Mortgage rates have been a frequent topic of conversation lately. The average 30–year fixed rate is now in the low 6% range, currently about 6.27%.

Still, after a few years of incredibly low 2 – 4% rates during COVID, today’s rates can feel painfully high. It may help to look at the bigger picture.

So what have mortgage rates looked like over time?

Quick History Lesson

Before the Federal Housing Administration (FHA) was created in 1934, only 1 in 10 Americans owned a home.

That changed when the 30–year fixed mortgage was introduced, making home–ownership possible for many more people.

What the Numbers Tell Us

Looking back over the past 50 years:

• In 1981, mortgage rates peaked above 16%.
• In 2021, rates dropped to just under 3%, influenced by the pandemic and Federal Reserve policy.
• In 2025, rates have ranged from about 6.3% to 7.2%, with an average near 6.8% in September.

Over the past several decades, mortgage rates have usually landed somewhere between 6% and 8%. The average has been about 7.76%.

So, while today’s rates may feel high compared to recent years, they are actually in line with historical averages.

The Big Picture

Very low rates tend to get a lot of attention, but they are not typical. The sub–3% mortgages from 2020 and 2021 were unusual. Historically, rates in the mid–6% range are much more common.

It’s understandable to hope for lower payments, but it’s helpful to focus on your long–term plans:

• Buy when you find the right home for your life and budget.
• Refinance if (and when) rates drop.
• Short–term changes in rates are normal, but they shouldn’t keep you from moving forward if the timing is right for you.

When you're buying a home, it's easy to focus solely on the upfront costs –– the down payment, closing costs and moving expenses. But it's just as important to think about what you might spend after you move in.

I often see buyers fall into one of two extremes:

1. Ignoring Future Costs

Some buyers assume that once they've bought the house, the expenses are behind them. But even if everything is in great shape, it's normal to want to repaint, replace a few light fixtures, or make other small changes. And over time, larger costs like replacing the roof, HVAC, or water heater are inevitable.

2. Getting Overwhelmed by Every Possible Expense

Other buyers go to the opposite extreme. They estimate the cost of every potential update and repair over the next five to ten years and get so overwhelmed they never buy anything at all.

A Better Approach: Reasonable Expectations

Yes, you'll spend money on your home after you buy it. But that doesn't mean it has to overwhelm you. Instead:

1.  Budget a little extra for early improvements or repairs

2.  Be aware of the age of major systems (and factor that into your decision)

3.  Prioritize what you'll improve now vs. later

4.  Remember that not everything needs to be done at once

Homeownership isn't without costs –– but with realistic planning, you can enjoy the benefits of owning a home without being surprised or paralyzed by what comes next.

  

If you own a rental property and are thinking about selling it, you might wonder whether the timing of selling it matters.  Can we sell it anytime, or are some times better than others?

I often think about this question in terms of how the next buyer is likely to use the property –– which can make a big difference in deciding when to sell.

Let's look at two common scenarios:

1. If It's Almost Certainly Going to Remain a Rental

If your property is a student rental, a multi–family property, or is in a neighborhood that is primarily investment properties, then chances are, your buyer is going to be another investor.

In this case, it's usually best to sell shortly after you've signed a new lease –– ideally, at a market rental rate. This timing allows you to show the best possible income potential to investor buyers and to offer a stable transition for the new owner with many months to go on the current leases.

Selling right after a lease renewal –– especially at current market rates –– can often be more compelling than selling mid–lease or with uncertain lease terms on the horizon.

2. If It Might Appeal to an Owner Occupant

If your rental property could just as easily be purchased by a homeowner –– for example, a townhouse in a neighborhood where many are owner–occupied –– we will likely want to think about the timing a bit differently.

In this case, it's often better to wait until the lease is nearly up or the tenants have moved out. Why?  Most owner occupants can't or won't consider a home with a tenant in place that has multiple months remaining on their lease.

Thus, if there are still 6– 10 months left on the lease, you're artificially limiting your buyer pool to only investor buyers/

Listing the property vacant –– or nearly vacant –– opens the door to both owner occupants and investors, giving you the widest possible audience and the potential for the best offer.

Let's Talk Timing

If you're thinking about selling your rental property later this year in 2025 (if so, now's the time to start planning!) or in early 2026, let's take a look at the lease terms, market conditions, and likely buyer pool. From there, we can determine the best window to sell for a smooth transaction and the strongest return.

  

If you're just starting the home buying process, it's completely understandable to pull up the list of available homes and immediately feel concerned. 

You might think… "Wait, is this it? There's hardly anything to buy!"

Especially in a low–inventory market like ours, your first look at the active listings (homes that are not already under contract) can feel a little discouraging – particularly for homes under $400K in our market.

But here's the good news...

The current view of inventory isn't a good reflection of what will be available moving forward.

Let's say you're looking for a three–bedroom, two–bathroom single–family home in the City of Harrisonburg. You pull up active listings and... there's only one available. Yikes.

But... looking back... there were actually 10 homes that fit those same criteria that came on the market over the past two months!

All 10 of those homes are already under contract... so they're not showing up when you search for a home to buy.

So, what does that mean for a buyer that is new to the market?

1.  Current inventory is not a good indication of how many homes you will be able to consider in your home search.

2.  Homes that match what you are looking for may be going under contract quickly – so be ready to act quickly.

3.  It can be helpful to look backward for a bit –– to see the homes that have sold over the past few months that would have worked for you –– to get a sense of how many options you will have moving forward.

So, some action items...

1.  Don't panic if the listings look sparse at first glance.

2.  Let's keep a close eye on new listings so that we can go see them quickly when they hit the market.

3.  Talk to a lender today if you don't already have a preapproval letter.  We will want to make a quick, strong offer when the right home appears.

There will continue to be homes coming on the market as we move through the Fall. Sometimes, it just takes waiting for the right house to come along... and then being ready to act quickly.
  

DR Horton (a national home builder) is proposing a rezoning of 43 acres on Port Republic Road, across the street from the entrance to Sentara RMH Medical Center to allow for a mixed use development.

The proposed development would potentially include:

If you've owned your home for a while, you've probably built up some equity. That's the portion of your home you actually own, not the bank.

• Each month, as you pay your mortgage, some of that payment goes toward the principal.
• That means your equity grows over time.
• If your home's value goes up, that adds even more equity.

I won't get into the details of figuring out exactly how much equity you can use... but I'm happy to connect you with some qualified local lenders who can help answer that question.

So, what can you actually do with that equity?

One option is something called a home equity line of credit, or HELOC.

A HELOC is simply a line of credit that uses your home as collateral.

Think of it like a credit card, but with lower interest rates:

• You get approved for a certain amount, and you can borrow as much or as little as you need.
• You only pay interest on what you actually use, not the full amount.
• If you don't use the HELOC, you typically don't owe anything.

If you borrow from your HELOC, your monthly payment depends on how much you've used and the current interest rate. Unlike a fixed–rate mortgage, the HELOC rate can change over time.

Example #1 – Using a HELOC to Buy an Investment Property

Let's say your home is worth $500,000, and you still owe $300,000 on your mortgage.

Here's how much you could potentially borrow:

Most lenders will let you borrow up to about 80% of your home's value.

• 80% of $500,000 = $400,000
• You still owe $300,000 on the mortgage.
• $400,000 – $300,000 = $100,000 available for a HELOC

So, you could take out up to $100,000 from your home's equity.

Let's say you use $80,000 from that HELOC as a down payment on a rental property.

• If your HELOC interest rate is 8%, and you only pay interest for now.
• $80,000 �– 0.08 ÷ 12 = about $533/month (your HELOC payment)
• If your rental property mortgage is $2,000/month, your total monthly cost is about:
• $2,000 (rental mortgage) + $533 (HELOC) = $2,533/month
• If your rental brings in $2,800/month, you'd still have about $267 of positive cash flow each month.

With today's mortgage rates, using a HELOC to buy another property might not give you positive cash flow unless rents are high.

Also, keep in mind that the interest only payment won't pay back that $80K of borrowed money over time – and you will eventually have to pay it off, so you might want to make a higher monthly payment towards the HELOC.

Example #2: Using a HELOC for College

Now, let's say your child's college tuition and housing cost $30,000 this year.

• You borrow $30,000 from your HELOC at 8% interest.
• Interest–only payment:  $30,000 �– 0.08 ÷ 12 = $200/month
• That's all you'd owe each month during the draw period – the time when you can borrow and make small, interest–only payments.

But again, keep in mind that you would probably want to be making a higher monthly payment towards the HELOC to be paying that borrowed money back over time.

The Bottom Line

A HELOC can be a smart and flexible tool if you use it carefully.

It's best to use a HELOC for things that build value, like:

• Investing
• Education
• Home improvements

It's not meant for vacations or everyday spending.

Before opening one, make sure you:

• Can handle both your mortgage and a HELOC payment
• Have a plan for paying off what you borrow.
• Understand that the interest only payment might be low but that it won't pay back the borrowed money over time.

If you're unsure how much equity you have, I can help you estimate your home's current market value.  A lender can then help you determine how much equity you could tap into with a HELOC.

If you use it wisely, a HELOC can help you access your home's equity to reach your next goal, all without selling your house.

  

It can be frustrating to have your home on the market and not see much (or any) buyer activity –– especially when you've prepped, cleaned, and priced your home thoughtfully.

Sometimes, when we take a look at the "peripheral market" –– other homes in a similar location, of a similar property type, and within about 10% above and below your list price –– we'll find that multiple properties have gone under contract in the past 30 days.

In that case, even if your house hasn't sold yet, at least we know that buyers are out there for your type of home. It becomes a question of whether your home is standing out in a compelling way when compared to others.

But what about when the peripheral market scan turns up... nothing?

No contracts... no sales... no meaningful market activity at all over the past 30 or 60 days among homes similar to yours. That's a very different scenario –– and it requires a different thought process.

If No Similar Homes Are Selling, You're Likely Facing One of Two Situations:

1. There aren't any active buyers for homes like yours right now.

This could be seasonal. It could be interest–rate related. It could just be a quiet spell. But if no similar homes are going under contract, it may simply mean buyers in your price range (for your type of home) aren't currently in the market.

2. There are buyers... but they're not finding what they want.

Sometimes buyers are out there –– but what they're seeing isn't compelling enough for them to make an offer. Your home (and other similar ones) might be close to what they want, but not close enough to motivate them to act.

So, What Can We Do?

In either of these situations, one potential way forward is to adjust your price. A price reduction can be a strategic tool that allows you to...

1. Attract new buyers who haven't yet seen your home because it previously fell just above their budget or filter.

2. Change the perception of "value" for buyers who have already seen your home but didn't feel it was worth the asking price.

A price adjustment can allow your home to potentially engage with new buyers –– either those who may have already looked and passed us by, or buyers who are just starting their search.

But, Let's Make Sure the Adjustment is Meaningful

A small reduction might not be enough to generate new interest. If we decide that a price change is the right next step, we'll want to make sure it's noticeable and strategic. The goal isn't just to lower the price –– it's to reposition your home in a way that makes it stand out to the right buyers.

Let's take a close look at the latest market data –– not just what's active, but what's recently gone under contract or sold –– and determine what sort of price adjustment (if any) might be appropriate for your specific situation.

Final Thoughts

If you're finding yourself in that in–between place –– your home hasn't sold, and nothing similar is selling either –– it's a good time to talk through your options. You can wait and hope that the right buyer shows up, or we can work together to make your home more appealing and competitive in today's market.

Let's look at the data, talk through the trends, and decide what the best next step might be.
  

Happy October, Friends!  

It's my favorite time of year!  Cool and crisp mornings and evenings, but warm afternoons.  The beautify of trees changing colors – viewed from near and far.  Fun with family and friends at JMU football games.  My birthday.  ;–)  Plus, the Harrisonburg Half Marathon, which is always a blast.

I hope you are enjoying October as well... what are some of your favorite parts of this month or this season?

While you think on that... a few precursors to my monthly analysis of our local housing market...

Now, let's dive into some graphs that can help show illustrate these trends we are seeing in our local housing market...

The red line above tracks the number of home sales per month in 2025... and you'll note that three of the past four months have shown stronger sales this year than last.  But... given that we have seen an overall 3% decline in home sales this year, the recent increases in home sales has not yet been able to counteract the significantly slower months of home sales in early 2025.

Looking ahead... it is likely we will see another month or two of strong home sales (October, November) before we get to the three slowest months of the year... December, January and February.

While the chart above looks at each month as a single data point, this next graph looks at a moving 12 month data set to see big picture trends that reveal themselves slowly over time...

As shown on the top green line... the median sales price has been relatively level over the past year.  Technically, there has been a slight increase over the past 12 months ($341K to $346K) but it has actually dropped down a bit over the past few months ($349K to $346K).

Meanwhile, after a slow (and slowing) start to 2025... the number of annual home sales is on the rise again (blue line above) as of the past four months.  

Looking ahead, I expect we'll continue to see a slow increase in the number of homes that are selling... but i think we may continue to see relatively level sales prices over the next three to six months.

Here, then, is another view of that new trajectory for home prices...

After five years (2020, 2021, 2022, 2023, 2024) of about a 10% (or higher) annual increase in the median sales price in our area... the increase has cooled down to only about 1% over the past year.  I expect we'll continue to see minimal or relatively small increases in the median sales price over the next three to six months.

But now, let's look ahead a bit and see what's happening with recent contract activity, which is typically the best indicator of the number of home sales we will see over the next few months.

Interestingly, the past three months (July, August, September) have shown sizable year–over–year increases in contract activity.  During that three month period last year 325 contracts were signed... and this year it was 392 contracts.  This recent burst of contract activity is likely the reason why we have started to see more active months of closed home sales... and why we are likely to continue to see higher number of closed sales over the next month or two.

Meanwhile, how about those inventory levels!?

In the middle part of 2025 we were seeing a sudden and dramatic increase in the number of homes listed for sale.  But... that trajectory reversed itself in August 2025 and continued in that same direction in September 2025.  We are still seeing considerably more homes on the market now (214) than a year ago (165) but the gap between 2025 and 2024 inventory levels is starting to close. 

Perhaps the shrinking inventory levels are partly a result of the higher number of signed contracts.... or perhaps the higher number of signed contracts are partly a result of the higher inventory levels.  Did more homes for sale cause more buyers to contract to buy homes?  Probably.  Did more buyers contracting to buy homes cause the number of homes listed for sale to diminish?  Probably.  

One last graph here... mortgage interest rates...

In good news for anyone contemplating a home purchase now or soon... mortgage interest rates have dropped from about 6.9% (four months ago) to 6.3% as of the end of September.  Slightly lower mortgage interest rates allows more buyers to qualify to buy (or to buy at slightly higher prices) so the declining rates over the past four months may be a part of why we are seeing more buyers contracting to buy homes.

So, given all of the data above, how should buyers, sellers and homeowners be feeling these days?

Buyers – Happy for slightly more choices (higher inventory) than in recent years, and happy for slightly lower mortgage interest rates.

Sellers – Slightly less than enthusiastic that the 10% annual increases in sales prices are not continuing in 2025, but relieved that we are only seeing a 3% decline in home sales over the past year.

Homeowners – Happy to see relatively stability in sales prices, and possibly still delighted to have a mortgage with a fixed rate lower than those currently offered.

If you'll be buying soon... let's meet to chat about the market and the process... and you ought to get preapproved for a mortgage sooner rather than later.

If you'll be selling soon... let's meet to chat about pricing, preparation and your desired timing, especially as we roll on towards the holiday season.

If you have questions... about the local market, about the trends noted above, about your particular home, about your hopes to buy a home... reach out anytime by phone/text at 540–578–0102 or by email.

Happy October!

  

You might find that you need to sell their current home in order to buy your next one. But you might not want to list your current home for sale until you know you have somewhere to go.

That's where a home sale contingency comes in –– it allows you to make an offer to buy a home only if you're able to sell your current one.

But, as you might imagine (in a relatively competitive Harrisonburg and Rockingham County market) sellers aren't always interested in an offer with a home sale contingency.

Here's a look at five of the ways a seller might respond to your offer with a home sale contingency...

1. The seller might use your offer to spark interest from other buyers.

This seller would receive your offer and then turn around and say "we have an offer" (yours) to other buyers, hoping it motivates a prospective buyer to make an offer without a home sale contingency.

2. The seller might just say no.

Many sellers won't want to wait on your home to sell –– especially if they just listed their home for sale and if they expect strong interest.

3. The seller might say: "Come back once your home is under contract."

In this case, you'd need to decide if you're willing to list your home without knowing if the one you want will still be available once your current home is under contract.

4. The seller might accept your offer, but with a kick–out clause.

A kick–out clause allows a seller to keep marketing their home to other buyers and allows them to accept another offer if you can't remove your contingency in time.

5. The seller might fully accept your offer, without a kick–out clause.

This is rare –– but possible, especially if the home's been on the market for a while.

Whether or not a seller will work with a home sale contingency often depends on how long their home has been on the market, overall market conditions, how appealing your other offer terms are or are not, and the seller's optimism (or pessimism) about when another offer might come along.

If you're in this situation –– wanting to buy but needing to sell –– let's talk through what might make the most sense for you.
  

When we walk through a home together during a showing, it's natural –– and often helpful –– to talk through your thoughts and impressions in real time. Processing out loud can often help you figure out what you like and don't like about a house.

But these days, it's wise to assume that someone (the seller) might be listening.

It's increasingly common for homes to have some form of audio or video recording –– whether it's a doorbell camera, a baby monitor, or a full home security system. While sellers are supposed to disclose the existence of an audio or video recording device (and I'll give them the benefit of the doubt and assume that most do) it's not always clear when or where recording is happening. Thus, it's best to assume that all of our comments could be overheard in real time or reviewed later.

Here are a few tips to keep in mind as we go to view houses...

1. Don't say anything that might offend the seller.

Comments about the decor, furniture, or how the home is maintained can easily be taken the wrong way. Even if it's not your style, it's still someone's home.

2. Don't say anything you wouldn't say directly to the seller.

If you wouldn't be comfortable sharing a thought face–to–face with the seller, hold off until we're outside or better yet, until we are driving away.

3. Don't say anything that could compromise our negotiating position.

You probably shouldn't say something like "This is the one!" or "I'd pay full price for this" –– as those could give the seller more information than we would prefer that they have when we are making an offer.

Once we've finished up with the showing and when we are out of range of any devices, we can freely discuss everything –– your thoughts, questions, concerns, and potential next steps. 

The goal is to be able to talk through what you are seeing, and what you think of it –– but we need to make sure to do so in a place and at a time such that it is a conversation just with us –– and not with the seller secretly listening in.

  

Mortgage rates have dropped quite a bit from where they were a few months ago. Not long ago, rates were up around 7%. This week, they're closer to 6.34%.

While that may seem like a subtle drop, if you bought a home when rates were near 7%, you might be wondering when it makes sense to refinance.

Is a drop from 7% to 6.34% enough to make a real difference? Or should you wait for rates to fall even more before making a move?

Let's look at an example to see how this plays out.

Say you bought a $400,000 home and put $80,000 down. That leaves you with a $320,000 mortgage at a 7% fixed rate for 30 years.

Your monthly payment would be about $2,128. Over 30 years, you'd pay roughly $766,000 total, with about $446,000 of that going to interest.

Now, let's say rates drop to 6.34% and you refinance the same loan amount. Your new payment would be about $1,989, saving you around $139 each month.

Over the life of the loan, you'd pay about $716,000 total, with $396,000 in interest. That's about $50,000 less in interest compared to your original loan.

So, how do you know if refinancing is the right move?

Let's walk through another example.

Suppose it costs $5,000 to refinance. How long would it take to make that money back with your $139 monthly savings?

$5,000 divided by $139 is about 36 months, or three years.

That's your break–even point.

If you plan to stay in your home less than three years, refinancing probably doesn't make sense.

If you stay about three years, you'll just about break even.

But if you plan to stay longer, that's when refinancing can really start to save you money.

There's no single rule for when to refinance, and there are other things to think about.

But knowing the numbers can help you make a smart decision. If you're thinking about refinancing, I recommend talking to a lender. If you'd like a referral, just let me know.

  

One of the trends I've been noticing more frequently in the Harrisonburg and Rockingham County real estate market over the past few months is that some sellers are accepting offers very quickly –– sometimes not waiting for additional potential offers to show up.

Now, to be clear, not every seller is doing this. Some sellers do choose to wait several days to allow more showings and give other buyers time to submit competing offers. But more and more, I'm seeing sellers take a serious look at that first strong offer that comes in –– and some are choosing to move forward with that first (only) offer rather than waiting for additional offers.

Why would a seller accept an early offer?  There are actually plenty of good reasons why a seller might decide not to wait:

If the terms are favorable, why wait?  A solid offer with strong financing and limited contingencies is hard for many sellers to ignore –– especially if the timing or other terms align with what the seller was hoping for.

Will the next offer really be better?  Sometimes the first offer is the best offer. While it's possible another one might come in, it's not guaranteed, and it might not be any stronger.

Buyers can change their minds.  An excited buyer might write a strong offer in the heat of the moment, but waiting around might lead to hesitation or cold feet. Sellers sometimes prefer to lock in a motivated buyer rather than take that risk.

Of course, unless we're in the room with the seller, we don't know the full story behind why a quick decision was made. But I'm seeing early offers being accepted more often these days.

What does this mean for buyers?

If you're in the market to buy a home right now, this is your heads up –– you can't always count on having a few days to think it over – AND – if you're serious about a new listing, don't hesitate to make an offer quickly. The seller might wait a few days for more offers –– but they might not. And if the right offer is already on the table, they could decide to take it and be done.
    

A recent sale in your neighborhood might have caught your attention –– a 2,000 square foot home that was listed for $385,000 and had 15 showings and 10 offers in just a few days.

That kind of activity is exciting to see –– especially if you're planning to sell your home soon.

But what if your home is larger –– say, 2,800 square feet?

It's only natural to assume your house should sell for quite a bit more. After all, you're offering 800 more square feet –– more room to spread out, more value, right?

Maybe.

Certainly, your home should be priced higher than $385K, given the additional space. But the real question becomes... how much higher? And what impact will that higher price point have on how much interest your home receives?

The Temptation to Price High

You might look at the gap in size and reasonably think your home should be priced at $450K or even $485K.

And it's possible that it will sell at one of those price points –– based on square footage, finishes, updates, and other features.

But... it's important to keep in mind that the $385K home likely generated as much interest as it did because of its price point. It was more accessible to a wider pool of buyers, and that price point likely contributed to the high number of showings and offers.

So... if you price your home $65K or $100K higher, should you still expect 15 showings and 10 offers?

More Space, Fewer Buyers?

Maybe your home will still attract a ton of interest –– especially if it's beautifully maintained, has appealing updates, and offers great space. A larger home in the same neighborhood will naturally appeal to buyers who want more room.

But... maybe not.

As your price point increases, the number of buyers qualified (and willing) to buy at that price point tends to decrease. There are simply fewer buyers ready to pay $450K for a house than there are willing to pay $385K.

After all, it's not always just about value, it's also about the affordability (or not) of that monthly mortgage payment.

So, if you're pricing your home based on a recent sale in your neighborhood, especially one that had lots of buyer activity, remember this...

A lower price point often brings a wider audience. As you move higher in price, it's likely that the number of showings and potential offers will decrease –– even if your home is certainly worth more.

The key is to strike the right balance –– price your home so that you're not leaving money on the table, but so that you're still attracting enough buyer interest to generate the number of showings and offers that will result in a successful sale.
  

When we prepare to list your home for sale, one of the most important steps we will work through together is determining the right list price. To do that, we will look closely at market data –– usually focusing on comparable home sales from the past six months or so.

Let's say we run that market analysis, and the data clearly points to a value of $500K for your home in the current market.  We conclude that your home is almost certainly worth $500K given recently sold homes that are similar to yours in size, location, condition, features, etc.

But then… just before we put your house on the market, something happens that causes us to pause and talk about pricing again.

Here are two events that could take place that would cause us to re–think our pricing...

1.  A very similar home is listed for $540,000 and goes under contract in two days.

2.  A less impressive home is listed for $500,000 and goes under contract in two days.

In either of these cases, it's reasonable to pause and reconsider our prior pricing plans.  It is quite possible that buyers will pay more for your home than we anticipated.

The Value of Recent (and Super Recent) Market Activity

While your original market analysis is still important, a brand–new listing that's under contract in 48 hours can be a very helpful data point. It may be worth considering whether we should adjust our planned list price upwards, even if just a bit, to reflect this most recent activity.

That said, there are two important caveats:

1.  We won't know the final sales price of that new comparable until it closes. It might have gone under contract at full price, above it, or even below ––  but we won't know for sure until that properties makes it to closing.

2.  One data point doesn't make a trend. A single similar listing, even if it seems to point to a wonderful new market trajectory, likely isn't enough to guarantee that we will definitely sell your home at a higher price than our original market analysis indicated. We ought to weigh the new data point alongside other market indicators.

So, What Should We Do?

If there's a gap of time between when we do the initial market analysis and when your home actually goes on the market, we'll want to keep watching for similar homes to hit the market for sale.

We'll be watching for those new listings, their prices, and how quickly they go under contract right up to when we put your house on the market. This will allow us to make a final pricing decision that reflects both the broader market over the past six months and the most recent market activity.

If you're a first–time buyer currently renting, one of the biggest questions you may be asking is:

"When would I have to start making mortgage payments if I buy a home?"

And more specifically  – "Will I be stuck paying rent and a mortgage at the same time?"

That's a reasonable concern, and it's something many first–time buyers worry about when trying to time a home purchase around the end of a lease. But the good news? Your first mortgage payment probably won't be due as soon as you think.

Let's walk through a sample scenario to better understand the potential timing.

The Scenario: Lease Ends March 31, 2026

Let's say your current lease ends on March 31, 2026, which means your final rent payment is likely due on March 1.

Now let's back up.

If you find a house in mid–December 2025, that might feel a little early… right?

But actually – the timing might work out perfectly!

December 15: Under Contract

If you make an offer and go under contract on December 15, the typical closing timeline is often about 45 to 60 days. Because you want to avoid overlapping rent and mortgage payments, you might choose the longer end of that range, aiming for a February 15 closing date, about 60 days after the contract date.

February 15: Closing Day

When you close on February 15, you'll pay interest for the remainder of February at closing.

But –– and here's the part that surprises many first–time buyers –– your first mortgage payment won't be due until April 1, 2026.

Why? Mortgage Payments Are Paid in Arrears

Unlike rent, which you typically pay before the month begins, mortgage payments are paid after the month is over.

So:

• Interest for February is paid at closing
• Interest builds up through March
• First full mortgage payment is due April 1

That means –– in this scenario –– you'll finish paying rent on March 1 and won't make your first mortgage payment until April 1.

No Overlap, No Double Payments!

So, if your lease ends March 31 and you're thinking about starting your home search in December, you're not too early at all –– you're likely right on track.

Every situation is a little different depending on your lease terms so if you're starting to think about buying a home, let's sit down and:

• Review the specifics of your lease
• Explore a few timeline scenarios
• Talk through what would work best for your situation

Together we can likely come up with a solid plan for timing your purchase to align with your lease ending.
  

If you’re thinking about buying a rental property in Harrisonburg, there are a few zoning questions you’ll want to keep in mind before you start looking at homes.

Zoning in Harrisonburg isn’t just a technical detail. The city’s zoning rules directly affect how you can rent out a property – whether you want to rent to families, students, or short–term guests. Two houses that look almost the same might have very different rental options, just because of their zoning. That’s why it’s important to understand the zoning rules before you buy.

If you want a duplex, the zoning ordinance permits them in R–2 and R–8 zones. A duplex simply means there are two separate living units on the same property. Each unit then follows the same occupancy rules as any other home in that zone.

Here’s how the ordinance works in practice:

If you live in one unit:

• You could rent the other unit to a family, two unrelated individuals, or a family plus one unrelated individual.
• In your own unit, you could also have up to two unrelated roommates living with you.

If you don’t live there:

• Each side of the duplex could be rented to a family, two unrelated individuals, or a family plus one unrelated individual.

What this means for you:

• Example 1: You buy a side–by–side duplex, live in the left unit, rent the right unit to a family of four, and also have two roommates living with you to help cover your mortgage.
• Example 2: You don’t live in the duplex at all, and instead rent one side to a family, and the other side to two unrelated grad students.

Best fit: Investors who want flexibility – a duplex can generate two separate rental streams, and if you live in one side, you can still “house hack” with roommates. It’s a middle ground between a single–family home and a larger multi–unit property.

If a House is Zoned R–3 or R–4

The ordinance says:

• A property can be occupied by one family OR up to four unrelated individuals total – regardless of whether the owner lives there.

What this means for you:

• If you don’t live there, you could rent a 4–bedroom house to four unrelated students or young professionals.
• If you do live there, you count toward the four – so you could live in one room and rent the other three to unrelated tenants.

Best fit: Student rentals or per–bedroom leasing, since these zones are the most flexible for unrelated tenants.

Short–Term Rentals (Airbnb / VRBO)

Harrisonburg distinguishes between Homestays (by right) and Short–Term Rentals (with special approval).

Homestays (By Right):

• Property must be the operator’s primary residence.
• Rentals must be less than 30 consecutive nights.
• Limited to 90 nights per calendar year.
• Capped at 4 guests at a time.
• Allowed in single–family, duplex, and townhomes (not apartments).
• Guests must stay within the main dwelling (not an accessory building).
• Requires annual registration with the City ($25/year).
• No off–street parking requirements.

Short–Term Rentals (by Special Use Permit)

• Property is still the operator’s primary residence.
• Required if you want to operate beyond homestay limits (e.g., more than 90 nights, more than 4 guests, use of an accessory building, or certain multifamily units).
• Approval comes from City Council via a Special Use Permit (SUP), which involves public hearings. Approval is not automatic.
• SUP allows more flexibility, but the City can impose specific conditions (e.g., parking, guest limits).

What this means for you:

• If you want to dabble in Airbnb while living in your home, a Homestay is the simple path (≤90 nights, ≤4 guests, main dwelling).
• If you want more flexibility – like more nights, more guests, or to use an accessory building – you’ll need a Special Use Permit from City Council.

Best fit:

• Homestays: Great for owner–occupants who want to experiment with short–term rentals.
• SUP STRs: For owner–occupants who want to expand beyond homestay limits, understanding that approval isn’t guaranteed and extra conditions may apply.

Putting It All Together

• R–1, R–2, R–8 – Best for family rentals, house hacking, or duplexes. Limited flexibility for student–style rentals.
• R–3, R–4 – Best for per–bedroom or student rentals, since up to four unrelated tenants are allowed.
• Duplexes – Only permitted in R–2 and R–8, with flexibility whether you live in one side or rent out both.
• Short–term rentals – Operator–occupied only. Homestays (≤90 nights, ≤4 guests, main dwelling) are simple. Anything beyond that (more nights, more guests, accessory buildings, some multifamily) requires a City Council Special Use Permit.

The Bottom Line

As you can see, zoning in Harrisonburg is complicated. The last thing you’d want to do is buy a property without paying attention to zoning, set it up as an investment, rent it out the wrong way, and realize you’re in violation of the zoning ordinance.

The good news? You don’t have to figure this out on your own. I help investors understand the zoning ordinance, evaluate properties, and pick the right strategy that actually works within the rules.

If you aren’t sure which rental route is best for you – or if you’d like to compare the income potential of different strategies – let’s talk.

Call or text me (Luke) at 540–830–5097 or email me at luke@lukewrogers.com.

  

Somehow, it's already October. 

Yes, October!?!

While the afternoons still feel like summer, the days and weeks are moving fast – and 2025 will be coming to a close before you know it!  If you're hoping to sell your home this year and close in 2025, it's time to start putting a plan in place.

Let's Look at the Timeline

Even though many homes go under contract quickly, not all do... and even fast–moving listings still take time to get from contract to closing. Most transactions take 30 to 60 days to close once they're under contract.

So, if your goal is to sell your home in 2025, here's a realistic example of how that could play out:

Early October... We meet to discuss timing, pricing, and any prep work you plan to take on before listing our home for sale.

Mid October... Your home goes on the market for sale.

Mid November... You receive and accept an offer.

Mid to Late December... The sale officially closes.

Suddenly, December probably doesn't feel that far away.

Why do we need to be planning now?

Buyers are still active this fall, and with relatively limited inventory on the market (in most price ranges and locations), your home may stand out more now than it might in the spring. But solid preparation might take some time... simplifying, making repairs, taking photos and getting the marketing lined up.

Plus, we'll want to make sure the timeline works with your goals.

So, if you're hoping to have your home sold before the end of the year, we ought to get started soon.  Let's plan to meet in the next week or two so we can talk through the steps and make sure you're set up for a smooth and successful sale.

  

Mortgage interest rates peaked in mid January (first red circle above) at an average of 7.04% for a 30 year mortgage.  Since then, they have mostly declined.

Last week (second red circle above) the average 30 year mortgage interest rate was 6.30%.

For much of the past year the median sales price hasn't been climbing very much or very fast... so let's see how a mortgage payment might have differed at the beginning of this year vs. now...

Purchase Price = $300,000

Downpayment = $30,000

Loan Amount = $270,000

Payment @ 7.04% = $2,109

Payment @ 6.30% = $1,976

Savings / Month = $133

Purchase Price = $500,000

Downpayment = $100,000

Loan Amount = $400,000

Payment @ 7.04% = $3,180

Payment @ 6.30% = $2,984

Savings / Month = $196

So, yes, if you are buying now, you will see somewhat improved ($100 to $200 per month?) mortgage payment compared to what your payments would have been in January.

And, flipping this around a bit, you could also spend the same amount on a mortgage payment as you would have in January and buy a more expensive home.

When we are working to prepare your house to go on the market, it can be easy to focus on the things you love about your house... the sunny living room, the updated kitchen, the backyard that's great for entertaining.

But when buyers walk through your home, they might end up focusing elsewhere: the steep driveway, the small kitchen, the overflowing closet, etc.

So, here's a helpful lens for us to consider...

What are the biggest objections that buyers are likely to have about your house... and how can we present those areas in the best possible light?  Let's take a look at a few common examples.

1. A Steep Lot or Challenging Landscaping

If your home sits on a sloped lot, that might raise questions for some buyers about mowing or maintenance.  As we prepare your house for the market, let's make sure the lawn is freshly mowed and the landscaping is neat and tidy. A well–cared–for exterior helps shift the focus from "this yard and landscaping might be difficult to maintain" to "the outside looks great... let's head inside."

2. A Small Kitchen or Dining Area

A small (cozy?) space doesn't have to feel cramped – but it can feel that way if it's filled with too much furniture or clutter. Let's simplify... removing that extra chair in the corner, clearing the countertops, etc. We want to make the space feel as open, functional, and efficient as possible.

3. A Tight Primary Closet

Storage space is high on the wish list for many buyers... and an overly full closet can make a space feel even smaller. Let's take out some of your clothing and personal items. A closet that's 75% full feels roomy... but one that is 95% to 110% full feels overwhelming.

Bottom line... let's aim to strengthen your home's weakest link.

Buyers will notice the positive attributes of your home – but they'll also notice the weak spots. We should spend our time identifying those potential objections before the house hits the market, and taking steps to make sure those areas show as well as possible.
  

It happens more than you might think... we tour a house and find that it works well for you. The layout, location, and overall feel of the house are a good fit.

But... the price is a bit higher than you think is reasonable to pay for this house.

For example, perhaps the house is listed at $420K, and based on other houses we have explored, we conclude that it's worth closer to $400K.

So... what should you do?

Option 1: Make the Reasonable Offer

If $400K seems reasonable to you, let's make that offer – or even a bit lower to leave room for negotiation. 

Option 2: Offer More Than You Think It's Worth

Some buyers do this to avoid missing out – but you might feel like you are overpaying for the house.

Option 3: Don't Make an Offer

If you're confident the home isn't worth the asking price and you're not willing to pay it (or close to it), deciding not to make an offer is okay too.

Generally, I recommend Option 1 –– making the offer that seems reasonable to you.  But before we pursue that path, here's what we should discuss...

Let's say you offer $400K on the $420K home. If someone else buys it for $420K, will I be disappointed I didn't get it?

If no – your $400K offer makes sense.

If yes – maybe $400K is too low, and you care more about getting the house than you realized.

In the end, if you like the house but not the price, make the offer that feels right to you... but let's at least pause to process how you'll feel if you lose the house to another buyer who's willing to pay more.