Buying
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More Home Buyers Purchase In The County Than The City |
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 Each year, right around twice as many home buyers purchase homes in Rockingham County as compared to in the City of Harrisonburg. That said, the home buyers in the City are much more densely situated -- since the City is comprised of only 17.42 square miles -- while the County spans 849.09 square miles! As a random aside, Rockingham County is the third largest county in Virginia! Not necessarily, as there are more than THREE as many homes for sale in the County as compared to the City.  Where will you purchase your next home? In the City or the County? Why? Based on the lot size, privacy, school district, age, property type? | |
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Focus On The Big Items When Drafting A Repairs Request |
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 After a home inspection, a buyer knows more about the house than when they agreed to pay $X to purchase the house. In order for them to still want to pay $X for the house, they may ask the seller to address some of the deficiencies found during the home inspection. Imagine a hypothetical scenario where the following deficiencies are found:
So - which items should the buyer ask the seller to repair? Some could say ALL of them - the buyer didn't agree to pay $X for the house with all of these large and small issues. But I'd advise most buyers to only request that the seller address a subset of those issues:
All of the other items (3-7) are minor issues that won't cost too much (in time or money) to repair after you buy the house. But why not ask the seller to repair these items?
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Always Look At The Larger Context When Considering House Price As A Buyer Or Seller |
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 THE BUYER'S STATED PERSPECTIVE I know that your house is listed for $400K, but this one other home a few streets over sold for $350K last month, and it was a larger, so I'm not paying any more than $350K for your home. THE LARGER CONTEXT Just a few items...
Furthermore, aside from all of these differences in the two houses --- the other ($350K) house is not available any longer --- and there aren't three other houses just like it that the buyer can decide to buy. In this case, by focusing on this one not-actually-that-similar sale, the buyer has put themselves in a situation where they might miss out on purchasing a great home because of how they are viewing the market based on one comparable sale. THE SELLER'S STATED PERSPECTIVE I am confident that I can sell my house for $350K. After all, my friend owned a very similar house and he just sold it in a week, with multiple offers, for $360K! THE LARGER CONTEXT Just a few items...
Again, by focusing on this one not-actually-that-similar sale, the seller has put themselves in a situation where they might miss out on selling their home because of how they are viewing the market based on one comparable sale. The Main Takeaway As a buyer or as a seller -- don't focus on just one comparable sale when deciding on a reasonable price to pay or to ask -- look for the larger context! | |
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Yes, House Showings Are Still Happening |
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 Every home owner (house seller) likely feels a bit differently about whether house showings should happen and if so, how they should happen - but the majority of houses currently on the market can, indeed, be viewed by buyers. Below are recommendations for being considerate to home sellers... Prior to scheduling a tour:
During a property tour:
ALSO -- if it would makes you more comfortable, I can start by touring the house for you (taking precautionary steps as outlined above) and can take you along with me via FaceTime or Zoom. | |
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City Homes Between $150K and $250K Are Selling FAST |
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 Even in the midst of a pandemic, City homes between $150K and $250K are selling fast! I have experienced this several times lately either representing a seller or buyer, so I though I'd see if the data lined up with my experiences. It does. I took a look at all properties (attached or detached) between $150K and $250K that have gone under contract during the past 60 days in the City of Harrisonburg. There have been (24) such properties -- and they have gone under contract in a median of 3 DAYS. And of those 24 properties, 16 of them were under contract within a week! If you are selling a City property between $150K and $250K, you are likely to see plenty of buyer interest. If you are hoping to buy a City property between $150K and $250K, you had better be ready to act fast, and you are likely to have plenty of competition. | |
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YTD Home Buying Activity Slows Slightly in 2020 |
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 This is my first weekly check-in with contract activity where we're seeing a slight decline in contract activity in 2020 as compared to 2019. The data...
So, slightly fewer buyers have contracted on homes this year (to date) as compared to last year (to date). Is it significant? No, at least not at this point. There has been a 2.8% decline in buyer activity in 2020 -- which is a relatively small decline given how much of our daily lives has temporarily changed due to COVID-19. Happy Friday, and I'll check in on this metric again about a week from now. | |
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Finding Townhouses For Sale In and Around Harrisonburg |
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 It can be hard to find a townhouse for sale these days -- many of them are under contract within days or even hours of being listed for sale. So if you are a buyer looking to purchase a townhouse in or near Harrisonburg -- you should start thinking about the process sooner rather than later. Some first steps...
And here are a few resources you might find helpful...
Let me know if I can be of assistance to you as you start the search for the townhouse you hope to purchase in or around Harrisonburg. | |
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Real Estate Closings In The Time of COVID19 |
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 Prior to a month ago, lots of people would attend each real estate closing, such as:
But these days, it doesn't work so well to have a closing with 5 to 10 people present -- especially when a title company might have 8 to 12 closings per day. That title company would then potentially have 75+ people walking in and out of their office each day, in addition to the 10-ish people working in the office. So, things happen a little differently now... Basically, each party (buyer and seller) drives to the title company, picks up the closing documents from a box outside the front door of the title company, calls the closing attorney to review the documents by phone, and then signs the documents in their vehicle. Once the documents are signed, they are put back in the box and the closing attorney takes the documents into the office to review them and then let's the buyer or seller know that they can leave. This new process (utilized by multiple local title agencies) is still allowing real estate closings to happen, but it certainly is a tad bit less exciting than it used to be. There is (necessarily) quite a bit less personal interaction with this new process and some of the joy of a home purchase (or sale) isn't quite the same at that particular moment of the transaction. | |
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I Think We Will See Fewer Houses Listed For Sale This Spring |
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 It's spring! Flowers are blooming! The smell of new mulch is in the air! Many of us are battling with the onset of seasonal allergies! And we're seeing new listing after new listing hit the real estate market. Wait, what? Maybe not that last one. You see, it has officially been spring for a few weeks now, but we've also been dealing with the ongoing spread of a pandemic for a few weeks. What does that all mean for how many homes we'll see coming on the market this spring? I think we'll see fewer homes listed for sale given the current circumstances - though it will be hard to really measure that. We'll see fewer homes for sale than we would have if COVID-19 wasn't happening -- but we don't really know how many homes would have been listed for sale that now won't be listed for sale. So, in as much as we do experience a slightly-less-than-normal spring market...
It seems the local housing will make its way through all of this - but the timing of listings and the timing of sales will likely be a bit unusual this year! | |
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This Is A Great Time To Explore Building Lots For Sale |
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 If you're thinking about building a home, it's a great time to explore building lots for sale - simply because it is not an indoor space with regular inhabitants. I don't think the owner of the building lot will feel a need to wipe down the grass, underbrush or trees after you leave. Speaking of building, an age-old question is whether to buy a re-sale home or build a new home, especially as your price range gets above $400K or $500K. Typically, the tension between buying vs building is one of: 1. Goals 2. Money 3. Timing If you build, you can get the house you want, but you'll pay more for it and it will take a lot of time and attention. 1. Goals = Win 2. Money = Lose 3. Timing = Lose If you buy an existing home, you won't get exactly what you want, but you will pay less for the house and the process will not be a drain on your time. 1. Goals = Lose 2. Money = Win 3. Timing = Win Don't let my oversimplification of this issue fool you -- this is something that buyers can get stuck debating for months, or even years, often while looking at resale homes to try to convince themselves to buy instead building. If you are stuck in this quagmire, I'd be happy to meet with you (via Zoom?) to talk through some of the pros and cons and try to help you come to a decision you'll be pleased with in the short and long term. | |
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Yes, Houses Are Still Being Listed For Sale |
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 Some sellers are certainly waiting to put their house on the market given everything happening with COVID-19, but it seems that plenty of sellers are still listing their homes for sale...
When sellers are listing their homes for sale, they are often taking some extra precautions to keep their homes clean, such as...
So, if you are a seller thinking about listing your home for sale -- you won't be alone if you decide to go ahead and move forward with getting your house on the market -- but it is also understandable if you want to hold off for now. And if you're a buyer, in the current low inventory market, you should still be stalking the new listings to make sure you are not missing out on any opportunities. If you have any questions about buying and selling in this unusual, unprecedented time, feel free to touch base. Drop me a line at scott@hhtdy.com. | |
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How Is Coronavirus Affecting How Many Buyers Are Buying Homes In Harrisonburg, Rockingham County? |
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 Is Coronavirus slowing down home buyers in Harrisonburg and Rockingham County? It seems it may be, somewhat, but it's probably too early to make any definitive conclusions. Based on the graph above...
Here's another graph that shows looks at the cumulative number of home buyers who signed contracts through the entire year in 2018 and 2019, and thus far in 2020...  Above, you'll note that 2020 is still ahead of 2018 and 2019 when looking at the sum of January through March -- but that 2020 is drifting back downward towards 2018 and 2019. And, plenty disclaimers...
Anyhoo - lots of data, lots of possible conclusions, lots of caveats, and lots to continue to monitor over time. If you're thinking of buying or selling this Spring, let's chat about what makes sense from a timing perspective given continually changing market dynamics. | |
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And Where Do The Buyers Work And What Do They Do? |
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 If you're buying a home, get ready for a few extra questions from home sellers, at least for the time being... Most would-be home buyers in this area seem to be able to continue with their home purchasing plans despite the implications of COVID-19, but it is likely to interrupt some buyers' jobs, and thus income, and thus ability to buy a home. So, if your job IS secure (hopefully most everyone's) and you are getting ready to make an offer on a house, be sure to put some though into how you can best help the seller understand that your job is secure despite the changes we are seeing from COVID-19. And don't be surprised if the seller wants to know ALL about your employer, your job, if you are working on site or from home, if you have had any reduction in your hours, if there is any talk of your job being scaled back or eliminated, etc. Sellers are just trying to do their due diligence to make sure they don't get halfway to closing and then find out that the buyer's income has declined (or has been interrupted) and they can't follow through with their home purchase. Maybe the nice cover letter with a photo of your family and pets that accompanied some offers will now be replaced by a copy of your job description!? :-) | |
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Some Segment Of Home Buyers Will Not Be Able To Buy For A Time |
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 Unless you are paying cash for your next home, you'll need to be able to show your mortgage company that you have a steady source of income with which you'll be able to make your mortgage payments. That source of income is usually going to be from your job. Some jobs are more interrupted by COVID-19 than other jobs. Plenty of would-be home buyers are still working, perhaps from home, perhaps online, or perhaps their job is one that requires them to keep reporting to their place of employment. Some would-be buyers are having their hours scaled back, or are seeing their income decline, based on changes in business operations. So, BUYERS should keep in mind that if your income is (or is likely to become) interrupted by COVID-19 developments, then we may want to press the *pause* button on the home search just for a moment. And SELLERS should keep in mind that there may be somewhat fewer buyers in the market to buy your home if their income has been (or might be) interrupted by COVID-19 developments. Thus far, it doesn't seem that we're going to see most buyers not being able to buy homes because their income is being affected -- but we are likely to see at least somewhat of a decline in buyer activity. | |
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Careful What You Say While Touring A House For Sale |
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 As a buyer, when you are walking through a home, keep in mind that the seller might be listening! These days, there are plenty of ways that a seller could be monitoring their home, with a security camera, or other recording device that could allow them to hear every word you are saying while you are in their house. And, these cameras (or other listening devices) are less and less obvious and less and less expensive! So..... 1. Don't insult their house. It won't help during negotiations.One way around this is to pretend (as a buyer) that the seller is walking through the house with you. By the way, sellers, it may not be legal for you to record conversations in your home while you are gone. You should likely either NOT record conversations, or disclose that it is taking place. P.S. I am not an attorney. Consult one if you want an actual legal opinion. Ask me if you need a recommendation. | |
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Is Social Distancing Keeping Buyers From Buying Houses In Harrisonburg? |
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 I don't think I had ever heard of the concept of social distancing prior to March 2020. Maybe it was a thing, but just not a part of our common vernacular? Anyhow -- it's here now, and real -- but the question that many of you have asked me is whether social distancing is affecting market activity in our area. Above is a first look at that -- and I'm coming to a conclusion of "maybe, maybe not, maybe not yet, who knows" -- so, you're welcome in advance for the great clarity I will be providing here. ;-) The graph above shows the number of contracts that were signed (by buyers and sellers) for houses in Harrisonburg and Rockingham County between January 1 and March 25 of each of the past two years, as well as this year. A few observations...
So, now you see why I concluded what I did...
Anyhoo - we'll just have to continue to monitor the impact of social distancing on our local housing market - but thus far, we have not seen a drastic decline in the amount of buyer activity. | |
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Should I Buy A Home Now? |
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 School is cancelled and/or happening at home for the rest of the year. Businesses are closing. Folks are encouraged to stay at home and certainly not spend time in groups any larger than 10 people What does this mean for someone thinking about buying a home? If you were planning to find a home to buy this Spring, should you keep searching for that home and get ready to move forward with a home purchase, given the current state of affairs? As usual, it depends... Yes, you should buy a home now...
No, you should not buy a home now...
So, plenty of reasons to buy a home right now, and plenty of reasons to wait for a bit. As usual, the right answers for you depends on your specific situation as it pertains to where you are living now, why you want to buy, your plans for the near-term and long-term future, your budget, your overall finances, your current job, your future work prospects, etc. So, if you were planning to buy a home this Spring, let's talk things through and make sure we're thinking about it all from all angles and ensure that you are making the best real estate decision for you given your circumstances and goals. | |
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It Is A Great Time To Virtually Walk Through A Home |
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 It's a great time to virtually walk through a home - given social distancing, and everything going on right now. Here are a few homes where you can do just that...  This beautiful, well maintained, contemporary home in Kentshire Estates with an open floor plan, a stone and brick exterior, an expansive garage, and a finished basement is located in close proximity to Sentara RMH Medical Center. Enjoy upscale finishes throughout, such as hardwood floors, crown moulding, custom cabinetry, granite countertops and much more. The two story great room with a gas fireplace is open to the kitchen and the main level also features the master suite, a home office and formal dining room. Upstairs you'll find three additional bedrooms - one being an enormous bonus room - and the lower level features an open rec room or family room, plus an additional office option, a full bathroom, and storage space.  16 LOUISE DRIVE: Walk Through | More Details This immaculate brick contemporary home in Windsor West is just a short walk away from Turner Ashby High School! Enjoy a grand two-story living room with hardwood floors and a gas fireplace, an upscale kitchen with granite countertops, a pantry and breakfast nook, an enormous family room just off the kitchen, with lots of natural light, a home office at the front of the house and a master suite with a walk-in closet. Don't miss the large laundry room with plenty of cabinetry, three upstairs bedrooms, plus a rec room, bedroom and bathroom on the lower level! Recent updates include a new back patio, new exterior doors and lighting, new carpet, fresh paint, and much more! This home offers lots of storage in the basement!  285 CALLAWAY CIRCLE: Walk Through | More Details This upscale paired home in The Glen at Cross Keys offers low maintenance living with a HardiePlank and stone exterior and a fenced backyard. Enjoy an open floor plan with a two-story living room, gourmet kitchen with plenty of cabinetry, granite countertops, stainless steel appliances and an eat-up breakfast bar, hardwood floors on the main level and a large dining room easily converted to a guest bedroom. The master suite features a separate sitting room or home office, a master bathroom with ceramic tile floors, a double vanity, a shower and a soaking tub. Don't miss the second bedroom suite upstairs, the full bathroom on the main level and the two-car garage! All this in a beautiful, well-maintained community with mountain views! | |
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Buying When Needing To Sell But Only If You Can Buy But After You Sell |
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 If you're looking to buy a house this Spring or Summer -- but -- you own your current home -- this morning's ramblings are for you... Selling (for some houses, in some price ranges, in some locations) can seem like a breeze -- inventory is low, buyer interest is high, homes are going under contract quickly -- all good news for sellers. And buying (for some houses, in some price ranges, in some locations) can be quite difficult these days -- inventory is low, interest from competing buyers is high, homes you might want to buy are going under contract quickly -- all less than exciting news for buyers. And when you wrap those two realities together -- buying and selling at the same time -- things can get tricky. Because it can be hard to find something to buy, many would-be seller-buyers aren't listing their home despite their desire to make a move. After all, they don't want to find someone to buy their home when they don't have somewhere to go. But then, the perfect house comes on the market! So, now what!? Do we quickly (quickly!!) list your home for sale and try to secure a buyer in time to make an offer on your dream house that is contingent on the settlement on the sale of your current home that is under contract? Hoping some other eager buyer has not already secured a contract on your dream house by the time we have your current house under contract? OR -- do we make an offer on your dream home, contingent on the sale of your current home, even though your current home is either not yet on the market or not yet under contract? (Hint, hint - the seller of your dream home probably won't be be interested in this proposal.) OR -- do we make an offer on your dream home WITHOUT a home sale contingency. That was a lot of build up to get here -- but this is the central item you may want to think about as you consider a sale and purchase this Spring or Summer. First - Do you NEED a home sale contingency... This can be pretty quickly determined in a conversation with a lender. Let me know if you need some recommendations of who to call for your next mortgage. They will essentially be asking you questions about your income, recurring monthly debt (house, car, student loans, etc.), and assets (cash) on hand. They'll be trying to determine whether your income (and offsetting expenses) qualify you to get a mortgage to purchase the new home while still owning the current home. Again - this is rather cut and dry from a lender's perspective, so if you're thinking (even a little bit) about whether you could / should / would buy without having first sold, then start with a conversation with your lender. If they can qualify you for a mortgage to purchase your dream home without having first sold your existing home, you will then move on to the next question... Second - Do you WANT a home sale contingency... Perhaps you own a $250K house and you're thinking about buying a $350K house. And perhaps your lender says it is no problem at all - they'll give you a mortgage to buy the $350K house even if you still own the $250K house. And perhaps you are quite certain we'll be able to speedily sell the $250K house. But yet, still, you might decide that you don't WANT a home sale contingency. Maybe you don't want the risk associated with having to pay both mortgage payments until the $250K house sells. Perhaps you don't like the loan terms that will be required on the $350K purchase without having freed up some equity from the $250K sale. Whatever the reason, there may in fact be a reason why you WANT a home sale contingency. Alright - the ramblings will stop for now. As you may have figured out if you made it this far -- selling and buying at the same-ish time can be relatively complex -- and we can't always figure it all out by thinking through a formula or checklist. As such -- if you're thinking about selling and buying this summer, let me know if you'd like to chat more about all of these topics, in person, as it relates to your own particular scenario.
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Mortgage Interest Rates Hit All Time Low at 3.29% |
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 Mortgage interest rates have never been lower than right now. No, really! The current average 30-year fixed rate mortgage is 3.29% and that is the lowest level seen in the 50 years that this rate has been tracked! So, if you're buying a home in the near future, you will be locking in at historically low interest rates. And if your current mortgage is at an interest rate of perhaps 4.5% or higher, it might make sense to refinance! | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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