Tag Archive for: Homebuying

Getting A Home Loan When The Cards Are Stacked Against You

We all find ourselves in non-ideal situations from time to time. This happens financially for many of us, whether due to an unexpected setback, financial habits that compromised our budget or simply feeling underprepared for the home-buying process. These challenges might make you think that homeownership is out of reach, but with the right strategies, achieving your dream is possible. Understanding how to get a home loan — even when the odds aren’t in your favor — can make all the difference.

At Realty Network Group, we understand the hurdles you may face. Our experienced agents and connections to trusted local lenders are here to guide you every step of the way. Whether you’re buying your first home or working through financial challenges, we can help you find a solution.

Five Factors That Can Prevent Loan Approval

Before exploring the strategies for how to get a home loan, it’s essential to understand the common reasons why lenders might deny a borrower. Here are five significant factors:

1. Unstable Employment

Lenders prefer borrowers with steady, documented income. If you lack a consistent work history, particularly over the past two years, it could be a red flag. This is especially true if you’ve frequently switched industries or have gaps in employment.

2. Low Credit Score

Credit scores play a critical role in determining whether you qualify for a loan. Many people underestimate how much weight lenders place on this number. Scores below 500 can make it difficult to secure financing, though some programs may still be available with additional requirements. For a more in depth approach to improving your credit scores, check out these seven practical steps for elevating your score.

3. High Debt-to-Income Ratio (DTI)

Your debt-to-income ratio reflects how much of your monthly income goes toward debt payments. Usually a ratio over 43% (specifically in relation to back-end DTI) signals to lenders that you would be a higher-risk borrower. If you’re carrying significant credit card, student loan or car loan debt, this ratio could prevent you from qualifying.

4. History of Bankruptcy or Foreclosure

If you’ve gone through bankruptcy or foreclosure, lenders may require a waiting period of two to seven years before approving your loan. These events signal financial instability, making it harder to secure a mortgage.

5. Insufficient Down Payment

While there are loan programs with lower down payment requirements (i.e., FHA or VA loans), having little to no savings for a down payment can make it challenging to secure a loan. A larger down payment reassures lenders of your financial stability.

How to Get a Home Loan: Strategies That Work

If you’re facing any of these challenges, don’t worry. Here are seven practical strategies to help you improve your chances of securing a loan:

1. Build a Stable Income Stream

Consistency is key when it comes to employment. Lenders favor borrowers with steady jobs, so aim to maintain your current position for at least two years. If you’re self-employed, prepare additional documentation, such as tax returns and profit/loss statements, to demonstrate your income stability.

2. Improve Your Credit Score

Your credit score can significantly impact your ability to get a loan and the interest rate you’ll pay. Here’s how to boost your score:

  • Pay bills on time.
  • Reduce your credit card balances.
  • Avoid opening or closing lines of credit.
  • Dispute any inaccuracies on your credit report.

Even small improvements can make a big difference. For example, moving your score from 600 to 650 could open the door to better loan terms.

3. Lower Your Debt-to-Income Ratio

Reducing your DTI can improve your loan eligibility. Focus on:

  • Paying off high-interest debt first.
  • Avoiding new debt.
  • Increasing your income, even temporarily, through additional work or side gigs.

By lowering your debt and increasing your income, you can present yourself as a less risky borrower.

4. Save for a Larger Down Payment

While some loan programs allow for minimal down payments, saving more upfront can strengthen your application. A larger down payment reduces the loan amount and shows lenders that you’re financially prepared.

5. Explore Loan Programs

Not all loans are created equal. Programs like FHA loans (3.5% down) and VA or USDA loans (no down payment required) can make homeownership more accessible. Realty Network Group’s agents can help you find the right program for your situation.

6. Consider a Co-Signer

If you’re struggling to meet the requirements on your own, a co-signer with strong credit and financial stability can increase your chances of approval. However, make sure you fully understand the responsibilities and risks involved for both parties.

7. Seek Professional Guidance

Navigating the loan process can be overwhelming, especially if you’re unsure where to start. Realty Network Group’s agents have extensive experience helping clients overcome financial challenges and can connect you with trusted local lenders who specialize in unique situations.

Overcoming Obstacles When Denied a Loan

If your application is denied, don’t lose hope. Use the rejection as a learning opportunity to identify areas for improvement. Here’s what to do next:

  • Review the Lender’s Feedback: Understand why your application was denied.
  • Take Action on Weaknesses: Whether it’s improving your credit score, saving more or lowering your DTI, focus on addressing the issues highlighted by the lender.
  • Reapply When Ready: Once you’ve made progress, revisit the loan application process with greater confidence.

Realty Network Group’s agents are here to support you throughout the journey, ensuring you have access to the resources and guidance you need.

Why Work With Realty Network Group?

At Realty Network Group, we don’t just help you find a home — we’re committed to supporting you every step of the way. Here’s how we can help:

  • Expert Agents: Our team is experienced in navigating complex financial situations and finding solutions tailored to your needs.
  • Trusted Local Connections: We partner with reputable lenders, inspectors and contractors to streamline your homebuying experience.
  • Comprehensive Support: From helping you understand how to get a home loan to finding the perfect property, we’re with you every step of the way.

Remember, Realty Network Group’s agents are always here to help you.

Ready to Take the First Step?

Homeownership is within reach, even when the odds feel stacked against you. With patience, preparation and the right support, you can secure a loan and find your dream home. Contact Realty Network Group today to learn more about how we can help you navigate the path to homeownership in Northeastern Pennsylvania.

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Is Your Credit Score Preventing You From Buying?

Whether your purchasing in a more affluent area of Northeastern Pennsylvania (NEPA) or not, credit woes could hinder your homebuying experience. Embarking on the journey to homeownership begins with building a robust credit score. In this article, we’ll explore seven practical steps that elevate your credit score and set a solid foundation for securing your ideal property. From managing debts to strategic financial planning, each point is tailored to ensure you are on the fastest track to qualifying for a mortgage.

Timely Bill Payments

Did you know that making prompt payments is crucial for maintaining a healthy credit score? While on-time payments can boost your score, missing a payment could potentially drop your credit score 180 points in some instances, according to Lending Tree. If you miss or forget to make a payment, don’t panic. Making the payment before it’s thirty days late will prevent it from being reported to one of the “big three” nationwide credit bureaus: Equifax, TransUnion, and Experian. Every on-time payment positively impacts your credit history, showing lenders you are reliable and financially responsible. Consider setting up automatic payments or calendar reminders to ensure you never miss a due date. By keeping your costs consistent, you demonstrate financial stability, which is critical when lenders assess your creditworthiness for a home loan.

Strategic Budget Management

To get your debt under control, start by creating a monthly household budget. This is a step you shouldn’t glance over. Even people who have rebounded from bad credit will remark that for some of them it began with digging themselves into a financial hole. For them, not having a handle on their expenses started a downward spiral, which they halted once they began to budget and regained their footing. Free templates are available online to help you get started budgeting. You can choose from various template styles that fit your financial circumstances. Once you find a template, customize it to suit your needs better. You can use this tool to identify areas for financial improvement by tracking your income and expenses. This proactive approach allows you to manage your finances more effectively and regain control over your debt.

Disputing Credit Report Errors

Your credit report is the blueprint lenders use to evaluate your creditworthiness; ensuring its accuracy is non-negotiable. Review your credit report regularly and dispute any inaccuracies you find. Whether it’s an erroneous account detail or incorrect payment status, rectifying these errors can significantly improve your credit score. This process can be intricate, so consider consulting a credit expert if you’re unsure how to proceed. If you do discover an error and report it, but your claim isn’t taken seriously or adequately responded to, you have rights and can pursue other means of rectifying your situation, such as adding a statement of dispute to your file or even bringing a lawsuit to the table. For more details on how to dispute errors on your credit report, explore this article.

Strategic Debt Reduction

Picture your debt and your credit score as a see-saw, if you will. Reducing your existing debt is a direct method to boosting your credit score. Yet, not all debt is created equal. For instance, a mortgage is healthier debt, generally-speaking, than thousands of dollars past due in your name owed to credit card companies. For starters, focus on high-interest debts first, as they are the most costly. By paying more than the minimum payment each month, you reduce the principal balance faster, which decreases your overall interest payments and improves your credit utilization ratio. This disciplined approach reflects positively on your credit reports, makes you a more attractive candidate to lenders and helps you navigate the purchase process.

Professional Credit Guidance

Sometimes, managing your credit requires professional guidance. Working with a financial advisor, a credit repair agency or a non-profit credit counseling agency can provide you with customized strategies to improve your credit score based on your unique financial situation. These professionals can offer insights into complex credit issues and help you develop a plan to tackle them effectively, ensuring you remain on track toward achieving your homeownership goals. A word of caution here though. There are legitimate credit repair companies available to assist you, but you’ll want to be careful because fraudulent ones do exist. Do your homework. Consult the Better Business Bureau (BBB). Read testimonials from others, who may have been in a similar situation as you presently find yourself. As always, be leery of big promises! Instead, rely on guidance or coaching that’s both encouraging you and providing you with practical advise, steps you can address yourself.

Optimizing Credit Utilization

Keeping your credit utilization ratio low strongly indicates sound credit management. Aim to use less than 30% of your available credit across all cards or make it your goal to pursue the best credit utilization ratio. This helps lift your credit score and assures lenders of your ability to manage credit without maxing out your resources. Regularly monitoring your credit usage and adjusting your spending can profoundly impact your credit health. Resisting the temptation to rely on your credit cards can benefit you here and strengthen your utilization ratio over time. Furthermore, you can aim to use less of your available credit by using your debit card rather than your credit card(s), if that helps.

Utilize Different Types of Credit

Adding a variety of credit accounts like installment loans, retail accounts and credit cards can improve your credit score. This mix shows creditors that you can handle different types of credit. You should maintain this variety to demonstrate responsible credit management. Make sure to manage each credit account wisely. Always ensure timely payments and keep balances low. These actions are essential to maximize the benefits to your credit score.

 

Improving your credit score is essential for securing a favorable mortgage and being able to purchase a home. By implementing these strategies, you enhance your financial reputation and demonstrate reliability to lenders. Each action to boost your credit score moves you closer to purchasing your dream home. Focus on maintaining patience, discipline and consistent effort in managing your finances. Remember, every improvement, no matter how small, contributes to your overall credit health and your journey toward homeownership.

 

[This article is compliments of FixItDads]

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5 Factors To Consider When Buying A Home This Spring

There are many considerations a homebuyer should understand when purchasing a home in the spring. Here are five things you might want to consider before you dive in too deep in search for a home:

  • Save for a downpayment. This is something you should be doing well before you begin looking for a home. Having a sizable down payment can help you when shopping for a loan and lower your overall monthly payment as well. The process of saving can be challenging with bills and other monetary obligations in play, but the rewards can pay for themselves over the life of a loan. As a buyer, understand that there are different mortgage options available and with them come varying degrees of downpayments. Some buyers have a misunderstanding that they must come up with 10% to 20% of the purchase price, but that’s just not the case.
  • Get pre-approved for a mortgage. Doing this early on is crucial to understanding your budget and making competitive offers while home shopping. If a seller has more than one offer on the table, the pre-approved purchaser will usually be in a better position than the one whose offer wasn’t accompanied by a pre-approval. Furthermore, you won’t over-reach as a buyer. One of the most frustrating things we witness is interested parties not being able to afford homes they’re actively pursuing. With a pre-approval, a conservative range of values provide a clear roadmap for both you and your REALTOR® as you seek your dream home or investment property.
  • As homebuyers emerge from colder weather, especially a winter that’s served up some slick and treacherous conditions, they might look to areas that don’t need to endure the brunt of the season. Perhaps they choose a shorter commute to work in order to spend less time on the roads. Likewise, a garage may be an upgrade for someone who’s never had one and who’s had to deal with the challenges of leaving the house on cold or snowy winter mornings. Spring fever brings these thoughts into the minds of buyers as they set out to find their next home. Thus, it’s essential to determine the locations or neighborhoods you’re leaning toward. If you don’t have specific neighborhoods in mind, take into account factors like proximity to amenities, schools or work to help you narrow down your choices.
  • Understand the current market conditions, such as inventory levels and pricing trends. Should you buy now? Are you in a buyer’s or seller’s market? This will help you understand if a seller is willing to negotiate or if you have to be ready to immediately make an offer when you find something you love. Working with a knowledgeable real estate professional can ensure you’re up on these trends. Presently, in Northeastern Pennsylvania, we’re struggling with a deficient supply of homes. Since June 2020, we’ve fallen from a balanced market. Plummeted so much so that our present inventory of residential properties (an absorption rate of 1.95) more closely resembles the lifeless numbers we experienced in this market between February and April of 2022 (with an average absorption rate of 1.44) than anything looking like we’re emerging from this seller’s market.*
  • Some may consider this a shameless plug, but as any market begins to heat up and the temperature changes, it’s critical to have trusted professionals who will guide and support you on your quest toward homeownership. Home inspectors, appraisers, mortgage lenders or advisors, surveyors, real estate agents and the like all play significant roles in helping you attain your real estate goals. Take the time to interview real estate agents, if you don’t have one in mind. Have a series of questions ready that you might have entering this market. How can the agent you’re considering hiring address these concerns? Do they have the experience needed to help you overcome any challenges you might have standing in your way? Learn about their expertise and how long they’ve been in the industry. Also, ask them about current trends in the market. Make sure they’re a good fit for you and a good listener too!

Spring is a fantastic time to do some cleaning, a thorough one, not only of your residence, but also of the clutter which could be standing between you and purchasing a house or investment property. Tackling these five things can prepare you for success, in any market, as you journey toward homeownership.

 

* Greater Scranton Board of REALTOR® data

 

For more, check out our buyer FAQs.

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Buying The Worst House On The Block

Affordability has become a concern in the real estate industry, but it isn’t a problem everywhere and it’s certainly not a headache for much of our region. And while affordability is more favorable in the Greater Scranton area, hesitation can capture many buyers who are eager to purchase. After all, mortgage rates are still elevated (even if they’ve come down since October) and inventory hasn’t sprung up to what we’d hoped it would have by now. It’s a time for some to get a little more creative in what exactly they’re looking for in a home.

Many homebuyers may overlook a house that needs work to bring it up to snuff, but purchasing the worst house in a desirable neighborhood can actually be a smart investment strategy. First, if you’re an investor who has an eye for flipping homes, purchasing this type of property could present a big opportunity. The lower price point may allow for a larger profit margin when renovating and reselling the property. Additionally, the potential for appreciation is higher in sought-after neighborhoods. In fact, there’s often excessive demand for rundown homes in desirable communities in Northeastern Pennsylvania. Furthermore, buying a fixer-upper can give buyers the freedom to customize their dream home while increasing its value. If the renovation costs are low-to-moderate and not too excessive, that’s a win-win. Finally, with this odd housing market still favoring sellers, buyers may have a better chance of finding a good deal on a property that needs TLC.

Buying the worst house on the block can be a smart approach, but as you may have guessed, it’s not for everyone. Experienced investors who have the time, resources and expertise to renovate and flip the property stand to make the most profit. However, more novice homebuyers with a limited budget and a willingness to take on a fixer-upper project can also benefit from this strategy. On the other hand, those who are risk-averse or lack the necessary skills to handle a major renovation may want to steer clear.

While buying the inferior house on the block may seem like a smart financial move, it’s important to understand the potential drawbacks before making a purchase. One of the biggest concerns is the amount of work and money needed to improve the property. This can be a significant and time-consuming undertaking, and unexpected issues may arise during the restoration process. This is why it could be beneficial to be handy, but also rely on the professionals for any jobs that might be over your head.

While this move can be a smart way to get into a desirable area at a lower cost, be aware of potential pitfalls. You may end up with a money pit that requires more repairs than you anticipated. It’s also important to weigh whether the surrounding homes are much nicer than your property. If this is the case, it will always be the odd one out. Don’t let the allure of a bargain blind you to the risks. Consult with a trusted real estate agent to help you navigate the potential issues and find the right home for you.

Additionally, the value of the property may not increase as much as expected even after improvements are completed. This is because the value of a home is often influenced by the value of surrounding properties, and it could be that other homes on the block are not well-maintained. Regardless, it’s imperative that you consult a real estate professional and preferably one who knows that neighborhood well. They’ll be able to assess the property and provide you with a competitive market analysis (CMA) to help you understand the value of the home after those proposed updates to it take effect.

If you’re not planning on living in the home, but instead would like to turn the property around as an investor, keeping your eye on its resale value is vital to making any profit on a future transaction. The number and cost of upgrades will certainly impact its resale value. This is why it’s important to understand and live by the five Ps, which you might already be familiar with: Proper Planning Prevents Poor Performance (and that’s resale performance!). Storyboarding your plans for renovation clearly helps with this preparation too.

While it can be a good tactic to buy the worst house on the block, in some cases, it’s not always the best option. Here are some other factors to consider:

Pros: 

  1. Lower purchase price: Buying an inferior home in a specific community often means you can get it at a lower price than other homes in the area. This can make it a more affordable option for those on a budget.
  2. Potential for equity: If you’re willing to put in the time and effort to renew the home, you may be able to increase its value and build equity over time.
  3. Opportunity to customize: When you purchase a fixer-upper, you have the opportunity to customize it to your liking and make it your own.

Cons: 

  1. Cost of renovation: Facelifting a home can be costly, and it’s important to factor in these expenses when considering purchasing a fixer-upper.
  2. Limited resale value: If you over-improve a home, you may not be able to recoup the costs when it comes time to sell.
  3. Locality concerns: If the neighborhood is in decline or has a high crime rate, purchasing the worst home in the area may not be a good game plan.
  4. Other pitfalls you might want to consider: Not relying on information that’s available at your fingertips, over-spending, etc.

In conclusion, buying the worst house in a neighborhood has the potential to be a profitable and rewarding investment if you’re willing to put in the time, effort (with proper planning and execution), and money to renovate it. However, it’s important to weigh the pros and cons and ponder any drawbacks before making the purchase. Decision makers should consider the surroundings, market conditions as well as other factors that could impact their bottom line.

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First-Time Homebuyer Advice: Navigating The Purchase Process

Buying a home today is more complex than it was five years ago, as the market was gaining intensity – favoring sellers and their interests. Despite the pendulum shifting in the direction of homebuyers, there are those who are overwhelmed by the intricate process of a home purchase. Yet, some of the most intimidated are first-timers, who have never pursued homeownership before. Luckily, there are several programs available that can provide assistance to make this journey a little easier for first-time homebuyers. Below, we’ll attempt to present some of the challenges, resources available and the steps one should take as they seek homeownership for the first time.

The current market presents a myriad of challenges for first-time homebuyers. With rising home prices and limited inventory, finding an affordable home can be daunting. Buyers are still over-bidding now and again, and coming up short in multi-offer situations. In Pennsylvania, home prices have continued climbing, with a median sales price of $216,249 (up 4.2% year-over-year). A housing supply issue exists in the state as well, listings are down 23.4% year-over-year.* Additionally, competition from cash buyers and investors can make it difficult for first-time buyers to secure a home. Furthermore, strict lending requirements and high down payments can also pose challenges for those looking to purchase. The latter might not apply unless loan options such as FHA, VA, USDA and the like are not a possibility. To account for these challenges, first-time homebuyers should do thorough research, work with a trusted REALTOR®, and if they’re serious about shopping for a home in the current climate, be ready to make competitive offers at a moment’s notice. It may also be helpful to consider alternative financing options and be open to exploring different types of homes or different areas (i.e. alternate school districts, check out rural living over suburban or city living).

There’s good news for those who may have been classified as first-timers in the past, but haven’t purchased a home in over thirty-six months. They would likely be labeled as first-time homebuyers once again. In the industry, lenders do have various indicators, differentiating themselves from others in the business. These requirements for buyers can vary from institution to institution. Some of the typical criteria for first-time buyers includes a steady income, where a job history of two or more years must be validated, a clean credit history, a credit score of 620 or more, a debt-to-income ratio below 43% and a loan down payment of at least 3%. Furthermore, if you presently own a mobile home or have owned one within that three-year window, lenders will often grant you first-time buyer status since the rules for mobile-home ownership are unique.

Education in life goes a long way, and prospective buyers would do well to study up. The best way for first-time homebuyers to get educated on available programs is to do their research. First, talk to your real estate professional. An experienced REALTOR® has dealt with your situation before or one that was similar. Your agent will provide you with a roadmap of several avenues to follow, including homebuyer education classes/seminars as well as utilizing various online resources. These services can help buyers figure out their loan options by providing information on different mortgage programs, down payment assistance programs and other financial assistance options. It’s important for first-time homebuyers to take advantage of these resources to ensure they make informed decisions and find the best program for their individual needs. In Pennsylvania, there are programs geared toward assisting first-time homebuyers such as the Keystone Home loan program, the Keystone Advantage Assistance loan program and the HOMEstead program, just to name a few. Each state has programs in place to assist those who can qualify as first-time buyers. Moreover, there are local programs, such as NeighborWorks, who support buyers as they journey toward homeownership.

Buyers should expect help from their REALTOR® as it pertains to available first-time homebuyer assistance programs. After all, that’s the support real estate professionals provide – to counsel their clients in making the best decisions at each stage of their progress. If their agent doesn’t have the answers, they’ll direct them to the experts who do. These assistance programs can be complicated to navigate, but REALTORS® have the knowledge and expertise to guide buyers toward success. They can provide information about the eligibility requirements, the application procedures in addition to the potential benefits of these programs. They can also assist with finding the right program for a buyer’s specific needs and helping them gather all the necessary documents and information. With their lead, buyers can feel more confident and informed about taking advantage of these valuable resources to make their dream of homeownership a reality.

First-time homebuyers, listen up! As thrilling as it is to finally have a place to call your own (and it is), it’s important to manage your budget wisely and ensure you can qualify for a loan. Trust us, you don’t want to end up house-rich, cash-poor, where you’ve pumped all this equity into your home, but you’re struggling to pay your bills month after month, and regretting the decision you made to purchase. Before you buy, do a test run and start by setting a realistic budget and stick to it. Consider all expenses, including homeowners insurance, taxes, mortgage insurance (if applicable), utilities, maintenance and other debts you may have. When the time comes to acquire a loan, do your homework and shop around for the best interest rates and programs to suit your needs. Don’t immediately settle on the first lender you encounter. Don’t be afraid to negotiate and be aware of any hidden fees (such as points). Remember, a little bit of budgeting and savvy negotiating can go a long way in making your dream home a reality.

The good news is more help is on the way for homebuyers. The day when buyers can pay market value for a home without constant interference from other buyers or pay below market value in efforts to get a deal will become a reality once again. A time when buyers won’t feel rushed into making hasty decisions about homeownership is on the horizon. In the meantime, do your search and thoroughly understand all aspects of homeownership before making any decisions. With the right guidance and resources, purchasing your first home can be a rewarding and exciting experience. Happy house hunting! Take a look at our houses for sale in Clarks Summit PA.

* Latest Pennsylvania Association of REALTORS® Housing Report – Sept 2023

Other first-time homebuyer resources:
8 Steps You Should Take When Purchasing Your First Home
First-Time Homebuyer Tips

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4 Tips For Stress-Free Moving

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Packing your whole life up into a large truck might be one of the most exhilarating experiences you can have in your lifetime. I mean after you’ve put all that effort into getting your home ready to market, dealt with your fair share of stress while your REALTOR® worked their magic, isn’t the “delight of moving” the next logical step towards sanity? Gearing up for the task of shipping some of your priceless belongings with a group of total strangers is completely normal.

All kidding aside, moving from one residence to another is daunting and has been known to rattle some sellers as they seek to begin a new chapter of their lives. It could be the mental energy we commit to those things, such as moving, which tends to drain us and in some cases, leave us feeling a little desperate. Quite honestly, this is why it’s critical whenever we’re faced with such a task as this, we unplug from our negative past experiences and truly take time to prepare for the move.

You can also find a helpful moving checklist on page eight of our homebuyer’s guide. In this post, we’re covering four ways moving is made easier. Having said that, we in no way want to make light of the experience. I, for one, don’t love the idea of packing up a room into boxes and then unpacking them on the other side, but I’ve always been able to deal with it in a healthy manner. We hope you can too and we feel confident these four tips as well as our checklist will help you navigate your way into your new home with minimal anxiety.

Give Yourself Time

Preparation is important whether you’re buying or selling a home. In fact, we advise many of our clients to give themselves extra time when they’re thinking about a life change. Big decisions can take time, especially getting used to them. Sellers who need to make repairs to their house, should factor in more time than they think to complete those jobs. Heck, even if a professional is making the repairs/updates, you’ll want to pack in additional time. The same can be said for those who are confronted with the challenge of moving.

Moving for some is excruciating, like on the level of public speaking bad. Yet, if you give yourself extra time in anticipation of unforeseen issues arising in the process, you’ll be much better equipped to handle them and stay calm. Our advice is you don’t procrastinate throughout the moving process. Whether you’re moving out of an apartment or a home, whether you’re the buyer or seller, once that switch is activated and your life is headed in another direction, act.

Gather Intel

For some, changing scenery is welcomed, for others there’s apprehension. Whatever flavor the move provides, it’s important you eliminate as much of the unknown as possible. Chances are you’ll erase some of that stress, if you gather information on your new town or neighborhood before setting down new roots. What is your new city/neighborhood like? What places would you like to visit after your move? What are some of the activities you’d like to do once you get settled? The more comfortable you are with your new surroundings ahead of time, the easier this transition will be. Those who put the effort in from day one, are better suited to handle the curveballs which may come their way. Learn all aspects of your particular process – mentally prep yourself.

Moving apps, like Sortly and Updater, have helped others organize their thoughts and well as their possessions. They could potentially aid you as well.

Hire A Reputable Mover

Not in all situations, but many moving endeavors do require the assistance of a moving company. Someone once said: “you never know how much you accumulate until you move” [author unknown]. Boy, isn’t that the truth! If you do need to choose a professional moving company, do your due diligence and research which options are best for you and your circumstances as well as your timetable. Prior to contacting movers on the phone, it’s important to make a list of five or more and read testimonials from other buyers and sellers who faced a similar task of having to hire one. What are the good and bad stories people are sharing? Make sure to do your homework and investigate registries like Angi, NextDoor, Yelp, Google, Facebook and others.

After you whittle your list down, make sure to compile a list of questions you’ll want to ask each of the moving companies. Need help creating your own? This is a great place to start. And there may be other factors you’ll need to consider such as special services required like packing/storage services or budgetary concerns or how you want your valuables transported. For starters, you’ll want to ask each company stuff like if they have a Federal Motor Carrier Safety Administration (FMCSA) registration number and how do they estimate costs for a particular job (binding estimates are usually better) and what fees are added on (hidden fees?) and what type of insurance they offer their customers.

Based upon this research and the responses to your questions, you’ll have a better idea of who you’d hire. Let’s face it, in real estate, banking, heck even cuisine, there are many choices… narrowing it down isn’t necessarily a bad thing. If one’s required, finding a reliable moving company should be at the top of your list. We hope these pointers provided you insight into making the right decision.

Soothe Thyself

Throughout the process of packing your life away and dealing with a real estate transaction, it’s vital to take care of yourself. This might sound puffed-up and maybe also a tad holistic, but stepping away from this process when it’s happening is healthy too. The self-care aspects shouldn’t be forgotten at this time. If you love to read first thing in the morning, then continue to do that even if you need to cut back slightly. If taking a walk in the evening in a park or on a trail is your thing, then keep walking. If working out a few times a week makes you feel better, gives you energy and relaxes your nerves, then by all means, do those burpees. If enjoying a glass of wine on your porch helps pacify your mind, then don’t let moving oust you from outdoor happiness.

If you have an area of your home where you and your family really take in life and the room acts like a sanctuary for you, don’t box that up until the last possible day.

Also, it’s important to keep ties to those you might be leaving behind, such as family, friends and neighbors. Set aside time to get together with neighbors and those in the community you’ve enjoyed getting to know, who you might not see again (depending on the distance of your move). Schedule your next return trip with family and friends, which will give you and them something to look forward to.

 

Moving is a trying time, yes, but there are methods we can take, which will help us deal with the challenges ahead. Stay focused on what matters, sure, but give yourself time and try not to beat yourself up when things go sideways. We’re here to help you throughout this process. Call one of our professionals should you want any assistance along the way.

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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.

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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

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Should You Buy Your Dream Home Or A Starter House?

Should you buy a starter home vs dream home? 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. Starter home vs dream home? We hope we’ve helped answer the question! 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]

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How to Find Homes Before They Are Listed

Surviving a seller’s market over the past few years has been exhausting, especially for buyers. Many have realized this competitive landscape isn’t working in their favor. When COVID-related restrictions eased in Pennsylvania in June 2020, homebuyers faced fierce bidding wars and limited inventory. Those needing to move due to career or lifestyle changes struggled to compete. However, relief is on the horizon as the buyer pool shrinks, providing new opportunities to find homes before they are listed.

Why Finding Homes Before They Are Listed Matters

While inventory remains low, securing a home before it hits the open market gives buyers a competitive edge. It reduces competition, increases negotiating power, and eliminates the stress of bidding wars. Here are three strategies to help you stay ahead of the game and uncover hidden opportunities before a listing goes public.

Work With a Well-Connected Agent

The best way to find homes before they are listed is to partner with an experienced real estate agent. But not just any agent—seek one with strong industry connections, a history of success, and a proactive approach.

Benefits of Working with the Right REALTOR®:

  • Insider Knowledge: A well-connected agent stays in touch with colleagues who may have upcoming listings.
  • Exclusive Access: Many agents know of properties before they are officially listed.
  • Personalized Opportunities: Your agent may have homeowners considering selling who would entertain offers from serious buyers.

In a tight market like Greater Scranton, agents constantly communicate with each other about upcoming listings. By leveraging your agent’s network, you can gain early access to potential homes before they reach the broader market.

Leverage Your Network and Direct Outreach

Finding homes before they are listed isn’t just about waiting for an agent’s call—you should take a proactive approach as well. Here are some ways to increase your chances of securing a hidden gem:

Strategies for Direct Outreach:

  • Explore Your Ideal Neighborhoods: Walk or drive through areas you’re interested in. Look for “For Sale by Owner” (FSBO) signs or distressed properties that may be coming to market soon.
  • Engage with Homeowners’ Associations (HOAs): Some associations have insight into residents considering selling their homes.
  • Send Direct Mailers: Personalized letters expressing interest in specific homes can encourage sellers to consider you before listing publicly.
  • Use Social Media and Community Boards: Many neighborhoods have private groups where members discuss upcoming moves or potential sales.

Homeowners who haven’t officially listed their property may still be open to selling if approached correctly. Direct engagement can be a game-changer in a competitive market.

Stay Active and Persistent

While your real estate agent does much of the legwork, you should also be proactive in your search. Here’s how to ensure you don’t miss any opportunities:

Steps to Stay Ahead:

  • Network Constantly: Let friends, family, and colleagues know you’re searching for a home. Someone in your extended circle might have valuable leads.
  • Monitor Off-Market Listings (A Pocket Listing): Some sellers test the waters by listing their homes on smaller platforms before committing to an MLS listing.
  • Attend Local Events: Open houses, professional networking events, and social clubs can put you in touch with people who know of upcoming listings.
  • Keep an Eye on Life Events: Pay attention to job relocations, estate sales, divorces, and other circumstances that might lead someone to sell quickly.

Staying active and persistent can help you discover a great opportunity before it becomes widely available. For more insight before purchasing a home, make sure to read this.

Finding Off-Market Homes Takes Strategy

Securing a home before it’s listed requires effort, connections, and persistence. By working with a knowledgeable REALTOR®, leveraging your network, and actively searching for hidden opportunities, you can bypass intense market competition and find the perfect home.

For expert guidance in navigating the real estate market, connect with Realty Network Group today. Our experienced professionals can help you find homes before they are listed and give you a competitive advantage in your search.

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