Tag Archive for: Homebuyers

Why You Need An Agent: Inside The Mind Of A Buyer Agent

Those who are looking for a home to purchase might not know what they’re searching for in a property or in an agent, but it’s not their fault, especially if they’re first-timers. This is where having a trusted real estate advisor early in the process can be a saving grace for many who are venturing into homeownership. A buyer’s agent is that trust advisor, who must make “a continuous and good faith effort to find a property for the buyer,” assuming a contract with another agent isn’t in play. And with other conditions like keeping all confidential information relayed by the buyer, confidential as well as always acting in the buyer’s best interests, these agents play a vital role in the transaction. We recently sat down with one of our own to explore the mind of a buyer agent.

“Buyers have to be able to get in touch with you, their buyer’s agent,” emphasizes Ann A. Sheroda, Associate Broker with Realty Network Group [Clarks Summit, PA]. “When they can’t there’s frustration, distrust and quite frankly, abandonment to some extent.” A successful business is predicated on fostering relationships. Connecting buyers and sellers is critical for obvious reasons in a transaction, but the connection between the seller and their agent in addition to the buyer and their agent shouldn’t be minimized.

In the relationship between agent and buyer there’s either a sense of trust or distrust. From the onset, establishing this trust is important. One way to build upon it is in how the agent protects the homebuyer. “It’s the buyer’s agent who needs to protect their client,” underscores Sheroda. “If they won’t, who will? A buyer needs a good lender, title company and attorney. It’s unfortunate when an unsuspecting party hires the services of an attorney at the eleventh hour of the transaction or teams up with a lender, who many in the field will avoid whenever possible. A good agent will make sure the terms the purchaser needs are written up correctly in the contract. They’ll make sure inspections are in place to protect them. If your buyer previews six homes and none of them are any good and don’t match their needs, you show them six more.”

These are some of the advantages to using a buyer’s agent in today’s market. Buyers desire, whether they know it or not, someone who’s going to look out for their best interests. Though they might come at a lower premium during autumn and the early winter months, home prices are elevated and buyers need someone who has their back. The same can be said for mortgage interest rates and the potential for overpaying for a property. Buyer representation is a must-have for buyers heading into 2023.

Do drawbacks to buyer representation exist? There could be disadvantages for homebuyers entering into a business relationship with a buyer’s agent. Namely, you could become a hostage to poor representation. As Sheroda points out: “It can be brutal when you can’t get in touch with your agent and they don’t make time for you. Flexibility on the agent’s part is needed, but it goes further than that. Communication is critical. If you’re not committed to your clients and their need to acquire a suitable dwelling for themselves and their families, then it begs the question: Why are you representing them in the first place?” The worst situation a prospective buyer can find themselves in prior to signing an agreement of sale, is being locked into a contract with an agent who isn’t giving their client their best effort, isn’t acting in their best interests and isn’t staying in touch with them either. “Don’t think dealing with the listing agent is the answer,” asserts Sheroda. “Though listing agents in the state of Pennsylvania, who act ethically, can also represent the interests of the buyer through dual agency, a buyer should hesitate before retreating to the agent who has the property listed. A buyer needs to make sure they’re being properly represented in the transaction.”

“There have been numerous times in my seventeen years when a client of mine has been desperate to purchase, but when previewing homes that weren’t a match for them, I’ve told them they absolutely need to walk away,” explains Sheroda. “Buyers need to understand, no matter how rushed or pressured they feel to purchase, they should not buy just to buy. I recently had a situation where a contractor I knew was previewing a home with one of my clients, who also had an association with the contractor and requested he be present at the showing. The house needed a ton of work and it wasn’t worth the aggravation, in my mind, and it certainly wasn’t a fit for my buyer. My client asked me if she should consider purchasing the home. I told her she needed to walk away. Afterwards, the contractor said he gained even more respect for me, upon hearing the counsel I was giving to my client.”

Ann Sheroda believes finding an agent can and should be a process of trial by error. The buyer needs to be comfortable with their agent. They need to trust and form a rapport with them. “If I weren’t licensed in this business, I would still use a buyer’s agent,” affirms Sheroda. “There can be pitfalls along the way and every buyer needs guidance throughout all phases of their dealings: In the search process, pricing, negotiating, networking, through the transaction to settlement and beyond. Selecting an agent should be carefully done. In fact, I recommend prospective buyers and sellers who approach me to check my references – Interviewing past clients of mine and inquiring about my services and work ethic is a great starting point.” A referral might be one of the best ways an agent acquires business, but here are a few effective questions to ask along the way:

  • How long have you been licensed as a real estate professional?
  • Do you have a flexible schedule? Can it accommodate mine?
  • How long does it take buyers you’ve worked with to find and purchase a home?
  • What areas of real estate are your specialty?

Find other noteworthy questions in our homebuyer guide.

If you’re toying with the thought of joining forces with a buyer’s agent, what’s holding you back? The home is a hub for so much in our lives, it’s a memory-making machine. A home purchase is also a large one. You want an expert who will help deliver the best outcome for you and your situation – financial and personal.

Lastly, there are many wheels spinning in a real estate transaction. Get a professional, preferably a REALTOR®, who has access to other experts in the field. You want to work with someone who has an impressive network you can approach and pull into your homebuying process. You want excellent service every step of the way. Your trusted advisor, your buyer’s agent, will have a connection with reputable lenders, inspectors, attorneys, and the like. You can hopefully rest easier knowing that an agent, you have confidence in, attracts like-minded, successful professionals.

There’s more to explore when it comes to purchasing a property — consider these things before you go all in on buying.

/0 Comments/by

How To Know: Buy Your Dream Home Or A Starter House?

Buying a new house is an exciting experience, but it is also a huge life milestone. It is sometimes difficult to know whether you should purchase an affordable starter home or instead build or buy a dream house. There are benefits and disadvantages to each option, so here are three things you should understand to help you make the right decision.

Know the Benefits of Each Option

There are different benefits to buying a starter home or your dream house. It is up to you to analyze your current stage of life and determine which option is most beneficial for your unique situation.

Starter homes are more affordable than move-up homes (i.e. second home, typically a larger house), which you may want to live in for the rest of your life. They require less upkeep. You may even be able to rent them out in the future and generate additional income. However, starter homes generally need more repairs than newer ones. They are usually small in size and sometimes can be harder to sell, if/when you need the equity.

Your forever home, however, will be large enough to accommodate a growing family. Buying your dream home also gives you the opportunity to put down roots so you can avoid the hassle of moving again. The price tag is significantly higher and your dream home will likely need more upkeep than your starter house, depending upon its age.

Analyze Your Budget

The size of your budget has a direct impact on whether you purchase your forever home or a starter house. If you can only afford a small mortgage each month, you may have to buy a starter home to live within your means. If you have saved up enough money for a sizable down payment, you may be able to afford to purchase the house you’ll live in for the rest of your life. Knowing your budget and the features you desire in a home is important for finding the right house for a particular stage of life.

Understand the Costs of Each Option

Your new mortgage isn’t the only cost associated with purchasing a house. Homeowners insurance is a good investment because it covers the cost of any damage to the structure of your new house. It also covers the cost of any belongings that are stolen and any injuries that are sustained on your property. However, coverage does not extend to home systems or appliances. If you want to avoid unexpected expenses related to your plumbing, heating, electrical and cooling systems, it’s a good idea to consider buying a home warranty. While it’s an additional expense, it can save you money in the long run by dodging unnecessary repair costs.

According to one survey, less than 18% of Americans have home warranty coverage, however arming yourself with the right tools is essential for reducing unnecessary expenses for maintaining a home. When choosing a home warranty, decide which company is best by doing your research. You want to find a company with a great reputation for customer satisfaction. Furthermore, you want to ensure you’re getting excellent coverage for your home’s systems.

 

For some people, purchasing an affordable starter home is the best option. Others may prefer to go ahead and buy their dream house right out of the gate. There’s no one answer that’s right for everyone, but you must carefully weigh your options if you want to make the best decision for your family. Whether you choose to purchase a starter home or your dream house, purchasing a new place to live is a huge milestone for you! As always, we’re here to help you find the perfect place.

[This content is compliments of Well Parents]

/0 Comments/by

Finding A Home Before It Hits The Market

Surviving a seller’s market the likes of the past few years can be exhausting, especially for buyers. Many realize this isn’t the market for them. When most of the COVID restrictions to purchasing a home in Pennsylvania were lifted in June of 2020, homebuyers raced into bidding wars and other highly contested situations. The climate wasn’t on their side and some could argue it was a little caustic for those who needed to move due to career or lifestyle changes. Whatever the case, potential buyers are beginning to see some relief in terms of a smaller pool of competition searching for their dream home.

Nonetheless, a buyer’s market can only be seen in the distance and many would-be buyers remain secluded behind their firewall and smart devices, browsing homes from a greater orbit than most sellers or REALTORS® might care to admit. What opportunities wait in the wings? Is there a path to homeownership for those who are looking to buy, but have been disenchanted by the market over the last few years? Here are three main courses of action buyers should undertake now to stay ahead of the game. In the words of Din Djarin, “This is the way.”

Lock Down An Agent

The absolute best way to spot which homes are entering the market before they go live is to seek the services of a competent real estate professional. But not just any agent will do. We would suggest finding one who is experienced, successful, reputable, hard-working and well-connected. Isn’t this too much to ask? Not necessarily. In fact, even though this certainly narrows the field quite a bit, an agent with a few of these qualities will likely possess them all.

It greatly benefits you to work with a REALTOR® who has a large network already in place, one that’s been working for them. In markets, such as the Greater Scranton area, where housing supply is exceedingly low, real estate professionals are constantly in touch with one another. Get inside intel by utilizing their strengths to your advantage. Yes, you might be the “metaphorical bait” cast out to entice would-be sellers, but it could pay off. By asking your agent what other reputable agents in their business have been sharing, you could get the inside track to finding a home before others even know about it. Your agent may also have presented their services to other homeowners who were thinking about selling. They might know of homes, which are set to debut on the market in the immediate future. Your agent might also be seeing “coming soon” listings from other agents in their MLS.*

Hello Neighbor

While we’re not advocating for anyone to go on private property nor play the creeper in their search for the perfect home, there are some things you can do to increase your chances of buying in this market (or any market, for that matter). First, search out neighborhoods that are desirable, whose location fits the profile you’ve created. Next, walk the streets and find properties that grab your attention. Maybe there are for sale by owner (FSBO) listings or homes that are on the verge of foreclosure that interest you. Of course, your REALTOR® will assist you throughout this whole process, connecting with owners of FSBOs or those trying to avoid the bank from ceasing their property. They’ll see if the owner would have any interest in selling their property to you, a serious buyer. Often, FSBOs have little luck selling on their own, and thus are likely very interested in selling to an agent who has an interested party.

Homeowners’ associations (HOAs) can be another channel for prospective buyers as well. Have your agent reach out to the association to see if there have been rumors of residents who are about to move/sell. That internal chatter might be just what you need to locate your next house. Some of these HOAs regularly have community (digit) bulletin boards, which seek to share information with other members of their association.

Another great strategy to employ is direct mailings (letters of interest or postcards). While snail mail isn’t as effective for real estate agents to deploy, mass mailings straight from buyers could open some doors. This tactic will allow you to avoid the open market. It shows select homeowners that you’re very interested and would strongly consider buying their home at the right price. If you’re willing to put the extra time and money into your home search, this approach can be a game-changer. 

Don’t Be Shy

While it is important to routinely stay in touch with your REALTOR® and have them do a bulk of the heavy-lifting, don’t fear getting your hands dirty too! Those looking to buy, need to get out there and leave no stone unturned. They need to network, establish connections (prior to their search is ideal) and get the word out that they are serious about purchasing a home. Share this desire with everyone you meet, but especially family, friends, co-workers in addition to your sphere on social media. There might be opportunities on Facebook to join neighborhood or community groups (though some are private) and identify what you’ve been seeking all along. Social clubs, open houses, country clubs, professional and charity organizations can all be great avenues for gaining worthwhile information in your home search.

If you’re looking to gain the upperhand over other aspiring buyers, keep your ears attune to life events such as the birth of a baby, weddings, divorces, obituaries, just to name a few. These occasions are legitimate leads for those looking to buy.

 

Finding a home that’s “off market,” either presently not listed on the MLS (i.e. a pocket listing) or not for sale in the first place, can be challenging for most, but it can and has been done. Stay focused and stay up to speed with the inventory in a particular locality. Of course, lean on your agent at all times and good things will develop as time begins to take root in this grand adventure you find yourself in.

For more insight prior to purchasing a home, make sure to read this.

* According to local MLS requirements, unless a listing is filed at the Greater Scranton Board of REALTORS® office (GSBR) and a seller(s) has explicitly requested in writing that their property not be displayed on the Internet, the listing information must be disseminated by the MLS. Furthermore, any member of the National Association of REALTORS®, and likewise the GSBR, must adhere to the clear cooperation policy, which states that “within one business day of marketing a property to the public [i.e. a “coming soon” listing displayed on social media], the listing Broker must submit the listing to the MLS for cooperation with other MLS participants.”

/0 Comments/by

When Buyers Get More Realistic

,

Homebuyers, 2023 may be your year! There’s no guarantee next year will welcome a buyer’s market, but recent indicators are trending in that direction. Though properties are still moving for sellers in our market, they need to be priced right and there must be an element of enticement for prospective buyers, such as its location or curb appeal. Buyers can start getting down to business. They can deal with the market at their own pace and with very little pressure.

Some never caved to outside influences, especially those who could be patient and didn’t need to purchase a home. The winds in our market are shifting. Yes, inventory is bleak, scarcer than it was only three years ago. In July of 2019, 1,387 active listings sat on the market, this past July only a fraction of that – 553 listings – down 60%. And even less today with 532 residential listings currently active.* Many professionals in the industry thought the housing supply would recover by now, but that remains to be seen. Furthermore, the national supply is up year-over-year, over a 30% increase, the largest jump since 2017.

So where is this shift occurring? First, buyers are beginning to see the housing shortage disappear (at least on a large scale). Secondly, there’s a seasonal shift to buying and selling, this is traditional and it’s obvious, it’s “back to school” and it’s the onset of the autumn season, but it’s also temporal. Next, the pool of buyers has dwindled in recent months, placing more tension back upon the sellers. Buyers have faced climbing interest rates since the beginning of the year when they hovered near 3%. Though recent weeks have seen decreases to the mortgage rates, they currently sit around 5.5-5.6%. Buyer as well as sellers have been affected by these increases. Finally, buyers are regaining the upper hand over sellers. Now, they’re looking back to contingencies and leaning on them when signing sales agreements. When competition was fierce between buyers for over two years, this rarely happened.

“It’s certainly a breath of fresh air,” explains Ann E. Cappellini, Associate Broker for Realty Network Group. “There’s a stronger sense of hope for those looking to buy a home, though obstacles still remain.” Buyers can get more realistic nowadays. As long as they have the means financially, the way is less burdensome. With less resistance, homebuyers can use contingencies, such as home inspections to weigh their options, if and when sizable issues present themselves.

When the financial risks of an escrow deposit arise, it’s in the buyer’s best interests they utilize inspections, mortgage and/or appraisal contingencies. According to Redfin, escrow is a legal arrangement where typically a third party will temporarily hold the buyer’s deposit (often used as a down payment or toward their closing costs) until the deal is consummated. In Pennsylvania, the listing Brokerage will generally hold the earnest money deposit (not a neutral third party), though this isn’t always the case. “Escrow matters in Pennsylvania, like many other states, are held in strict compliance with the Real Estate Licensing & Registration Act (RELRA) and the state’s agreement of sale, which has been formulated by the Pennsylvania Association of REALTORS® (PAR),” emphasizes Cappellini. “During the homebuying escrow period of a sale, though the deposit might be held in the listing agency’s escrow account, the money may not be commingled with other funds and furthermore not released to either party, if the Broker is in receipt of a verifiable written notice that there’s a dispute over those funds and it’s subject to mediation or litigation.” Escrow is a serious matter in real estate, especially in our state, and as such, RELRA and PAR specifically outline how earnest money is to be handled from the beginning to the end of all transactions.

Yes, contingencies can kill a transaction and they certainly impact a deal, but they’re in place to protect buyers. These protections are good for both parties, even though it doesn’t always appear so for sellers. Perhaps a deal goes south due to one of the clauses employed by the buyer. It doesn’t go as expected and the buyer is able to receive their deposit monies back. On the flip side, if it’s understood that all the contingencies are met and the buyer walks away or defaults on the deal, the seller might be entitled to the deposit and can also sue for specific performance. Whether you’re a buyer or seller, make sure to discuss with your REALTOR® how contingencies in a real estate transaction can impact you. You’ll be glad you did!

/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

NEPA’s Most Walkable Communities

,

Summer is the best time of the year to explore Northeastern Pennsylvania (NEPA)! Alright, I lied, my favorite time of the year in our region is early autumn with cider donut runs, changing foliage and high school football back on the menu, but summer is easy on the eyes too. There’s plenty to see and do in the Greater Scranton area and we hope you can set aside some time to get busy and explore.

NEPA has diverse environments with everything from hiking trails to city streets and commercial businesses in the downtown areas of Scranton, Wilkes-Barre, Dickson City, to name a few. You can explore much of this region from our “search by city” page.

Over the past two years, homebuyers have looked at their purchase slightly differently. Now, some buyers desire spaces where they can work-from-home. They want living spaces without open floor plans to allow for remote work in addition to having areas for their children to complete their homework and other ways to escape. Are open floor plans going out of style? Maybe, but the pandemic brought us here and we’ve taken notice of this trend in recent months. A modification in purchasing habits certainly happens from time-to-time. That’s why there are trends in the first place, but this one came on rapidly. Solitude in the home is welcomed and some buyers need walls for crying out loud. But if you can’t break from an open-concept home, perhaps living in a walkable community will help ground you and alleviate some of that stress.

In Northeastern Pennsylvania, walkable communities are slightly harder to discover, because after all, we have many rural areas. On the other hand, you can get just about everywhere in Scranton. While various parts of the city are certainly walkable and unique to the area (Green Ridge, North Scranton or the Hill Section immediately come to mind), car traffic has its day too. Is Scranton walkable? Yes, but it didn’t make our list. 

The tiny town of Jessup is nestled between Mount Cobb and the Lower Valley (Blakely) with a good mix of dwellings. There’s a rich heritage here, especially from those of Italian-American descent. The town is laid out well with the Casey Highway (Route 6) cutting through/above town, yet not obtrusive in any way. Jessup has a few parks for its residents to frequent, including Jessup Memorial Field Park & Kids Korner and Eales Preserve (a nature conservancy). Another bonus for inhabitants is the ease of access to the Lackawanna River Heritage Trail, in the north section of town. Shops and restaurants are within walking distance and most sit on Church Street or Hill Street. One drawback is walking access to grocery stores. For instance, the nearest one is approximately 1 to 2.5 miles depending on where you live. While some errands require car use in Jessup, the town does feature tourists at various times of the year and has access to public transit. Is Jessup walkable? Yes, but it didn’t make our list either.

Nonetheless, here are NEPA’s four most walkable communities:

Pittston

Location – Northeast of Wilkes-Barre, southwest of Scranton, in Luzerne County
Access – Route 11 and within close proximity to Interstate 81 and the northeast extension of the Pennsylvania Turnpike
Walk Score – 76 
Highlights – Campbell’s Ledge is close to Pittston and for those who love to walk/bike, hop on the Lackawanna River Heritage Trail
Parks – Riverfront Park, Sullivan Park, Jefferson Park, James Clark Park, Albert West Park
Amenities – Restaurants and shops fill in Main Street as well as across the bridge in West Pittston (on/off Route 11)

Dunmore

Location – Neighboring Scranton on its east side
Access – Ranks very high with the ability to connect to Interstates 81, 84, 380/80 and the Casey Highway, all directly from town
Walk Score – 74
Highlights – Walking and biking around town is relatively easy with the wonderful sights of the Dunmore Cemetery and Marywood University. Scranton is relatively close too.
Parks – McHale Park (Dunmore Community Center), Sherwood Park, Saint Anthony’s Memorial Park
Amenities – Restaurants and shops along South Blakely and East Drinker Streets

Tunkhannock

Location – Northwest of Scranton in Wyoming County
Access – Route 6 and Route 29
Walk Score – 61
Highlights – Some of the cutest shops you’ll find outside of Clarks Summit and Honesdale, businesses are coming back into town and if you visit, you’ll see why
Parks – Riverside Park, McCord Park, Lazybrook Park
Amenities – Wonderful access to stores, restaurants and more on Tioga Street or Bridge Street; the Bypass has also helped keep much of the business/commuter traffic away from town

Old Forge

Location – Southwest of Scranton
Access – Quick ability to connect to the northeast extension of the Pennsylvania Turnpike, Interstate 81 and Route 11
Walk Score – 59
Highlights – Pizza is a favorite here, but you probably already knew that
Parks – There are nearby parks, which are worth the trip, but other than softball and little league fields, there are no parks in this borough
Amenities – Superb access to restaurants, stores along Main and Oak Streets, grocery stores would need to be accessed by car

/0 Comments/by

Post Pandemic: What Does Real Estate Look Like?

There’s more uncertainty in the national real estate market than we’ve seen in some time. We’re two years beyond the onset of COVID and while we’re past many of the main health concerns of the virus, obstacles still remain. Remote work is likely here to stay, thus there are adjustments to housing post pandemic, which continue to unfold and impact the market. Is time running out for sellers to take advantage? Will buyers have a better chance of acquiring real estate being that their purchasing power has somewhat diminished? What’s in store for our market in the Greater Scranton area?

The future of real estate isn’t as dark as some would have you believe. The chance of a housing crash, the likes of 2007-2010, lacks much supporting evidence. In fact, the exact opposite might be true. Many experts are calling for a busy spring market this year and even Zillow projects home appreciation to hover around 9% for 2022. Many of the conditions, which existed prior to the housing bubble, simply aren’t present. When the market began to tank fifteen years ago, there was a surplus in housing inventory, mortgage lending resembled the Wild West and foreclosures occupied their fair share of the market.

Today, the narrative is quite different. There are shortages in markets throughout the country. Here in Northeastern Pennsylvania, our month’s supply of homes continues to unimpress buyers: year-to-date we sit at 1.29.* A magnifying glass would be required if the inventory got any smaller. In the four years, which consisted of the housing bubble, the market was heavily in favor of buyers and saw surpluses of housing between 7.3 and 9.6 month’s supply, according to the National Association of REALTORS®. Furthermore, lending restrictions are much tighter than those that existed fifteen years ago. In 2010, the Dodd-Frank Wall Street Reform and Consumer Protection Act became law with its eye toward consumer protection and a reform of the lending industry, especially riddance of predatory lenders. In general, those who are approved for a mortgage in 2022 are much more qualified than those approved even a dozen years ago. Finally, negative equity in the national housing industry has reached its lowest level over this same period of time. Much fewer homeowners are underwater than were during the housing bubble.

The future of housing post pandemic is not scary. Actually, 2023 will probably resemble 2019 more than it will last year. Inventory will bounce back, but that might take a year or two. The immediate future for sellers does pose a threat to them receiving top dollar for their investment. “There’s a little insanity in our market right now,” maintains Amy L. Kiesinger Bohenek, an Associate Broker with Realty Network Group. “Listing agents are faced with multiple showings and offers, sometimes over asking price. The appraisal process can be cause for a headache from time-to-time too. When a home doesn’t appraise, where does that leave both parties, especially the seller?” Despite this, the window for bidding wars and high price appreciation is closing. Despite climbing mortgage rates, demand for housing remains strong. Price appreciation will continue to trend up, albeit home prices shouldn’t be in the neighborhood of 18%, like much of last year. Sellers in our region should act sooner than later if they want to take advantage of this market they find themselves firmly entrenched.

Buyers must hang in there if they have a desire to pursue real estate anytime soon. The question remains, how can you sit tight when your purchasing power appears to be vanishing? Homebuyers have seen the average thirty-year fixed mortgage rate increase to roughly 5.3%, which is about 2% higher than it was at the beginning of the year. Many first-time buyers are already struggling to get their foot in the door and compete with others, including investors. Higher rates, for those who require a mortgage, generally mean they’ll have less to contribute toward a monthly payment. That’s why it’s important for buyers to have a plan, stick to a budget and know what they can afford.

In addition to the factors listed above, real estate in Northeastern Pennsylvania continues to have affordability as its ally. Year-to-date, the median home sales price is $179,000 (up 7.7% from the previous year).* New listings are down slightly, but inventory is expected to pick up. The groundwork for homes to appreciate at a slightly slower pace with small improvements in inventory is being laid. With an increase in buyer and seller competition that’s sure to come this spring and summer, being too conservative, will surely impact homeowners thinking about selling.

 

* Greater Scranton Board of REALTORS®

/0 Comments/by

Thanksgiving – Best Time For Homebuyers & Sellers?

What if we told you we were coming up on the sweet spot for buying and selling in real estate? Would you believe us? Real estate has a long tradition of being a seasonal market, especially in Northeastern Pennsylvania where we undergo four seasons. Alright, perhaps we only have three – late summer, long winter and rainy spring! Nevertheless, if and when spring sets in, motivated sellers have their sights set on unloading their home for top dollar. Over the past few years, there’s been a slight shift in the data in how consumers have responded. And of course, COVID-19 has severely affected traditional real estate trends in our Greater Scranton market.

The trends over the past nine months show some of those glaring differences:

Month Sold Listings Year-Over-Year % Active Listings Year-Over-Year %
October 388 68.7 665 -51.5
September 335 46.9 667 -50.8
August 361 36.2 692 -50.9
July 350 29.6 811 -41.5
June 141 -41.2 856 -36.3
May 107 -57.2 888 -30.6
April 156 -23.2 968 -19.0
March 167 -7.2 1046 -8.5
February 156 -1.9 1026 -11.6
January 173 16.1 1079 -8.9

* Greater Scranton Board of REALTORS® statistics

The sold listings from this past May, June, September and October clearly point to disruptions the pandemic has imposed on real estate in Northeastern Pennsylvania all while housing inventory continues to fall. Regardless, if we’re trending back to some sense of normalcy in real estate, Thanksgiving time might be the sweet spot for buying or selling real estate.

If you’re seriously considering purchasing a home, November and December certainly can make their case as to why you should make a move into their corner. Generally, autumn has been an excellent time to buy a property. In fact, according to real estate information company Attom Data Solutions, some of the best days to buy are November 9, December 4, 7, 26 and 29. Boxing Day, December 26, a monster shopping day on the calendar, is actually the single best day to purchase a home!

As we approach the heart of winter, buyers notice some of the lowest prices of the year. In fact, low mortgage rates continue to provide many with the opportunity to purchase, while having more buying power. Though experts believe the rates will stay low for the start of 2021, a change in leadership, bond prices and the state of the economy could certainly change that.

Believe it or not, November and December likewise present a good situation for some who are looking at selling. At the end of the year, buyers typically have less choice and homeowners seeking to sell may take advantage of these circumstances. The fact of the matter is this: There’s generally less competition for sellers, whereas there’s more motivation and perhaps the lure of year-end tax benefits for buyers. If buyers are seriously considering homeownership, this creates ideal conditions for sellers, who are typically competing with lower inventory by year’s end. Today, in the Greater Scranton area, our housing inventory is incredibly low! Furthermore in recent years, more homebuyers are less fixated on “summer buying” as well as school schedules (some don’t even have children) and if they have time constraints, their motivation can play right into the hands of sellers.

“Traditionally November has always been a really terrific month for sales because you’ve got people who have been out there looking saying, look, another year is about to pass. Let’s focus”

Depending on your specific situation right now, this time of the year might be the sweet spot for buyers and sellers alike. Yes, you’ll find highly motivated sellers in the market, but there won’t be a shortage of motivated buyers either. Given the right mix, it might be perfect timing to buy and sell!

 

If you’re a buyer or seller and have more questions, see our (buyer/seller) FAQs or contact us today.

 

/0 Comments/by

Readers’ Choice Awards

Over the years, we’ve been thankful for support from our clients as well as our professionals, who’ve been instrumental and vital to our success. They certainly are motivation through the obstacles brought on from this pandemic. As we can attest, connecting buyers and sellers requires new approaches in order to be successful during this surreal year. So far in 2020, the Greater Scranton market has shifted from being balanced to one now highly in the seller’s favor. The absorption rate (the rate at which homes are selling over a specific period of time) has dropped from 6.44 (last July) to 4.02 (this July), while inventory continues trending downward.* Though housing in Northeastern Pennsylvania is among some of the most affordable in our nation, affordability is dropping in many markets and difficult challenges for both buyers and sellers lie ahead.

Our network of REALTORS® will help you navigate these obstacles and put you on the path toward homeownership or vice versa, if you need to sell.

Please spread the love and vote our firm, Best Real Estate Agency and Best Real Estate Website in this year’s Readers’ Choice Awards. [<– This has since ended, but you can see past winners here.]

We sincerely appreciate your time and support!

* Greater Scranton Board of REALTORS® stats
Readers’ Choice Awards – Times-Tribune

/0 Comments/by

How To Find Your Next Home While Sheltering In Place

It’s been a trying time for homebuyers and sellers since mid-March. They’ve had to put their plans on hold. Their real estate future has been met with uncertainty, but of course, sadly some have lost their jobs and are either in no position to purchase property or are afraid of losing their home. Thankfully, mortgage loan forbearance has rescued many in this post-COVID-19 society. In fact, loan forbearance won’t negatively affect your credit. (Learn more about it here.) There are others who have surprisingly found themselves in a better position than they did at the start of the year: People have realized how much they dislike their jobs by having time to reflect and/or working from their residences; some are “earning” more on unemployment compensation than they did when they were employed; and some, who have families, are working from home while saving money on daycare costs (though that’s coupled with homeschooling these days).

It is a crazy world we live in right now. It seems as if my third grader had written this tale – a contagious virus attacks our cities, school’s out (as well as our supply of toilet paper) and when we opened our pool in May, it began to snow.

Presently, real estate is opened for business in only twenty-four (yellow) counties in Pennsylvania, but it’s not “business as usual” yet. There are precautions taking place in those counties resuming in-person activities. Over the next few weeks, we could see real estate showings and in-person meetings resume in parts of Northeastern PA. Homebuyers, who are patiently waiting and believe they’ll be in a position to buy in the upcoming weeks, can take steps to be ready for action. We’ve outlined six ways you can find your next home while sheltering in place:

  • Use Google’s Street View option to explore areas of interest. This tool allows you to catch a view of a house or an entire neighborhood without even taking a step outside.
  • Time is a precious commodity. We value it and we know you do too! Therefore, when you discover areas of interest, estimate how long it will take you to commute to and from work.
  • Research area schools and learn how they stack up against other districts in your community. GreatSchools is one place to look, but there are others as well. Gain insight into our area school districts and properties available for sale within those districts.
  • Research local cities to find out all they have to offer. We’ve done a little research for you on some of the popular cities of NEPA, including Archbald, Carbondale, Clarks Summit, Dickson City, Dunmore, Factoryville, Moscow, Old Forge and Scranton.
  • Connecting with locals is a great way to gain insight into a neighborhood. Scour the web for resources from local communities as well as social media groups you can join.
  • Make sure to equip yourself with crime data for neighborhoods where you’re thinking about purchasing a home. This is one way to be informed about how safe or potentially dangerous an area might be.
  • Find a buyer’s agent you can trust, who has experience selling in various market conditions and who’s knowledgeable about the areas you’re interested in.

For more insight, check out 8 Ways To Test-Drive A Neighborhood While Sheltering In Place.

/0 Comments/by