Happy Friday, Friends!

What a whirlwind of a Spring this has been!  The local real estate market is moving pretty quickly in most price ranges right now, with new listings continuing to hit the market, many of which are then going under contract quickly.  

Personally, it's been a fun few weeks having run in the Park to Park Half Marathon a few weeks ago, followed by the Perfect Day 50K.  

For the past two years I have exercised (ha ha) questionable judgement and have run the entire 50K myself.  It's a 5K trail run (Western Slopes of Massanutten) every hour on the hour for 10 hours straight.  This year, I (probably wisely) opted to participate on a team of three.  Though... one teammate was under the weather and just ran one 5K, and I rolled an ankle after three 5K's... so teammate Luke had to run six of the 5K's.  Go Luke!  

Even more excitement lies ahead, as Emily will be graduating from high school (!!) in a few weeks!!!  Go Emily!  

A few more quick items before we dive into the data and a recap of the latest trends in our local housing market...

Home sales are up across the board –– with 119 homes sold in April 2026, a 12% increase over April 2025, and the 12–month total has climbed to 1,409 sales. The median sales price, though, has softened slightly, sitting at $345,000 for the past year compared to nearly $348,000 a year ago. Homes are also taking a little longer to find a buyer –– with a median of 9 days between listing and contract over the past 12 months versus 6 days last year. 

Let's look just at detached (single family) homes next...

April was a strong month for detached homes, with 81 sales compared to 66 in April 2025 –– an impressive (and surprising?) 23% jump. Zooming out to the full 12 months, though, detached home sales are actually down 5% from the prior year. The bright spot? Prices for detached homes are still moving up, with a 12–month median of $395,000 compared to $389,450 a year ago. This is a small increase in the big picture, but it is an increase nonetheless.

What about attached homes (townhomes, duplexes) during the same timeframe?

Attached homes slowed slightly in April, but overall are having a standout year. Sales over the past 12 months are up 25% compared to the prior year, with 563 sales versus 450. Prices, however, have stayed relatively flat, with the 12–month median at $313,430 –– up just a smidge (1%) from $310,432 a year ago.

Let's look at the month by month sales, visually...

As shown above, 2026 has gotten off to a busier start than 2025 in every month so far this year.  January through April of this year have all come in above last year's numbers –– an encouraging sign heading into the the rest of the spring and then summer market.

Here's another visual of this busier start to the year...

Through April, cumulative 2026 sales sit at 403 –– almost exactly matching 2024's pace of 402 at the same point in the year, and well ahead of the slower start of 351 last year. It's too early to tell whether this signals a full bounce–back to 2024 home sales levels or whether it is just a partial recovery in the early part of the year.

Now, let's look at those 12–month trend lines...

The two big takeaways from the rolling 12–month trend are pretty clear... more homes are selling, but prices have flattened out. Annual sales volume has climbed steadily back above 1,400 sales a year, while the median sales price has hovered right around $345,000 for quite a few months now. 

Looking just at detached homes, prices are increasing a bit more...

Detached home prices have risen dramatically over the past decade –– from $228,000 in 2018 to $399,000 today. The pace of appreciation has slowed considerably over the past two years, but prices are still inching upward. Meanwhile, the number of detached home sales remains well below the peak years of 2021 and 2022, reflecting the broader national pattern of fewer sales due to limited inventory levels and lower affordability given higher mortgage interest rates.

To predict the future a bit, let's look at recent contract activity...

Buyers are out there and they're writing contracts. April 2026 saw 145 contracts –– nearly matching March's high of 146 and well above last year's April figure of 134. Contract activity has consistently run ahead of or right at the four–year average so far this year, which bodes well for closed sales in the months ahead.

Meanwhile, what's the latest with inventory levels?

One of the more notable dynamics in today's market is that inventory levels have been running below last year's levels at every point in the year so far. With 170 active listings at the end of April –– slightly lower than the 176 listings at the end of last April –– buyers have fewer choices than they did a year ago. 

And what about those mortgage interest rates?

Mortgage rates have come a long way from their 2024 peak of 7.17%. The April 2026 average rate of 6.30% is meaningfully lower, and the overall trend over the past two–plus years has been gradually downward. Rates aren't as low as they were in the few years just after Covid, but the slow decline in rates is encouraging for buyers who have been waiting on the sidelines.

So... what does it all mean?

The current Harrisonburg and Rockingham County housing market is still quite active, reasonably healthy, and a bit more balanced than it's been in recent years. More homes are selling, buyers are often moving quite quickly to see homes and make offers, and mortgage rates are slowly improving. Home prices have leveled off a bit but don't seem to have dropped in any meaningful way. This is a market where both buyers and sellers can each find opportunities –– depending, as always –– on the property type, location and price range.

If you're thinking about buying...

1. Don't wait for rates to drop dramatically. Rates are trending in the right direction, but it doesn't seem certain that they will continue to fall further, and they could just as well increase a bit over the coming months.

2. Move quickly when you find something you love. Inventory is still lean –– only 170 active listings across the entire market –– and well–priced homes are still going under contract rapidly. If a home checks your boxes, let's view it quickly and consider making a strong offer in short order.

3. Maintain reasonable price expectations. Even though home prices are not rapidly increasing, that doesn't mean that they are declining or that you should expect to be paying considerably less than a list price.  Though, as always, that depends on whether the list price is reasonable.  :–)

If you're thinking about selling...

1. Price it right from the start. The market is active, but it's not the crazy home buying frenzy of 2021. Overpriced homes are sitting on the market for longer than most of sellers would have hoped. Realistically priced homes are selling quickly and attracting strong offers.

2. Presentation matters –– now more than ever. With buyers sometimes having a bit more breathing room than they did a few years ago, the homes that show well are the ones that stand out. A little investment in pre–listing preparations to your home can make a big difference.

3. Your timing is solid if you are ready to sell soon. Contract activity is strong, sales volume is up, and serious buyers are in the market. If you've been on the fence about whether to sell now or later, this is still a time when you can expect to see meaningful levels of buyer interest.

If you're thinking about buying, selling, or have other homeownership or market questions... I'd be happy to chat. 

You can reach me by phone/text at 540–578–0102 or by email here.

Have a delightful weekend!  

P.S.  Anyone running in the Rockingham Park 5K?  It's not too late to sign up.  ;–)  

  

You might walk into our first meeting with a list –– square footage, bedroom count, garage, how the yard will look. You've been thinking about your home search for months, and you know what you want.

And then... you start looking at actual houses.

Sometimes, something interesting happens as we continue in the home search. You might start discovering things about yourself that you did not expect.

Maybe you thought you wanted an open floor plan. You've seen them in magazines, watched them on HGTV, and decided that is what you want in your next home.  But then when we walk through a few of them, something feels off. Too much noise coming from the kitchen. No good wall space for the couch. Everything feels too open and exposed... and suddenly that house with the separate dining room and the cozy living room makes a lot more sense.

Or maybe you had "move–in ready" at the top of your list. But then you walk through a 1960s ranch with original hardwood floors and good bones and you start doing that thing where you imagine the kitchen with new cabinets, and the backyard with a deck, and... suddenly move–in ready feels a little less exciting than it did before.

This is not indecision, or drastically and unreasonably changing your mind.  It's learning about what will actually work best for you.

Sometimes the wish list and what you end up buying line up remarkably well.  Sometimes they are quite different!  And that's okay. That's why we need to start looking at homes sooner rather than later –– not just to find one that checks the boxes, but to figure out which boxes actually matter.
  

It's OK to be Goldilocks

Too big. Too small. Too open. Too chopped up. Too new. Too old.

If you've been searching for a home for a little while, you might start to feel like Goldilocks –– walking into house after house, and nothing is quite right.

It's OK!

If you feel this way, it doesn't mean you're being too picky. It doesn't mean you don't know what you want. It just means you haven't found the right house yet. 

Don't feel like you are being unreasonable or difficult because house after house isn't a good fit.  Instead, focus on that fact that you're probably going to live in your next home for years. Thus, it is essential that we make sure it works well for you.

Let's pay attention to what you are reacting to (size, age, layout, etc.) and why.  When we walk into a house and something feels off, let's talk about what that is.  Is it too dark? Are there too many small rooms? Does the backyard have an odd layout?  That information helps us get a clearer idea about what will work well for you.

The Harrisonburg and Rockingham County market has a pretty wide range of homes... older in–town neighborhoods with character, newer builds out in the county, everything in between. There's a good chance your "just right" is out there. It may just take a little longer to find it than you had thought or hoped.

  

Forbes just released its list of the 25 best places to retire in the U.S. for 2026... and Harrisonburg made the cut.

Forbes compared nearly 1,000 places across the country –– looking at housing costs, taxes, healthcare, natural hazard risk, and more –– and Harrisonburg, Virginia was named as one of the top 25 retirement destinations... one of only two Virginia cities on the list, alongside Virginia Beach.

So what did Forbes like about Harrisonburg?

Affordability. The median home price here is around $348,000 –– about 19% below the national median. And the overall cost of living runs about 15% below the national average. For retirees on a fixed income, those numbers matter.

Healthcare.  Forbes specifically called out Harrisonburg's ratio of primary care doctors per capita as "terrific." Good air quality, agreeable climate, and very low FEMA natural hazard risk rounded out the environmental picture.

Taxes.  The tax picture is pretty friendly for retirees. Virginia doesn't tax Social Security income, and there's no state tax on estates or inheritances. 

What does this mean if you're buying or selling here? 

If you're a buyer –– especially relocating for retirement –– you're likely making a solid decision in considering the Harrisonburg area.

If you're a seller –– your home sits in a market that's attracting national attention. That can bring buyers from outside the area who are specifically looking for what Harrisonburg offers.
  

You love the house. Almost.

There's just that one thing. 

Maybe the kitchen is more dated than you'd like. Maybe there's only a one–car garage (whereas you'd prefer a two car garage), or perhaps the primary bathroom has a large tub and a tiny shower..

Owning a home is pretty great. You build equity over time. You can paint the walls whatever color you want. You can finally get that dog. You can make it your own in ways that renting just doesn't allow.

But... homeownership also comes with a to–do list. And sometimes the items on that list are expensive, or a bit of a logistical hassle.

One thing I encourage buyers to think about when viewing a home is... what are the next major updates you will need to make, or want to make, in this home?

Because... there will always be a "next project"... essentially forever.  ;–)

Maybe the roof that's getting up there in years. Maybe it's an HVAC system that's original to the house. Maybe it's a kitchen that was last updated before the iPhone existed.  Maybe it's windows, or siding, or a deck that has seen better days.

Whatever that next project will be, we should talk about it before you commit to buying the house.

The cost of some of these updates can vary enormously. A fresh coat of paint and some new light fixtures will likely be manageable for most buyers.  A full roof replacement can be quite a bit more financially impactful depending on when it is needed.  An HVAC system replacement or kitchen renovation will also tend to be quite costly.
 .
None of these things should necessarily stop you from buying a home that you love and that will work well for you... but they're worth knowing about and thinking through.

Two angles to consider...

First –– are you comfortable with the cost of that update? Do you have the savings now, or will you when the upgrade is needed?

Second –– are you comfortable with the hassle? Living through some home renovation projects can be trying, especially if you work from home, or have young kids, or pets.  

As we're looking at homes together, let's talk through the likely timeline and potential costs of any major updates that the home would need or of any upgrades you would like to make.  

Owning a home is wonderful... but the updates and projects are part of the deal. Knowing what's coming –– and being prepared for it –– will make the next few years after a home purchase a lot less stressful.

  

If you want to understand the Harrisonburg housing market, you have to understand JMU. The two are highly interrelated. And last month, JMU's Board of Visitors made some significant decisions relative to JMU's future.

The JMU Board of Visitors formally approved the 2027 Campus Master Plan alongside a sweeping new strategic vision called "The Madison Promise: JMU 2032 Strategic Plan." These aren't just formal planning documents.. they are essentially a blueprint for how JMU intends to grow –– physically, academically, and economically –– over the next decade and beyond.

What's actually in the plan?

The physical piece –– the Campus Master Plan –– shows how JMU's big–picture goals might translate into actual buildings and spaces. This is likely to include more on–campus housing, modernized facilities, mixed–use spaces that could bring private retailers to campus, and a general push to make JMU feel more like a self–contained community. The goal is to house about 60% of students on campus by 2040, up from current levels.

That last part is interesting from a real estate standpoint. More on–campus housing could reduce demand for the off–campus rental market near JMU... or it could simply accommodate more students as enrollment grows. JMU pulled in over 43,000 applications this year from all 50 states and more than 100 countries. That consistent strong interest in JMU amongst college applicants should help fuel this potential growth.

The broader strategic plan also sets an ambitious target of becoming an R1 research university –– a significant step up from its current R2 status. If that happens, it would mean significantly more faculty, more graduate students, more research dollars flowing through Harrisonburg.

Why this matters for the housing market

JMU is already one of the largest employers in the Shenandoah Valley. When JMU grows, that typically results in added faculty, expanded programs, more staff –– and thus, more people – who need places to live throughout Harrisonburg and Rockingham County, and beyond.

The university's budget for the coming year is over $860 million. That money circulates through our local economy in the form of jobs, contracts, salaries, and spending. That large of an economic engine creates stability and growth in our local economy and in the housing market.

When JMU says it's planning for growth through 2032 and setting targets all the way out to 2040... that's important context for anyone thinking about Harrisonburg real estate on any time horizon.

Does this news from JMU mean home prices will automatically go up over the next decade? Not necessarily. But it does continue to reinforce the fact that Harrisonburg has a key economic anchor (JMU) that will continue to provide stability and opportunities for growth for many (many) years to come.

If you're curious how all of this plays into your own real estate plans, I'm happy to talk it through.

   

If you bought a home in Harrisonburg or Rockingham County in the last decade or so, there's a good chance your home is worth meaningfully more today than what you paid for it.

The graph above takes a look at the median sales price (of detached homes) each year going back to 2016... and compares that value to the median sales price today.  

The median sales price for a detached home in our area is currently around $393,000. 

Here's how that current median sales price compares to some years gone by...

• If you bought in 2016 at the median price of $214,000 your home might be worth around $179,000 more today.
• If you bought in 2019 at $240,000 you could be looking at a gain of around $153,000.
• If you bought in 2021 you may have gained about $101,500 in value.
• If you bought in 2023 at $350,000 you could still have seen a solid $43,000 increase in just a couple of years.

Now, an important caveat... these numbers are based on median sales prices –– and no single home will necessarily track median sales prices.  Home values of individual properties vary quite a bit depending on the neighborhood, condition, size, etc. 

Let me know if you have been curious what your home might be worth today.

   

We've been exploring homes for a bit now, and it has become clear that a home with about 1800 SF would be ideal... and you would prefer not to need to take on any major projects with your new home.

But, on the very same day, we see two new listings that are meet and don't meet those goals at the same time.

House #1

This house is 1600 SF (smaller than your goal) but it is in incredible shape. Updated kitchen, fresh bathrooms, everything done just as you would have done it. You wouldn't change a thing. 

House #2

This house is 2400 SF –– more room than you ever thought you'd have –– but the house is dated. The carpet seems to be 20 years old, the kitchen feels tired, and we won't speak of the bathrooms.  The house isn't falling apart, but it will be a project.

Which house would you choose, if either?

If you lean toward House #1, you probably value your time and energy more than square footage right now. Maybe life is busy during this season of life.  Maybe you know yourself well enough to know that some of the projects won't ever get finished.  Perhaps a smaller but extremely move in ready home is a better option than a larger home needing many updates.

If you lean toward House #2, you might be thinking more from a long–term perspective. Maybe your family will grow, or an aging parent might eventually move in with you.  You might covet the extra space for flexibility and know that you can always work on those renovations over time.  The home's condition can be improved, but the square footage can't be increased as easily.

Neither choice (space, or condition) is right or wrong for every buyer –– but we'll want to talk through the strong pro's and strong con's of each potential house.

And... you might decide you aren't willing to compromise on either home, and we'll keep waiting for another option that is closer to your goals for both size and condition of your next home.

  

When we're out looking at homes together, we'll often find that a home falls into one of two categories.  Not all homes fall cleanly into one of these categories, but many do...

1.  The home where things have been done.

We'll notice it pretty quickly. The HVAC was replaced a couple years ago. The water heater is newer. The roof still has plenty of life. Little things have been fixed when they came up rather than ignored. This tells us something important –– not just about the condition of the home, but about the mindset of the seller. We can likely feel reasonably confident that you won't be walking into a long list of repairs once you buy this house.

2.  The home where nothing seems to have been done.

The signs are often there if we look closely. The HVAC is old or older. The water heater is at or near the end of its life. Small things that should have been addressed a while ago... weren't addressed at all. None of this means you shouldn't buy the home. But you'll want to go in eyes wide open, because you may be in for several years of dealing with deferred maintenance.

Interesting, though... these two homes can look almost identical in the photos online. They might have the number of bedrooms, the same square footage, be of the same age, in the same neighborhood. We often can't tell them apart from the listing details and photos alone –– which is why we often have to go see a home in person to learn whether it falls into one of these categories, and which one that would be.

As you can imagine, a home that's clearly been well cared for is worth more to most buyers –– sometimes meaningfully more –– than an otherwise identical home that hasn't been cared for as well in recent years. It's typically not because of any single update, but because of the cumulative positive impact of the care updates and care by the current owner.
  

You've been watching this house for three weeks.

Plenty of showings, apparently. But no offers. So you finally decide to go for it –– you make an offer –– and then, what do you know, the seller's agent calls to let us know that two more offers just came in.

Wait... what? Where were those buyers last week?

Here's what is often happening...

Some buyers, even when they're genuinely interested in a home, struggle to make a decision to make an offer when no one else seems to be moving. They're waiting for some signal that the house is actually worth wanting.

And then an offer comes in –– your offer –– and suddenly their thought of making an offer is confirmed as a good idea. 

This is not a completely irrational way for a buyer to think about making an offer.  When a home has been sitting for weeks, it's natural to wonder if you're the one missing something of why you shouldn't like the house. But sometimes there's no problem at all. Sometimes buyers just needed a nudge... from... another buyer, such as you.

So if you're genuinely interested in a home that's been sitting for a few weeks (or longer)... don't assume the lack of offers means you have all the time in the world. You might think it gives you leverage for negotiatoins –– and maybe it does –– but you might also be the one who accidentally starts a bidding war.

It's a quirky market sometimes. :–)
  

You are excited to buy a house, and you have made offers on houses, but we keep running into the same problem – another buyer is willing to waive their home inspection contingency entirely, and you're not.

So what do we do?

Let's explore some options you might not have considered yet...

Option 1: Keep doing what you're doing.

You make offers with a standard home inspection contingency –– typically giving yourself around 14 days to complete the inspection and decide whether to request repairs, terminate or move forward. If we're consistently losing to buyers who are waiving inspections, this approach may keep putting you at a disadvantage. But it's also the safest approach, and if you're patient enough, eventually you may find yourself in a situation where you're not competing against a buyer willing to take that risk.

Option 2: Shorten the inspection timeline.

Instead of asking for 14 days, you offer to complete your inspection within 5 days. This should indicate to the seller that you won't leave them in limbo for two weeks... and it does make your offer at least slightly more appealing. The trade–off, though, is that you'll need to work with whichever inspector is available on short notice rather than one you might prefer, and depending on your schedule, you might not be able to attend the inspection in person.

Option 3: Inspect, but agree not to request any repairs.

This is an interesting middle ground. You do the inspection –– you get the information –– but you tell the seller upfront that you won't be asking them to fix anything or provide any credits. You retain the right to walk away if something serious comes up, but the seller can feel confident they won't be hit with a repair list. For a seller who has had bad experiences with inspection negotiations, this can feel safer than a typical inspection contingency.

Option 4: Inspect, but only request repairs above a dollar threshold.

You agree that you'll only ask for repairs if something truly significant is found –– say, items that would cost (in total, with all other needed repairs) $5,000 or more to address. This eliminates the possibility of you coming back to the seller over minor issues like a dripping faucet or a missing outlet cover. It focuses the inspection on what really matters, and it gives the seller reasonable confidence that the process won't get nitpicky.

Option 5: Inspect, but offer your deposit to the seller if you walk away.

This one can really demonstrate your seriousness.  You do the inspection, but you agree up front that if you decide to terminate the contract based on the home inspection, the seller can retain your deposit.  This shows a greater level of commitment to buying the house, though if you do walk away, and give the seller their deposit – they still have to then find a buyer who wants to buy the house after another buyer decided not to based on inspection findings.

Option 6: No inspection contingency at all.

Yes, this is the most competitive option. And if you're buying a house you really like, and that seems to have been well maintained, with recently updated major systems, it might be a risk you are willing to take. This risk is not for everyone, and it's not for every house. But it's an option worth considering seriously if you've lost multiple offers and you find a home you really love.

So, what will you do next?

If you have lost two or three offers already using Option 1, we might want to chat further about Options 2, 3, 4 and 5 – or a combination of them.  These alternative approaches are still an inspection contingency – but they can potentially let you reduce the amount of risk the seller believes that contingency adds to the transaction.

If you'd like to talk through which approach makes the most sense for your situation, I'm happy to help you think it through.
    

It's a competitive market right now in some price ranges and areas –– particularly in and just around the City of Harrisonburg, for under $500K. If you've made a few offers and missed out to other buyers, you might want to keep reading...

Do you like the house (the next one we see) enough to pay more than the appraised value?

Some buyers are willing to make offers that say exactly that. 

For example...

Let's say a home is listed at $450K and five buyers make offers. It might look something like this:

Offer 1 –– $450K, contingent on appraisal
Offer 2 –– $450K escalating to $460K, contingent on appraisal
Offer 3 –– $450K escalating to $465K, contingent on appraisal
Offer 4 –– $450K escalating to $470K, contingent on appraisal
Offer 5 –– $450K escalating to $470K, contingent on the appraisal being at least $450K

Buyer #5 will probably get the house. Because they've essentially said: "We'll pay $470K even if the home only appraises for $450K."

What Does That Actually Mean?

If the home appraises at $450K and the contract price is $470K, that $20K gap often comes out of the buyer's pocket as an increased downpayment.  So the buyer needs to be comfortable bringing that extra cash to closing.  Maybe that's fine for them. Maybe they've missed out on three or four other houses and they've decided... this is the one, and they're not losing it over $20K.

Of note –– the house might end up appraising for $460K or $470K. Appraisals don't always come in low. But Buyer #5 has already made peace with the possibility that it might.

A Few Important Notes...

If you pay $470K for a home that appraises at $450K, selling it again in six months or a year could be challenging. But if you know (or think) you're going to be there for five or ten years? That will likely work out jsut fine.

Being willing to pay more than appraised value is not right move for every buyer for every house. But for some buyers, with some houses, it will be the strategy that helps you actually buy a house.

So... would you be willing to pay more than the appraised value? If the answer is yes, make that clear in your next offer. 
  

The first few weeks after a home hits the market are often busy ones. Buyers who have been watching the market –– sometimes for months –– finally have something new to look at. These buyers will schedule showings quickly. And pretty soon, the showing activity (or lack thereof) and offers (or lack thereof) will either confirm that the home and it's price are appropriately positioned in the market... or not.

Within the first few weeks, the market will have given you (as a seller) direct and important feedback about your home.

Every buyer who was going to be drawn to your home has made a decision. They've either walked through it and decided to make an offer, walked through it and decided not to make an offer, or have decided to not even walk through it.  

If showings slow dramatically after those first few weeks, the question often shouldn't be "should we wait a little longer?" but rather "are we priced where we need to be?" Waiting for a new wave of buyers to discover the home can be a long wait.  Most active buyers have already seen your home and didn't feel compelled to act.

The good news is this: the feedback comes quickly in the current market, and it is very direct and honest. If a home is sitting after two or three weeks with very little activity, that's extremely helpful feedback.

So what do we do with it?

Sometimes the answer is pricing. Sometimes it's presentation. Occasionally, it really is just timing.  But after the first few weeks, we should be talking through all of these possibilities and determining a game plan.

  

Between 2018 and 2024, the median price of a detached home in Harrisonburg and Rockingham County rose an astonishing 70%. That’s a remarkable run... and it’s worth knowing about whether you’re thinking of selling or just curious what your home might be worth today.

Since 2024, the median sales price of detached homes has  essentially remained flat. Prices are not dropping, but they are no longer rising as they were.

But... with resale home sales up 7% this spring and contracts jumping 33% over last March, there’s still plenty of buyer demand out there!

What Does This Mean For You?

Buyers:  Contracts are up sharply this spring and resale homes are moving quickly –– if you’re ready, let’s jump in soon.

Sellers:  Prices are holding relatively steady and homes are taking a bit longer to sell, so pricing carefully matters more than ever.

The story looks a little different depending on your neighborhood, price range, and property type. Reach out and we can take a closer look at what’s happening in your specific corner of the market.

  

"Let's just buy this home –– I'm sure it will work OK for us for at least a year or two."

Occasionally, I hear this, and I always encourage buyers to pause and reflect before considering that path forward.

Buying a home that you are fairly confident will only work for you for a few years can be a costly decision... and one that is easy to regret... unless the house ends up working well for you for longer than you anticipated.

Transaction Costs Are Real

When you buy and then sell within just a couple of years, you're looking at closing costs when buying, and when selling, and the cost of moving, updating/decorating, and furnishing a home.  All of those costs can add up!

On a $350,000 home, that could end up being $30,000 or more... and if you know on the front end that you will probably need or want to sell in a year or two, that's a steep price to pay.

What About Equity?

Some might want to rely on increases in home value to justify buying a house that you plan to sell a yar or two later –– but you'd need pretty strong appreciation in just 12 or 24 months try to break even on those costs. In a market with level–ish prices, or with very moderate price growth, that's far from guaranteed. 

The Better Question

Before making an offer on a house that you are sure only works for you for a few years, let's think through what you'll do when that time comes... will be OK with selling after just a year or two, despite the high cost of what ended up being a short term period of homeownership?  Will you keep the property as a rental property instead of selling?  Will you wish you had rented for another year or two?  Will you wish you would have bought a home that would work for you for 5+ years?

There will always be unanticipated life changes (for example, a new job out of the area) that can come up and cause you to sell after just a year or two –– but if you go into the purchase knowing you are almost certain to want or need to sell again after a year or two, let's dive into the what the total transactional costs might be and make sure you are comfortable with the overall financial picture.

   

Many homeowners who are thinking about downsizing start by thinking about what they need to do to get their home ready to sell.

That is a good question to be exploring... but it's only one of the two questions we should be considering.

The second question is... what will you buy next?

If you've lived in your current home for 20 or 30 years, it's easy to pour all of your energy into the selling side of things –– decluttering, making updates, freshening things up, thinking about the timing. And sometimes, the buying side of the equation can accidentally become an afterthought. 

Focusing on the buying side of the equation is just as important if not more important!  Sometimes these homeowners hoping to downsize are surprised that there aren't many single level homes (detached or attached) with lower maintenance needs on the market at any given time. If were to wait until you are under contract to sell your current home before we start exploring your purchasing options, you might find yourself with fewer choices than you expected.

So, if you're thinking about downsizing, it's important to invest energy into both sides of the equation from the beginning.

On the selling side, yes –– let's talk about what updates make sense, what doesn't need to be done, what your home might be worth, and when the timing might be right.

On the buying side, let's start exploring too. What kind of home are you hoping to land in? One story? Low maintenance? Close to town? Further out in the County? What's your budget going to look like after the sale? Some of these questions take time to answer. We might need to walk through a few homes just to get a feel for what you actually want –– and just as importantly, what you don't want.  

The good news is that both conversations can happen at the same time. If you're starting to think about downsizing –– even if it feels like it's a year or two away –– let's start chatting about both sides of the equation.

   

Likely, yes... unless it has a big flaw, a big need, or a big price.

Most homes in the Harrisonburg area are selling well right now. If you list your well–maintained home at a fair price, and you should expect solid interest and a contract before long. But "most homes" doesn't mean every home.

A Big Flaw

Some homes have a characteristic that a significant portion of buyers won't be excited about... a busy road... a steep lot... a tiny yard... an awkward layout. These aren't dealbreakers for everyone –– but they will narrow our buyer pool. We should acknowledge the flaw, and price your home accordingly.

A Big Need

A roof that's overdue. An HVAC system on its last legs. Floors and paint that haven't been touched in decades. Lots and lots of deferred maintenance. Buyers aren't afraid of older homes, but they are more cautious when a home feels like it needs one or more significant and costly upgrades in the near term. It's worth thinking about which of those needs are worth addressing before you list.

A Big Price

This one is the most controllable. An overpriced home can get skipped when buyers are deciding what to go see, or it can sit long enough that buyers start wondering what's wrong with it. If you want to go under contract quickly, make sure your price is in line with similar, recently sold, homes.

So... if you want your home to go under contract quickly:
1. Acknowledge the big flaws. 
2. Consider addressing the big needs. 
Don't accidentally give your home a big price. 

If we do these three things, you should be in good shape for signing a contract in a timely fashion.
  

After meeting at my office to talk about the home buying process and the market, we schedule a time to go see a house together.

When we walk in, you pretty quickly realize that the house is perfect or nearly perfect.  It has everything you said you wanted in a house, and it's in a great location relative to family, friends and work.  It doesn't need too many updates, and it has room to grow.

But... it's the first house we have viewed.

So, yes... it is absolutely the BEST house you have seen... but... I suppose it is also the worst house you have seen...

When we have looked at 5 or 10 houses together, you'll have a better sense of what you can buy, and how any given new listing compares to the options that have existed over time.  This context allows you to walk into a house and recognize when it is truly a unique house and one that will, uniquely, work really well for you.
 
But sometimes... the first house is the one.

So... if that happens... be open to it.  Don't talk yourself out of what you are feeling just because it is the first house.  Some buyers find their house on day one.

At the same time, if we write an offer on that perfect (but first) house and it doesn't work out –– and it might not, because a house that feels perfect to you can feel perfect to others too –– we'll need to trust and believe that there will be other perfect (or near perfect) houses to come.

It's Spring in the Valley (or, alternatingly summer and winter this week) and we'll see plenty of new listings hitting the market over the next few weeks.  The best house –– the perfect house –– your first house –– might be right around the corner!

  

Let's say you've found a house you really like. It's listed at $400K. We've looked at the comps together, and it seems like $400K is a fair price... though depending on the buyer, it could reasonably be worth $405K or $410K to some people.

Now let's say there are multiple offers. You have a decision to make.

You could offer $400K –– the list price. 

You could offer $400K with an escalation clause, bumping up above any competing offer in increments of some amount, maxing out at $410K (the top of what we'd call the reasonable value range). 

Or you could stretch a bit further and escalate all the way up to $420K, going above what most would consider to be the best comparable sales.

So how do you decide?

Sometimes, it can be helpful to ask yourself... if you lose at this number... will you regret it?

If someone else gets the house for $401K or $405K, when you offered $400K, how does that feel? If the answer is "not that bad –– it wasn't perfect anyway," then maybe $400K is exactly where you should be. We'll find you another house.

But if the thought of losing it at $401K makes you hesitate or wish you had offered more... that might be telling you something.

We can ask the same question at each number. If you lose at $410K, will you regret it? Maybe not –– maybe $410K already felt like a stretch. If you lose at $420K? That one might sting more, but it also might feel like you gave it everything you had.

There's no universally right answer here. 

Some buyers are perfectly happy to offer the list price and walking away if it doesn't work out. Others would rather pay a little more and know they didn't leave anything on the table. Both are valid approaches.

The next time you get stuck figuring out what to offer or how high to go with an escalation clause, let's put it in the context of whether you will regret it if you miss out by stopping at a particular price.