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Everything you need to know about buying an investment property in Harrisonburg, Virginia |
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Types of Investment Properties in Harrisonburg Overview of Real Estate Investing in Harrisonburg Reasonable Goals for Buying an Investment Property in Harrisonburg Everything You Need To Know About Buying An Investment Property in Harrisonburg, Virginia Buying real estate for your son or daughter to live in while they attend JMU Analyzing Investment Properties Three ways to buy a foreclosure in Harrisonburg or Rockingham County, and how to find such opportunities OK, that's probably not EVERYTHING you need to know, but I hope it is a good start towards it. If you are ready to consider buying an investment property, please e-mail me (scott@HarrisonburgHousingToday.com) or call me (540-578-0102) to discuss your investment goals. | |
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It might get to where it is more affordable to buy than rent. Oh wait, it already did. |
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![]() It seems likely that at least one of these active listings at Avalon Woods could be purchased for $130,000 -- and I know of several townhouses that have recently been rented for $875/month in Avalon Woods. As you can see above, this tips the scales towards owning a home being the more affordable option on a monthly basis. ![]() Of further interest, is that of that $791 monthly payment, a full $189 goes towards the principal of your mortgage -- thus you're paying down over $2,000 of that mortgage debt in the first year alone. Certainly, there are other upfront costs (closing costs, down payment) that you will have when buying --- but it is once again an exciting time for first time buyers when you can potentially reduce your monthly housing budget through buying a home. | |
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Finding a deal on a townhouse in Harrisonburg |
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There are some deals to be had on townhouses in Harrisonburg, based on:
Some of these are bank owned properties (post-foreclosure) and some are homeowners who are just ready to move on. I have had investors take advantage of some of these great opportunities, and I have had some first time buyers take advantage of them. Send me an e-mail (scott@HarrisonburgHousingToday.com) or call me (540-578-0102) if you are looking for a great deal on a townhouse and I'll fill you in on the details. Also, don't forget that you can find out a lot of information about townhouses communities in/around Harrisonburg by visiting HarrisonburgTownhouses.com. | |
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Average mortgage interest rates (3.87%) break historic low levels, again |
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![]() Not only have 30-year fixed mortgage interest rates been at or below 4% since November 3rd, they also hit an all-time low this past week at 3.87%. Buying a median priced home a year ago: Price: $180,000 Interest Rate: 4.81% Monthly Payment: $884 (assuming 80% LTV) Buying a median priced home now: Price: $174,900 Interest Rate: 3.87% Monthly Payment: $781 (assuming 80% LTV) | |
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Harrisonburg Sub-$100K Single Family Homes: They're back, and more affordable than ever! |
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![]() As the real estate market heated up, the opportunity to buy a single family home in the City of Harrisonburg for less than $100K cooled down. Now, however, there are more opportunities to buy such homes. The even better news is that it's more affordable than ever to buy such a property. ![]() The chart above shows the principal and interest payment on a $96,500 loan (a 96.5% FHA loan on a $100K purchase) given the interest rates over the last 11 years. This does not include taxes, insurance, and PMI. If you are looking for an affordable house --- either from a sales price perspective, or a monthly payment perspective --- don't hesitate to contact me (scott@HarrisonburgHousingToday.com or 540-578-0102). I'd be happy to help you find a home to meet your needs. | |
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Three ways to buy a foreclosure in Harrisonburg or Rockingham County, and how to find such opportunities |
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If you are in the market to buy a home, some of the properties you might be considering are foreclosures – but there are some distinctions to be aware of at different stages of the foreclosure process. It is possible to buy a home from the owner before they are foreclosed on even if they cannot pay off their mortgage – this is called a short sale. Or, you might buy a property at the courthouse steps when it is being auctioned – this is called a trustee sale. Finally, if a property does not sell at the auction, you can buy the property from the lender after they have taken ownership of the property – this is called a bank owned property or REO property. 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! Research potential short sales in Harrisonburg and Rockingham County online via www.HarrisonburgShortSales.com ![]() 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. Research upcoming trustee sales in Harrisonburg and Rockingham County online via www.HarrisonburgForeclosures.com ![]() 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. Research currently available bank owned properties in Harrisonburg and Rockingham County online via www.HarrisonburgREO.com ![]() 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. For information about purchasing a property as a short sale, or purchasing a bank owned property, please e-mail me at scott@HarrisonburgHousingToday.com or call me at 540-578-0102. | |
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If a resident of Rockingham County has a job and some level of job security, why wouldn't they buy a home or move into a different home? |
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A great question from a blog reader. Any thoughts, other blog readers? | |
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The competition is stiff, oh wait, no it's not! |
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![]() In preparing to list a home for sale, I met with my clients and we examined the competition that their home would have given its characteristics (size, location, age, price). We were surprised that there were not too many comparable homes (at all) on the market right now. If someone wants to buy this home, they won't be comparing it side by side with others that are quite similar in size, location, age and price. One reason why some homes for sale don't have as much competition is because of the overall decline in the number of homes listed for sale. Inventory levels have dropped 16.5% over the past year, and there are now only 657 homes (single family, townhomes, condos) on the market in Harrisonburg and Rockingham County. This is good, folks, especially if you are ready to put your house on the market and it is in a decent neighborhood, has been well maintained, and you are able to price it reasonably given market conditions. If you'd like to examine your competition, just call (540-578-0102) or e-mail me (scott@HarrisonburgHousingToday.com) and we can set up a time to meet. | |
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With opportunities like these, we should start to see more townhouse sales soon! |
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![]() What a wild ride it has been for the townhouses market in Harrisonburg and Rockingham County. How about a brief history before looking at today's great opportunities.... Early 2000's: moderate sales (200/y) and low prices ($100K) In 2000 and 2001 there were around 200 townhouse sales per year, and the median sales price for townhouses was right around $100K. At the time, interest rates were around 7.5%, so a monthly payment on a 96.5% (FHA) loan would have been right around $745/month. Mid 2000's: escalating sales (650/y) and escalating prices ($170K) As real estate markets across the country heated up between 2003 and 2006, there were more townhouse buyers than ever in Harrisonburg and Rockingham County. The pace of sales peaked in 2005 with an amazing 644 townhouse sales, and prices peaked in 2008 with a median sales price of $167K. At the time, interest rates were around 6%, so a monthly payment on a 96.5% (FHA) loan would have been $1,085/month. Early 2010's: slow sales (150/y) and softer prices ($140K) Since the high of 644 townhouse sales in 2005, the pace has drastically dropped, down to only about 160 sales in 2011. This reduced demand for townhouses has brought prices down, and median prices are now at $143K. Interest rates are currently just under 4%, so a monthly payment on a 96.5% (FHA) loan would be right around $760/month. So, now on to some specific examples of the great opportunities in today's market:
As you can see, there are some great opportunities in the current townhouse market --- both for first time buyers, and for investors. Please let me know if you'd like some assistance in finding a property! I'd be excited to help you find a great opportunity. | |
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Budget 34% less for your housing costs at Taylor Spring |
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![]() Yesterday I pointed out that monthly housing costs have declined 28% since 2007 because of modest declines in median sales prices and significant declines in average mortgage interest rates. But let's make it a bit more specific.... The first townhouse pictured above was sold in 2007 for just $100 more than the median sales price at the time, and your monthly housing cost would have been $1,096 if you financed 80% of the purchase price at the average interest rate of 6.21%. The second townhouse pictured above is for sale now for only $159,200, and would require a monthly housing cost of only $719 -- again, assuming you financed 80% of the purchase price at today's average interest rate of 3.99%. This is quite a dramatic difference (-34%) in housings costs, and hopefully helps to illustrate the wonderful opportunities for buyers in today's market! | |
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HarrisonburgOwnerFinancing.com, your source for properties with owner financing in Harrisonburg and Rockingham County |
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![]() If you are looking for properties with owner financing available in Harrisonburg and Rockingham County you can now easily find them on www.HarrisonburgOwnerFinancing.com. Also, don't forget, If you are looking for properties available for lease/purchase in Harrisonburg and Rockingham County you can find them on www.HarrisonburgLeasePurchase.com. Also, don't forget, if you are looking for potential short sales in Harrisonburg and Rockingham County you can find them on www.HarrisonburgShortSales.com. Also, don't forget, if you are looking for bank owned (REO) properties in Harrisonburg and Rockingham County you can find them on www.HarrisonburgREO.com. | |
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HarrisonburgLeasePurchase.com, your source for properties available for lease/purchase in Harrisonburg and Rockingham County |
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![]() If you are looking for properties available for lease/purchase in Harrisonburg and Rockingham County you can now easily find them on www.HarrisonburgLeasePurchase.com. Also, don't forget, if you are looking for potential short sales in Harrisonburg and Rockingham County you can find them on www.HarrisonburgShortSales.com. Also, don't forget, if you are looking for bank owned (REO) properties in Harrisonburg and Rockingham County you can find them on www.HarrisonburgREO.com. | |
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HarrisonburgShortSales.com, your source for potential short sales in Harrisonburg and Rockingham County |
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![]() If you are looking for potential short sales in Harrisonburg and Rockingham County you can now easily find them on www.HarrisonburgShortSales.com. Also, don't forget, if you are looking for bank owned (REO) properties in Harrisonburg and Rockingham County you can find them on www.HarrisonburgREO.com. | |
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HarrisonburgREO.com, your source for bank owned (REO) properties in Harrisonburg and Rockingham County |
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![]() If you are looking for bank owned (REO) properties in Harrisonburg and Rockingham County you can now easily find them on www.HarrisonburgREO.com. | |
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Should I buy or should I rent? |
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Yesterday's Daily News Record had a thorough look at buying vs. renting from a variety of perspectives. Here are a few (long-ish) excerpts.... ![]() HARRISONBURG — Chris and Kate Kelty had no plans of jumping back into the housing market a year after selling their townhouse. The couple with three young children figured they'd remain renters for a few years while building back up money for a down payment. Then they watched mortgage rates start plummeting. After a bit of number-crunching, the Keltys switched gears. "We realized, oh, my Lord, it makes a lot more sense to start thinking about buying," Kate Kelty said. "It was kind of a no-brainer." In August, the Keltys closed on a 2,500-square-foot home west of Bridgewater for $230,900. Their mortgage is $1,300 a month through a USDA Rural Development loan. Kelty, 32, said that's about how much renting a similar-sized house in the area would cost. ![]() A good deal on a home in the county near Rockingham Memorial Hospital enticed Chris Foster, 25, to buy his first house in early October for $220,000. His mortgage payments are about $200 more per month than what Foster shelled out as a renter, but he doubled his living space while adding a garage and a finished backyard. "I had a goal all along to purchase sooner rather than later," said Foster, a pharmaceutical representative. "This was kind of a perfect storm, so to say." ![]() Record-low mortgage rates have made buying a more attractive option for some renters. Interest rates on the average 30-year loan are hovering around 4 percent. "It would be difficult for renters to not strongly consider buying a home," said William Haithcock, chief executive officer of the Harrisonburg-Rockingham Association of Realtors. Those were just some excerpts, so be sure to read the full article online if you have a subscription. Of course, as usual, buying doesn't make sense for everybody, but it is becoming a much more compelling option for many these days. | |
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Record low interest rates spur on buyer activity |
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![]() Average 30-year fixed mortgage interest rates are now below 4.0%. Wow! I have shown houses to quite a few people over the past two weeks who are seriously considering a housing transition because of the extraordinary opportunity provided by these record low interest rates. Are you considering a move? Talk to a lender (ask me if you need references), and let's start exploring your opportunities. | |
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First Time Buyers Beware! You might accidentally set yourself up for long term financial success!?! |
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Frank is renting a townhome in Avalon Woods, and is paying $875 per month for the privilege to do so. He has thought about buying a home, but assumes he'd have to pay quite a bit more per month. Well, maybe not! If Frank were to buy a townhome in Avalon Woods (or Liberty Square, Beacon Hill, Harmony Heights, etc) he might pay around $140,000 for the townhouse --- or even less! Assuming $140,000, here is an illustration of what Frank's mortgage payment might look like, with a ridiculously low rate of 3.875% (which one of my clients was quoted yesterday).... ![]() Frank will still have to pay $40/month for the Property Owners Association on top of this mortgage payment, but his monthly housing cost is now going to be $775. Wait a minute.......Frank is going to move from paying $875 in rent to paying $775 for a mortgage payment? How could this be?
What are you waiting for? If you're a potential first time buyer, let's talk through your situation to see if a home purchase might fit into your short term (housing) and long term (investment) plans. | |
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Mortgage interest rates drop...again...soon banks will be paying you to take their money! |
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![]() How low can they go? Mortgage interest rates (on 30-year fixed rate mortgages) dropped again yesterday per Freddie Mac's Primary Mortgage Market Survey. The national average for a 30-year fixed rate mortgage is now 4.12%. Wow! If you're planning to buy sometime in the next few months, now would be a GREAT time to lock in a mortgage interest rate! | |
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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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