to be both distinguished and ethical.

As a homebuyer, which of these four types should you seek when actively looking to acquire property? There’s no clear cut choice, but a REALTOR® is definitely a great starting point. Those specializing in servicing buyers generally provide the best opportunity. Furthermore, a REALTOR® with an ABR® designation could be a perfect match, especially for first-time homebuyers. Can you go wrong with a Broker? Usually not, but it’s imperative that those pursuing real estate do their due diligence in finding a professional they can work well with, one who actively listens and has a tract record for success.

/0 Comments/by

Can a House Fail an Appraisal?

,

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?

/0 Comments/by

Top 3 Reasons To Purchase A Home

,

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. If you’re considering buying your first house, 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.

When Buying Your First House 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.

Why Buying Your First House Now Makes 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®

/0 Comments/by