Harrisonburg Real Estate Podcast with Brad Cohen

Here are four ways you can buy and sell a home at the same time. Do you need to buy and sell a home at the same time? In the past, this process was a lot easier. You'd shop for homes, and when you found one you really liked, you'd make an offer contingent on the sale of your current house. However, our market is very competitive; it's rare to find a seller willing to accept a home-sale contingency. Fortunately, you still have options, and I want to go over a few of them with you: 1. Obtain private financing. This is sometimes called a bridge loan. You can go through a private bank or private lender, and your real estate agent should have a good referral. Essentially, these loans bridge the gap between the purchase of your new home and selling your previous one. This is a flexible loan type and is usually interest only. Once you move into your new home, you can sell your old one and pay off your bridge loan.  2. Use a home equity line of credit (HELOC). If you've lived in your home for a while, you probably have a lot of equity. A HELOC lets you take that equity out of your house before you sell, and you can use this money to buy your new home. The issue is that HELOCs require a long financing process, so it can be costly and time-consuming if you aren't prepared.  “Each option has its pros and cons. ” 3. Sell to an iBuyer. There are plenty of companies out there who want to buy your home right now for cash with no strings attached. Many will let you rent back your old property while you shop for your new place.  4. Sell your home first and negotiate for time. Since we're in a strong seller's market, you can likely get favorable terms. You could ask your buyer for a rent-back agreement or long closing so that you have plenty of time to find a new home after you sell. Selling and buying can be a difficult process, but you have options. If you have questions, please call or email me. I'd love to discuss your situation with you!

A few reasons why it's hard to time the market, and why you shouldn't try. The real estate market is hard to predict because it consists largely of lagging data. The only leading indicator we have to tell us what's going to happen in the future is the contract activity for a given month. Think about it this way: A contract that is signed today won't actually close for another 30 to 60 days. Home sales that are being reported today had contracts that were signed two months ago, which is a lot of time for the market to change. In just the last month, the average mortgage interest rate went from 3.9% to 5.15%. What you hear on the news about Harrisonburg real estate may not necessarily be in line with what the data shows. The contract activity we had in March was the strongest month we've had in 10 years—over 187 contracts were signed in that time. As of this recording in April, we've already had 100 contracts signed. However, we're not quite on pace with the activity we saw last April when 151 contracts were signed. The major reason behind that is the reduced number of new listings. So far this month, we've only had 104 new listings. “The market is hard to predict because real estate consists largely of lagging data. ” Consumer confidence is also the lowest it's ever been, and homebuilder sentiment is also vastly reduced. That could come into play in our summer market; the problem is we won't know for sure for another 60 to 90 days, possibly even another quarter or two. If you've been trying to time the market, remember that it's simply not possible. Always look to your local real estate professionals who can provide you with the most up-to-date data that is tailored for your situation.  That way, you can make the most informed decisions possible. Don't hesitate to reach out to me if you have any questions or need assistance. I'd love to speak with you.

Why a crash is very unlikely with our current market conditions. Recently, a client asked me if I thought our housing market would crash this year. A lot is happening in the news, so I understand the concern. However, I don't believe a crash is coming, and I want to share why that is.  Before I talk about 2022, I want to mention that people had similar concerns about a crash in 2021. In hindsight, we can see that instead of slowing down, the housing market took off in historic fashion. It turns out the same factors driving last year's market are still present today. “We aren't heading for a crash anytime soon. ” That being said, the first quarter of 2022 has been a little unusual. Mortgage interest rates are rising, there's a war in Ukraine, and the stock market is dropping. No one knows exactly what this means for the market moving forward. However, rising mortgage rates tend to curb demand. If demand falls, does that mean we're heading for a crash? Probably not. In fact, demand cooling off might actually be good for our market's long-term stability.  One of the consequences of our crazy-high demand has been our incredibly low inventory levels. As of now, there are only 17 active listings in all of Harrisonburg. New construction homes can't meet demand, so I expect to see another hot seller's market this spring.  So with high demand and low inventory, are we heading for a crash? In my opinion, no. The housing market will be strong for a while, so if you are thinking about buying or selling a home, please call or email me. I am always willing to help!

Here are my best tips for home sellers who are preparing for the market. This is the time of year when home sellers start asking me how to get their properties ready for the market. We're in a weird climate right now. The typical curb-appeal tips like sprucing up the yard and updating your landscaping are always going to be in play, but when it comes to making home improvements, you may not have to do a whole lot of updating. I can tailor advice based on your specific situation in the market, but here are a few things I always recommend sellers do in the spring market: 1. Add a fresh coat of paint. Use a trendy, neutral color that's attractive to buyers 2. Update your curb appeal. In my experience, fresh mulch really goes a long way. 3. Make the little $100 (and under) fixes. Simple, inexpensive projects like updating a faucet, tacking up some decor, or replacing your backsplash can really make a property shine. “The big-ticket upgrades aren't necessary in this market.” When you're preparing for the spring market, being aware of current conditions is always the most important thing. If you're thinking about prepping your home for the spring market, I'd love to give you some specific tips for your specific situation. Just give me a call or send me an email today. I'd be happy to answer any questions you might have.

A recent poll from Fannie Mae showed that only 25% of respondents felt that it was a good time to buy a home. The highest demographic that responded negatively was those aged 18 to 34—only 15% of them felt it was a good time to buy. We all know that interest rates and prices have been increasing for the last two years, so is it still a good time to buy a home? First, let's acknowledge a simple truth: It's frustrating to be a buyer right now. I feel for everyone who's had to hear that their offer hasn't been accepted, whether they've heard it once or five times. The lower end of the market has been squeezed the most by price and interest rate escalation, and they also face the most competition. However, it's still a great time to buy a house, despite the current market conditions, and here are three reasons why: 1. Rates are still very low. Though they're not in the low 3% range we've become accustomed to over the last year, they're still below the historic rates of 5% and 6%. 2. Experts are optimistic about price appreciation. In the fourth quarter of 2021, experts predicted an average of 43% appreciation between now and 2026. I think that number may be a bit aggressive, but even the more pessimistic experts were predicting between 22% and 23% appreciation in that same time frame, which is in line with historic averages. So prices will continue to rise, and it will likely be more expensive to buy if you wait. “Let's acknowledge a simple truth: It's frustrating to be a buyer right now.” 3. Renting is more expensive than owning. Rents in our area have continued to climb at a much more dramatic rate than home purchasing affordability. Yes, home prices and rates have been ticking up, and that affects affordability, but if you look at Harrisonburg and Rockingham counties, most of the time, the cost to rent is much higher compared to the payment to purchase the same house. As our real estate market continues to change, those costs will be passed on to tenants more than they'll affect homeowners. Remember that a mortgage payment puts equity back into your pocket and is a form of a forced savings plan. Paying rent is just paying your landlord's mortgage. While it'll probably be frustrating to buy a home in our present market, the long-term benefits will be completely worth it. Don't believe every headline you read; always look to your local professionals to help you navigate the market, especially when it's a tough market. If you have any questions about buying in today's market or real estate in general, always feel free to reach out to me via text or email. I would love to help you.

Our real estate market is off to a fast start despite snowy weather. So far this year, we've already had 56 contracts signed, 72 homes sold, and 52 new active listings. Obviously, the snowy weather has not deterred buyers. Here are some of my top predictions and things to watch for the 2022 real estate market. Over the last two years, we've seen home prices rise by 20%. In 2022, I predict that prices will continue to increase but at a much slower rate and more in line with historical averages of 4% to 6%. What has happened over the past two years, where we have seen about a 20% increase in prices, is not sustainable. I could spend a lot of time explaining why that happened, but that's for another video. For 2022, expect that we should see a more “normal” rate of appreciation. And no, I do not expect prices to come down. “Interest rates have already started to rise.” Inventory levels have been extremely low the last few years. In 2022, I predict that Inventory will increase a little bit, but not so much that I expect a drop in prices. New construction has increased but is facing global supply chain challenges in the wake of COVID. Unfortunately, the pace of new construction hasn't kept up with demand thus far. My hope is that we will see more investors selling rental properties and more empty nesters selling their homes and downsizing. Finally, I predict that interest rates will rise in 2022. They have already started to. The question is how much. It is no secret that inflation is here and affecting all areas of the economy. The Federal Reserve has already accelerated the tapering of its bond-buying program, and experts are predicting three or four rate hikes this year alone. If you're planning to buy this year, don't wait. As interest rates rise, so does your monthly payment. If you have any questions for me about my predictions, current market conditions, or real estate in general, don't hesitate to reach out via phone or email. I look forward to hearing from you soon.

If your energy bills are higher than you would like, follow these four tips to make your home more energy efficient today. Energy-efficient homes are en vogue right now, and for good reason. Not only are they more environmentally friendly, but they also help homeowners save a lot of money on their energy bills each month. Best of all, you can make your home more energy efficient with just a few simple changes. Here are four simple tips you can start with:  1. Switch to LED lightbulbs. Even switching five of the most-used bulbs in your home to LED, you could save an estimated $75 per year off of your electricity bill.   2. Seal up air leaks. When air escapes from the small cracks around your doors and windows, your home’s HVAC unit will have to work overtime to keep the temperature consistent. Simply adding draft guards around doors and caulking around windows and chimneys can make a massive difference.  “Not only are energy-efficient homes more environmentally friendly, but they also help homeowners save a lot of money on their energy bills each month.” 3. Heat and cool your house efficiently. Installing a programmable thermostat is one of the best ways to do so. These allow you to monitor and control your home’s heating and cooling more closely. They even let you control your home’s temperature remotely from your phone.  4. Maintain your HVAC system. A poorly maintained HVAC system equates to an uncomfortable living space and high energy bills to boot. So always make sure you’re changing your air filters and ordering annual (or bi-annual) check-ups to keep your HVAC in working order. If you would like an energy audit on your home before or after you implement these tips, please reach out to Charles Hendricks of The Gaines Group Architects by phone at (540) 437-0012 or by visiting his company’s website: www.thegainesgroup.com If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

As I mentioned in my previous video, buying student housing in Harrisonburg is a tricky, yet worthwhile, pursuit. And, thankfully, there are options that allow you to do so.  Before you decide to invest in student housing, though, realize that going under-rented for a consecutive year can be majorly detrimental to your cash flow and may jeopardize your investment. Most student housing is corporate-owned, so individuals looking to invest in this type of property will be up against some stiff competition.  There are only a select few communities in which individual investors can purchase student housing, including Hunters Ridge, Bradley Drive Camden Townhomes, Pheasant Run, Fox Hills, and Campus View Condos. The properties in these communities fall under the umbrella of “traditional” student housing.  “If you are thinking about buying student housing in Harrisonburg, you need to talk to someone who understands the nuances and regulations associated with doing so.” These aren’t your only options, though. You may also want to consider buying property in some non-traditional student neighborhoods, which essentially just means buying a townhome or condo in a regular residential neighborhood and then renting it out to students.  However, if you choose to pursue this option, make sure that you are operating within city zoning restrictions as well as the CC&Rs for a specific neighborhood. In most residential neighborhoods, only two people who aren’t relatives can live together—a rule specifically designed to keep students from moving outside of student housing neighborhoods.  And don’t be fooled into thinking this rule can be easily bypassed. There is a lot of animosity among residents near JMU, where student housing and regular residential housing are somewhat intermingled. The last thing you want to do is break a neighborhood’s restrictions and have to kick people out of their leases.  The bottom line is that if you are thinking about buying student housing in Harrisonburg, you need to talk to someone who understands the nuances and regulations associated with doing so.  As it happens, I started my career by working with student housing. I got my feet wet in the real estate industry at a property management company, which opened the door for me to sell nine condos in Hunters Ridge in my first year as an agent. Beyond that, I happen to be a JMU alumnus, so I’m very much in-the-know about where students prefer to live in our area.  If you have any other questions or would like more information, I’m here to help and happy to catch; so please give me a call or send me an email. I look forward to hearing from you soon.

I get a lot of calls from people looking to buy investment property in Harrisonburg near JMU to rent to students. Whether you’re a first-time investor, experienced investor, curious JMU student or alum, or JMU parent looking at buying instead of renting, these tips are for you.  The biggest upside with this kind of investment is cash flow: Student housing typically cash flows very well on a monthly basis because you can rent by the bedroom. With student housing rents ranging on average from $450 to $600 per bedroom, you could see gross rents around $25,000 for the year. “I recommend hiring a property manager.” The biggest downside is maintenance. Students are typically very rough on rental properties, so your turnover costs can be a lot higher. It’s possible to mitigate risk by collecting higher security deposits, cleaning fees, etc., but know that if they really tear the place up, it’s a pain to collect back on it. I typically tell people to count on at least a full month’s rent as a maintenance reserve for the year. I really recommend hiring a property manager. The headaches of dealing with potentially four different tenants with four different sets of parents or guarantors, joint leases vs. separate leases, and knowing when leasing season is at its prime are all nuances that you want a professional to handle.  Stay tuned for part two with more Harrisonburg-specific considerations. If you have any questions for me in the meantime, don’t hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Our company recently did an event called “Ignite Harrisonburg” where we brought together about 140 community leaders to discuss the issues surrounding housing and development and to get an idea of what people really need.  After we did some quick surveys and came up with a consensus, we found that the central theme was affordability: 66% of people said we needed more single-family homes in the $150,000 to $300,000 price range.  What’s caused this affordability crisis? It all boils down to three factors: 1. Resale prices are up. This is largely due to dwindling supply and rising demand amongst buyers. Inventory has been tight in all price ranges and that has made things challenging for buyers. 2. There are similar housing needs across demographics. For the first time, millennials and retirees looking to downsize are searching for the same types of properties—starter homes in the $150,000 to $300,000 price range I mentioned above. That’s where the demand is, and that’s where the two largest demographics in the market are both looking. “We need large-scale development in the $200,000 to $300,000 price range to meet the needs of the larger home buying demographics.” 3. No new residential properties are being built on a large scale. If you see a lot of dirt being moved right now, it’s for either commercial property or student housing, and there are three reasons why this is: land is expensive, building costs are rising, and government restrictions have made construction expensive and difficult.  What’s the solution to this crisis? There is no easy answer. We’re dealing with a perfect storm that’s led us to this situation. For one thing, we need large-scale development in the $200,000 to $300,000 price range to meet the needs of the larger home buying demographics, which will hopefully start a chain reaction for the other demographics.  I would love to hear your thoughts on this topic and what our other needs are in Harrisonburg and Rockingham counties, so please feel free to leave a comment in the comment section below or click on this link and take a quick survey. Let’s solve this crisis together.  As always, if you have any other real estate needs, don’t hesitate to call or email me. I’d love to hear from you. In the meantime, I look forward to seeing you at the next Ignite Harrisonburg! 

Is there a “best” day to list your property?  Yes, but first let’s talk about the days you don’t want to put your home on the market: Friday, Saturday, and Sunday. This is when most people are out and about looking for homes, which means their agents are out with them instead of sitting down at their computers checking the MLS for new listings.  The first 24 hours on the MLS are crucial in terms of exposing your home to the most agents possible. Roughly 87% of all buyers have an agent, so you don’t want to list your home when no one’s looking.  All agents have property alert systems on their phone, but scheduling showings when you’re out with other clients is very challenging, especially when you’re trying to give the common courtesy of a 24-hour notice. Listing on Saturday or Sunday is acceptable only when you’ve already put a sign in your yard or started a “coming soon” campaign.  “The first 24 hours on the MLS are crucial in terms of exposing your home to the most agents possible.” What about Friday? Well, don’t you like to know what you’re doing this weekend before 4 p.m. on Friday afternoon? I sure do, and when we see a home hit the market during that time—when we’re already frantically scheduling showings before our office closes—it becomes very difficult to change plans.  When I get a call on a weekend about a brand-new listing that’s hit the market, my weekend plans vanish. Whether I’m out showing homes to a client or skydiving (as I often like to do on the weekends), I have no choice but to go see it in these market conditions. Why not make everyone’s lives easier and put your home in front of as many eyes as possible by listing before then? So when are the best days to list? Preferably Tuesdays or Wednesdays. This gives consumers the most time to see it while it syndicates out to Trulia, Zillow, Realtor.com, etc. This also makes your life more convenient because you can plan to be out of the house once the weekend hits and showings start.  To be clear, if you’re a buyer, this doesn’t mean you shouldn’t call me on the weekends if you see a new home you like. Please do!  If you have any questions about this topic or you’re ready to buy or sell a home in Harrisonburg, don’t hesitate to give me a shout. I’d love to help you.

We’ve had 138 attached home sales in our area so far this year, 68 of which were in Harrisonburg. On average, the sellers behind these properties have been earning 99% of their asking price, on average.  And homes aren’t just selling for high prices right now—they’re also selling quickly. Right now, listings are spending an average of just 35 days on the market. Conditions are so hot that we currently have just 16 attached homes available in Harrisonburg, and only 41 available across Harrisonburg and Rockingham Counties.  “Whether you bought a townhouse as a starter home or an investment property, now is the time to sell.” This extremely limited inventory, especially among homes priced at or below $200,000, has caused many buyers to set their sights on townhomes. And for those with a townhome to sell in our area, this is great news. Between this high level of demand and the fact that prices have risen 10% year to date, sellers are in a prime position to sell quickly and for top dollar.  The bottom line is this: Whether you bought a townhouse as a starter home or an investment property, now is the time to sell. Of course, it’s also a great time to sell single-family homes. So if you have any other questions or would like more information about how I can help you with your real estate goals, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Anyone who knows me knows that I’m a huge advocate for and frequenter of Jack Brown’s, Billy Jack’s, and The Hideaway. What you may not know is that there’s an apartment space atop all of it called Jacktown Loft, and I’ve been granted the unique privilege to give you a tour of it. While on our tour, we’ll also discuss Airbnb and the benefits of renting out your property.   Airbnb made some major waves when it entered the scene a few years ago as an alternative to hotels for vacationers. Its purpose has widened beyond just vacation stays and is a popular option for tourists, people traveling on business, etc. It’s opened the door for people who want to stay in a non-hotel setting while away from home.  Harrisonburg has become a hub for tourism due to our magnificent downtown cuisine scene, and the Jacktown Loft is no exception to this; sitting right above two of the most popular bar-restaurants in the downtown area, it’s become a highly sought-after place for tourists to stay. If this interests you, be sure to contact the owner or check it out on Airbnb.  “Harrisonburg has become a hub for tourism due to our magnificent downtown cuisine scene, and the Jacktown Loft is no exception to this.” The Jacktown Loft is a four-bedroom, four-bath space with two queen-sized beds, two twin-sized beds, and a den area complete with a sleeper sofa.  Before we dive into the tour, let’s briefly talk about the upsides of Airbnb for homeowners. Via Airbnb, a number of my clients have found success in offsetting their mortgage costs by renting portions of their home. Because there’s an “at-home” feeling with these scenarios, there’s certainly a lot of renter demand.  In fact, two of my clients who’ve used Airbnb in this way have told me that they’re paying their mortgage in full just from the rent they’re generating. In short, it can be greatly beneficial to you as a homeowner to use this strategy. If you have any further questions pertaining to Airbnb, don’t hesitate to contact me.  In the meantime, let’s get to the tour! Starting at 2:51 in the video, you can see for yourself all that the Jacktown Loft has to offer.  A big thanks to Aaron Ludwig and the whole Jacktown family for the opportunity to bring you this little preview of the loft. Again, if you have any questions about real estate, Airbnb, or the like, feel free to reach out. I look forward to hearing from you!

A home closing signals the end of the transaction, which is an exciting moment for buyers and sellers alike. At this point, appraisals have been finished, inspections have been done, and financing is in order. It’s time to close—but what does closing entail? And why should you wait until Wednesday to close? At closing, the buyers, sellers, Realtors, representative or attorney, and lender will all meet. In some cases, people will sign documents at different times throughout the day—the seller comes by in the morning and the buyer comes later, for example.  Sellers typically have fewer documents to sign; the buyer has to resign all of their loan documents, sign a number of disclosures, and more. The closing documents are then reviewed by both sides so that everything looks correct. “If you set the closing date for Wednesday, you have a buffer of two business days on either side.” After this, the attorney takes the documents to the clerk’s office and has the deed recorded, which ends the closing. Keys are exchanged at the closing table, and this is a great time for the buyer to ask the seller any final questions they have.  Though people often want to close at arbitrary times to save on things like proration, I think it’s a much better option to simply shoot for Wednesdays. I had a client who wanted to close on Friday in order to start moving on Saturday, but here’s the problem—what if there’s a delay?  The closing is an “on or about” date for both parties, so if you don’t close on that set date, the closing could shift to a few days before or after it. It’s done this way to avoid a pile of extra paperwork. If you set the closing date for Wednesday, you have a buffer of two business days on either side. This gives you time to wrap up any last-minute tasks, and it also gives you the ability to push your closing back a couple of days if needed. Then, you won’t be in fear of missing out on the perfect Saturday moving day! If you have any questions or would like more information, feel free to reach out to me. I look forward to hearing from you soon.

For today’s video, I’m live with Bree for a short Q&A on buying and selling a home at the same time. Cited below for your convenience are timestamps that will direct you to each question and its respective answer. Feel free to watch the full message or use these timestamps to browse specific topics at your leisure: 0:47—Is buying and selling at the same time a common trend in our market? 1:20—What is the difference between a contingent buyer and a non-contingent buyer? 1:57—What are the pros and cons of buying before selling your existing home? 3:29—What are the pros and cons of selling your existing home before buying a new one? 4:37—What are some general tips to prepare for this sort of situation? 5:25—How you can contact me If you have any questions or comments for me, feel free to send me an email at Brad@BradCohenHomes.com or call me at 540-830-7239. I look forward to hearing from you!  

  Real estate is a local business, but I know many of you who receive these videos live outside of the Harrisonburg, Virginia market I work in. That’s why I want to talk about how working with a Realtor outside of your local market can still benefit you, whether you’re buying or selling. First, it’s a familiar face to have a conversation with. Buying or selling a home is an important life decision, and it’s something you may not want to talk about with a complete stranger. If you’re in the beginning stages of the buying or selling process and you’re just trying to gather some general information, talking with a Realtor outside of your market is a great way to get some unbiased, realistic advice. You’re not in a high-pressure sales environment, so you can have a truly honest conversation. “Realtors know how to find other quality Realtors.” Second, you can gain familiarity with the process. Buying and selling a home is different from market to market, but not drastically so. If you need general information of what the process looks like when you’re thinking of doing either, talking to a quality agent in any market is a smart move. When you get down to the nuts and bolts of the upcoming transaction, that’s when you want to talk to a hyperlocal expert. Third, you’ll make connections with quality Realtors. Realtors know how to find other quality Realtors. When you need to find an agent anywhere in the world, it’s handy to be able to have another agent do some outreach on your behalf. Whether it’s through online reviews, our broker-to-broker network, conferences, or training seminars, I can match you up with someone in your area who will help you get the best deal possible. So, if you’re thinking of buying or selling a home and you know another Realtor who works in another market, don’t be afraid to give them a call. You’ll know you’re working with a trusted advisor and you’re starting off on the right foot for one of the most important decisions of your life. If you have any questions about this or any other real estate topic, don’t hesitate to give me a call. I’d love to help you.  

When I talk to both buyers and sellers, there’s no shortage of the question: “How does one know if a listing is overpriced?” There are two main factors that enter into the equation of a home’s true value: its price and condition. Buyers are looking for value, which is a direct reflection of the price versus the condition of the property. Sellers thinking about listing their property need to understand that the name of the game is realistic expectations. Have a conversation with your Realtor and walk through your home viewing it through a buyer’s lens, rather than your own. “Buyers are looking for value, which is a direct reflection of the price versus the condition of the property.” Think about what a buyer may have misgivings about or object to when assessing the property’s condition, what updates can you make prior to listing that will maximize your ROI, and how you can compensate for what you can’t control. As it concerns price, get to know the data and analyze the comparables in your area; if homes in your neighborhood are selling in 30 days or less, and your home is past that mark, it’s a direct reflection of the price or condition.     To ensure that your home isn’t overpriced, reduce the price in accordance with the collective buyer feedback, whether direct or indirect. As for condition, you’ll likely have to put a little more thought, time, and resources into adjustments. The sticking point for buyers could be anything from an obnoxiously painted room that needs repainting to an outdated kitchen or bathroom that could use a remodel. Two signs, in particular, are all the evidence you need to know your home is overpriced: 1.There have been no showings for three weeks. 2.You haven’t had a single offer after 10 showings. If you have any questions or need more information about all things real estate, please feel free to contact me. I’m more than happy to help you with your real estate needs, and I look forward to speaking with you soon!  

To start off 2019 right, we’re going to share four key trends that buyers and sellers should keep an eye on this year: 1. There will be more homes for sale, especially in the luxury markets. For the past year, all we’ve been talking about is our low inventory levels. This past winter, we actually hit record lows. We’ve been joking that there are more Realtors out there than there are homes for sale right now. With all that said, we should expect to see inventory increase this year. With a modest slowdown in buyer activity, we should see supply recover. Where we’re really going to see a difference is in the $500,000+ luxury market, which has already shifted to a bit of a buyer’s market. “Millennials will still dominate the home buying market.” 2. Affording a home is going to become more difficult. In the fourth quarter of 2018, we saw an increase in mortgage interest rates. This has dipped back down since the beginning of the year and has held fairly steady since, but we can expect to see rates go up at least twice in 2019. When you couple this with increased home prices, affordability will drop, making it harder for buyers. As for sellers, the earlier you list, the better off you’re going to be. The same message goes for buyers. 3. Millennials will still dominate the home buying market. Millennials are now the largest demographic of homebuyers, making up 45% of mortgages. Expect that number to increase in 2019 as we see more and more first-time buyers. 4. The new tax law is still a wild card. Many people thought that last year’s tax reform would discourage home buying because of the increase in the standard deduction. However, we won’t really see that effect until people file their taxes in April. We should have some more answers on what this law will mean for our market in the next few months. If you have any questions about any of these topics or about real estate in general, don’t hesitate to give me a call or send me an email. I look forward to hearing from you.

It’s no secret that investing in real estate is a great way to generate passive income and increase your wealth. Today, I want to share four strategies so that you can start investing in real estate, particularly if you are in your 20s and 30s. 1. House hacking. This is a great opportunity because most people’s first investment in real estate is their own primary residence. The basic concept of house hacking is that you buy a property and leverage some part of the property to create rental income to offset your housing costs. For example, you could buy a 2-bedroom condo and rent out a room. You could also buy a duplex and live in one side while renting out the other. That way, you get to experience being a landlord and property management while offsetting your housing costs. 2. Short-term rentals. You can purchase a property in hot tourist areas or vacation spots. Charging a premium during peak seasons will allow you to offset the cost of the down season. You can also use Airbnb to get your property in front of potential visitors. Just make sure you check for any zoning restrictions on Airbnb in your area. “House hacking allows you to leverage your property to offset your housing costs.” 3. Real estate investment trusts. If being a landlord is not your style, consider investing in an REIT. Real estate investment trusts are basically like mutual funds; a group of people pools their money in order to buy real estate assets together. This way, you can be a stakeholder and invest in the real estate market without the full responsibility of owning one asset yourself. If you are interested in REITs, I recommend that you check in with a financial advisor first. 4. Financial reserves. Do you have financial reserves so that you can go a month without rent? Do you have enough money to maintain the property? If the washing machine, refrigerator, or air conditioner goes out, you need to be able to make those repairs. You need reserves to maintain the property in order to get a good return on your investment. These tips and strategies will help you find investment opportunities in your 20s, 30s, and beyond. Just give me a call or send me an email if you have any questions. I would be happy to help you!  

All year, we’ve been hearing themes in the news like “prices are going up,” “seller’s market,” “buyer demand,” “low inventory,” and so on. All of these signals seem to indicate that it’s a really good time to sell your home. However, there are a couple factors that could disrupt this trajectory for those looking to buy or sell a home: 1. Mortgage rates have hit a seven-year high. Several weeks ago, the 30-year fixed-rate mortgage interest rate increase to 4.6%, the highest it’s been since 2011. This follows the same trajectory that we’ve seen over the course of the past year regarding increasing mortgage rates. Interestingly, mortgage applications spiked in September; this typically indicates that buyers think the rates will continue to go up, and based on other economic factors, we also predict that’s the case. “A spike in mortgage applications typically indicates that buyers think the rates will continue to go up, and based on other economic factors, we also predict that’s the case.” 2. Affordability is dropping and buyer demand may follow. For someone who has a fixed monthly budget for their housing expenses, as housing prices and interest rates continue to rise, their buying power decreases. Where they were once able to buy a $250,000 home, they may no longer be able to afford that much anymore. If you’re trying to capitalize and get top dollar for your home, the time is now.  3. More and more home sellers are reducing their prices. With the seasonality of our market, it’s to be expected that prices will come down in the late fall and into the winter. However, the combination of increased interest, decreased affordability, decreased demand, and sustained high prices is leading to what we would expect to see: a more dramatic decrease in values. So what should we take away from this? If you’re thinking about selling your home, you really shouldn’t wait to list. We can’t tell what’s going to happen over the next six months, so the time to act is now. For homebuyers, bear in mind that as those mortgage interest rates continue to rise, your buying power may decrease, so you should also consider acting quickly. Plus, who wouldn’t want to get into a new home before the new year? If you have any questions about buying or selling in the current housing conditions we’re experiencing, feel free to give me a call.

Before selling your home, make sure you have these six buyer turn-offs under control. Looking out for these will help your home get sold and keep potential buyers engrossed—not grossed out! 1. Moisture damage. 70% of homebuyers are put off by damp patches, moisture patches, and stained ceilings and walls. If you see any of these in your home, just roll on a fresh coat of paint. 2. Bad odor. 56% of homebuyers dislike odor in a home, whether it’s from pets, smoke, or other disagreeable smells. You can combat this with tools such as oil diffusers, candles, baked cookies, or even some simple Febreze. 3. Dull light. 54% of homebuyers reported that dull light is unattractive. Make sure burned-out bulbs are replaced, curtains and blinds are open, and you do anything else you can to avoid dullness. You want to frame your house in the best light possible! “These are some important things to be aware of and consider.” 4. Cluttered rooms. 15% of buyers are disappointed by a cluttered room. The solution is simple: Clean up. It makes the house feel larger and removes distraction, helping the buyer feel they can make it their own. 5. Over-the-top decor. 14% report this as unappealing. While a certain style may work for you, you want buyers to see a house full of possibilities. Taking away the more outrageous decorations can help the imaginations of potential buyers run wild. 6. Outdated bathrooms. 25% of buyers disliked an out-of-date bathroom. Styles change, and what was popular in the ‘70s is not so much anymore. It can be to your advantage to remodel old-fashioned bathrooms and bring them forward to the modern day. These are some important things to be aware of and consider, as they can make a huge difference in whether your home is sold or not. If you have questions or need further information, please feel free to reach out to me. I look forward to helping you.  

We’re getting into the cooler weather now, so I thought it would be a good time to talk about selling your home in the fall and a few of the benefits that it brings: 1. You have a more serious buyer pool to work with. In the spring and summer months, there are a lot of people with a lot of free time and a lot of houses on the market. There are plenty of buyers who are looking at homes that aren’t really serious about making a move. As you get into the fall months, the concentration of serious buyers is much higher. Most of these buyers want to get settled into a new home before the holiday season, so your buyer pool will be more willing to make an offer. 2. There’s less competition. The spring and summer months see a lot more homes on the market for sale, increasing competition among home sellers even in a seller’s market. As we move into the fall months, there are a lot of people who still need to buy before the end of the year. Many sellers take their homes off the market during this time, but if you’re still on the market you will have a stronger bargaining chip. “Listing in the fall gives you much more flexibility as a home seller.” 3. Buyer demographics are different. In different seasons, you’ll see buyers with different needs. For example, in the spring or summer, a family may be looking to buy a home, but they have to close before school starts in August. In the fall, it might be a very different situation. You might have a younger buyer who sees a good opportunity or a corporate worker who’s is staying in a hotel until they are able to purchase a home. These different demographics create different motivations that can really become an advantage for you as a seller. 4. More flexibility for improvements. I can’t tell you how many sellers I’ve worked with who feel so much stress when it comes to getting their home ready for the market. They feel like they’re under the gun. If you’re selling in the fall, you have the entire summer to make sure your home looks its best when it hits the market. It gives you the flexibility to enjoy your summer and plan your improvements in advance. These are just a few reasons why sellers should consider selling their home in the fall. If you have any questions for me in the meantime about selling your home or about the real estate market in general, don’t’ hesitate to give me a call or send me an email. I look forward to hearing from you soon.

Here are five helpful questions you can ask yourself to determine whether you’re ready to stop renting and buy a home: 1. Do you know how much you can afford? There are a lot of great online resources you can use to calculate a ballpark figure. Using an online mortgage calculator, for example, is a great way to find out what a mortgage will cost you. Keep in mind how much of a change this cost will be compared to your current living situation. 2. Do you have the down payment amount available? It’s a myth that you must put down at least 20% to buy a house. In fact, there are plenty of mortgage options out there that go as low as 0% financing. However, you should know what you are getting into when you agree to a mortgage loan and how your down payment amount will affect what your monthly mortgage costs. For example, the more you put down, the lower your monthly costs will be. 3. Will you have enough money left after closing? Make sure you are not completely liquidating your savings in order to buy your house. I recommend having three to six months’ worth of savings in reserve after you’ve covered your down payment and closing costs. 4. Is your credit in good shape/What does your debt look like? These questions refer to the conversations you’ll have with your lender before starting the pre-qualification or pre-approval process. If your credit is not in great shape and you have a high amount of debt, that will probably limit your purchasing power, so get these items sorted out first. A good lender will be able to help you do this and present you with strategies to either bring your credit up or reduce your debt load. 5. Where do you see yourself in the next couple of years? If you only plan on being in a particular area for a year or two, buying might not be the best option for you—you might still prefer the flexibility of renting. However, it is a good idea to do a cost-benefit analysis to know for sure. If it is going to cost you $1,500 to rent for two years but it will cost you $1,200 to buy a house, that might even things out. It all depends on what your investment in the property is going to be. If you plan on being in that area for three to five years, it definitely makes sense to go ahead and buy a home. “Make sure you’re not completely liquidating your savings in order to buy your house.” If you have any more questions about this topic or are thinking of buying or selling a home, please feel free to reach out to me. I would be happy to help you

When you have multiple offers to choose from as a seller, all the cards are in your hand from a negotiation standpoint. Yet the decision between these offers shouldn’t be made lightly. If you find yourself in this position, there are certain steps you should take when examining your choices to make sure that you select the best deal. The first thing you should do? Thank your agent for helping you into this position. After that, it’s time to consider the prices. This is a crucial aspect of each offer, but it shouldn’t cause you to dismiss all other factors. Look at all of your offers side by side and consider the different contingencies, timelines, and terms that are in play. For example, if you’re moving across the country in 30 days, you will likely be interested in different contract terms than someone who’s just moving between neighborhoods. The amount of time the closing process will give you to move into your next home, per the terms of the offer, is an important point to consider.  “Always have a thorough conversation with your agent about the terms and conditions of each offer you receive.” You must look at the buyer’s financing terms. A cash offer and a financed offer will have different contingencies. Also consider whether the buyer pre-approved or just pre-qualified? A pre-approved buyer should thought of as on the same tier as a cash buyer, since their offer is likely only contingent on an appraisal and appropriate title. You need to also consider how much they are putting down for their earnest money deposit. With how fast things are moving in our market today, it isn’t uncommon to see buyers get cold feet. Earnest money is a good measure of a buyer’s commitment to a deal. And this is essential, because you don’t want to take your home off the market only to have the buyer back out after the inspection. Finally, consider all contingencies. These can have a considerable impact on your transaction, so make sure you have a thorough conversation with your agent about the terms and conditions of each offer you receive.  Remember: If your listing receives multiple offers, you hold the cards. You should negotiate the terms that best suit your goals. Just make sure that you don’t overlook anything when examining each contract. If you have any additional questions about this or are interested in buying or selling, please feel free to reach out to me. I look forward to speaking with you soon.

How should buyers navigate multiple offer situations in a seller’s market? This is a very common scenario right now. In fact, I’ve worked with three different buyers in the last two weeks who have encountered a multiple offer situation. Thankfully, there are ways you can be successful in standing out from among multiple offers. The key is to make your offer as attractive as possible, which can be achieved by implementing the following tips: 1. Submit a large earnest money deposit. In our market, it is common to see very low earnest money deposits. Therefore, submitting a larger one can go a long way in showing the seller how serious you are. “I’ve worked with three different buyers in the last two weeks who have encountered a multiple offer situation.” 2. Show the seller you’re qualified. There’s a difference between a pre-qualification letter and a pre-approval letter. The latter is far more desirable in the eyes of the seller. But now, some banks are even doing what’s called a “pre-commitment” letter. This letter will make your offer look even more solid. 3. Give the seller time to move. Multiple offer situations can be just as overwhelming for sellers as they can be for buyers. So it’s important to be mindful of the seller’s needs when submitting an offer on their home. Allowing them a little extra time to arrange their transition between properties can make your offer more attractive. 4. Write your best offer. Unfortunately, buyers have much less room to negotiate when faced with multiple offer situations. With so many choices at their disposal, sellers feel less pressure to be accommodating. You may want to consider adding an executive summary to your offer. A clean, thorough, attractive offer will carry the greatest chance at success. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Right now, the Harrisonburg and Rockingham County area is in a very strong seller’s market. This means sellers can command top dollar for their properties because buyers have limited options to choose from and there is high competition between them. Inventory is the main reason we are in a seller’s market. Our total supply is around 365 available homes for sale, which is down 20 homes from the previous year and almost 100 compared to the year before that. What does this mean for home values? Values have been rising and continue to rise based on the dwindling inventory levels. It is basic economics—as supply goes down, demand goes up, and so do prices.   “Now is an opportune time to be a seller in our market.” Interest rates have also been contributing to our market conditions. Over the past couple of years, they have been at historic low levels, but they have recently started climbing. Interestingly enough, though, they dropped again this past week. They were above 4.5%, but they have dropped back down to that level. If you are a seller, this means you can buy or sell your property quickly and for top dollar. If you are a buyer, this means you need to be ready to make an offer when an available home comes along that meets your criteria. You also need to be able to see a home quickly once it hits the market. If you have any other questions about our market or are thinking of buying or selling a home soon, please feel free to reach out to me. I would be glad to help you.