1. Obtain a pre-approval letter from a lender.
    
2. View the property.
    
   
3. Ask follow up questions of seller.  (utility costs, age of house components, reasons for selling, motivation level, timing logistics)
    
   
4. Research comparable sales to determine market value.
    
5. Research restrictive covenants, deed restrictions, septic system details, survey, etc.
    
6. Discuss negotiation strategies.
    
7. Determine main terms of offer.  (price, timing, contingencies)
    
8. Draft and review offer documents.
    
9. Sign (in person or electronically) offer documents.
    
10. Submit offer documents to the seller and (patiently?) wait.
    

• Your Full Name:
  
• Your Current Address:
  
• Personal Property to Convey:
  
• Offering Price:
  
• Type of Financing: LTV: Rate Cap:
• Earnest Money Deposit:
• Request for Closing Cost Credit?
• Financing Deadline:
• Settlement Date:
• Home Inspection? Radon Inspection?
• Inspection Deadline:
• Do you want to purchase a home warranty?
• Other Terms?

Keep up with new listings at ...

• At face value, the number of homes for sale under $200K has declined 47% over the past year.  Ouch!
   
• Each data point shows the average number of homes for sale in the given price range over the previous 12 months.  As such, the "49" homes for sale reported in May 2020 means that in the 12 months leading up to the end of May 2020 there were an average of 49 homes on the market at any given time.  Looking at these numbers as an average of the past 12 months eliminates some of the month-to-month volatility in inventory levels and allows us to more clearly evaluate long term trends.
   
• This doesn't mean that 47% fewer homes are selling under $200K - it is just looking at active inventory once a month throughout the year.  If 800 homes under $200K were listed for sale on Tuesday of this week and were all under contract by Wednesday of this week, the inventory level would stay the same, despite the fact that there were LOTS of homes available to buy. 
   
• This does mean that buyers buying homes priced under $200K in the current market have fewer and fewer choices at any given time and they also have more and more competition from other buyers.

1. Home sales declined 31% in May 2020 as compared to last May -- partly due to the fact that May 2019 was a record-setting month, but also because we saw fewer contracts being signed during March and April of 2020.  Those lower contract numbers were not necessarily due to dampened buyer enthusiasm - but rather because fewer sellers were putting their homes on the market.
    
2. Despite a big drop in May home sales, the year-to-date (January through May) pace of home sales is only 3% behind where we were last year. 
    
3. Furthermore, the annual pace of home buying has dropped less than 1% over the past year -- from 1,319 sales per year to 1,310 sales per year.  Not much of a shift in long term trends despite COVID-19.
    
4. Median sales prices continue to increase -- and quickly!  The median sales price of homes sold in the first five months of this year was $234,900 - a 9.26% increase over last year's $215,000!
    
5. Looking at a slightly longer time frame, the median sales price over the year ($230,000) is 7% higher than it was a year ago ($214,900) in Harrisonburg and Rockingham County.
    
6. If you haven't heard -- homes are selling quickly!  The median days on market was 39% lower this January through May as compared to last January through May!
   

• SELLERS: The market is starved for listings, so it can be an exciting time to sell right now, depending on your price range, location, etc.
   
• BUYERS: Be ready to pounce on any new listings that well serve your needs/wants because there are fewer options than anytime recently and many buyers ready to compete with you.
   
• OWNERS: Don't worry too much about the slight declines in the pace of home sales, as home values seem to still be quite stable and rising.

• At the end of May, the YTD pace of buyer activity for 2020 was 5.49% behind where we were a year ago.
   
• As of yesterday, June 11, the YTD pace of buyer activity for 2020 was only 3.44% behind where we were a year ago.

• Many segments of our local market are significantly undersupplied -- so as to say that there are many more buyers than sellers in the market.  Thus, there are often lots of early showings and multiple offers.  So, the main reason why a full price offer is not winning is because we're competing with other motivated buyers.
   
• We can likely conclude that the other buyers made offers higher than the asking price -- or with an escalation clause which would automatically increase their offer above competing offers.  So, it may be simply a result of being outbid.
   
• Some buyers are strengthening their offers by removing some "normal" contingencies -- such as the home inspection contingency, or the appraisal contingency.  This doesn't necessarily make sense for most buyers to do, but it is something that we can discuss.

• Home sales in May 2020 were the slowest since at least 2016.
   
• The drastic drop from 2019 to 2020 is largely due to an extraordinarily strong month of sales last May, well above and beyond the norm.
  

• The closing for both will be on the same day.  Let's say it's a Friday.
   
  
• You'll have to be out of your current house by the evening before closing (Thursday evening in this case) so that you can close on the sale of that house the following morning (Friday morning).
   
• You won't have access to the new house to move your belongings in until after you close on Friday afternoon.
   
  
• So, where are your belongings going to be from Thursday evening until Friday afternoon?  And where will you be?

• Work with a moving company that is willing/able to load you up one day and not unload you until the following day.
   
• Ask the buyer of your house if you can retain possession of the house for a day or two after closing to get things packed up and moved out after closing.
   
• Ask the seller of the house you are buying if you can have early possession of the house for a day or two before closing to get things moved in before closing.

• 2010 - 2015 = average of (7) sales per year over $600K
   
• 2016 - 2018 = average of (15) sales per year over $600K
   
• 2019 = 27 home sales over $600K!
   
• 2020 YTD = 13 home sales, so perhaps up to 27 again this year?
  

• 1,297 home sales under $600K  (98% of buyers)
   
• 27 home sales over $600K  (2% of buyers)
  

• City of Harrisonburg = $0.86 per $100 of assessed value
   
• Rockingham County = $0.74 per $100 of assessed value

• has been prepared quite well for the market
• has excellent photography that shows the house well
• has a realist asking price

• A seller would almost never accept a contract with a home sale contingency without a kickout clause to allow them to move on to a different buyer that didn't have a home sale contingency.
   
  
• There are only 5 properties in the MLS that are under contract with kickout clauses.

It would seem that most buyers are likely waiting to make offers until they have their own properties under contract (thus eliminating the need for the kickout clause) AND/OR most sellers are not accepting offers with home sale contingencies unless the buyer's house is already under contract (thus eliminating the need for the kickout clause).

If you are a buyer, I would certainly suggest the strategy outlined above (and the only one that is apparently working with sellers right now) --- get a contract on your house and THEN make an offer on the property you would like to purchase!