Buying
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How Much Are You Willing To Compromise To Live In The Neighborhood Of Your Dreams? |
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 I think it is reasonable to be willing to compromise on some aspects of your dream home in order to live in your dream neighborhood. For example...
But then, you might find that some compromises are just too much...
In your home search, if you are aiming to be in a certain neighborhood (or neighborhoods) you may be faced with this sometimes difficult question - how much will you compromise on your dream house in order to live in your dream neighborhood. It won't necessarily be a fun conversation or an easy decision - but I'm happy to talk it through with you - and we can best do that inside of that home that is pushing you to consider a compromise... | |
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How To Find Multi Family Properties To Purchase In and Around Harrisonburg |
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 Multi Family Properties can be a means to more quickly and simply make a larger investment purchase. Whether it is a duplex, triplex, quad, or a small apartment building, you will often be able to purchase these properties at a lower price per unit, and more quickly increase your total rental income as compared to purchasing one individual property at a time. HOWEVER - there are very few multi-family properties that are offered for sale in Harrisonburg and Rockingham County. A few tools for you if you are potentially interested in purchasing a multi-family property in this area. This one has been around for a bit.... Current Multi-Family Listings - bookmark this page on HarrisonburgInvestmentProperties.com to come back and review current multi-family listings at any time. This is the new one.... Email Alerts for New Multi-Family Listings - sign up to receive an email alert every time a new multi-family property is listed for sale in Harrisonburg or Rockingham County via the HRAR MLS. Enjoy -- and let me know if you have questions about multi-family properties, or real estate investing in general. | |
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I Would Like To Sell But Cannot Find Anything To Buy |
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 Something I am hearing with increasing frequency goes something like this...
A few thoughts and notes as it relates to this increasing common occurrence...
It can be a tough time to be a buyer -- and even more so to be a seller and buyer. I recognize that plenty of folks who want to move may just need to stay in their current home -- but let's take some time to explore that together to see if that is the only path forward. | |
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Detached Homes in the City of Harrisonburg Under $200K Are Harder To Find |
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 It's harder and harder to find a (detached) home in the City of Harrisonburg under $200K. As shown above, there have been fewer and fewer such home sales over the past few years. As a side note -- the 48 such homes that sold thus far in 2019 have had a median days on market of 5 days. So, when these under $200K homes do come on the market they usually go under contract quickly! As of today, there are 11 such properties on the market - but 7 of them are under contract. Explore all 11 of them here. | |
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Home Buyers In The City of Harrisonburg Have Fewer and Fewer and Fewer Choices |
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 As shown above, inventory levels keep on dropping in the City of Harrisonburg!?! Today, you'd have only 50 options for a home in Harrisonburg, compared to...
And, to make matters worse, the 50 houses on the market today are not likely all houses of interest to you, as they include...
And even beyond price, these homes are not all the same...
Anyhow -- the moral of the story is that you may need to be prepared to be patient as a home buyer in the City of Harrisonburg. There aren't many options of houses for sale at any given time -- and when compelling houses do come on the market, they often go under contract QUICKLY! | |
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Internet Tools Are Great But Cannot Replace Being In A Home |
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 No, Amazon can't deliver you a new home tomorrow -- even if you are a member of Amazon Prime. We are so used to being able to find everything, do everything, learn everything, buy everything, online. And when it comes to real estate, it is easier to understand houses for sale from behind your computer (or more likely - phone) screen. You can now devour plentiful information about a home for sale to include:
BUT -- nothing replaces actually being in a home. It's then that you get a true sense of how big rooms are, how spaces are connected, what updates you might want to make to the house, how well the space and flow will work for your family and lifestyle, how the topography of the lot affects your use of outdoor space, how close the neighbors feel, how distracting nearby sights or sounds might be, and so much more. These intangibles can't truly be understood until you are inside a home. SO -- if you are starting the home buying process, or deep into it, don't think you should just search, explore and learn online until you find your absolute 100% dream house. It will be more productive for us if we start going to see some houses inside, in person, in real life! | |
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Inventory Levels Seem Unable To Drop Below 250 |
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 It's been the story for quite a few years now (at least 10 years, it seems) that inventory levels are dropping -- buyers have fewer and fewer homes from which to choose when they are looking to buy in Harrisonburg and Rockingham County. Here are how many homes have been on the market in October for the past 10 years...
So, it's certainly a more challenging time to be a buyer than anytime in the past 10 years -- but inventory levels seem to now be bottoming out around 275. Here's what the past six months have looked like...
So, over the next year, I wouldn't be surprised if we never dipped lower than 250 and we never rose above 300. Given these limited inventory levels, it is more important than ever that buyers in today's market are ready to be patient and then to ACT QUICKLY! :-) Buyers can make it a bit easier on themselves by knowing the market, knowing the process, knowing your buying power, and closely monitoring new listings! | |
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This House Looks Good Online, But...Argh...Not Again!? |
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 If you're looking to buy a house right now, this might be a familiar experience... A new listing hits the market that seems to fit ALL of your needs...
Then, we go to view the house, and you discover that...
So, what is a buyer to do? Roll their eyes and say "not again!?!?!"? Trust nothing that they see online? Be highly skeptical of the merits of any new listing? Well, sure, those are probably reasonable responses - but in this low inventory environment, a buyer must also keep on exploring each new listing, as doubtful as they may be that it will actually meet their needs when viewed in person. You see, it is a seller's agent's job to present a house as positively as possible -- which can sometimes present a very different house online as compared to what will be understood when viewing the house in person. So -- despite your possible doubts, go ahead and rush out to that new listing that seems to meet all of your needs -- and hopefully you'll be pleasantly surprised! | |
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New Duplexes Being Built in McGaheysville, VA |
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 Welcome to Island Ford Estates in McGaheysville, VA! The same builder who brought you The Glen at Cross Keys is now building a very similar floor plan just a few minutes further East in McGaheysville... The site is being prepared for these duplexes -- and wow -- what amazing mountain views!  Island Ford Estates duplexes offer an open floor plan on the main level which includes a kitchen, dining area, living room, master bedroom, office or sitting room and laundry room. Enjoy spectacular mountain views and a cul-de-sac location in these thoughtfully designed homes. These homes feature 9 foot ceilings in many areas, light-filled living areas, luxury vinyl plan flooring, upscale cabinetry, granite countertops and many options and upgrades. Visit IslandFordEstates.com to find floor plans, a site plan, standard features, a vicinity map and more! | |
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Spend How Much You Want To Spend On A Home, Not Necessarily How Much You Can |
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 Most folks who buy a home this year will not be paying cash. An important early stage of the home buying process is to talk to a lender to become pre-approved for a mortgage. As you meet with a lender, remember that there is often a difference between:
If you are looking for a qualified mortgage professional, shoot me an email (scott@hhtdy.com) and I can give you some recommendations. As you are navigating the home financing process, I am happy to help you understand the information you are receiving and the decisions you are being asked to make. There are a variety of loan programs that can likely work well for your situation, but we'll want to make sure you are aware of all of your options. Learn more about the home buying process at BuyingAHomeInHarrisonburg.com. | |
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When To Make An Offer On Your Dream Home If You Also Need To Sell Your House |
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 In summary - not yet. If you need to sell your house in order to buy a new house -- and if your house is not already under contract -- then even if you find your DREAM HOME -- resist the temptation -- do not make an offer yet! If you make an offer on a house with a home sale contingency without your house already being under contract...
So -- if you view your dream home and you are ready to make an offer but have to sell in order to buy -- don't make the offer yet -- instead...
This may sound/seem difficulty or slow or risky or uncertain -- welcome to the world of trying to sell and buy at the same time! :-) But it can be done and I regularly help folks with this. All of the advice above is generalized -- if you are in a situation where you want to buy but you have to sell -- let's chat more specifically about your situation and develop a game plan. | |
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Buying vs Building A Home Over $400K |
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 Most buyers looking to spend over $400K (or certainly those looking over $500K) will also be considering building a new home. 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 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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Which Side of 81 Do You Live On? |
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 If you have lived in Harrisonburg for a while (more than a few years) which side of I-81 do you live on? The East or the West? Would you consider moving to the other side of I-81? Regardless of which side you are on now, I'm guessing most of you wouldn't flip-flop to the other side. Most people stay on one side of I-81 after they buy on that side -- because they get used to the patterns of life on that side of our community. Nothing is necessarily better or worse on one side or the other -- but they are different, that's for sure. EAST: Most of the residential development over the past 15 to 20 years has been on the East side of Harrisonburg, in the general vicinity of the new hospital. This makes it an exciting place to live -- for some people. There are many newer developments where homes have recently been built, and there are newer commercial destinations (Stone Port, Martin's grocery store, Target, etc) all on the East side of town. But this also makes it a bit more hectic for getting around. Of note, there is also plenty of outbound traffic East of town, towards Massanutten, Elkton, Charlottesville, etc. WEST: There hasn't been as much residential development West of Harrisonburg over the past 15 to 20 years (other than Belmont and Monte Vista Estates) and this is just fine with most people who live on the Western side of Harrisonburg. Things are a bit calmer, without as much hustle and bustle, and in some cases with more established neighborhoods. The towns of Dayton and Bridgewater end up falling into this side of town as well for many people. I am not doing justice to all of the differences between the East side of town and the West side of town, but I believe that most people in this area are oriented towards one side of town or the other, for very specific reasons. Furthermore, most people who have spent any considerable amount of time living on one side of Harrisonburg likely wouldn't think about moving over to the other side of Harrisonburg. So -- if you're just moving to the area -- choose East or West carefully -- you might never switch to the other side! :-) | |
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When To Actually Apply For A Mortgage When Buying A Home |
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 As Late As Possible
Incredibly Proactive
A Reasonable Middle Ground
I try to encourage all of my clients to at least be in the "reasonable middle ground" sequence as outlined above. This gives them a firm idea of what they can afford and how a home price will compare to a loan payment. This also allows them to make a stronger offer, already having a pre-qualification letter in hand. I strongly discourage my clients from following the "as late as possible" sequence as outlined above. This doesn't help them make the best decisions about which houses to pursue, how far to negotiate, etc. This also doesn't allow us to make as strong of an offer on a house. Occasionally, one of my clients will fall into the "incredible proactive" sequence as outlined above, and wow, this makes the financing process a joy to work through! These buyers have already done so much of their work with the lender before even thinking about which house to buy -- which then allows them to focus on buying, negotiating, inspecting, etc., rather than be bogged down in the process of securing their mortgage. Let me know if you have questions about how I have described these sequences -- and let me know if you would like a few recommendations for lenders in the Harrisonburg area. | |
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How Much Do Your Home Search Criteria Overlap? |
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 If you have three non-negotiable home search criteria, it is important to reflect on (or at least be aware of) how much overlap exists between these criteria. Above are two examples of this way of thinking about your home search.... The first set of buyers will likely have lots of options (large yellow overlap area) because many homes share these criteria:
The second set of buyers will likely have very few options (small yellow overlap area) because there are very few homes that share these criteria:
These are fictitious illustrations -- they don't represent the actual amount of overlap that does or does not exist based on the criteria noted above -- but you should give some thought to how small of an overlap area you are creating for yourself based on what you are defining as non-negotiable in your home search. If that area is too small, you'll have very few options to consider, and eventually you may decide to flex a bit on what you had previously considered to be a non-negotiable point. | |
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Harrisonburg Area Home Sales Over $500K Small But Strong Segment of Local Market |
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 Only 3% of local home buyers spend $500K or more on their home purchase (per sales data over the past year) but this segment of the local housing market has been strong over the past few years. As shown above, there were 40 home sales over $500K last year - more than any time in the past decade. This year we seem to be on track to possibly match that, with 33 home sales over $500K in the first eight-ish months of the year. Reigning in our enthusiasm a bit, though, this is a relatively small number of buyers. If you are selling a home over $500K, you need to keep in mind that only about 40 buyers per year (just over 3 per month) spend that much money on a home in ALL of Harrisonburg and Rockingham County! Let's look a bit further into even smaller segments of the high end local market...  While last year (15 home sales) wasn't quite the strongest year for $600K+ home sales -- this year looks like it will be. We have already -- in eight months -- matched the highest number of $600K+ home sales seen in a year when looking back for 10 years. And one more look at an even higher price point...  Above, you'll see that most years there are only 5 or fewer home sales over $700K. But back in 2015 there were 11 (which was more than double the norm) and this year there have already been 10 such home sales! So -- overall, the high end home sales market is doing well -- comparatively, but that is not to say that selling a home over $500K is an easy task - it's not. Home sellers over $500K are aiming for a tiny pool of potential buyers -- even if that pool of buyers might be slightly stronger this year than last. | |
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Fewer Than 1 In 4 Home Buyers Spend Over $300K in Harrisonburg, Rockingham County |
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 Lots to observe / conclude here...
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High Temps, But Low Mortgage Rates Throughout Summer 2019 |
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 Mortgage interest rates kept dropping lower - and lower - and lower all summer long! The current average rate for a 30 year fixed rate mortgage is only 3.55%, well below the 12 month average of 4.3%. If we look back even further, we're approaching the lows of mid-2016...  All of this adds up to VERY favorable times to be buying a house - in that you can lock in your monthly housing costs at some of the lowest long term interest rates ever seen. | |
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Should You Rent or Buy With a 2, 3 or 5 Year Time Frame? |
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 Should You Rent or Buy With a 2, 3 or 5 Year Time Frame? Looking at two different price points for townhouses ($175K, $225K) a quick analysis would indicate that...
So, buy the townhouse, right? Well, sort of... The comparison above ONLY accounts for the monthly payments and does not account for...
So, let's look at it again, a bit more thoroughly...    Above I have tried to account for ALL of those factors, and looking at a two year window, three year window and five year window. This analysis indicates that you should probably plan to be in your home for 5+ years if you want the total financial transaction(s) to be a net positive. That said, there are, of course, plenty of extenuating circumstances. Many people might buy a $175K house (or townhouse) even if they are planning to be there for only 3 years --- because they want their own home (not their landlord's), or to get in a certain neighborhood, or because of the tax benefits, etc. Every buyer's situation is different, and I'd be happy to help you run an analysis similar to those shown below if you're interested in analyzing your best housing move. | |
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How To Strengthen Your Low Offer Without Paying More |
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 If you are making a low offer, you can increase the appeal of your offer by strengthening your other offering terms.... DEPOSITS Make the largest deposit you are comfortable with so the seller knows you have money "on the line" and that you won't risk losing that money by attempting to walk away from the deal. CLOSING COST ASSISTANCE Sellers don't just look at the contract price --- they calculate their net proceeds based on the offer price and any credits or closing cost assistance. Only ask for assistance if you truly need it. FINANCING Provide as much detail as possible about your financing intentions, and always include a pre-approval letter. Sellers who believe you are capable of financing the purchase will be less hesitant as they consider other terms of your offer. And yes -- offer cash, a large pile of it, if you are able. :) PERSONAL PROPERTY Don't automatically ask for everything the seller intends to convey --- if you don't need them all, leave them out of the offer. Allowing the seller to keep their washer/dryer (for example) may make them more flexible in other areas. INSPECTIONS Having a professional inspect the property you are purchasing is usually a good idea; however if you only intend to do it for informational purposes, consider leaving it out of the contract negotiations and conducting it post-settlement. SETTLEMENT & POSSESSION If possible, cater your settlement date and the details of transferring possession of the property to the needs or wants of the seller. This can go a long way towards gaining seller flexibility on other contract terms. Finally, research the seller's context for selling. That information can be invaluable in negotiating a successful contract. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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