Summer is one of the busiest times of year for real estate. It's also one of the most unpredictable.

That might sound contradictory... but if you've bought or sold a home during the summer months, you probably know what I mean.

Everyone Has Somewhere to Be

The challenge with summer real estate isn't a lack of activity –– it's that activity happens in fits and starts. Sellers delay listing because they're at the beach for a week. Buyers miss a new home because they're traveling to see family. Someone is finally ready to schedule showings... and then they're gone for ten days.

It's not that buyers and sellers aren't motivated. Life is just fuller in the summer, and real estate has to work around it.

What This Means for You

If you're a buyer, stay engaged even when things feel quiet. The home you've been waiting for might show up on a Thursday afternoon in July when you least expect it –– and be under contract before you get back from vacation.

If you're selling, don't wait for the perfect moment. There isn't one in the summer. List when you're ready, price it well, and let the market respond.

Summer real estate in Harrisonburg is active. It just moves a little differently than during the rest of the year.

Ready to buy or sell a house this summer?  Let's chat!

  

If you're thinking about buying or selling a multifamily property (or other investment property) in the Harrisonburg area, there's a number worth knowing: 13.2.

That's the average gross rent multiplier –– or GRM –– for most of the multifamily sales in this market over the past twelve months. It's a simple but useful way to think about how investment properties are priced.

What Is a GRM?

The gross rent multiplier is just the sales price divided by the annual rental income. A property bringing in $50,000 a year that sells for $650,000 has a GRM of 13. It tells you roughly what buyers are paying per dollar of income the property generates.

This certainly isn't the only number that matters when evaluating an investment property... but it's a good starting point.

What This Looks Like in Practice

Recent multifamily sales in and around Harrisonburg have ranged from a GRM of 10.5 on the low end to 15.4 on the high end, with most landing somewhere in between. That spread matters –– not every property commands the same multiple, and the reasons why can tell you a lot about what buyers are actually valuing.

What It Means If You're Buying or Selling

If you're a seller, this gives you a reasonable framework for thinking about what your property might be worth –– based on what it actually earns. 

If you're a buyer, it's a useful way to consider whether a list price is appropriate. A property priced at a GRM of 16 or 17 might be priced too high. Another property priced closer to 10 or 11 might be a great opportunity, or there may be a reason it's priced lower.

Either way, knowing the latest GRM data you make better decisions.

I'm happy to walk through the numbers on a specific property you're considering –– or talk through what your rental property might be worth today.

Email me if you'd like a copy of the data behind the 13.2 GRM average above.

Let's say we've been looking for homes for a while, you have made some offers, but have missed out on several houses in multiple offer scenarios.

Then, you find a house you really like, but the price is higher than you think is reasonable in the current market.

You make an offer... and the seller counters back, indicating they won't come down any lower on the price.

Now you have a decision to make.

The home seems perfect, or close to it, so it's tempting to just stretch a bit further on price, and then maybe a bit further after that.

But, sometimes it's OK to let someone else buy the home.

The best time to think about the highest price you are willing to pay for a house is before we make that first offer. When you're in the midst of negotiations, it can be tempting to keep agreeing to pay a bit more and a bit more.  But if you've already decided what the most you're willing to pay is, the decision can be easier and clearer.

So we talk about that number early, even while acknowledging that it might be a different number for different houses. What's the most you'd pay for this house and still feel good about it and comfortable with it? 

It won't always feel great to let a house slip away because you are not willing to go as high as a seller wants to go, but you will often have some further affirmation of that decision after the fact.  In most cases, another great option is going to comes along. 

Holding your line on what price you are willing to pay will allow you to be comfortable with what you are committing to when the right house comes along at the right price, for you.

Let's plan to talk through where that line is, on price, for any house where you're getting ready to make an offer.

   

One of the first things we will start to explore together, when you are ready to consider a home purchase, is how many homes are on the market now – or might be soon – that could work for you.

An easy for step is to break things down by price range... and in Harrisonburg and Rockingham County, here's where things currently stand...

Under $300K = 23 homes
$300K to $500K = 66 homes
$500K to $700K = 49 homes
Over $700K = 29 homes

If you're shopping under $300K, your options will be somewhat limited, especially depending on your preferences for location and property type.  You'll need to have your financing ready and be prepared to act quickly when something good comes up.

In the $300K to $500K range, you have the most options –– and perhaps a bit more breathing room to be thoughtful.

Above $500K, inventory levels are actually higher than they necessarily need to be given the smaller pool of buyers who can afford these homes.

Whatever your budget, I'd love to help you explore a home purchase in Harrisonburg and Rockingham County.  Reach out anytime if I can be of help. 

   

Happy Monday Morning, Friends!

It's just a few days until Red Wing Roots, a family–friendly music festival in Mt Solon, VA... will you be there?  It's a wonderful weekend of great music, great people, great food in the great outdoors... plus so much more... hiking, biking, games and so on!  Get your tickets today, and I hope to see you there!

It's been a busy few weeks for the Rogers, starting off with Emily graduating high school!!!

That excitement was followed by a fun family trip to Arizona where we explored Sedona, the Grand Canyon, Lake Powell, Horseshoe Bend, and a pretty incredible slot canyon called Antelope Canyon...

But... we're back in the Valley now... which is much greener than Arizona!

A few more quick items before we take a look at the latest market data...

Each month I have a giveaway for readers of my market report. This month, enter to win a $50 gift card to Rita's where you can try out some Italian Ice and Frozen Custard!  Enter the giveaway here.

Each weekday morning, I send out a short email –– one trend I'm noticing, question I'm hearing asked, or a data point that might be of interest –– so feel free to subscribe to my daily newsletter to stay informed about our local market.  

Recent topics have included...

If you're thinking about buying or selling –– now or down the road –– I'm happy to chat. Reach out anytime by phone or text at 540–578–0102, or by email.

Now, let's take a look at the latest data and trends in our local housing market.  It's Monday morning, so we're going to fly right through quite a bit of data to get you on with your day a bit more informed than when you started.

First, we're seeing more sales, but not higher prices...

We saw more sales this May than last May (138 vs. 133) and over the past 12 months we have seen a 7% increase in the numbers of homes that are selling in Harrisonburg and Rockingham County.  But... the median sales price has dropped by 1% from $348K to $345K.  

But... worry not... that downward shift in the market–wide median sales price is largely a result of a decrease in (higher priced) detached homes and an increase in (lower priced) attached homes.

Here you'll see the breakdown just for detached homes...

As noted above, we've seen 4% fewer detached home sales over the past 12 months as compared to the prior 12 months... but... the median sales price of those detached homes has increased 3% compared to the market–wide 1% decrease in median sales prices.

So, what about the attached homes?

Hey, hey... there has been a 27% increase in attached home sales over the past year (!!!) and a 2% increase in the median sales price.  As noted above, it's this big increase in the number of attached homes that are selling that is causing the market–wide median sales price to dip slightly.

Let's take a peek (graphs now – yay!) at the first five months of 2026...

After we moved past January (remember snowcrete?) the market heated up... with more home sales in each month of 2026 than the same month the prior year.  That trend persisted through May... can it make it to June?  

Here's another look at the overall market, both the median sales price and the number of home sales...

We're starting to see steady increases in the number of overall sales (though it's mostly attached homes) and the median sales price remains flat (largely because of all of those attached home sales).  I suppose it's worth noting that most of the new homes that are being built these days are also attached homes.

Breaking things down by detached vs. attached again...

The median sales price is still slowly rising when looking at just detached homes... up from $388K two years ago to $399K this year... though that is a much slower pace of growth than we saw between 2018 and 2024.

And how about those attached homes...

After multiple years of massive increase in median sales prices (particularly between 220 and 2023) we have seen median sales prices of attached homes flatten out over the past several years.

Looking ahead now, contract activity actually slowed down a bit in May...

We saw strong contract activity in March and April of this year, compared to last year, but things slowed back down in May.  Most months of June are even slower than May, so we are likely to see fewer than 132 contract signed in June.

The number of homes currently under contract is also a bit lower than expected...

We usually see a slight decline through the end of May in the number of homes that are under contract (waiting to go to closing) but things slowed down a bit more than normal over the past month. 

And yet... even with a smaller number of contracts, and fewer homes under contract... inventory is not rising...

A year ago we saw inventory levels rise considerably between April and July... but that trend does not seem likely to repeat itself this year.  Inventory levels stayed steady over the past month, so today's buyers have about the same number of homes to choose from as they had a year ago.

And how about how long it's taking for homes to go under contract?

Median days on market spiked during the winter... but has settled back down again over the past few months.  It's hard to know how much of that was a seasonal increase in the days on market... and whether we will see that start to shift up again when we get to next fall/winter.

Finally, what are those mortgage interest rates doing these days?

Mortgage interest rates have risen over the past three months from just below 6% to just above 6.5%... which is no fun for buyers hoping to flex their budget a bit.  That said, rates are currently lower than they were a year ago.

So... after having rapidly digested all of that data, what are the key trends to know?

1.  Home buying activity is on the rise.

2.  Prices appear flat, but are actually rising, very slowly.

3.  Inventory levels remain limited.

4.  Homes are starting to sell a bit more quickly.

Here are some key takeaways for buyers and sellers as we enter the summer market, based on the data above...

If you're buying: Don't wait on rates, move quickly on homes you love, and don't expect to pay well under list price on a reasonably priced home.

If you're selling: Price it right from the start, make sure your home shows well, and know that serious buyers are out there right now.

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

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

Have a wonderful week, and maybe I'll see you on the Music Meadow this weekend at Red Wing!

    

Your home looks great... the walls are freshly painted, the kitchen cabinets and countertops are in great shape, and the bathrooms are modern if not very recently updated.

So why is a buyer saying that your home's price feels too high?

Sometimes it's because they're already thinking about what they want to change after closing.

Maybe they'd like to paint many portions of the home a new color.  Maybe the kitchen countertops are perfectly functional... but not quite what they would choose. Maybe they have a specific vision for a room (or rooms) that doesn't match how your home lives today.

These buyers are not only looking at your asking price –– they're also mentally adding up everything they expect to spend in the first year or two after moving in –– even if these are elective upgrades and/or cosmetic changes. That total price (purchase price + cost of improvements) then oftentimes affects the price they're comfortable paying for your home.

If one or two buyers thinking this way... no problem... every home will have some buyers for whom the house isn't quite the right fit.

But if we're hearing the same feedback from multiple (or most) buyers... if we're seeing showings, but no offers... we might need to make an adjustment to your asking price given what we have learned about what most buyers would want to change, upgrade or improve in your home.

We need to not only price your home based on how it looks and lives today... but also based on what most buyers might want to plan to do after closing.

  

Short term rentals in Rockingham County now require a permit through the Department of Community Development.  Each existing short term rental must have a permit by December 31, 2026 and the permits must be renewed annually thereafter.

From the County...

"The ordinance does not restrict who may operate a short–term rental or where these properties may be located. Instead, the program is designed to support health, safety, and general welfare standards for STR properties."

This requirement applies to any property rented for less than 30 days.  

You can read more about the short–term rental policy here or review some FAQ's here.

If you own a Short Term Rental make sure to submit your application sooner rather than later.

   

A common theory among sellers getting ready to list their home is...

"If I price it a little higher than where I hope to sell, buyers who are interested will just make an offer, and we'll negotiate from there."

It sounds reasonable. But here in the Harrisonburg area, that's often not how it plays out.

When a buyer sees a price that feels too high, their first instinct isn't to make an offer and to see what happens, they often just don't do anything.

1. They assume their offer won't go anywhere. 
2. They assume someone else is already willing to pay more. 
3. They don't want to insult the a seller with a low number. 

Thus, the buyers keep looking, and your home sits on the market, still for sale.

The first few weeks are our best shot at getting the most attention from buyers. Buyers who've been waiting to buy a home get alerts and schedule showings. But if your list price isn't spot on during that initial window, you likely won't get low offers, you won't get any offers at all.

Our best bet is to price your home accurately and reasonably from the start. Not significantly lower than where we think it will sell –– but right at what we believe is the most likely sales price.  That price will gets buyers not only looking at your home, but hopefully making offers as well.

 

If your home is under contract and the buyer has included a home inspection contingency –– you might wonder what happens after the inspection is complete. What are the buyer's options...and as a seller, what should you expect?

Here are the three main paths a buyer might take...

Path 1: Move forward without any requests.

Sometimes a buyer does the inspection, reviews the report, and decides everything looks fine, or fine enough.  This doesn't happen all that often (perhaps 10% of the time) but sometimes a buyer is comfortable with addressing the minor items identified through the inspection after they own the house.  

Path 2: Request repairs or a credit.

This is the mostly likely path for the inspection contingency to take... probably around 88% of the time.  Yes, that's an odd number... just trying to get the likelihood of all three of the paths to add up to 100%. ;–) In this scenario, after the inspection, the buyer sends a list of items they'd like the seller to address –– either by making repairs prior to closing, or by providing a credit so the buyer can handle things themselves.  If you're selling your home, and there is an inspection contingency, it is reasonable to expect this path.

Path 3: Walk away.

Occasionally, a buyer reviews the inspection findings and decides they no longer want to move forward. This does not happen that often –– maybe in 2% of home sales with inspection contingencies –– but this is one of the reasons the contingency exists –– to protect a buyer if they find significant issues that cause them to decide they are not comfortable moving forward with the purchase.

So... if you're a seller, the most likely thing that happens after an inspection is that a buyer will come back with a list of requested requests. 

So, how will you respond as a seller?

I will encourage you to think about it as trying to find an agreement that both you and the buyer can feel good about.

When we receive the repair request, we should be thinking about whether most buyers would make a similar repair request.

For example...

Scenario 1 – A buyer requests three repairs that are things that would show up on almost any inspection and that most buyers would request that you repair.  It probably makes sense to agree to these requested repairs.

Scenario 2 – A buyer submits a list of ten requested repairs and seven of them are very minor –– the kind of thing most buyers would plan to handle themselves.  In this situation, you might agree to just some of the requested repairs (the more significant items) and try to reach an agreement with the buyer to address the repairs that are most significant and that most buyers would request.

Once again, the goal here is to try to find a path forward where both the buyer and seller feel comfortable with the agreed upon repairs.

   

The owners of a 6.6 acre parcel of land on Betts Road are proposing that it be rezoned from R–1 to R–8C to allow for the construction of up to 49 townhomes in a layout potentially looking similar to that shown above.

Interestingly... the property is currently zoned R–1 (intended for single family homes), while the Comprehensive Plan designates this site as intended for Light Commercial, while the owner is proposing a rezoning to R–8 to allow denser residential development.

The rezoning applicant is proffering a right of way along East Market Street for a possible future shared use path, a landscaping screen between the development and Fairway Hills, a privacy fence between the development and adjacent properties, a tot lot playground, guest parking and a sidewalk on Betts Road.

Property owners in neighboring Fairway Hills have concerns with additional traffic going out to East Market Street on Betts Road, as that would be the sole entrance/exit for this new development.

City Staff does not believe that the proposed townhomes are consistent with adjacent existing land uses nor the Comprehensive Plan's Land Use Guide, so they are recommending a denial of the rezoning (and special use permit) for this proposed residential development.

The Planning Commission will review the requests at their meeting on June 10, 2026.

You can review all of the documents related to this rezoning request (Planning Commission Memorandum, Site Maps, Application and Supporting Documents, Public Comments) here.

  

We've been looking at homes for a little while now with a focus on one neighborhood where homes usually sell for between $475K and $525K.

And then... a new listing pops up.  It's a single owner home, and it was custom built.  It has also been lovingly and fastidiously maintained over the years.  We can tell from the moment we walk in that this seller genuinely cares about this home. The layout is fun and functional in ways a cookie–cutter house just isn't. And the maintenance the upgrades mean you won't be immediately budgeting for improvements after your home purchase.

But... it's listed at $565K.

That's $40K to $90K above other recent sales prices in the neighborhood.

Some sellers find themselves pricing their home based on their experience of it... how well it worked for their family over the years... how much they've invested in improvements over the years... how much joy it's brought them. Those aspects of the home clearly meant a lot to the current owner... but they are not always things that buyers will pay for when the home is sold.

The question for you, as a buyer, isn't whether you agree with the seller that the house is special... it's whether you will be willing to pay their price based on how special it is.

Are you willing to pay $565K for a home in a $475K to $525K neighborhood because the layout, features and finishes are all really nice and the house has been extremely well maintained?

For some buyers, doing so will make sense, especially if you anticipate the home being just as valuable and special to you and in your life.

Other buyers, however, will want to make an offer that reflects recent comparable sales.

There's no wrong answer here. But we'll want to think through the seller's likely perspective on price, as well as comparable sales in the neighborhood, before drafting the offer.

   

A popular new listing hits the market in Harrisonburg. It's priced well, shows beautifully, and the first weekend brings 10 or 15 showings. Lots of interest.

And then, almost immediately, buyer agents all start asking the same thing of seller agents: "Are there any offers yet?"

It's an understandable question. But what happens next is predictable and peculiar.  :–)

When the answer is yes... there are two offers... buyers feel more urgency and often will decide they too want to make an offer.

When the answer is no... there aren't any offers yet... buyers often slow down a bit and quite ready to make an offer.

Essentially, this is confirmation bias playing out in real time in the real estate market.

The presence of other offers becomes evidence that the home is worth buying. The absence of offers becomes evidence that maybe it isn't. Neither conclusion is necessarily true –– but that's often how it feels in the moment.

Is this the most rational way to decide whether to make an offer? Probably not.

Whether you should make an offer on a home should really come down to how well the home works for you.  Does it fit your needs, your budget, and what you've been looking for? What other buyers are doing –– or not doing –– doesn't actually change any of that.

Knowing that competing offers exist (or that they do not exist) does have some practical value relative to how we will structure your offer.. but using it as the primary signal for whether to make an offer at all... isn't usually a great idea.

If you walk through a home and you love it, the fact that no one else has made an offer yet doesn't mean you shouldn't. 

And if you walk through a home and it doesn't feel right, the fact that three other people are writing offers doesn't mean you should too.

When you're buying a home in this area, the home inspection contingency gives you three options after the inspection is complete.

You can proceed to closing without asking the seller for anything. You can request repairs –– or a credit in lieu of repairs. Or you can terminate the contract based on what the inspector found.

Most buyers take the second route. They find a few things during the inspection, put together a list of requests, and ask the seller to address them before closing.

But here's a thought... should buyers consider setting a minimum dollar threshold (in the contract, or in their head) before they'll even make a repair request?

Here's where this idea comes from...

In a competitive offer situation, buyers sometimes include language in their inspection contingency saying they won't make a request unless a repair will cost more than $5,000 –– or some other agreed–upon amount. The idea is to signal to the seller that the buyer isn't going to nickel–and–dime them after the contract is signed. It makes the inspection contingency feel a little less like a wildcard to a seller.

But what about in a normal, non–competitive situation? Should buyers be thinking about this too?

Sellers can get  frustrated when a buyer asks them to fix something that costs $150 to $200. I think that frustration is understandable... after all, if you're buying a $400,000 home, you probably shouldn't need the seller to take care of a $200 repair. 

So what's a reasonable floor?

Maybe $500?  Maybe $1,000? The right number probably depends on the price of the home, the age of the home, and its overall condition.

The goal isn't to let sellers off the hook if there are significant problems with the house. If the inspector finds something that's going to cost thousands of dollars to fix, we should be requesting repairs, or a replacement, or a credit.  But it might be worth letting it go of some of the small stuff –– and going into closing with less friction and a better relationship with the seller.

As always, feel free to reach out if you have questions about the inspection process –– or anything else about buying or selling a home in the Harrisonburg area.
  

Before we list your home for sale, we should take a walk through it with fresh eyes... looking for any signs of past problems that you've already fixed.

This is something sellers sometimes overlook, and it can be detrimental when then trying to sell your home.

For example...

Your roof leaked a few years ago. A water stain formed on the bedroom ceiling. You repaired the roof –– or maybe even replaced it entirely –– but you never got around to repainting that ceiling. But now a buyer walks through your home, looks up, and sees that stain. Their brain immediately goes to: Is the roof leaking? How old is the roof?  Is there a bigger problem here?  You fixed the roof. But the stain is still creating concerns for buyers.

Or...

A toilet had a slow leak at the base –– a deteriorating wax seal, which is a pretty common and pretty fixable issue. Over time, a stain formed on the ceiling of the living room below. You replaced the wax seal, the leak stopped, the problem solved. But the ceiling never got repainted.  Same situation. A buyer sees that stain and starts wondering what's wrong, even though nothing is wrong. The fix here is simple: before you list your home, you should repaint those ceilings. It's not a cover–up –– you repair the issue that caused the stain.  At this point, we're just trying to making sure the visual evidence of a cured problem isn't still raising alarms for buyers/

So... let's walk through your home before we list it for sale. We'll be looking for any signs of things that used to be a problem but isn't anymore.

If you're getting ready to sell your home in Harrisonburg or Rockingham County and want to talk through what to tackle before you list, I'm happy to walk through the house with you.

  

A new apartment development (The Walk at Harrisonburg) is proposed to be built on the land shown above on Peach Grove Avenue.

The apartment complex is proposed to be built on two parcels... each of which is actually currently (sort of) approved for apartments...

1351 Peach Grove Avenue was rezoned in 2021 to R–5C to allow for a single apartment building with up to 460 bedrooms.

1361 Peach Grove Avenue is zoned B–2 and in 2023 an apartment complex was approved with 376 apartments in three buildings... though the special use permit that would have allowed for this particular development has expired... though in theory a residential development could still be built to comply to B–2 requirements even without the expired special use permit.

Here's the potential layout of the proposed development...

The current applicant is proposing a rezoning of both properties to include an apartment complex with the layout shown above with 205 apartments and up to 739 bedrooms.

Here's a rendering of how the development might look...

The developer, Landmark Properties, has been developing properties since 2004 and currently manages around 70,000 bedrooms of student housing all around the country.  Per their website, it seems they were the developer of The Retreat at Harrisonburg, not too far from this new proposed development...

Though... the Retreat was seemingly sold in 2021 (for $70M) to a new entity and then rebranded as Redpoint.

The developer, Landmark Properties, intends to target young professionals, undergraduate students and graduate students for this new development on Peach Grove Avenue... though it seems that 80% of the apartments would be four bedroom apartments, so it is relatively likely that it would be all or mostly college students living in the community.

You can download the full rezoning application packet here.

A variety of perspectives arose during the Planning Commission meeting...

One of the parcels is owned by the JMU Foundation... but JMU's strategic plan includes a goal of housing 60% of students on campus by 2040... and thus, City staff has concerns that purpose–built student housing may have limited adaptability if (off campus) student housing demand lessens.

This proposal for the two parcels together is actually a less dense housing proposal than how the two parcels were proposed to be developed separately.  

The site is seemingly considered both close to and far from the JMU campus.  Some comments in the rezoning hearing suggested that the property is too far from campus to be a suitable location for college student housing... while others suggested that this is a good spot for college student housing.

There seemed to be some frustration from planning commissioners that many housing development proposals continue to be for college student housing instead of for workforce housing or affordable housing.

So, will this rezoning be approved and will the new development be built?

Staff recommended denial of the rezoning because, at least in part, they do not believe additional college student housing is currently needed

At the May 13, 2026 meeting of the Planning Commission, they voted to recommend denial of the rezoning request.

    

The developer will likely still take their proposal to City Council on June 9.

    

Homes in a neighborhood have been selling for $400K. Then, one seller –– for whatever reason –– accepts $380K. Maybe they needed to move fast. Maybe they were tired of waiting. Maybe they just really wanted to be done with it.

Now you want to buy in that neighborhood. You've seen that $380K sale. It's right there in the data. So you start making $380K offers on the other homes... and nothing is happening.

Why won't anyone take $380K when someone just sold for $380K?

Well... because a real estate transaction requires two willing parties. One seller agreeing to $380K doesn't obligate any other seller to do the same.

If you wanted to buy a home in that neighborhood for $380K, you may have needed to have bought it from that one seller –– the one who was willing to accept less. That window has now closed.

The other sellers in the neighborhood? They may have watched that sale happen and simply decided they aren't willing to follow suit. They're holding at $400K, and that's fine!

So continuing to offer $380K on homes listed at $400K –– homes owned by sellers who are clearly not in a hurry –– might not get you very far.

This doesn't mean you can never negotiate. It doesn't mean $400K is the floor forever. But one below–market sale doesn't necessarily reset the expectations of every other seller on the street. 

If you're trying to figure out what's actually reasonable to offer on a home here in Harrisonburg or Rockingham County –– and when to push and when to meet the market –– let's look broadly at the data, not just at one home sale.

  

When we're pricing your home, we'll spend most of our time looking at sold data. The prices other buyers paid for similar homes gives us the best indication of what a buyer pay for your home.  

But, we can gain an even broader context by taking a look at active and pending listings as well!

Pending listings are homes that are under contract but haven't closed yet. We don't know the final sales price –– and we won't know until the closing day–– but we can see the list price, the condition of the home, and how quickly it went under contract. A home that went under contract in four days (and its list price) tells us something different than a home that took a month to go under contract.  

Active listings are the homes your home will be competing against the moment you hit the market. If there are multiple homes priced similarly to where we plan to list your home, that is important to note.  It might suggest that buyers in that price range are hesitating, or that those homes are priced just a bit too high. Either way, we need to know what is sitting on the market, unsold, and at what price.

Sold data gives us the foundation for pricing your home, while pending listings give us a read on what's working right now and active listings show us your competition and the prices at which homes are not selling.

We ought to take a look at the full picture (homes that have sold, pending listings, active listings) as we finalize the list price of your home.

  

When we talk about pricing your home, one of the first things we'll eventually have to decide is how optimistic you want to be.

Here's what I mean...

I'll put together a market analysis of the most likely sales price for your home based on recent comparable sales in your neighborhood or in other similar neighborhoods, In most cases, that's the baseline for how we are thinking about a potential list price for your home.  But then, we'll (you'll) need to decide how optimistic you want to be with rounding up that list price.

Pricing in line with comparable sales

If we price your home right in line with the comps, you're essentially saying: "I want to attract the most buyers possible, move quickly, and have the best chance of a straightforward sale." In a market with limited inventory, this approach often generates strong interest right out of the gate –– and sometimes even multiple offers.

Being a little more optimistic

Some sellers feel their home has features that justify a slightly higher price, even if the data doesn't entirely back it up. That's a reasonable position to take. Pricing slightly above the comps is likely to still generate just as many showings, though it might not generate as many offers.

Being much more optimistic

This is where things get tricky.  Pricing significantly above what the comps support often works against your overall goal of selling the house for the best possible price.  Overpriced homes often sit on the market for a while, without offers... and at some point potential buyers start to wonder why the home hasn't sold.  

There's no single right answer here – especially because sometimes a market analysis is going to point us to a specific price and sometimes to more of a range.  But eventually, when we are finalizing that list price, you'll have to decide how optimistic to be.

    

Let's say your house needs some work. Maybe the HVAC is well beyond is life expectancy and is starting to have difficulty keeping the house cool, or warm. Maybe the deck needs to be replaced – and it should have happened a year or two ago. Maybe there are some deferred maintenance items that have been on your to–do list for... a while.

But... you don't want to deal with any of these items before you sell.

That's fine... but if you want to go that route, you need to price your home in a way that accounts for those needed repairs.

Think about it from a buyer's perspective. They're going to walk through your home, and they're going to notice the things that need attention. Their home inspector is also going to point them out.  And then they're going to have a decision to make –– do they still want to buy this house, and do they have the money to fix these things after closing?

If your price is already at the top of what the market supports, ignoring the needed repairs... the answer is probably going to be no.

But if your price reflects the current or upcoming need of repairs –– if a buyer can look at your list price and think "OK, I can pay that, and I'll still have enough left to take care of the repairs" –– then it might work after all.  They won't feel like they're overpaying for a house with problems you didn't want to address. They feel like they're getting a fair deal on a house that needs some attention.

So if repairs aren't in your plan, that's fine. Just make sure your price tells buyers that you already know... and that you've accounted for it.

  

We've been looking for a house for you for a bit now.  Your first offer lost out to a cash buyer. Your second offer was at a lower price than another buyer offered.  Your third offer had an inspection contingency while the competing offer did not.  Three offers, three misses.

So now we're walking through a fourth house –– and you are starting to think it might be a bit more exciting than the three houses you tried to purchase.

We check with the listing agent. No offers yet.

This might be a relief... no competition... so perhaps we just offer the asking price with a home inspection contingency?  Maybe that works. But, it might just result in other offers coming in and you losing out on another house.

Here's another strategy to consider...

You've lost three houses. Each one for a different reason –– price, terms, or both. And this fourth house seems like a better fit than all of them. Thus, it's likely that other buyers are thinking (or will be thinking) the same thing and might be moving toward making an offer soon too.

So, maybe the question isn't really "what's the minimum offer I can make?" –– but it should be "what would it take to quickly secure a contract on this house?"

Sometimes offering $5,000 over asking price (for example) –– even when no other offers exist –– combined with waiving the inspection contingency, is enough for a seller to say yes and stop showing the house. 

Now, certainly, you might not be comfortable waiving an inspection –– depending on the house, but the point here is... even if you are the only buyer making an offer (thus far) you might want to make it a strong offer if you want to avoid missing out on buying another house that you really like.