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Monitor New Real Estate Listings via Twitter |
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Are you a Twitter user? If so, you can keep up with new residential real estate listings in the Harrisonburg and Rockingham County area by following @NewListHburg. So, yes, per many of your requests, there are now LOTS of ways to keep track of new listings in this area.... 1. NewListingsInHarrisonburg.com - this is a mobile friendly website, and you can add a shortcut to your home screen on your phone. 2. New Listings by Email - every time there is a new listing, you'll get an alert by email. 3. New Listings via RSS - for those RSS feed readers among you. 4. New Listings via Twitter - tweet, tweet. I expect this to be a fast moving Spring and Summer real estate market -- so now (with the options above) there is no excuse for not keeping up with new listings for sale if you are in the market to buy this year. If you have further recommendations (carrier pigeon?) for ways to keep up with new listings, just let me know. | |
The Case for a Custom Designed Home |
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Would it surprise you if I told you an architect thinks you should build a custom designed home? Probably not. Sorry, Charles. :) In discussion with Charles (ok, virtual discussion, on Facebook) Charles Hendricks, an architect in Harrisonburg, raised the following perspective.... You will pay more per square foot for a custom home. However, if you design a home with only the square footage you need, right sized room, and limited hallways you reduce the premium. If you add energy-efficiency into the equation you further reduce the difference. If you add in maintenance of systems you further reduce the difference. I argue, as you might expect, the best value is custom design. So, yes, I admit -- I agree with Charles, and here's the basic concept.... House 1 - a 4000 SF home for $550K. Some rooms that you might not end up using much or using well. Some rooms that are too large. Some rooms that are too large. You paid $137.50 / square foot. House 2 - a 3400 SF home for $550K. Every room and space in the home is one that you need and will use well. No rooms are too small. No rooms are too large. You paid $161.76 / square foot. So, yes, with House #2, you are getting less "value" in the conventional sense of the price that you paid per square foot of home that you purchased. But many would quickly understand that House #2 might actually have much more value in that it would (nearly?) perfectly fit your life, lifestyle and needs. An interesting perspective Charles, thanks! | |
The Tension Between Buying and Building |
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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. | |
Considerations in a Modular Home Purchase |
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image source According to Wikipedia, a stick-built structure is "one constructed entirely or largely on-site," as opposed to a modular home that is "divided into multiple modules or sections which are manufactured in a remote facility and then delivered to their intended site of use." My experience in chatting with buyers over the past 14 years has been that there are mixed opinions on modular homes. For example, some would suggest that . . .
Overall, my experience indicates that modular homes sell at slightly lower prices as compared to stick built homes -- and some of that is solely as a result of some buyers being hesitant to purchase a modular home. | |
Keep track of New Listings via an RSS feed |
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Do you read the news via an RSS feed? You can now keep track of new listings in Harrisonburg and Rockingham County via an RSS feed. Check out (and subscribe to) the RSS feed here. And a bit of background on RSS, from WhatIsRSS.com.... What is RSS? RSS (Rich Site Summary) is a format for delivering regularly changing web content. Many news-related sites, weblogs and other online publishers syndicate their content as an RSS Feed to whoever wants it. Why RSS? RSS solves a problem for people who regularly use the web. It allows you to easily stay informed by retrieving the latest content from the sites you are interested in. You save time by not needing to visit each site individually. | |
Predicting Home Values Based On Purchase Date |
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The chart above is calculated based on comparing the 2016 median sales price to the median sales price in each of the prior 15 years. Several key points to take away from this chart....
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Should your home be staged before it goes on the market? |
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Home staging is the act of preparing your home for sale by making it appealing to the highest number of potential buyers, thereby selling a property more swiftly and for more money. According to the National Association of Realtors Profile of Home Buyers and Sellers, over 81% of buyers find it "easier to visualize the property as their future home" when it is staged. If we decide your home would benefit from the assistance of a staging consultant before being listed for sale, I will arrange to have Melanie Woodard set up a time to meet with you at your home. She will provide prepare you with a full staging report with a variety of recommendations for improving the staging of your home. Find out more about the full process of selling your home by visiting.... SellingAHomeInHarrisonburg.com | |
Low Inventory Levels Not (yet?) Affecting Pace of Home Sales |
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Home sales have increased 15% over the past year -- while at the same time, inventory levels have dropped 31%. This has left me with at least some lingering concerns about whether extraordinarily low inventory levels could limit the pace of home sales in 2017. So far, my concerns are unfounded. As shown above, when examining January 1 through February 24 home sales, there has not been a noticeable change in the pace of home sales. Stay tuned to see how these dynamics continue to adjust as we progress through the year. | |
How do home inspection negotiations usually proceed? |
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How do home inspection negotiations usually proceed? The short (and vague) answer is -- well, it depends on the terms of your contract. But, overall, here is how the inspection process typically flows.... As you can see above, after a buyer requests repairs (based on the home inspection) the seller can choose to make some, all or none of the requested repairs. The transaction (and negotiations) can then go in a few different directions based on that response. Learn more about the home buying process at.... | |
Most contracts will have to clear these three hurdles |
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While every home sale is different -- with unique contingencies based on the needs and situations of the buyer and seller -- there are three main hurdles that most buyers and the houses they are purchasing must clear to make it to closing. So -- where is your contract in this process? Have you cleared 1, 2 or 3 of the hurdles, thus far? There will be plenty of other details to attend to, but these are the three main areas of focus. Evaluating the property condition, the property value, and the buyer's finances.... INSPECTION - This is an evaluation, by a home inspector, of the condition of the house. Clearing this hurdle typically involves requesting that the seller make some repairs to the house (or negotiate further on price) based on new information about the property condition discovered during the inspection process. APPRAISAL - This is an evaluation, by an appraiser hired by the purchaser's lender, of the value of the house. If the property appraises for the contract price (or higher), all is well -- otherwise, the buyer and seller may need to renegotiate the contract price based on the appraised value. LOAN APPROVAL - This is an evaluation, by a lender (and their underwriters) of the purchaser's financial situation. The lender must confirm that the buyer has the income to support the mortgage payment required for purchasing the home. Again - there are many other smaller hurdles (for example, a termite inspection) and larger hurdles (for example, a home sale contingency) that may need to be cleared in your purchase (or sale) of a home -- but these three main hurdles (inspection, appraisal, loan approval) are the three main mileposts during the contract-to-closing process that we'll be focused during the transaction. | |
This (winter) could be the optimal time to buy an investment property |
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OK -- admittedly, it doesn't feel like winter out this week, or in may recent weeks, however, I'll still take this time to note that many of my savvy investor clients wait for these winter/winter-ish 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. | |
How does Price Per Square Foot vary based on the age of a home? |
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As you'd expect, newer homes sell at a higher price per square foot. As shown above, the Median Price Per Square Foot of single family homes varies based on the age of the home.
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Median Price Per Square Foot is On The Rise |
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In addition to watching how the median sales price changes over time, it can be quite insightful to see how the median price per square foot of sold homes changes over time. The graph above tracks the median price per square foot of single family homes (not townhouses, duplexes or condos) in Harrisonburg and Rockingham County over the past 14 years. Price per square foot increased 59% between 2002 and 2006 during the housing boom, but then fell 22% between 2006 and 2011 as the market cooled back off. Since that time, however, we have seen a slow and steady increase in this metric -- from $101/SF in 2011 to $113/SF last year -- which marks a 12% increase over the past five years. I do not expect that we will see any drastic increases in this metric in the next few years, though an increasing number of buyers (more demand) and significantly fewer sellers (less supply) does make you wonder if we will start to see more rapid increases in sales prices, and thus in price per square foot. | |
Easy Access to Archived Harrisonburg Housing Market Reports |
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You can now access market reports back to 2013 by visiting HarrisonburgHousingMarket.com. Whether you are looking for the most recent report, or if you are interested to see how things were looking a few years ago, you are welcome to explore them all. Also of note, the best ideas for additions to my monthly market reports come from YOU! If you have further questions about our local housing market that are not covered by my monthly market reports, let me know! | |
If you have a basement in Rockingham County, you should test for radon |
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As you can see above, Rockingham County is in Zone 1 -- which means we are in an area that is likely to have high radon levels. What is radon, and what does it mean for you? Read on, from the EPA.... Radon is a radioactive gas that comes from the natural breakdown of uranium in soil, rock and water and gets into the air you breathe. Radon typically moves up through the ground to the air above and into your home through cracks and other holes in the foundation. Radon can also enter your home through well water. Your home can trap radon inside.Learn more about radon and real estate here. | |
Harrisonburg Population Up 11% Over Six Years |
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As shown above, the population of the City of Harrisonburg has increased by 11% over the past six years to it's current (estimated) level of 54,224. A few other fast facts from today's Daily News Record article....
Read the full Daily News Record article for much more context and insightful commentary. | |
Should you hire a Realtor to represent you in a home purchase? |
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If you are purchasing a home, before you call the listing agent to see that home, you should understand a bit more about buyer representation. In representing you as a buyer in your home purchase, I would be performing tasks such as:
So -- you can call the listing agent (who is contractually bound to represent the seller's best interests) or you can hire a Realtor to represent YOUR best interests as the buyer. Clearly, I recommend the second option. Beyond buyer representation, there is a lot more to know about and think about regarding the home purchasing process. Read more at.... | |
Maybe interest rates will stay below 4.25% after all |
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Well, things weren't looking so good for a while there. Just after the election interest rates shot up from 3.6% (+/-) all the way up to 4.3% (+/-). In that moment, it seemed that there wasn't any stopping rising interest rates, and we might see 4.5% followed by 4.75% before we knew it. Now, however, things seemed to have shaken out a bit differently than anticipated (or feared) with interest rates now hovering between 4% and 4.25%. Yes, it was fantastic to have interest rates under 4% for the past year (and more) but if we stay just over 4%, I don't think they higher rates will have a significant negative impact on the buying market in 2017. | |
Sales Prices Rising Faster in County Than in City |
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Sometimes I have more questions than answers. Or more observations than explanations. As shown above, the median sales price of homes in Rockingham County has increased 4.2% over the past year -- from $194,900 to $203,000. During the same time frame, the median sales price of homes in the City of Harrisonburg has only increased 0.15%. So -- why are home prices increasing more in the County than in the City? Perhaps it is based on what homes are actually selling in the City and County? Maybe we are seeing larger or newer homes selling more frequently in the County, where as smaller or older homes are selling more frequently in the City? Maybe there is more buyer demand in the County, driving prices up more quickly in the City? Theories are welcome! I'll let you know if I have any magical insights. Until then, you can find out more about the Harrisonburg and Rockingham County real estate market by visiting.... | |
Sales Up, Prices Up, Inventory Declining Drastically |
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Learn more about this month's Featured Property: 141 Diamond Court I just published my monthly report on the Harrisonburg and Rockingham County real estate market. Jump to the full online market report, watch the video overview below, download the PDF, or read on for highlights.... First, a video overview.... Now, let's take a look at the overall market performance in January 2017.... As shown above, home sales were slightly (3%) slower in January 2017 -- but added to recent strong months of sales to show a 14% year-over-year improvement in the annual pace of home sales. Furthermore, median sales prices have increased 3.78% over the past year -- and days on market has declined by 13%. Next, taking a look at buyer activity in the way of signed contracts.... As shown above, buyers signed contracts at a slightly slower pace (67 contracts) in January 2017, as compared to in January 2016 -- when 74 buyers signed contracts. That said -- the annual pace of contract activity (1,324 in the past year) is still markedly above the prior year when there were 1,170 contracts signed. We are likely to see a bit more contract activity in February 2017 -- but really see things take off in March if last year is any indication. BUT NOW -- THE BIG STORY.... As shown above, we are seeing a DRASTIC decline in the number of homes for sale in our local market. One year ago, buyers in the market for a new home would be selecting from 532 homes (in all price ranges and locations) but now they would only have 368 options. This is a drastic reduction in the number of homes available for sale, which could lead to increases in sales prices, or reductions in the number of homes that actually sell this year -- due to not having enough homes on the market for buyers to purchase. BUT IT GETS EVEN MORE EXTREME.... Many housing market analysts consider a six month supply of homes to be a balanced market between buyers and sellers. That is to say that if 100 homes are selling per month, then the market would be balanced if there were 600 homes for sale. As shown above, the market is out of balance in several price ranges. There are only four months of homes for sale in the $200K-$300K price range and the $300K-$400K price range -- but even more significant -- there are only TWO MONTHS of homes for sale under $200K. That is to say that if no other properties were put on the market under $200K, then in two months time, we could be all the way down to no inventory at all on the market. So, as is likely evident, we need more homes to be listed for sale in the next few months to have any chance at having a normal Spring and Summer market in Harrisonburg and Rockingham County. There is plenty more to learn and consider in this month's market report, such as....
I will explore many of these topics in coming days on my blog. Until then, feel free to read my full online market report, or download the PDF, or click here to sign up to receive my real estate blog by email. And -- as is always my encouragement -- if you will be buying or selling a home in the near future, start learning about our local housing market sooner rather than later! Being informed will allow you to make better real estate decisions. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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