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What is a cash proffer, what do the proposed bills in the General Assembly mean for Rockingham County? |
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![]() According to the Virginia Department of Housing and Community Development.... A cash proffer is (a)any money voluntarily proffered in a writing signed by the owner of property subject to rezoning, submitted as part of a rezoning application and accepted by a locality pursuant to the authority granted by Va. Code Ann. Section 15.2-2303 or Section 15.2-2298, or (b) any payment of money made pursuant to a development agreement entered into under authority granted by Va. Code Ann. Section 15.2-2303.1.In other words, cash paid by a developer to a locality for the ability to rezone a piece of development land. There are several bills in the General Assembly that would amend Virginia's proffer system by requiring that proffers be limited to impacts directly attributed to a new development. Apparently, some localities in the more densely populated areas of Virginia (Richmond, Northern Virginia) are using cash proffers for projects unrelated to the new developments. As per today's Daily News Record article (County Officials Blast Development Proposal), officials in Rockingham County are not in favor of this bill being passed, because it would require that the County would hire an independent body to examine all proposed proffers in the future, which would be an added cost the County, and thus taxpayers. My read on the matter is that a reform of the proffer system would improve how things work in Richmond and Northern Virginia (making sure that proffers are really only for projects related to the new developments) but would add additional requirements, processes and costs for the rest of the localities throughout Virginia. | |
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Understanding your Loan Estimate |
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![]() As you start shopping around for a mortgage, you should ask each lender for a "Loan Estimate" as shown above. This is a relatively new document that lenders are using, and outlines all of the terms of the loan you are considering. Even better -- the Consumer Financial Protection Bureau has created this interactive Loan Estimate Explainer. Let me know if you are looking for a recommendation of a local lender.... | |
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Approaching a balance between buyers and sellers |
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![]() Most housing market analysts consider six months of inventory (active listings) to be an indicator of a balanced market (between buyers and sellers). The "BUYERS" trend line above is illustrating how many buyers are buying in a six month period. The "SELLERS" trend line above is illustrating how many sellers are in the market (active listings) at any given time. As you can see, our market had an extreme imbalance several years ago, with more sellers in the market than were needed based on the buyers in the market. Over the past four years we have been seeing a steady increase in buyers in the market and a decline in sellers in the market. Read more about the local housing market in my most recent market report.... ![]() | |
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Local Housing Market Sees Strong Start in January 2016 |
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![]() Learn more about this month's Featured Property: 3853 Traveler Road I just published my monthly report on the Harrisonburg and Rockingham County real estate market. Jump to the full online market report, watch the overview video below, or download the PDF, or read on for highlights.... A Video Overview.... ![]() Let's start by taking a look at the overall market performance in January and over the past twelve months.... ![]() Strong Sales Pace.... As shown above, we saw a strong month of sales in January -- with 67 home sales, as compared to only 49 last January. This 37% year-over-year improvement in January 2016 contributed to a 6.42% year-over-year increase in the annualized pace of home sales in Harrisonburg and Rockingham County. Increasing Prices.... While the median price ticked down 0.51% when only looking at January 2016 figures, the median sales price over the past 12 months increased by 2.83% to $185,000 compared to the previous 12 months. Faster Sales... Homes are also selling faster -- at a median pace of 55 days on the market based on sales in the past 12 months. ![]() When looking at a rolling 12-month time frame in the graph above, we note that:
Buyers and sellers signed 74 contracts in January 2016 -- as compared to 76 last January. This is despite a large snowstorm that slowed down the market for at least a week during January. This is an indicator that we are likely to see a similar number of February home sales this year as we did last year. Inventory levels (the number of homes for sale) are at their lowest levels seen anytime in the past eight months. This is not surprising given the time of year we are in -- though year-over-year inventory levels have also declined by 2%. More and Much, Much More.... | |
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Tax Rates in Harrisonburg, Rockingham County |
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![]() For planning purposes, just a reminder that the tax rate in Rockingham County was both $0.66 and $0.68 during 2015 -- but we can likely now just plan on it being $0.68 (or higher?). The tax rate for the first half of the year (2015) was $0.66 and then it increased to $0.68 for the second half of the year. The City of Harrisonburg continues to have a slightly higher ($0.72) tax rate than Rockingham County. | |
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Harrisonburg Commercial Real Estate Market in 2015 |
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![]() Walmart, Gabe's and Hobby Lobby were some of the major participants in the commercial real estate market in 2015, but as noted in today's DNR article.... [...] it's a nonbuilding project, the completion of the half-loop connecting U.S. 33 east and west of Harrisonburg known as the Southeast Connector, that's predicted to have the greatest effect on commercial real estate.Read the fully Daily News Record article for an overview of some of the changes and new developments seen in the Harrisonburg commercial real estate market in 2015. | |
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How does the Harrisonburg area population compare to other Cities in Virginia? |
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![]() If we take NoVa (2.9M), Virginia Beach (1.7M) and Richmond (1.2M) out of the mix, we're left with the eight MSA's listed above. You'll note that Harrisonburg and Rockingham County have an estimated population of 133K, compared to Staunton (next smaller at 121K) and Blacksburg (next larger at 183K). Click here for a larger version of the graph above. Of note -- this graph does not include:
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Winter can be the best time to purchase an investment property |
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![]() Many of my savvy investor clients wait for the winter months to acquire additional rental properties. Their reasons are pretty logical....
Of note -- this advice is most applicable to townhouse properties that might be purchased by investors or owner occupants. This does not necessarily apply to multi-family properties or student housing properties. If you are looking for some advice on how to get started with real estate investing, check out HarrisonburgInvestmentProperties.com. | |
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Keep buyers focused on what matters... the house! |
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![]() (don't worry -- this is not really one of my client's homes) Preparing your home to go on the market can be challenging (and tiring), and often sellers-to-be need a second (or third) set of eyes to provide suggestions about where to focus their time and energy. There are many different theories about how to best prepare your home to be on the market and viewed by buyers --- and ways of expressing those theories.
Distractions are the things that keep a prospective buyer from focusing on your house. That might be knick knacks, or family photos, or refrigerator magnets, or an overflowing pantry, or fascinating artwork, or an abundance of indoor plants, or a strange odor, or brightly colored wall hangings. Whatever it is --- if a buyer is focusing on one (or more) of these items, they're not focusing on your house. They're reading all of the Far Side comics on the fridge instead of marveling at the granite countertops, tile back splash, recessed lighting, and stainless steel appliances. They're amazed at how you fit 234 board games into the coat closet instead of taking in the quality workmanship of the trim detail in the foyer, and the mountain views out the picture window in the family room. As you prepare your home to go on the market, close your eyes for a few moments when standing at the entrance to each main living area. Then, open your eyes, and take note of where your eyes are immediately drawn. Or, walk slowly through the space (or ask a friend to help) seeing where your eyes (and your mind) linger. Objections are those correctable physical characteristics of your home that give a buyer a reason to mark your home off their list, or to move it down a notch in their preferences. Perhaps it is that the vinyl siding needs to be power washed, or that three bi-fold closet doors need to be adjusted, or that there is poor lighting in the kitchen, or that the deck needs staining. There are oftentimes small home maintenance items that should be attended to before putting your home on the market. There are two potential dangers of having these items unresolved --- first, a buyer might become too overwhelmed by the work that they need to do to the home once they move in, and second, a buyer might extrapolate from what they can see to imagine what they cannot. A classic example of this is the dirty furnace filter that makes a buyer assume that the HVAC system has never been serviced, is in a terrible state of disrepair, and will need to be replaced immediately. As you're preparing your house to go on the market, I'm happy to provide you with another set of eyes and to give you some new perspectives on how to best prepare your home to be shown to buyers. When you're ready, just give me a call (540-578-0102) or send me an e-mail (scott@HarrisonburgHousingToday.com). Also, don't fret about having your home in perfect "show condition" before you call me --- I'm happy to give you some guidance and feedback while you're still in the process of preparing your home to go on the market. | |
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Now wait a minute, I thought interest rates were rising? |
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![]() Fear not, interest rate watchers, while mortgage interest rates were on the rise -- climbing up above 4% at the end of December, they have now tumbled back down to 3.79%. When the Fed raised its key interest rates, it seemed that mortgage interest rates might finally be leaving the sub-4% range for good. Not so much. It's anyone's guess where mortgage interest rates will end up in December 2016 -- but their recent trajectory (down, down, down) no longer has me worrying (as much) that we will see a steady increase through the year up to and beyond 5%. | |
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Is that a house behind that tree? |
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![]() If you're thinking of selling this Spring or Summer, and you have trees (especially large house-obscuring trees) we should discuss taking some exterior photos SOON rather than waiting until later when we can't see your house at all. Oh, but yes, we should make sure all of the snow has melted first.... It's all about the timing! | |
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I am expecting a lot of showings in February |
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![]() There were a LOT of showings in the fourth quarter of 2015 -- with 60% and 58% year-over-year increases in October and December. But then January came, and along with January came lots of snow. That seems to have been the main driver between the 41% decline in January showings as compared to a year ago. I suspect that as the snow continues to melt, and as some additional homes come on the market, that we will see a strong month of showings in February 2016. | |
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How to buy a foreclosure in Harrisonburg |
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![]() With some regularity, I am asked by potential purchasers how they would go about buying a foreclosure. First, here is a list of upcoming foreclosure sales, but more importantly, below is a description of a few ways to buy what you might be thinking of as a foreclosure. SHORT SALES: Some homeowners must sell their home, but market conditions won't allow them to sell it at a high enough price to be able to pay off their mortgage(s). In this example, a homeowner might have a $250,000 mortgage balance but can only sell the property for $230,000. As a prospective buyer, it is sometimes possible to purchase this type of a property through a process called a "short sale." In such an arrangement, the homeowner petitions their lender to accept less than the full payoff of the mortgage and in return to still release the deed of trust so that ownership of the property can be transferred over to you, the new owner. This can benefit the lender, as they skip the time delays and cost of the foreclosure process. This can also benefit the homeowner, as a short sale will have a slightly lesser negative impact on their credit as compared to a foreclosure. As a buyer, however, you must know that there are challenges to buying a property as a short sale. The biggest challenges of late seem to be the uncertainty of the purchase and the time table. Even if you and the homeowner agree to a price of $230,000, the homeowner's lender must still agree to accept that price – since it won't allow the homeowner to pay off their $250,000 mortgage balance in full. This process of waiting to hear back from a lender, and then complying with all of their various terms can sometimes take 60 to 120 days – or longer! Visit HarrisonburgShortSales.com for a list of potential short sale properties currently on the market. TRUSTEE SALES: If a short sale does not take place, and a homeowner is behind on their payments (or not making them at all), eventually the property will be sold by the lender on the courthouse steps. Buying a property at a "trustee sale" can be exciting, and can be a great opportunity – but there are challenges as well. If a property to be sold at a trustee sale is also listed for sale with a Realtor, you can usually view the property ahead of time by calling your Realtor. Otherwise, you will likely not have the opportunity to see inside the property before the trustee sale, and thus you will not know too many details about the condition of the property. Furthermore, your purchase of the property at the trustee sale cannot be contingent upon viewing the property, or inspecting the property. In this instance, you are purchasing the property in "as is" condition, regardless of what you then find out about the property. It is also important to note that many times the lender will have an opening bid at the trustee sale that is close to (or sometimes higher than) the amount that they are still owed on the mortgage. Thus, in the example above, they might make an opening bid of $250,000. As a result of this opening bid process, many (or most) properties available for purchase at a trustee sale are not great opportunities. Occasionally, a property will be foreclosed upon that has had a mortgage in place for many years, whereby the balance of the mortgage is much lower than current market value – these are great opportunities for a buyer. Visit HarrisonburgForeclosures.com for a list of upcoming trustee sales. BANK OWNED PROPERTIES: If you don't buy the property before the auction (as a short sale), and don't buy it at the trustee sale, you'll have a third opportunity to buy it once the bank owns it. These properties are called "bank owned properties" or REO properties ("real estate owned"). Oftentimes, the prices on these properties are quite realistic, if not under market value. It would not be atypical for a house such as the one mentioned above to come on the market after the trustee sale at a price of $210,000. In such an instance, you should expect to be buying the property in "as is" condition, and you will also be buying with a slightly different contract document. Most lenders have a long standard contract or contract addendum that spell out a variety of additional contract terms designed to protect them from any future liability – and rarely will a lender agree to have these contract documents changed in any way. As you can see above, oftentimes buying the property as an REO property is where the best opportunity lies. Visit HarrisonburgREO.com for a list of bank owned properties currently on the market for sale. When a home goes into foreclosure it is often for very sad and unfortunate reasons – such as the loss of a job – and I do not wish such circumstances on any homeowner. However, if you are a buyer in today's market it is important to be familiar with different methods for buying a property when it will be, is being, or has been foreclosed upon. | |
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Contract Success Rate on the rise |
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![]() After a slight dip in 2014, the Contract Success Rate rose to 96% in 2015. That means that nearly all contracts that are signed by buyer and seller make it to closing. This may be a result of more reasonable lender underwriting requirements, or more prepared buyers, or buyers and sellers being more rational when negotiating the speed bumps between contract and closing. Regardless, it is good news for anyone who has a house going under contract -- it is more likely to go to closing than it was a year or two ago. | |
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Why did the chicken cross the road, in Harrisonburg? |
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![]() Q: Why did the chicken cross the road, in Harrisonburg? A: To get to a 2 acre lot. Back in 2009, City Council approved an ordinance that prohibited property owners from raising chicken in their backyard unless they had a 2 acre lot. There were also quite a few other limitations, all of which can be found in the entire current ordinance here. Now, per today's Daily News Record article.... "City officials are exploring whether the lot-size threshold should be reduced; if there should be a neighbor approval process; whether a certain number of permits should be issued within a trial period; and any other issues, according to the release."Do you have an opinion? You can sound off on the issue at BeHeardHarrisonburg.org. Oh, also -- before you try to get creative and consider another backyard bird, you should know that the ordinance in question also limits your ability to keep all of the following foul in your yard: chickens, roosters, ducks, geese, turkeys, guinea fowl, emus, rheas, ostriches and pigeons..... ![]() | |
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January Inventory vs. Full Year Home Sales |
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![]() A few short years ago there were enough homes on the market in January to last us nearly an entire year. In January 2011, there were 787 homes on the market and only 832 buyers would go on to buy a home that year. Things have looked at bit different over the past few years, with lower (529-560) levels of inventory at the start of the year, and higher (1085-1175) home sales in the year that followed. ** Please note: The 2016 home sales shown in the graph above are a projection, not a promise. :) | |
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Buying under $200K in Harrisonburg may require you to buy an old or attached home |
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A bit more about affordable housing in the City of Harrisonburg, as we started to explore yesterday.... ![]() There are 149 residential properties for sale in Harrisonburg right now -- but if you're buying under $200K, and hoping for a single family (detached) home, it may be more difficult than you imagined. As shown above....
So, if you are looking to buy under $200K in Harrisonburg you may have to buy an old home or an attached home (duplex, condo, townhouse). | |
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Homes in Harrisonburg Under Half A Hundred Years Old |
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![]() If you haven't heard, it's becoming difficult to find bread in Harrisonburg this week. Something about a pending weather system.....maybe eating bread is a part of the snow dance ritual? Hard to say.... Beyond bread, though, the next hardest thing to find in Harrisonburg right now is a single family family home, built in the past 50 years, at "an affordable price" -- however one might define that.... ![]() As shown above, if you are looking for a single family home in the City of Harrisonburg, built since 1966, for less than $125K, you are out of luck. You'll start to find some options at $129K and then things go right on up from there. Check them out here. If you know about some secret locations to find detached homes under $125K in the City -- or bread for that matter -- let me know! | |
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Walk Through 461 Queen Anne Court, Harrisonburg, VA |
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![]() Take a few minutes to walk through this beautifully updated four bedroom Colonial home on a full unfinished walkout basement in Kings Crossing is within walking distance of Hillandale Park and just a quick bike ride away from JMU Campus and downtown Harrisonburg. You will not want to leave the remodeled kitchen in this home with hardwood floors, soapstone counters, stainless steel appliances, built in built bookshelves and many other high class touches. Hardwood floors continue throughout the entire first floor, through the living room, dining room, family room and office. Upstairs, you will find four spacious bedrooms and three full bathrooms! Don't miss the full, unfinished, walkout basement with a workshop PLUS a large, fenced yard with mature trees! Click here to walk through this home, on your computer, phone or tablet. Or, visit this home's property website. Or, view high resolution photos of this home by clicking the collage below.... ![]() Find out more about this 3D Walk Through technology at WalkThroughThisHome.com.... ![]() | |
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More New Homes Selling, at Higher Prices |
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![]() As shown above, more new homes (54) sold in 2015 than in any year during the past five years. In fact, the 54 new home sales shown in the MLS in 2015 marked a 42% improvement over 2014. Furthermore, the median sales price has increased to $140/SF -- the highest level seen anytime in the previous six years! Of note -- the home sales shown above are only the new homes sold via the MLS. Plenty of other new homes have been built in recent years and sold directly by the builder (without ever being in the MLS) or were built via a contract build between land owner and home builder. Read more in my Harrisonburg Year End Real Estate Market Report.... ![]() | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
Licensed in the
Commonwealth of Virginia
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