Construction will soon be underway on homes in a new community at Massanutten Resort – Bluestone Peak.  The first neighborhood to be built at Bluestone Peak, shown above, will include a variety of home types as well as a private clubhouse.

Construction is intended to begin this winter with homes to be complete in late 2026.  

In addition to Massanutten Resort's offerings, residents at Bluestone Peak will have access to amenities including pickleball courts, pool and hot tub, bocce court and putting green, clubhouse (with fitness center, gym, sauna, library, game room, business center), picnic pavilion, horseshoe pits, corn hole boards, fire pits and more.

Per the Rockingham County development tracker, this is the area where Bluestone Peak will be developed...

  

When you think of a mortgage payment, you probably picture one payment each month for 30 years. This is simple, familiar, and completely accurate. but, it is not the only option.

Some homeowners choose to make bi–weekly mortgage payments, meaning they pay every other week instead of once per month. And if your first thought is, "Why would I do that? Isn't that more payments?" –– you're not wrong. You do end up making more payments per year, but that's exactly where the benefit comes in.

Let's back up for a second.

When you take out a mortgage, each payment is split between principal (the amount you borrowed) and interest (what you pay the lender for loaning you the money). Early on, because your principal is still high, most of your monthly payment goes toward interest. For example, paying 6% on a $300,000 balance is very different from paying 6% when you've already paid the loan down to $50,000. Over time, as your principal shrinks, the interest portion gets smaller, thanks to a process called amortization.

What most people don't realize is just how much interest you pay on a 30 year mortgage. Here's a quick example:

Home price: $300,000
Down payment (20%): $60,000
Loan amount: $240,000
Interest rate: 6% fixed

Monthly payment: ≈ $1,438.92
Total paid over 30 years: ≈ $518,011
Total interest paid: ≈ $278,011

Not only is that a lot of interest, but it is more than the amount our hypothetical buyer originally borrowed.

So how do bi–weekly payments help?

Instead of making 12 full payments a year, you split your monthly payment in half and pay that amount every two weeks. Since there are 52 weeks in a year, you end up making 26 half–payments –– which equals 13 full monthly payments instead of 12.

That "extra" payment typically goes directly to your principal, and that's where the benefit comes in. Paying down the principal faster means you're paying less interest over time, because interest is simply a calculation based on the remaining principal balance.

Using the same loan terms of our hypothetical buyer from earlier, let's see how things change with bi–weekly rather than monthly payments:

Home price: $300,000
Down payment (20%): $60,000
Loan amount: $240,000
Interest rate: 6% fixed

Loan term with monthly payments: 30 years
Total interest paid: ≈ $278,011

Loan term with bi–weekly payments: ~25 years
Total interest paid: ≈ $228,000
Interest saved: ≈ $50,000

So, by making bi–weekly payments, this hypothetical buyer isn't just saving nearly $50,000 in interest –– they're also owning their home about five years sooner than they would with traditional monthly payments. That's a big deal, because it means building equity faster, paying far less in interest, and giving yourself more financial flexibility down the road.

Should everyone switch to bi–weekly mortgage payments? Not necessarily. At the end of the day, it's just another tool. But knowledge is power, and if your goal is to save money on interest or pay your home off quicker, bi–weekly payments are definitely something worth considering.  Of note, you'll want to check with your lender before starting to send in bi–weekly mortgage payments to confirm if and how they will allow you to pay in that manner.

If you want to learn more about how this works –– or want to know if it could make sense for your situation –– feel free to call or text me, Luke, at 540–830–5097 or email me at luke@lukewrogers.com.
  

Online listings can make a home look amazing –– and sometimes they are! But there are certain things we just can't fully know until we're standing inside (or outside) the home.

Here's what often gets missed when you just consider a house online...

What We Can't See

• Power lines right behind the house
• The neighbor's messy yard
• A busy road just beyond the trees

Listing photos are carefully framed –– and don't always show what's just outside the shot.

What We Can't Hear

• Interstate traffic
• Nearby train tracks
• Barking dogs or a noisy street

You might expect quiet –– but only a visit will tell you for sure.

What We Can't Smell

• Cigarette smoke
• Pet odors
• Musty basements

Smells won't show up in photos –– but they're hard to ignore in person.

What We Can't Fully Understand

• How the rooms connect
• Whether the layout feels natural
• The light, the feel, the flow

A well–staged photo doesn't always reveal how a home lives.

If a home catches your eye –– or you're wondering why it's priced the way it is –– let's go take a look. You might love it... or we might quickly realize it's not the right fit. 

   

Glen's Fair Price, self–described as Harrisonburg's Most Unusual Store, is located at 227 N Main Street and may be transformed into a mixed–use development containing residential and commercial space.

The Harrisonburg Redevelopment and Housing Authority (HRHA) requested authorization from City Council last week to allow HRHA to purchase and renovate the property into approximately (16) 400 – 500 SF apartments as affordable housing units along with office space for HRHA.

Glen's Fair Price is located directly next to another HRHA property, the Lineweaver Apartments which offer affordable housing to elderly and disabled individuals via 61 apartments in a five story building.  The proposal to re–develop Glen's Fair Price would likely include funds to renovate and update the Lineweaver Apartments as well.

City Council had a variety of questions about the proposal and wanted to know more about the plans for the Glen's Fair Price building so they tabled the request until their next meeting.

You can find links to the Memorandum to City Council and the proposed Resolution allowing for the purchase and renovation on the City Council agenda center page here.

   

Conventional wisdom often encourages you to make the largest downpayment you can afford – which isn't necessarily bad advice.  A larger downpayment reduces the size of your mortgage, which in turn lowers your monthly payment, and who doesn't want a lower mortgage payment!

But –– and this is important –– it's not always the best choice for every buyer, especially if it means emptying (or nearly emptying) your savings account to do it.

Your Downpayment Shouldn't Leave You Cash–Strapped

Buying a home often comes with a number of one–time or ongoing expenses beyond your monthly mortgage payment. If you use all of your available cash for your downpayment and closing costs, you might find yourself without the funds you need in those first few months (or years) of homeownership.

Here are a few examples of where that reserve cash might be needed:

Moving expenses –– Even if you are moving on your own (with friends and family) a move can come with the cost of renting a truck, moving supplies, and possibly taking time off of work.

Home updates or repairs –– From replacing carpet to painting walls, you might need to spend some money on your new home just before or just after moving in.

Emergency savings –– Illness, job changes, car repairs, or family emergencies can all pop up unexpectedly.

Life events –– A new baby, an aging parent, or a health event could bring on new financial needs quite quickly.

While it's smart to make as sizable of a downpayment as is possible, it's also very reasonable to keep a decent sized financial cushion in place for life's unpredictability.

If you're able to make a larger downpayment, that's great –– but don't feel pressure to maximize it at the expense of your financial flexibility. Having a slightly higher mortgage payment might be worth it if it means knowing that you have funds set aside for life's unexpected twists and turns.

We'll want to work with your lender to identify the best balance –– one that allows you to buy the home you want and still be comfortable knowing you're financially prepared for what comes next.
   

This past July, the City of Harrisonburg began advertising a development opportunity, soliciting unsealed proposals from development firms to develop, own and operate approximately 200 to 220 units of affordable, income–and–rent–restricted rental housing on 7.825 acres of City owned land on Neff Avenue as shown above.

The City of Harrisonburg plans to potentially give give the land to the developer at no cost in order to support the development of high quality affordable housing.

The City received 12 proposals and last week introduced the potential development partner, Pennrose.

Pennrose describes themselves as a "multifamily, mixed–use, and mixed–income development company" on their website and they have completed developments in 23 states and U.S. territories.  

Per the Pennrose presentation to City Council last week, they shared that they have developed 17,665 units in 225 properties and they shared examples of some of their developments including the following three locations in Virginia and Maryland.

Residences at North Hill (Fairfax, VA)

Lift & Legacy / Legacy Landing (Newport News, VA)

Glenarden Hills (Glenarden, MD)

The next steps for this potential development on Neff Avenue will include contract negotiations (between the developer and the City), contract approval (with a public hearing) and rezoning (another public hearing).  

At last week's meeting the developer did not share any specific plans for a layout of the site or unit type and count.  

The Memorandum from last week's City Council meeting includes a bit more context and links to multiple additional reference materials.

The Powerpoint presentation from the City and Developer has lots of additional details on Pennrose.

  

    

Luke published his monthly analysis of the local housing market earlier this week and had some good thoughts and insights for buyers, sellers and homeowners.

You can check out Luke's newsletter here or follow him on Instagram here.

–––

It's fair to say the Harrisonburg and Rockingham County housing market remains steady –– not racing ahead, but not stalling either. Prices have held strong, sales have stabilized, inventory is a bit higher, and mortgage rates are trending slightly lower. Altogether, it suggests a market that’s cooling from the intensity of recent years but remains healthy and active.

Buyers –– You have more breathing room than you did a year or two ago. There are a few more options on the market and slightly less competition, and with mortgage rates easing, affordability is inching in the right direction. You’ll still need to act quickly on well–priced listings, but it’s a friendlier environment than the frenzied market of 2021–2022.

Sellers –– The market is still in your favor, though not quite as strongly as before. Homes that are priced right and presented well are continuing to sell quickly and close to list price. Overpricing, however, can result in a longer time on the market. Accurate pricing and preparation remain key to success.

Homeowners –– You’re likely sitting in a great position, with steady home values and your mortgage rates likely still well below current offerings. The stability in prices and the return of a more balanced market are both signs of a maturing, sustainable local housing climate.

As we head into the colder months, activity will naturally slow, but the fundamentals remain strong. We’ll see whether the slight easing in mortgage rates and seasonal shifts set the stage for a more active spring market ahead.

If you’re considering a move –– whether buying your first home or selling your current one –– feel free to reach out.  I’d love to help you navigate the market and make sense of what these numbers mean for your situation.

You can call or text me at 540–830–5097, or send me an email at luke@lukewrogers.com.

  

Thinking about buying a home this month? Here's a little–known benefit of timing:

If you go under contract in mid–November and close in mid–December, your first mortgage payment likely won't be due until...February 1st!

Here's why:

At closing in December, you'll pay the interest for the remainder of that month as part of your closing costs. 

Then, no mortgage payment is due in January. Instead, interest builds up during January.

Your first actual payment (covering January's interest) is due February 1st.

Is This a Year–End Perk?

Not exactly–– it's true any time of year. Mortgage interest is paid in arrears, and your first payment is always due on the first of the second month after closing.

Contract Nov 15... Close Dec 15... First Payment Feb 1

Contract Dec 15... Close Jan 15... First Payment Mar 1

You get the idea.

So while buying in late fall doesn't eliminate your costs, it does delay when your regular mortgage payments begin –– which can offer a helpful cushion during the holidays or as you settle into your new home.

Happy Wednesday, Friends!

The year is flying along... only 49 days until 2026!?!  I hope you are enjoying your Fall in the Shenandoah Valley!  It's been a fun time in my world lately, with a birthday celebration, time with family, JMU football and basketball games, a fun evening at the Explore More Discovery Museum's Night at the Museum, and much more!  

What adventures and experiences have you enjoyed this Fall season?  Or what are you looking forward to in the weeks to come?

While you think on that... and before I dive into the market data...

Have you been to Billy Jack's in downtown Harrisonburg – known for their beef, bacon, beer and bird?  Whether you're enjoying sliders, sticky nuggs, or their Saturday or Sunday brunch, you'll want to go check it out!  Enter here for a chance to win a $50 gift card to Billy Jack's.

The chart above takes a look at how many homes are selling... bottom line... about the amount as last year.  In more detail...

Unlike the overall market that was seeing very little change in the number of homes that are selling... we're seeing a moderate (6% over the past six months) decline in the number of detached homes that are selling... those their median sales price is staying level just like the overall market.

And what about those attached homes?

Here, we're seeing a significant (+24%) increase in the number of attached homes that have sold in the past six months compared to the same time last year... though the median sales price is staying relatively level (+1%) just like the overall market.

Now, what do we see if we just look at existing homes, and exclude new homes?

Over the past six months we have seen an increase (+9%) in the number of existing homes selling in Harrisonburg and Rockingham County... a relief to anyone looking to buy a resale home... and the prices of those homes increased only slightly (+2%) compared to a year ago.

And the new homes?  What's happening in that corner of the market?

We are actually seeing lower numbers of new home sales (–10%) this year than last... and their median sales price has dropped slightly (–3%) over the past year.  This change in sales price could also be related to product mix –– the types and size of homes that are being built.

Now, some graphs to help us gain a bit more insight into the latest local trends...

The red line above tracks 2025 home sales... and we have seen higher numbers of home sales in August, September and October of this year compared to last year.  But... last November, home sales jumped up unexpectedly... will we see the same this year?  Stay tuned!

Here you can compare this year to 2023 and 2024...

Now through 10 months of the year, we're at about the same place this year (1,132 home sales) as we were last year (1,156 home sales) but it's not yet clear if we'll clear the total of 1,388 home sales that we saw last year in Harrisonburg and Rockingham County.  That said, we do seem very likely to see at least as many home sales as took place in 2023.

Now, let's look at the big picture, slow moving, overall local trends...

After multiple years of double digit (10%) annual increases in the median sales price, we are now only seeing very tiny price increases.  Over the past year, the median sales price has only increased from $342K to $346K in our marketplace.  

We are, however seeing an overall an overall increasing trend of more homes selling in Harrisonburg and Rockingham County after having seen the annual rate of home sales decline for several years due to rising interest rates.  More on interest rates in a bit.  

Here's a longer look at those overall trends...

The period of drastic increases in prices ran from 2019 through 2024.  But, clearly, stopped at that point.  Prices are now level... what will they do next?  Stay level?  Start to increase again?  Dip a bit?

Meanwhile, we're in the midst of a multi–year slow decline in the number of homes that are selling per year... though we are starting to see what increase in 2025... so keep in mind that the blue "2025" bar only includes 10 months of home sales.

Now, let's look ahead instead of behind... what might come next?

The graph above tracks the number of contracts signed each month, which typically then leads to closed sales one to two months later.  We saw lower numbers of contracts signed this October than last... but do recall that last November we saw a spike in closed sales.  The lower number of October contracts likely means that we won't see a big uptick in sales in November.  

Contract activity over the past few months (trending downwards) likely means we will see slower months of closed sales in November and December.

Finally, how about inventory levels... are there many homes for sale?

Indeed, inventory levels are on the rise again.  Over the past six months we have seen inventory levels significantly above where they were a year ago.  This means buyers have more choices, and sellers have more competition –– though this dynamic varies significantly by price range, property type and location.

Finally, those mortgage interest rates...

Mortgage interest rates keep on dropping, much to the delight of current home buyers!  We're now seeing an average rate on a 30 year mortgage just above 6% –– and I am seeing some buyers lock in just below 6%.  It seems likely that we could continue to see these rates decline over the next few months.

And now we get to "So What?" – what does this mean if you might buy soon or sell soon?

You'll likely have slightly more options from which to choose –– though many homes are still going under contract quickly.  You will also likely be financing your purchase at a lower mortgage interest rate now than if you had bought a year ago –– and prices aren't too much higher now than a year ago.  So, if you didn't buy a year ago, this might might be a slightly more favorable time to buy... lower rates, similar prices, more options!

Some, but not all, homes are going under contract FAST.  If you're in a popular neighborhood or price range, you'll love the attention –– but plenty of home sellers will have to be a bit more patient if their home does not go under contract in the first week or two.  You'll likely have a bit less competition from other sellers over the winter months, which can make it a reasonable time to sell... and buyers are seeing slightly lower mortgage interest rates now, which might make them more willing to consider your home.

If you're getting ready to buy, or getting ready to sell, or just have questions... let's set up a time to chat... or meet at your house or my office to discuss.  

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

   

Until next month... I hope you have a wonderful remainder of your November... and a very happy Thanksgiving... one of my favorite days and holidays and meals (yum!) of the year!

  

The number of options of homes you might buy will vary based on the price range in which you are shopping.

As shown above, you'll have the most options between $300K and $500K.

But, let's take the data one step further... given the current inventory levels shown above, how long would it take for all of these homes to sell if nothing else came on the market?

Thus, we can estimate how long it would take to "sell out" of current inventory based on the number of home sales per month...

Current Inventory / Average Sales Per Month = Months of Available Inventory 

Here's how it works out...

The market under $300K... and even under $500K... is still pretty tight, with less than two months of supply available.

The market over $500K... and particularly over $700K... has much more supply compared to the number of buyers who buy each month.

Thus...

Buyers buying below $500K will have fewer choices and more competition, while buyers buying above $500K will have more choices and less competition.

Sellers selling below $500K will have more interest and will likely sell their homes faster, while sellers selling above $500K will have somewhat lower levels of interest and it will likely take a bit longer for their homes to sell.

  

Thus far in 2025 there have been 297 new home sales in Harrisonburg and Rockingham County!  The median sales price of all of those new home sales has been $340,415.

However, the median sales price varies quite a bit by neighborhood...

It's important to note that the property type varies in the neighborhoods above.  For example...

If you're a young professional who hasn't yet purchased a home, you may find yourself wondering: when do most people actually buy their first home?

It's a good question –– but one without a single "right" answer. That said, the typical age for first–time homebuyers has changed significantly over time.

According to a recent publication  by the National Association of Realtors (NAR), as of this year, the median age of first–time homebuyers has reached an all–time high of 40 years old, with just 21% of all home purchases this year being made by first–time buyers.

Let's step back and see how this number has changed over time.

So what's behind the change?

Following the historically low mortgage rates of 2020–2021, we've seen a sharp increase. For the past year or so, rates have hovered in the 6–7% range.

That shift has affected nearly everyone in the market. Many current homeowners either purchased or refinanced their homes when interest rates were at historic lows. Understandably, they're not eager to give up a 2–3% mortgage in exchange for one that's twice as high. As a result, fewer homeowners are listing their properties, resulting in fewer homes available.

With fewer homes on the market, buyers are competing over a smaller number of properties. That competition puts upward pressure on prices –– making it even harder for first–time buyers.

So while rates alone don't necessarily prevent people from buying, the combination of higher borrowing costs, rising home prices, and limited affordable inventory has created real challenges for those trying to purchase their first home.

All of this makes early planning more important than ever.

If you're hoping to buy your first home –– whether that's next year or five years from now –– the best time to start planning is today. The market might feel overwhelming, but with the right guidance and preparation, homeownership is absolutely within reach.

Not sure if you can buy in the next 5, 10, or even 15 years? No problem. It's never too early to start planning for one of life's biggest moments.

You can reach me by calling or texting (540) 830–5097.  Let's get excited about the possibilities and plan your future together.

Lots of people bought a home or refinanced their mortgage when mortgage interest rates were quite low!  

Three years ago (in mid 2022) over 60% of mortgage holders had mortgage interest rates below 4%... and only 7% had a rate above 6%! 

As mortgage interest rates for new purchases rose to 6% and then almost to 7%... all those mortgage holders (60%) of them with rates at or below 4% had very (very!) little interest in selling their homes to buy a new home.  After all, who would want to trade a rate below 4% to a new rate above 6%?

But... after a few years now, we're starting to see a shift.  

Let's look at the lowest and highest portion of rates at two points in time...

Mid–Year 2022:

• 24% of mortgages had a rate below 3%
• 7% of mortgages had a rate above 6%

But as of Mid–Year 2025:

• 20% of mortgages had a rate below 3%
• 20% of mortgages had a rate above 6%

As there are fewer and fewer remaining mortgages with rates below 3% (or below 4%) it will make the resale market a bit more fluid and flexible.  We may be starting to see this happen as the number of mortgages with rates below 3% and 4% continues to decline –– and as the number of mortgages with rates above 6% continues to increase.
  

Over the past few years, we've seen a notable decline in the number of land sales –– specifically for lots of 2 acres or more –– in Harrisonburg and Rockingham County. 

In 2023, there were 63 sales of 2+ acre lots in the area. That number declined to 46 sales in 2024. And so far in 2025, only 36 such lots have sold –– with just two (of the slower) months left in the year.

Breaking it down further:

Lots between 2 and 20 acres:

• 2023: 46 sales
• 2024: 28 sales
• 2025 (year–to–date): 24 sales

Lots over 20 acres:

• 2023: 17 sales
• 2024: 18 sales
• 2025 (year–to–date): 12 sales

While the number of large acreage sales (20+ acres) has held relatively steady, it's the 2–20 acre range where we've seen the most significant decline. These are often lots purchased by individuals or families looking to build their future home –– and that may help explain the trend.

With construction costs remaining high and mortgage interest rates elevated, buying land and building a custom home has become less financially feasible for many. As a result, some would–be buyers may be delaying their plans or choosing to purchase existing homes instead.

It's worth watching to see if these numbers shift in 2026 –– especially if interest rates begin to ease and building becomes more affordable again.

   

In a balanced or slightly competitive real estate market, it can be tempting to try to negotiate a lower price on a home –– especially if it's been on the market for a few weeks. But sometimes, pushing too hard on price can backfire... and can cost you the home entirely.

Let's walk through a real–world example (with fictional numbers) to illustrate how this can happen.

Imagine there's a house listed for $450,000. It's been on the market for two weeks, and you love it. You can afford up to $440,000 –– but decide to start lower because you hope the seller will be flexible on price after sitting on the market for a few weeks. So, you offer $425,000.

The seller counters at $445,000, still feeling confident in their asking price. You respond at $435,000, hoping to meet somewhere in the middle.

But during this back–and–forth, a few days pass –– and the seller receives another offer. You quickly jump to $440,000 (your max), but it's too late. The seller has already accepted the other offer.

A month later, when the house goes to closing, you see that the house sold for $442,000. In hindsight, you might have been able to stretch to that number. But more importantly, had you started with your strongest offer –– say, $440,000 –– you might have secured the home before the other buyer entered the picture.

Of course, we can't know how it would have played out for sure. But it's a good reminder that sometimes trying to "win" through negotiations can sometimes mean losing the house you love altogether.

In today's market, a timely and competitive offer often puts you in a better position than a lower offer then followed by several rounds of negotiation.

   

A public hearing will be held this Wednesday (November 5) by the Rockingham County Planning Commission to provide the public the option to weigh in on a proposed mixed use development on Port Republic Road across the street from the entrance to Sentara RMH Medical Center.

As planned and proposed, the development would potentially include:

When you're thinking about buying a home, it's easy to focus on what your monthly mortgage payment will be. But there's more to owning a home than just principal and interest. One key cost to keep in mind –– whether you're buying or already own a home –– is the real estate tax rate.

City of Harrisonburg

If you live in Harrisonburg, the city's real estate tax rate is $1.01 for every $100 of your home's assessed value.

For example, if your home is assessed at $300,000, your annual city tax bill would be about $3,030... or roughly $253 per month.

Rockingham County

If you're in Rockingham County, the real estate tax rate is lower... $0.68 for every $100 of assessed value.

So, a $300,000 home in the county would have an annual tax bill of about $2,040, or around $170 per month.

Knowing what to expect for property taxes can help you plan for the real cost of owning a home. It might even play a role in deciding whether you want to live in the city or the county. City taxes are higher, but you may get more services and conveniences. County homes often mean more space and lower yearly costs.

That said, property taxes are just one part of the bigger picture. The right home is the one that fits your lifestyle, location, and long–term plans –– including the tax rate.

You might be one of many buyers watching interest rates closely. Maybe you're not quite ready to buy yet, but you're hopeful that rates will drop soon, making things a bit more affordable.

At the same time, you might also be wondering...

"If rates drop, will a wave of new buyers flood the market and cause home prices to shoot up?"

That's a fair question –– but here's why I don't think you need to worry too much.

Rate Drops Will Likely Be Modest

Yes, mortgage rates may decline –– but it seems likely to be small, gradual drops, not a big swing. A drop from 6.5% to 6.0% (for example) will help some buyers a bit –– but it's not likely to trigger a dramatic surge in buyer demand.

Buyer Activity May Trend Up –– But Is Not Likely To Explode

Sure, lower rates could bring some hesitant buyers back into the market. But again, if the rate drop is modest, the increase in buyer activity is likely to be modest as well.

Prices Might Rise Slightly –– But Are Not Likely To Rise Sharply

If a few more buyers jump in, home prices could trend upward –– but probably not in a sudden or extreme way. A small drop in rates might lead to a small increase in buyer activity might lead to a small amount of upward pressure on prices.

So... What Should Buyers Do?

Don't wait to buy just because you're hoping for a lower mortgage interest rate –– they might not drop significantly.

But also, don't rush to buy before rates drop, fearing a price spike –– because big price jumps are unlikely.

If you're not ready to buy for 3, 6, or 9 months, that's okay. The market likely won't shift drastically in that time.

Focus on buying when it's right for you –– financially, logistically, and personally. Not just based on what rates might do.
  

Buying a home almost always involves compromises.

Maybe you wish it had four bedrooms, but you're willing to settle for three. Or perhaps the living room feels a bit smaller than you'd like, but you think you can make it work for a few years. Sometimes a house feels like it's just right for now –– but not necessarily for the long run.

But every so often, you'll walk into a home and realize:

1. This works well for us now.

2. This will work well for us later, too.

This is unusual.... and is not something every buyer can expect to have happen in their home search.

If you come across a home that checks both boxes –– highly functionality now and flexibility for the future –– it's often reasonable to:

1.  Act more quickly than you might for a "just okay" option

2.  Stretch your budget slightly if it means getting a house that truly fits

3.  Overlook a few cosmetic flaws that are easily fixable over time

After all, you're not just buying this house for today –– you're buying for the years ahead. And finding a home that supports both your current and future needs is a rare opportunity not to take for granted.
  

In an ideal world, a home's appraisal would match the price a buyer is paying. But in reality? That's not always the case –– and it often comes down to the condition of the home and how that's interpreted differently by buyers and appraisers.

Here are two common examples:

When a Home Appraises Higher Than the Contract Price

Think of a large home –– say 3,000 square feet –– that needs new flooring, paint, and kitchen/bath updates. Buyers may offer less because of the visible work required.

But the appraiser? They're often comparing it to other large homes, and while they'll make some adjustments for condition, they may not fully account for the what the buyer considered to be an outdated feel. The result? The appraisal might come in higher than the sale price.

When a Home Appraises Lower Than the Contract Price

Now picture a smaller home –– maybe 1,500 square feet –– that's been fully renovated with top–of–the–line finishes, a new roof, new HVAC system and more. Buyers may fall in love and be willing to offer a high price for the home because it feels move–in ready.

But the appraiser still has to work within comparable sales, and size is a major factor. Even with condition adjustments, the appraisal might land lower than the contract price.

The Bottom Line

Appraisals do not always point to the price a buyer will be willing to pay for a home.  They don't always capture how buyers feel about a home –– especially when it comes to updates, aesthetics, or deferred maintenance. 

We'll talk about this more when we are preparing to sell your current home... or when we are talking about that home on which you might make an offer.