Welcome! This blog tracks the real estate market in the Central Shenandoah Valley, featuring market data and analysis, an exploration of common buying and selling questions, and candid commentary on all things real estate.
If you are interested in discussing any of the topics on this blog, or the details of your specific real estate situation, call or e-mail me!
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Harrisonburg Year End Housing Market Report Shows Increases in Sales and Prices |
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 Happy Cold and Snowy January - and Happy New Year! Before we look back at a summary of our local real estate market in 2018, take a few minutes to explore the featured home pictured above, a spacious four bedroom home with views on a private cul-de-sac street at 3931DixieRidgeRunRoad.com. As per the norm, you can find a PDF of my full market report here. And now, let's take a thorough look at the overall performance of our local housing market in 2018...  Overall, 2018 was a great year for the local housing market. Here are some key takeaways from December and the full year of 2018...
 The City of Harrisonburg has been a particularly interesting market over the past year, as detailed above. Home sales increased 9.29% between 2017 and 2018, accompanied by a 6.89% increase in the median sales price (up to $190K) and home sold with a median days on the market of only 13 days! Homes went under contract quickly in the City of Harrisonburg last year -- and that seems likely to continue into 2019 given continued high buyer demand and low inventory levels.  Home sales have bounced back and forth (up and down) over the past few months in Harrisonburg and Rockingham County. August, September and November were low to average as compared to the same month in previous years -- but October was a new high (120) and sales bounced back in December to a high-ish pace which helped round out an overall strong year of sales.  Just another look at the pace of home sales, above, for those (like me) who prefer pretty data visualizations. We came so (so) close to matching the 1,313 sales seen in 2016. And yes, we bounced back from the slight dip we saw in 2017. What, then, might be in store for 2019? Another 1,300+ year of home sales? I think so -- but we shall see!  OK - a few IMPORTANT things to note here. Despite the fact that the overall median sales price for residential properties increased 7% in 2018 -- I don't believe home values increased 7%. Much of the 7% increase in the overall median sales price was a result of a larger number of (higher priced) detached homes selling in 2018 (as compared to 2017) and a smaller number of (lower priced) attached homes selling. This graph (above) then becomes important, as it shows the trend for detached homes only -- which is often a better indicator of changes in market value. You'll note that we saw a 6% increase in the pace of detached home sales and a 2% increase in the median value. So -- if you own a detached home in Harrisonburg and Rockingham County, it is likely that the value of that home increased 2% over the past year. Oh -- and I should point out that last year's median sales price of $228,000 for detached homes is THE HIGHEST median sales price we have ever seen on an annual basis in this market.  As shown above, we have seen a steady stream of buyers in the market over the past two years -- fluctuating from 620-ish to 660-ish in a six month period. Unfortunately for those buyers, however, they have had an smaller and smaller number of homes from which to choose. The number of sellers in the market -- as measured by inventory levels on a monthly basis -- has steadily decreased over the past two years. These two trends have combined to create an increasingly strong seller's market in Harrisonburg and Rockinhgham County.  OK - this one is interesting - and I believe it is a sign of a healthy-ish real estate market. As shown via variety of graphs above, home sales are up, inventory is down, days on market is down -- and yet, the median sales price seems to have only increased by 2%. So - the strong seller's market has not (thank goodness!) resulted in irrational, unreasonable, unsustainable increases in sales prices. That said, sellers are negotiating less and less (as shown directly above) from their last list price. I say "last" list price because some sellers don't start with the best list price out of the gate, and have to reduce their list price. But in the end, sellers are negotiating less (around 1%) than they have in any recent year.  For the purposes of at least a small sneak peak ahead -- we saw only a small number of contracts (62) in December -- which is to be expected in this first month of Winter. We're likely to see a small number of contracts in January and February as well, if past years are any indicator, before home sales (contracts) start to pop again in March.  And there (above) are those low inventory levels I was referencing. In fact, the 269 properties currently listed for sale in Harrisonburg and Rockingham County is THE LOWEST inventory level we have ever seen in this area. So -- perhaps the small-ish (4%) year-over-year decline is an indication that we're getting about as low as we possibly can/could/will in this market.  As one might expected, different price ranges are performing differently in our local market. The pace of home sales in the "under $200K" market continues to decline -- likely a result of properties appreciating out of this price range. We saw a sizable increase (+16%, +14%) in the middle market segments of $200K-$300K and $300K-$400K, and the largest increase in the $400K+ price range where home sales have increased 33% over the past year.  Another sign of health in our local real estate market is the ever declining number of foreclosures taking place. As shown above, there were only 85 foreclosures in Harrisonburg and Rockingham County last year -- a 37% year-over-year decline.  One last note -- we have seen a decline over the past few months in the average mortgage rate, which is exciting for buyers currently signing contracts to buy homes. We spent all of 2018 above 4% and we seemed to be quickly climbing towards 5% between August and October -- but the last few months of the year we saw things turn around and we are back closer to (or even below in some cases) 4.5%. OK - that wraps up my year-end overview of the state of our local housing market. I went into a bit more detail than usual this month -- though there is still PLENTY more in my full market report. You can download a PDF of the entire report here. And finally, a few quick links for you if you are thinking of buying or selling soon -- SELLERS -- even though it is a seller's market in just about every price ranges right now, you must still focus on price, condition and marketing. For further reading on buying or selling in this area, check out.... | |
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When Will Home Buying Activity Ramp Up in 2019? |
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 It should be no surprise that buying activity (contracts being signed) slows down over the Winter. As shown above -- an average of 75 buyers sign contracts in January, which then increases a bit, to 87, in February, and then makes an even larger jump in March to an average of 134/month. So, we're going to say the March is when we first seem a big jump in buyer activity. For that reason, many sellers wait until March (or even April) to put their homes on the market -- though the Spring market brings more competition from other sellers in addition to meaning that we'll start to see more buyers. Of note -- so far there have been 19 contracts signed in 2019 -- so still a ways to go to get to that average of 75 in January. | |
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Would Be City Townhouse Buyers Finding Few Options |
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 Some time ago, I created a website (HarrisonburgTownhouses.com) for exploring townhouse communities in and around Harrisonburg, Virginia. This allows you to explore sales trends, value trends, see recent sales, current listings, etc. So -- feel free to explore the website -- but don't expect to find many townhouses listed for sale. If you were a buyer looking to buy a townhouse, built in the past 10 years, you'd have some difficulty. Current inventory (as of 1/8/2019) includes:
So - as excited as a first time buyer might be to purchase a townhouse in the City of Harrisonburg - they will find that they have very (!!) limited options right now. | |
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When Are You Least Likely To Sell Your Home? |
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 OK - these numbers are a bit abstract, but still interesting, in my opinion. The graph above is NOT showing a distribution of when buyers are buying homes. The likelihood of selling your home in a given month, per the graph above, is calculated by dividing the number of houses listed for sale at the start of each month by the number of houses that then go under contract that month. So -- if 300 houses are listed for sale at the start of the month, and 150 houses go under contract that month, you had a 50% chance of your house selling. This is somewhat inaccurate (we'll call it abstract, instead) because other houses do come on the market during that month. But still - by calculating the likelihood of selling in the same way each month we get a relatively reasonable comparative analysis of the likelihood of selling in any given month of the year. As should come as no surprise, you are most likely to sell your home in March, April, May or June -- or October! The months when you are least likely to sell your home are November, December and January -- and good news -- two of those months are already behind us! | |
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My Predictions for the 2019 Real Estate Market |
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 As is my annual tradition, I am making some predictions about what we'll see in the Harrisonburg and Rockingham County real estate market in 2019. As you'll note above, I am predicting that we will see 1,325 home sales this year - which is simultaneously a bold and conservative prediction. :-) If we see 1,325 home sales, it will be the HIGHEST number of home sales seen any time in the past year. But yet, those 1,325 home sales would only be a 2% increase over the pace of home sales in 2018 -- which would be the smallest annual increase in the pace of home sales seen over the past few years. I think we will still see relatively low inventory levels this year, but yet buyers will still find enough homes that match their criteria to allow for this increase in home sales. With a growing local population, a steady local economy and relatively low mortgage interest rates, it seems likely that we'll see a continuation of slow annual increases in the pace of home sales. And how about those prices?  Above, you'll note that I am predicting that the median sales price in Harrisonburg and Rockingham County will increase 2% to $217,000 in 2019. Going with bold and conservative again -- this is a bold prediction, in that it be the highest median sales price ever seen in this area -- but at the same time is only a small increase in median price over last year, and a much smaller increase than seen between 2016 and 2017. Keep in mind (I know I've said it a lot lately) that the 7% increase in the median sales price in 2018 was not necessarily an actual 7% increase in home values -- but rather a shift towards more (higher priced) single family homes selling and fewer (lower priced) townhomes, duplexes and condos selling -- resulting in 7% increase in the median sales price of the combination of those two property categories. OK - enough about my predictions --what about for you? Email me (scott@HarrisonburgHousingToday.com) and let me know where you think our local market will go in 2019. And keep up with all the market data between now and next January by signing up to receive my monthly housing market report by email if you are not already receiving it. | |
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Comparing My 2018 Housing Market Predictions To Reality |
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 As shown above, I was a bit too conservative in predicting 2018 home sales. After we saw a 5% decline in the pace of home sales between 2016 and 2017 I was predicting we'd see another (smaller) decline of 2% between 2017 and 2018. As it turns out, we actually saw almost a 3% *increase* between 2017 and 2018. Even though we had low inventory levels all year long, buyers still found homes to buy -- which created a slight increase in the pace of sales, and a further decline in "days on market" in 2018.  And -- I was a bit too conservative on the change in median sales price as well! After a 3% increase between 2016 and 2017 I was predicting another 3% increase between 2017 and 2018. But no, we actually saw almost a 7% increase between 2017 and 2018 up to $212,000. Please note, again, that this 7% increase in the median sales price might be (almost certainly is?) the result of a change in the mix of what (detached vs. attached) as opposed to all values actually increasing by 7%. Read more here. Stay tuned for some predictions for 2019 in the coming days! | |
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Home Sales Rise By (at least) 2% in 2018 |
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 All home sales have not yet been reported but it is seems that we will see around a 2% increase in the pace of home sales in Harrisonburg and Rockingham County between 2017 and 2018. With 1,288 home sales recorded in the MLS thus far for last year, we may see that figure rise a bit more over the next few days, but not by much. This is a slight increase compared to last year -- though still a slight decline as compared to the high seen in 2016...
Stay tuned for my full market report in the next week or so, as well as predictions for the 2019 housing market. Oh, and HAPPY NEW YEAR! | |
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Pending Home Sales Down 7.5% |
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 The graph above shows the number of properties "under contract" at the end of the month for each month over the past three years. As you can see, at the end of November there were 160 properties under contract in Harrisonburg and Rockingham County -- down 7.5% from the 173 properties that were under contract at the same time one year ago. Of note, this past Spring (end of April, May) we reached a high point for this metric that we had not seen over the past few years. | |
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Buying A Home Is, Unfortunately, Not As Simple As Buying Now With One Click |
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 Purchasing a home can be fun, exciting, thrilling, and fulfilling....but that very same process can also have its moments of being hard, frustrating, disappointing and overwhelming. In my role as a Buyer's Agent, I will be working with you through the entire home buying process to make it as educational and stress-free as possible. The very first step in this process is for us to discuss your needs, goals, dreams and desires. This may involve specifics such as the number of bedrooms and bathrooms, or may focus more on the layout of homes, the feel of a neighborhood, and the long term plans for your growing family. I will be focusing on listening well, and hearing what it is you are working to achieve with your home purchase – and then helping to identify the best housing options for accomplishing those goals. An important, parallel, part of starting the home buying process is to identify a target price range. This can best be determined through consultation with a reputable, local mortgage lender (just ask... I know who they are) but will involve more than just determining the highest priced home that they would allow you to purchase. It will be important to consider both your purchasing power, and your goals for how your housing costs will fit into your overall budget. You will also talk with your mortgage lender about how different loan programs might work better (or worse) for your situation. Once we have a shared understanding of what you are hoping to purchase, and we know what the price tag can and should look like, we can start to evaluate homes that are currently on the market. This will usually start online, perhaps through an exchange of emails, and saving some searches in your account on my web site. Then, you might choose to drive by some of the prospects before determining a list of homes to go view – or you may be ready to start seeing all of the homes on the list right away. As we view this first set of homes, we will learn a lot – about the opportunities in the market, and about your preferences. If we don't identify a home after looking at all of the homes on the market that seem to offer what you are looking for in a new home, we will either re-evaluate our criteria to expand our search, or we will wait to view new listings that come on the market. This extended home search process might take us weeks, or months, depending on the type of property you are hoping to purchase, and how often such a property becomes available. All along the way, I'll be following up on previous homes we have viewed to let you know if their prices have dropped, and will be letting you know of new opportunities as soon as those houses hit the market. Once we have identified the home you are hoping to purchase, we will prepare to make an offer. This will include researching similar home sales to guide our discussions of price, creating a negotiation strategy, and preparing and reviewing the pertinent contract documents. There is quite a bit of paperwork involved in making an offer on a home, and I want to make sure that you understand these contract documents and make sure that we have drafted them in a way to protect your best interests. Negotiating the final deal on the property you purchase may take a few hours, or a few days. We may go back and forth with the seller on price alone, or on many terms of the contract such as timing, contingencies, and more. Once we have a final agreement, all parties will sign and initial the final documents, and we will have a full ratified contract. Immediately following the ratification of the contract, we will need to schedule and perform a home inspection and radon inspection (assuming you are conducting both) to learn more about the property you are purchasing. If these inspections reveal new (detrimental) information about the property, we will have the opportunity to request that the seller make repairs to the property, which may result in a renegotiation on price. Typically, we are able to work through this second round of negotiations relatively quickly, so long as the seller is being realistic and rational given the new information about their property. Simultaneously with conducting these inspections, you will need to be starting the financing process to work towards obtaining full loan approval. This will start with signing your loan application and paying any applicable loan application or appraisal fees. Your lender will then be diligently working to further qualify you as a purchaser as well as the property via an appraisal. You will be providing many documents to your lender during this process as they work towards securing a loan for you to purchase the property. Within the first few weeks after your contract is in place, we will need to select service providers to coordinate the additional aspects of your home purchase. This will include a settlement agent or attorney who will conduct a title search of the property and prepare all documents for your settlement. You will also need to set up a new homeowners insurance policy on your new property, as well as schedule utility service to start in your name as of the settlement date. We'll now be just a few weeks before closing, and the final pre-settlement details will include reviewing the settlement statement (which shows all of the funds coming into and going out of the closing), conducting a final walk though of the property (to confirm the condition is as we expect it to be), and obtaining a cashier's check to bring the necessary funds to settlement. All of the details should be falling in place now, and if all goes well, we will be set for an on-time settlement. In nearly all real estate transactions (in this area) you will sign all of the loan and settlement documents at your real estate closing as well as receive the keys to your new property. The house will be your new home, and you can take possession and start moving in immediately after settlement. Later that day, the settlement agent will record the deed at the courthouse that officially transfers ownership of the property into your name. You are bound to have questions about the home buying process – before you begin, as we go, and even after settlement. I am here to answer all of those questions, or to guide you to the professional who can. There is plenty to learn about the home buying process, and I am here to help guide you through it and to help you make excellent decisions about your purchase of a home. Learn more about the home buying process at BuyingAHomeInHarrisonburg.com. | |
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New Harrisonburg Real Estate Information System |
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 There's an all new Real Estate Information System for the City of Harrisonburg, and you can use it to find the proposed 2019 assessed value of properties in the City of Harrisonburg. Check it out here... As a reminder, you can find a list of many resource websites to assist you in considering the purchase or sale of real estate in Harrisonburg and Rockingham County by visiting...  | |
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Very Few Homes For Sale in the City of Harrisonburg |
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 The number of homes for sale in the City of Harrisonburg keeps dropping. That's not to say that homes aren't selling -- a total of 423 homes have sold in the City of Harrisonburg during the first 11 months of the year -- putting us at a pace of 38 home sales per month. But the number of homes available to buyers continues to decline -- now down to 70 homes for sale. Here's a bit longer of a context....
If you're looking to buy a home in the City of Harrisonburg it might be difficult to find a home that is a perfect fit or you given a very limited supply of homes for sale. And when a home does come on the market that works for you, it is likely to sell quickly. | |
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Some Perspective on Changes in Mortgage Interest Rates |
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 In some ways, my alarm bells are going off!
But yet -- it looks like the average rate for 2018 will only be 0.54% higher than in 2017 -- and the graph above puts that in what might be a somewhat more helpful context. The last red bar (all the way to the right) is an indication of how much the annual average rate will have increased between 2017 and 2018. Any red bar is an increase in the average annual rate. Any blue bar is a decrease in the average annual rate. As such -- the increases we have seen in 2017 and in 2018 are a far cry from the crazy increases seen in 1978, 1979, 1980 and 1981. And there have been several times in the past thirty years when there has been a year or two of increases of less than 1% in a year, that were then followed by decreases in subsequent years. So -- back to real rates -- you could get a mortgage with a rate less than 4% a year ago, and now it would be just under 5%. And it's possible that the rates will keep rising in 2019. But in the big picture:
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Despite Slower November, Home Sales Still Stronger Than Last Year |
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 Before we dive into this month's market report, check out this featured home by visiting 819GreenbriarDrive.com. Now, on to our local real estate market -- I just published my most recent monthly market report, and as usual, you can read on for an overview, download the full report as a PDF or tune in to my monthly video overview of our local housing market... VIDEO OVERVIEW: Click here to watch (and listen) to my overview of the market. Now, let's take a look at some the trends we're currently seeing in our local housing market...  As we can see above...
 This has been a bit of an odd year, as shown above. We have seen quite a few months of new "highs" for monthly home sales. They aren't all shown above, but you can see that June, July and October were the highest such months in the past several years. But then you have months such as November -- where we fell to one of the lower such months of sales in recent years. So -- what about December? I'll guess we'll end up around 90 or so home sales -- maybe 95 -- or even 100?  This graph shows each month of home sales stacked upon the previous months -- and you can see that we're beating every recent year except 2016 when you look at home sales through November -- shown in a light brown color. It seems almost certain that we'll beat the 1,261 total we saw last year -- but will we get up to 1300 home sales this year? We'd need 99 home sales in December!  As I have mentioned in a few recent market reports -- the 7% (or so) increase that we're seeing in the median sales price for all residential sales might not mean that homes are selling for 7% more than they were last year. That 7% rise seems to be more a result of a greater number of (higher priced) single family homes selling in 2018 as compared to how many sold in 2017. Read more about this phenomenon here. That said, the graph above might give us a better idea of value trends -- where we see that the median sales price of single family homes has increased 2% over the past year.  It's a good time to be a seller right not -- and not as exciting of a time to be a buyer. As shown above, the supply of buyers is steady -- with right around 650 buyers buying in a six month period. But at the same time, the number of sellers (and their homes) in the marketplace keeps on declining -- giving those buyers fewer and fewer options from which to choose.  Hmmm -- 99 home sales in December might not be completely realistic after all. As shown above, only 72 buyers (and sellers) signed contracts in November 2018. This, combined with some lingering October contracts, means we're probably more likely to see 80 - 90 home sales in December. And -- for you current or near future sellers out there -- buyer activity is likely to stay a bit lower over the next few months. A strong surge of buyers is likely to return in March.  Well -- we dropped below 300 homes for sale again this month -- and we're likely to dip a bit lower as we move through December, January and February. Last year it took until March to rise above 300 homes for sale. So -- if buyers don't want to buy in the Winter, it seems that sellers also might not want to sell.  Unless you're paying cash -- it will cost you more (in your monthly housing payment) to buy a house now as compared to a year ago. The average mortgage interest rate on a 30 year mortgage has risen almost an entire percentage point (from 3.90% to 4.81%) over the past year. It ticked down slightly in November -- and hopefully we'll (somehow?!) stay below 5% as we roll into the new year. I'll pause there, for now. As usual, you can download the full report as a PDF, or tune in to my monthly video overview of our local housing market And a few tips for anyone thinking of buying or selling soon -- SELLERS -- even though it is a seller's market in many price ranges right now, you must still focus on price, condition and marketing. For further reading on buying or selling in this area, check out.... | |
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JMU On Campus Headcount Likely To Exceed 22K in 2022 |
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 Based on enrollment projections approved by the State Council of High Education for Virginia, on campus enrollment is set to continue to increase in coming years....
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The Impact Of Higher Mortgage Interest Rates |
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 One year ago, the average 30-year fixed mortgage interest rate was 3.94%. Today, that same average rate is 4.81%. Does this rise in mortgage interest rates impact buyers? It sure does! A buyer purchasing a $200K home would pay $82/month more for their mortgage payment -- with the increased interest rate causing it to increase from $942/month to $1,024/month. A buyer purchasing a $300K home would pay $123/month more for their mortgage payment -- with the increased interest rate causing it to increase from $1,413/month to $1,536/month. A buyer purchasing a $400K home would pay $164/month more for their mortgage payment -- with the increased interest rate causing it to increase from $1,884/month to $2,048/month. Of note -- the estimated mortgage payments above include principal, interest, taxes and insurance -- and assume that the buyer is financing 80% of the purchase price. So.....
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Do Not Be Insulted By A Low Offer On Your Home |
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 Sellers are sometimes quite shocked, dismayed or disheartened to receive a low offer on their house, for example, an offer of $225K on a $275K listing. But it is important to remember that even that low offer really is a compliment!
 If you have not yet had an offer on your house (that is listed at $275K) and you receive an offer of $225K, that doesn't necessarily mean your house is only worth $225K, nor does it necessarily mean that you should accept $225K or something close to it. It does, however, mean something quite exciting --- somebody wants to buy your house!!! Of course, negotiations won't always work out with low offers -- but recognize a low offer for what it is -- a buyer who wants to buy your house, and perhaps the first buyer who has declared as much through a written offer! If there is any way to put a deal together with those buyers, you ought to pursue it, as it's hard to know when the next buyer will work up the courage to tell you that they want to buy your house! | |
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Should Your House Be Off The Market Over the Winter Months? |
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 In some ways, NO, you should NOT take your house off the market -- because inventory is lower than it has been for years and is not showing any signs of improving.
And yet, still, some folks will take their homes off the market for the winter. Our local MLS requires a house to be off the market for 90 days before the "Cumulative Days on Market" statistic resets. So, if you take your house off the market today, you could put it back on the market on March 4, 2018 and have that statistic reset. During these 90-ish days of being off the market, we will want to talk about price, condition and marketing....
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Seven Building Lots Remain at Heritage Estates, an Active Adult Community in Harrisonburg, VA |
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 Only seven building lots remain in Heritage Estates, an active adult (55+) community in the western edge of Harrisonburg, Virginia. With low maintenance French Country style architecture, and single family homes with partial basements starting below $400K, this community has been a popular destination for many buyers both from Harrisonburg and retiring to the Shenandoah Valley. Call (540-578-0102) or email me to set up a time to meet with the developer/builder at Heritage Estates, Jerry Scripture. | |
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The Latest on Possible Harrisonburg Short Term Rental Regulations |
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 As reported in last week's Daily News Record, the City of Harrisonburg is continuing to discuss if they should try to better regulate short term rentals and if so, how. The lay of the land in Harrisonburg currently seems to be...
And so, the discussions continue -- and are likely to continue to continue -- as there does not seem to be a neat and tidy, balanced solution to this issue. Maybe there will be new regulations in 2019 that will allow or prohibit or limit or regulate short term rentals. Or, maybe, the zoning ordinance will remain the same, it will be illegal to rent all or part of your home out on a site like airbnb.com and some property owners will do it anyhow. | |
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When To Make An Offer To Buy If You Still Need to Sell Your Home |
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 Here's a good opportunity to practice patience... If your dream home is on the market -- either as a new listing, a newly reduced listing, or an old and stale listing -- it might be tempting to go ahead and make an offer to buy the house, even if you still need to sell your house. I'll recommend, in almost all instances, that we wait to make the offer until we have secured a contract on your house. And here's why... NOTHING GAINED - In almost all instances, the seller of your dream house will counter back (to our contingent offer) with a "kick out clause" allowing them to continue to market their house for sale to other buyers, and to allow them to move on to an alternative buyer who does not have to sell their home after giving you 48 or 72 hours to remove your home sale contingency after the new offer comes in. As such, unless you can buy without selling, having a contingent contract with a kickout clause is pretty similar to not having a contract at all. If another buyer comes along to buy your dream house, the only reason why you'd have an upper hand (over that new buyer) in already having a contingent contract in place is if you can somehow pull together a contract on your current house within that 48 or 72 hours period after that new buyers hows up. So -- having the contingent contract (with kick out clause) doesn't do a whole lot to defend your spot in line to buy your dream home. NEGOTIATION - We are likely to do better in negotiating a deal for you to buy your dream home if we already have your current house under contract. The seller of your dream home is not likely to be willing to negotiate as much if you still don't have your house under contract (or if you haven't even listed your house for sale) as your purchase of their house will seem significantly less certain. LEVERAGE - Any savvy seller (or seller's agent) will use your (contingent) offer against you. It's not personal of course, they're just trying to do their best to sell their home. If there have been other recent showings of your dream home, the moment your contingent offer is received, they are likely to notify all of those other buyers that they have received an offer -- and will try to use the existence of your (contingent) offer to generate enough interest and urgency for another buyer to also make an offer, which they would hope would not have a home sale contingency. Now, even if we make an offer once your current house is under contract, the seller will likely still try to generate additional offers to compete with us -- but at that point we can compete much better, already having your house under contract. Why allow the seller to use your contingent offer (with your house not yet under contract) to drum up other actionable interest from other buyers? So -- as hard as it may be for you to do -- I will almost always recommend that we **wait** to make an offer on your dream house until we have your current house under contract. | |
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Scott Rogers
Funkhouser Real
Estate Group
540-578-0102
scott@funkhousergroup.com
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