Tag Archive for: pandemic

Buying A Home? Consider These Four Things First

What Matters Before Buying a Home

When buying a home, there are a few key factors that should guide every decision you make. The most important things for homebuyers to consider include:

  1. Being able to afford a home based on your current situation
  2. Not overpaying based on market value
  3. A home’s location, including neighborhoods and school districts
  4. The age of the home and its major components

Why Financial Security Matters When Buying a Home

Notice how security plays a major role when buying a home. It’s only natural to feel some hesitation—this is a significant investment. And that sense of security goes beyond just the financial commitment. Without it, moving forward with confidence becomes difficult.

It’s also worth noting that three of the four factors above directly tie back to money, making financial clarity essential before taking the next step.

Understanding Affordability Before Buying a Home

Affordability is the foundation of buying a home. If your current circumstances don’t support it, it may not be the right time to move forward.

What’s affordable for one buyer may not be realistic for another. It comes down to your ability to budget for every cost associated with the purchase.

Your debt-to-income ratio is one of the clearest indicators of whether you’re financially prepared. Lenders will evaluate your income, debts, assets, and liabilities to determine what you qualify for.

However, just because you’re approved for a certain amount doesn’t mean you should spend it. A sustainable mortgage should align with your long-term financial comfort, not just lender approval.

Avoiding Overpaying in Today’s Market

Another key part of buying a home is making sure you’re not overpaying.

Home values have risen significantly in recent years. Since the COVID pandemic, prices in the Greater Scranton market have increased by 54.8%.*

While opportunities still exist, buyers should approach the market thoughtfully. Consider how long you plan to stay in the home. If you sell too soon after overpaying, you could face financial setbacks.

As a general guideline, planning to stay in a home for at least seven years can help reduce the risk of loss. While real estate is often a strong investment, there are no guarantees.

How Location Impacts Your Home Buying Decision

For many buyers, location is the first and most important filter.

Even if a home checks every box, its location can make or break the decision. School districts, commute times, and nearby amenities are all important to think about.

When buying a home, consider:

  • Distance to work, school, and daily essentials
  • Traffic patterns and noise levels
  • Neighborhood atmosphere during different times of day
  • Walkability and overall community feel

Since you can’t change a home’s location, it’s worth evaluating this early in your search.

Evaluating the Age and Condition of a Home

Most buyers aren’t purchasing new construction. That means understanding a home’s condition is essential when buying a home.

A home inspection should always be part of the process. It provides insight into the condition of major components like:

  • Roof
  • Windows
  • HVAC systems
  • Foundation

As homes age, repairs and maintenance become more common. Knowing what to expect can help you plan for future costs and avoid surprises after closing. Call in professionals, like a reputable home inspector. They’re more than capable of assessing the age of a house’s components and appliances.

A few decades after the construction of a home, repairs become more common, and as a prospective buyer it’s important to understand what your yearly maintenance and repair costs might look like.

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

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Is Thanksgiving The Best Time To Buy & Sell?

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.

 

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Virtual Components of Real Estate

Flexibility has often been lacking in the real estate industry. Whether in terms of buyer representation or the pace of technological innovation, change came slowly. I saw firsthand how poorly the industry responded to consumer needs and demands. While I’d like to believe we’ve learned our lesson, I remain a bit skeptical. But right now, I find it a perfect time to talk about the looming question what is virtual real estate?

Tech Finally Meets Real Estate

Technology has finally caught up in some meaningful ways. Real estate tech has helped close the gap, giving homebuyers and sellers more ways to search for or showcase properties. There’s been a clear shift in how consumers interact with digital content. Smart devices, streaming services, social media, and videography now create early touchpoints for REALTORS® to engage with clients.

As we brace for 2021, flexibility is key. Virtual home tours and virtual staging are tools I wish we had embraced years ago. Unfortunately, it took a global pandemic to spark meaningful action from the industry.

Virtual Home Tours: A Must in a Post-COVID Market

Virtual home tours offer an excellent way to connect buyers and sellers in our current climate. Under PAR guidelines, holding a traditional open house safely is incredibly difficult. Agents must follow strict safety measures—multiple staff, COVID forms, social distancing, entry limits, disinfection, and more.

The CDC has also shared that the virus may spread beyond six feet through the air. All of this creates major challenges for in-person open houses.

Virtual tours should become standard for most homes on the market, much like product previews in online shopping. These tours need to be immersive and detailed—giving viewers a strong sense of layout, light, depth, flooring, closets, ceilings, and even the condition of the foundation. After a well-done virtual tour, a buyer should almost feel like they were inside the home.

Photography and Mobile Tools Give Sellers an Edge

Thanks to the rise of mobile tech and professional photography, virtual open houses now capture buyer attention in powerful ways. Sellers benefit by showcasing their properties in an increasingly digital market.

Being proactive with this technology is more than just a smart strategy—it’s essential. Preparing a virtual home tour in advance is helpful for buyers who can’t or won’t visit in person, whether due to travel or safety concerns.

Virtual Staging: Another Powerful Tool

Another tool reshaping real estate is virtual staging—either through live virtual sessions or staging software. These methods help agents guide sellers on how to make a great first impression. They offer advice on everything from landscaping to key interior spaces. Whether using FaceTime, Google Duo, or Messenger, agents can walk sellers through the staging process remotely.

These tips give homeowners a competitive edge. Staging apps are also gaining traction. Companies like Compass are using this tech to show buyers something more than empty rooms. Agents can select key rooms to stage virtually, helping buyers visualize a home’s potential in a more compelling way.

Virtual Tools Are Great, But Reality Still Matters

While virtual tools are powerful, they can’t replace the real-life experience of being in a home. Buyers still need to touch surfaces, take in scents, and explore neighborhoods to truly evaluate a property.

Video can help buyers get close—but walking through a home before submitting an offer remains ideal. Even in a tech-forward market, that in-person visit still matters.

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How To Find Your Next Home While Sheltering In Place

Finding Your Home During A Pandemic

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.

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A Home Is The Safest Place To Be

Coronavirus Q&A below. Over the course of the past three weeks, Northeastern Pennsylvania (NEPA) has undergone changes in lifestyle, business and just about everything else you can possibly imagine, including real estate. Governor Tom Wolf’s orders, as they pertain to our industry, remain non-life-sustaining. Yet, in a recent move by the Pennsylvania Association of REALTORS® (PAR), the association entered a brief in support of a lawsuit, which has been filed against Pennsylvania’s governor. The purpose of the suit? To designate real estate as a life-sustaining business.

PAR recognizes the importance of “[minimizing] in-person services wherever possible and [following] appropriate CDC guidelines” to keep the public safe and flatten the spread of COVID-19, but when deemed necessary, the association believes sellers and homebuyers should have the ability to attain shelter – one of life’s three essentials.

COVID Q&A: How to approach selling your home or buying one during the coronavirus pandemic.

Nevertheless, it’s a confusing time for buyers and sellers and you can add real estate professionals to the list also! Some consumers are left wondering if obtaining a roof over their head is even an option right now. The world is changing, which is fairly evident. Real estate and how the industry will operate henceforth will be altered too. We look to keep you informed as this fluid situation constantly changes. In the meantime, we’ve addressed some of the common questions we’ve received from our clients/customers.

Can I sell my home in this current climate?

If you’re thinking about selling your home immediately, understand that the present terrain in real estate has numerous roadblocks, which you’ll encounter in some way, shape or form. Can a home be sold momentarily? Yes, it’s possible, but realize tremendous assistance from the seller would probably be required in conjunction with the agent, while attempting to procure a buyer. This is a discussion you need to have with your REALTOR®.

Are there things I can be doing now to prepare to sell my home?

There are absolutely things which can be done now to prep your home to sell in the months to come. “Clearing out the clutter” should definitely be on the top of your list. Other strategies like painting, reorganizing, attacking problem areas of the home and landscaping should strongly be considered as well. Check out this page on our site, which will give you a few more ideas to consider. As a homeowner, you should contact your REALTOR® to come up with a plan for proceeding, as many sellers find themselves on the sidelines during this outbreak.

Should I look for a home now or wait?

There are multiple phases to the home search process. Prospective buyers typically start their search online months before they even physically enter a home (which is practically impossible since the outbreak of COVID-19). For the consumer who doesn’t have to move – wait. In the state of Pennsylvania, there are no in-person showings until further notice. Only services that a REALTOR® could offer remotely are permitted at this time. Of course, you can look at homes virtually through our extensive online catalog of properties available for sale in NEPA.

As a buyer if I decide to wait, what steps would you suggest I take so that I’m prepared for a time when in-person showings resume?

First and foremost, we would recommend setting up a “virtual” homebuyer consultation. If you have an agent, get in touch with them and discuss your needs. If you don’t have one yet, start your search there. Choosing a real estate professional is more important than one might think. Select the perfect agent for you! Secondly, reach out to mortgage lenders. Have a firm grasp on what you can and can’t afford, find ways to improve your credit score, if necessary, and look at the lending options available to you. Lastly, begin examining the market and what’s available in your price range. Create a list of pros and cons. Having a better understanding of these three dimensions can only propel you toward making better decisions when the time is right.

As homebuyers and sellers, can we engage in executing an agreement of sale during this unprecedented time?

Yes, but there’s so much that goes into making these types of decisions: Can I place an offer on a property I haven’t stepped foot in? Are there certain reasons I might want to press pause for the time being whether I’m buying or selling? We strongly suggest you discuss your concerns with your REALTOR® as well as your real estate attorney.

 

We hope this Coronavirus Q&A was helpful. Should you need further assistance, please reach out to our network of real estate professionals.

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COVID-19 Impacts Buying & Selling In Northeastern PA

To say the Chinese Coronavirus (COVID-19) has affected our nation would be the understatement of the year, a year some wish would be over already. Unless you recently came out of a coma, you know the effects of this pandemic. Lately, Americans have grappled with a loss of certain freedoms caused from a seemingly invisible pathogen. It has impacted the way we work, how we travel (in some cases), how our households function and it certainly has affected our relationships in one way or another.

As a small business real estate firm, who supports the efforts of our clients and our REALTORS®, we understand firsthand how work, travel, household dynamics and relationships have been impacted since COVID-19 was declared a pandemic only ten days ago. Real estate, like so many industries, has been making changes in recent days through a paradigm shift in modes of communication and how they get business done. Since the World Health Organization has declared this disease a pandemic, we’ve taken more precautions, like so many businesses throughout our nation, including Pennsylvania, who have also done the same.

Honestly, real estate appears more trivial since we’ve been asked to hunker down. There are nurses, doctors, emergency personnel, volunteers and scientists, just to name a few on the frontlines. Their health is at risk as well as their loved ones. They certainly didn’t ask for this, but they’re compassion and sacrifice lead the way through this period of uncertainty. Having said that, real estate professionals are an essential link between homebuyers and sellers in their quest for finding a place they’ll call home. At Realty Network Group, connecting buyers and sellers, is our mission in four words. Yet we know through these challenging times, we need to safely operate within the confines of this contagion and administer the highest level of care and service we can reasonably provide to our clients and customers alike.

Guided by the Pennsylvania Association of REALTORS® (PAR), we’re proceeding with caution for the sake of our clients, their families in addition to our agents. For deals already under way, we’re also seeking the advice of counsel – time is of the essence. And that’s why PAR created the COVID-19 Addendum to the Agreement of Sale. Some situations may require a timeout in order to proceed safely through the transaction. This addendum permits these steps to be taken.

Many concerns have risen within our industry in less than two weeks. As of Wednesday (3/25) evening we have more concise guidelines from PAR: REALTORS® should “cease doing [all] in-person business” until Pennsylvania’s governor, Tom Wolf, informs otherwise. We know many sellers are left wondering how they might possibly assist their agents in selling their homes remotely. Prospective homeowners are skeptical about placing their property on the market right now. Buyers are looking at record-low mortgage rates, and depending on their situation, some are realizing there might never be a better time to buy – yes, even in a seller’s market. Though real estate sales have been robust amidst this outbreak, there has been increased caution as to how consumers should be proceeding through these unchartered waters. Our firm hopes to clarify some of these matters over the next few weeks as more information becomes available to us.

Above all, we would like to sincerely wish everyone in our community and in our world good health and safety as we move ahead in these unprecedented times. If you carry one thing with you, let it be hope. Should you need to contact any of our professionals, please do so here. We look forward to addressing more of your concerns as time goes by. Stay healthy!

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