Category: Buying Real Estate in a Hot Market

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By Krasi Henkel, Broker

It is the Holiday Season again. Social calendars and children’s activities are at their peak. A common belief is that December is “quiet” in real estate. In reality, things are abuzz preparing for the New Year. Realtors are planning and wrapping up their year. Many homeowners are thinking, while perhaps, not taking immediate action.

When the calendar slows,  distractions abound. Plans percolate. There might be fewer sales. There is also less competition (good for buyers). Are you evaluating how your space functions? Conversations often shift from “Should we?” to “What do we want next?” What do you really want?

The Conversations That Matter Most

Planning conversations revolve around timing, readiness, and sequencing. Much depends on selling or holding the current property. Should you consider a more immediate or deferred approach?

What matters to you most? Do you need more space, a different location, more land? What does your next chapter look like?

Here is why early planning matters. Several years ago, a client shared some plans for the following year. We discussed options and made a plan. I received a distress call shortly before their listing was going on the market. A neighbor was also going on the market at the same time. “What should we do?” I assured them that we are ready to put the house on the market immediately. There were no properties for sale in the entire community. So, “Let’s get you several offers, the best buyer, and the best offer, and those who miss your house can have the next one.” This is exactly what happened. Soon after their sale, three more houses came on the market. There were no multiple offers. Our price remained top for the neighborhood for quite some time.  

Financial Considerations

The financial and strategic conversations are inescapable – the “yes…but.” Yet, where there is a will there is a way. You most likely have equity in your current property which will benefit your future purchase. As a seller, tax advantages could help you act sooner than later. Perhaps now is a good time to have a preliminary conversation with your trusted real estate advisor.

Your three percent loan is marvelous, but you can still up or downsize despite interest rate fluctuations. I have structured many happy outcomes and helped my clients build wealth.

Waiting until January or worse, “spring” limits your options. January brings speed, competition, and many external pressures. Making reactive decisions is rarely optimal. Early conversations allow for better evaluation, preparation, and ultimately, execution.

As in any important financial consideration, thoughtful outcomes begin with thoughtful conversations. If you are considering a potential change, contact me now. I will help you sort the pieces and give you meaningful information with which to make good decisions.  After all, the best real estate decisions are rarely rushed. They are considered.

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By Krasi Henkel

Ranch-style homes have been a popular choice for decades thanks to their practical single-story layouts and flexible spaces. While some home buyers may overlook older ranch houses in favor of newer construction, these modest homes actually offer great opportunities. With some creativity and wise investments, you can remodel a ranch house on a budget.

The Benefits of Buying an Older Ranch:

  • Mail level primary bedroom(s)
  • Mature trees and landscaping
  • Established neighborhoods
  • Lower property taxes
  • Good value per square foot
  • Flexible floor plans
  • Hardwood floors or solid mid-century materials

The Blank Canvas:

BEFORE
AFTER

The simple shapes of ranch homes make them perfect blank canvases to incorporate modern style. Minor changes can make ranch homes feel fresh and new without blowing the budget. Consider these economical updates:

  • New paint in contemporary hues
  • Swap dated lighting for streamlined fixtures
  • Replace builder-basic kitchens and baths with IKEA systems
  • Refinish hardwood flooring hidden under outdated carpeting
  • Knock down walls to create open-concept spaces
  • Add an addition
Kitchen Before
Kitchen After
Primary Bath Before
Primary Bath After
Entry Before
Entry Construciton
Entry After

The above photos were a joint project with Anders Hurd – Faber Custom Builders, Inc. The project was incredibly successful and the property sold to the first buyer ho saw it!!

Big Style for Small Budgets

You don’t need expensive materials to give a ranch home an interior facelift. Use these design insider tips:

  • Shop for unique vintage details
  • Use bold wallpaper or paint instead of new cabinets
  • Stain concrete floors for an industrial look
  • Upgrade windows and patio doors even if you keep other structural elements

The single-level living and unused basement or attics in ranch homes present opportunities for expansion or converting unused areas into rental units for extra income.

Addition to a ranch home provides tall, open spaces with abundant views

Take a fresh look at older ranch houses. With an updated exterior paint color, strategic refreshes indoors, and your own custom vision, you can personalize a home to suit your needs and style for less than you might expect. The charm and practicality of ranch homes continue to win over buyers who see their outstanding potential.

One of my favorite ranch homes in a subdivision that I have sold many ranches and that I love to walk my dog!
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By Krasi Henkel

As opinions have currency in real estate, the cultured credibility offered by a home library can sway buyers and add significant value to a house. Though e-readers and digital books are common, there remains strong appeal to the tangible permanence and character of print books lining built-in shelves.

More than a storage place for novels and non-fiction, the home library represents intellectualism and refined tastes which many affluent buyers seek in a residence. Beyond superficial decor, an elegant library signals the substance of both current and past owners. It communicates that interesting dinner conversations, music, and art have filled those rooms.

Built-in bookcases hold special weight over stand-alone shelving. They demonstrate forethought in the home’s original design and construction and cannot be easily moved or changed on impulse like furniture. As integral house features, custom built-in bookcases can add 10-15% of their initial cost to listing prices. Their fixed nature also means volumes collected over years remain on display.

The permanence, personalization, and intellectual substance embodied in a home library comprises a unique asset. For buyers seeking both image and lifestyle, rooms of books can add eight to fifteen percent in perceived worth…or perhaps prove literally priceless among competing listings.

In showcasing owners’ sophistication, libraries reveal character that cannot be fabricated. Where furniture and paint colors change on trends, libraries accumulate over lifetimes. They bestow cultured credibility more reliable than passing fashions. For buyers sharing such values, a house with a library makes tangible the intellectual and cultural traditions they wish to perpetuate.

 

If you’re in search of a home with a library, or perhaps a home with the perfect space to build the library of your dreams, we’re here to help! Call Properties on the Potomac at 703-624-8333 today.

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“How is the market?”

This is our most frequently asked question. It is understandable given low inventory, rising interest rates, and homes often selling for over list price. Real estate headlines can seem daunting. Headlines notwithstanding, our market is still active. Home values climbed at about 3.5% in the first half of this year as demand continues to outpace supply.

The key to this market is being an educated buyer or seller. Now more than ever, working with the right agent is critical. Selecting a savvy, experienced agent who will give you expert guidance will make all the difference in this competitive market.

Our proven systems help our clients find the right homes and make the best offers. Our success speaks for itself. We leave no details to chance. Our sellers optimize their properties to attract the most qualified buyers who are ready to move quickly.

Today’s most successful real estate agents are taking advance reservations from qualified clients. By planning ahead and partnering with a top agent, buyers and sellers can still achieve their property goals, even in this fast-paced market.

Bottom line: real estate remains an essential need and purchases are happening every day. With the right preparation and guidance, your real estate goals can absolutely become reality. The key to our clients’ success are our well-honed systems.

Do you have real estate plans for 2024? Connect with Properties on the Potomac at 703-624-8333 to start strategizing for your next move!

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In the fast-paced and competitive world of real estate, having a reliable and skilled team behind your realtor…cough, cough…a Properties on the Potomac agent… can make all the difference. Whether you’re a buyer or seller, the support and expertise of a strong team can elevate your experience and ensure a successful transaction. In this article, we’ll delve into the significance of having a strong team supporting your realtor and highlight the advantages of reaching out to Properties on the Potomac, ensuring you gain the ultimate edge in your real estate journey.

1. Expertise in Different Areas:
A strong real estate team comprises professionals with diverse areas of expertise. From experienced agents to knowledgeable lenders, home inspectors, attorneys, and contractors. Each team member brings specialized skills that complement and strengthen the overall process. For buyers, this means access to a wide range of properties and the ability to negotiate effectively. Sellers benefit from strategic marketing plans and getting their home ready to sell.

2. Efficient Workflow and Communication:
Buying or selling a property involves a multitude of tasks, paperwork, and deadlines. A strong team ensures a seamless workflow and efficient communication throughout the entire process. By working together, team members can coordinate showings, inspections, appraisals, and negotiations, ensuring that no detail is overlooked, and deadlines are met promptly.

3. Extensive Network and Resources:
A well-established real estate team has an extensive network of professionals and resources at their disposal. Whether it’s connecting buyers with reputable mortgage lenders or helping sellers prepare their homes for maximum appeal, a strong team has the connections and resources to provide valuable guidance and support throughout the transaction.

4. Market Knowledge and Insights:
Real estate markets are dynamic and constantly evolving. A strong team stays up-to-date with market trends, pricing fluctuations, and local regulations. With their finger on the pulse, they can provide you with accurate market insights, helping you make informed decisions as a buyer or seller.

5. Peace of Mind and Support:
Navigating the complexities of buying or selling a property can be overwhelming. Having a strong team behind your realtor provides peace of mind and support throughout the process. Their experience and guidance help alleviate stress, ensuring that you’re well-informed and confident in your decisions every step of the way.

At Properties on the Potomac, we pride ourselves on our exceptional team and commitment to client satisfaction. With years of experience in the real estate industry, our team brings a wealth of knowledge and expertise to every transaction. Our seamless workflow, efficient communication, and extensive network ensure that our clients receive the highest level of service. Whether you’re a buyer or seller, we have the skills and resources to help you achieve your real estate goals.

Contact Properties on the Potomac at 703-624-8333 today to experience the power of a strong team behind your realtor.

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As the fireworks light up the night sky and the scent of barbecues fills the air, Independence Day reminds us of the cherished values that define our great nation. It’s a time to celebrate the freedom we hold dear, and for many, that freedom extends to the pride and joy of owning their own homes. As a Realtor, I am thrilled to share this moment with you and explore how homeownership reflects the spirit of independence and the pursuit of the American dream.

Owning your own home represents a significant milestone on your journey to personal freedom. It’s more than just a financial investment; it’s a place to call your own, where you can create lasting memories and build a foundation for the future. A home is where you can express your unique style, make your own rules, and have the freedom to shape your living space according to your needs and desires. It offers stability and a sense of belonging, providing a safe haven where you can truly be yourself.

This Independence Day, take a moment to reflect on the many benefits of homeownership. It’s a symbol of your hard work, determination, and commitment to building a better life. From the pride of homeownership to the financial advantages of building equity and potential tax benefits, owning a home offers a sense of security and stability that can truly enhance your quality of life.

Whether you’re a first-time buyer or considering a new home, there’s no better time than now to explore the possibilities of homeownership. At Properties on the Potomac, we are here to guide you through the process, helping you navigate the market and find the perfect home that aligns with your dreams and aspirations. Let’s celebrate the freedom of homeownership and embark on a journey towards a brighter, more independent future.

Contact Properties on the Potomac at 703-624-8333 to discuss your homeownership goals and let’s make your dream of owning a home a reality. Together, we can navigate the real estate market and find the perfect property that suits your needs.

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Touring a new home subdivision with beautifully decorated model homes is exciting. Walking a vacant lot and imagining your home built on it is exhilarating. Not having to overbid, or hold your breath if your offer is accepted on a resale house can make the home-buying experience less stressful.

With low housing resale inventory, many buyers are turning to builders of new homes. But between falling in love with that magnificent model home and signing a contract, buyers should know these eight critical things:

  1. Research the builder’s reputation.
    Is this a builder who has a good reputation of delivering homes to many satisfied buyers? How are their reviews? Are there any lawsuits pending against them? 

  2. Does the neighborhood have an HOA?
    Is the house you are considering located in an existing HOA or Condo Association or will it be a brand new HOA? Who controls the HOA? Often the builder controls it until all lots are sold. Be sure to get a copy of the HOA/Condo Documents and review them carefully. Most jurisdictions provide for contract rescission within 3-5 days if for any reason the documents are unacceptable to the buyer.

  3. Understand the purpose of the deposit.
    While an earnest money deposit is made with a resale purchase contract, not all new home contracts take an “earnest money deposit.” Builders take a deposit. Some builders do not consider it an earnest money deposit, but a direct deposit toward the construction of the house, therefore it will be deposited in the builder’s operating account rather than in an escrow account.

  4. Are incentives offered by the builder?
    In certain situations, builders will offer free upgrades and/or closing cost assistance to the buyer. Be sure that you understand exactly what is being offered and that it is in writing with the exact terms represented by the builder’s representative. As in all real estate agreements, to be enforceable, terms, conditions, and promises must be in writing.

  5. What does the buyer have to do to qualify for those incentives?
    “Free recreation room” or “$10,000 in closing costs” or “Free Kitchen Upgrade” and many more iterations can be offered. Upgrades and closing costs are certainly appealing. What will be required of the buyer to qualify for the incentive(s)?

    Will the builder insist that the buyer finance with their lender and/or their title company? What is the actual cost of that requirement? Sometimes, the actual “cost” of the incentives exceed the benefit of the incentive. It is important to understand all costs and fees.

  6. What warranties and post-settlement services are included?
    In Virginia, a builder must warranty their construction for 12 months after settlement. Many builders offer 10 year warranties, 2-10 warranties, and/or pass on equipment warranties. All warranties are not the same. One question to ask is whether drywall imperfections post-closing are covered. Some builders will only correct drywall imperfections identified during the pre-settlement walk-through. Others will warrant drywall for extended periods.

    Will a list of the trades be available for ease of service, or must repairs/service be channeled through a central division of the builder? Is there a response timeframe? Be sure that all warranty questions are answered and verified in writing.

  7. Review the contract…then review it again.
    The builder’s contract has been written by their attorneys to be in their favor. Aside from contingencies specifically written into the contract, once the contract has been signed by all parties, it is an enforceable contract. The buyer should expect that they will settle on the sale. Before signing the contract, be sure that all terms are written as represented, all questions have been answered, and that you are prepared to move forward with the project. Know when (if) additional deposit(s) are due. Be prepared to attend inspections and builder meetings when they are called. While most builders want to be flexible, to be able to deliver a new home, schedules must be respected. Be sure to leave the contract signing meeting with a complete contract including all schedules and selections (to that point – more will be needed later).

  8. The model home decoration, appointments, & upgrades are for display purposes only.
    Your new house will come with plain walls, no window coverings, tiny landscape plants, and grass that you will have to water to establish.

    Depending on the builder, design choices can be included in the contract price. Design options can include flooring, shade/blinds, appliance upgrades, tile, counters and cabinets, faucets, sinks, lighting, and other options as available.

With many choices, state of the art equipment, and everything bright and shiny, it is easy to begin to believe that each option is indispensable. Be careful to keep within your budget and your lender qualification. Once options are selected and ordered, making changes can become very costly.

Contracting for a home to be built can be exciting and rewarding, and can result in the house of your dreams. Done incorrectly, the process can become a nightmare. It is for the above and countless other reasons that having an experienced Realtor representing your interests can save you money and sanity.

At Properties on the Potomac, Inc. we have been helping our clients select and design beautiful new homes for more than 35 years. We know the builders, the lenders, the incentives, the warranties, and most builders’ process. We know where to look and the questions to ask.

Is a newly built house in your future? Take the first step and give us a call: 703-624-8333.

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Here we are – the beginning of 2023 ! You have been waiting to make decisions and commitments until the holidays are over. Now what?

If you are thinking of moving – up, down, around, or away – here are a few tips to help you structure your activities:

  • Decided whether you want to sell or keep your current real estate. Either way, consult a competent real estate broker. The possibilities are endless and your investment and risk are huge. Be selfish and work with the best (that would be us – read our website and see for yourself).
  • If you plan to sell, list long before you want to go on the market. That way pre-marketing excitement can bring the best buyer.
  • Go through all the nooks and crannies of your home (that includes closest that you often use). Start with all off-season belongings first. Decide whether you will keep, toss, or donate.
  • If you have a home of 2000+ Square Feet, know that it will take you several weeks to complete the culling and packing.
  • Be smart and not impulsive. There are many garments and things, that due to the current circumstances ,have remained unworn or unused. Do not throw away anything on a whim. It doesn’t matter if it makes you happy if you will need it later. You will buy it back for more money and of lesser quality. Keep your stuff. Your happiness will compound with lower bills. Be a good steward.
  • Do not make capital investments in your current home unless it will be a coat of paint and some flooring. Keep it simple. Do not replace appliances with stainless steel.
  • Chose a smart real estate agent who knows what sells and what brings in the most return for your investment. – Again, that would be us – not bragging, just the facts.
  • In 2022, our listings sold for 105% of list price and our buyers paid 95.5% of list price. How is that? Ask us.
  • We’ll be happy to show you how you can benefit from our 35 years of experience in all sorts of markets.

Looking to make a move in 2023? Give Properties on the Potomac a call at 703-624-8333!

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Should You Invest in Real Estate? Shakespeare Did!

Shakespeare’s Birthplace in Startford upon Avon. When he inherited this property, he developed it
as “mixed use” – residential, commercial, and a pub.

William Shakespeare penned the famous words for his play, Hamlet, sometime between 1599 and 1601. He was already a successful poet and playwright because in May 1597, he purchased the 107-year-old “New Place” to be the home for his wife, Anne, their daughter Susanna, and twins, Hamnet and Judith. He was 33 years old when he purchased the enormous 20+ room house with five gables, two orchards, and two gardens.

Shakespeare purchased New Place, the second largest real estate holding in Stratford upon Avon

In 1601, Shakespeare inherited his parents’ house, his “birthplace.” He enhanced and added on to it and turned part of it into an income producing pub.

In 1602 he purchased 107 acres of land from which he received handsome rental returns. Stanley Wells, professor and editor of the Oxford Shakespeare, is quoted in an April 18, 2014 Financial Times article by Annie Maccoby Berglof, “He bought New Place; a lot of land in 1604; a cottage in Cottage Lane. For much of his life, he was investing in property,”

In Shakespeare’s society, using “other people’s money” was well accepted. He used a mortgage with which to buy the Blackfriars Gate House in 1613.

In addition to being a savvy real estate investor, Shakespeare invested in other profitable ventures as well as in his performance and theater companies.

To recap, for most of his professional life, Shakespeare invested and acquired real estate. He made his initial capital from acting and writing plays. Then he diversified.

“Money buys lands, and wives are sold by fate.” Merry Wives of Windsor, Act V Scene 5


Why does this matter and how does this translate to our lives today?

Mark Twain and/or Will Rogers are credited for saying, “Buy land. They are not making any more of it.”

Did you know that more than 90% of today’s wealthiest people made their fortunes in real estate?

You can enjoy tremendous benefits by investing in real estate –

  1. Appreciation
  2. Favorable tax treatment
  3. Leverage
  4. Borrow more through refinance
  5. Others repay your principle
  6. Income
  7. Land always has value

There is nothing new under the sun in 425 years!  Should you consider diversifying and adding real estate to your portfolio?