Category: Financial

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Properties on the Potomac has had MANY successful (and happy!) clients

Properties on the Potomac has helped countless clients buy and sell homes. Over the years, we’ve noticed some common traits and habits that the most successful homebuyers and sellers exhibit. If you want to set yourself up for real estate success, here are 6 traits our clients share:

  1. They know their numbers. Successful buyer clients understand their finances. They know their credit scores, debt-to-income ratios, and how much they can comfortably afford. Successful selling clients understand the market and follow our pricing advice.
  2. They are realistic about timing. Our successful clients realize that buying or selling a home takes time. They start the process well in advance of when they need to move.
  3. They know what they want. Successful clients have clear “must haves” and “would like to haves” prioritized for their home search. Our selling clients have clear goals for their sale.
  4. They declutter and clean. For sellers, our most successful clients thoroughly declutter and clean their home before listing. They follow our recommendations for “facelifts” to optimize their returns. This helps showcase the property and helps buyers envision living there.
  5. They trust their agent. Successful clients lean on their agent’s expertise. They understand we’re looking out for their best interests through every step.
  6. They stay calm through challenges. Even if issues arise, successful clients take problems in stride. They stay focused on their goals.

If you cultivate these habits and mindsets, you’ll be well on your way to real estate success. Give Properties on the Potomac a call at 703-624-8333 to help make your real estate dreams a reality. With over 100 years of combined experience in the DC area, we bring our clients nothing but the best!

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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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Embarking on the journey to homeownership can be a daunting task, especially for those who might need a little extra help to turn their dream into reality. The Greater Capital Area Association of Realtors (GCAAR) curated a list of financing opportunities in the District of Columbia, Maryland, and Virginia. This guide aims to make the American dream possible for potential homebuyers by highlighting various programs designed to provide financial assistance:

Chenoa Fund (National):

   – National down payment program offering up to 5% toward down payment and/or closing costs.
  – Available for both FHA and conventional mortgages.
  – Funds come in the form of a second mortgage loan, potentially forgivable in some cases.
  – Accessible through approved lenders. (chenoafund.org)

City of Takoma Park’s Down Payment Assistance Program (Takoma Park, MD):

   – “The Home Stretch” program providing $10,000 for down-payment assistance.
  – For income-eligible, first-time homebuyers.
  – Requires completion of a homebuyer education course and a certified inspection.
  – First-come, first-served basis.
  – Website: takomaparkmd.gov

D.C. Open Doors with Down Payment Assistance (D.C.):

   – Offers deferred repayable loans for a down payment and below-market interest rates for first trust mortgages.
  – Eligible for both first-time and repeat homebuyers.
  – Down-payment assistance in the form of a deferred 0% non-amortizing loan.
  – Website: dchfa.org/homeownership/available-programs/dc-open-doors

Employer-Assisted Housing Program (EAHP) (D.C.):

   – Offers eligible District government employees a deferred, 0% interest loan and matching funds grant.
  – No income cap or cash contribution requirement.
  – Maximum purchase price of $765,600.
  – Website: dhcd.dc.gov/service/employer-assisted-housing-program-eahp

Federal Housing Administration (FHA) 3.5% Loan (National):

   – Good option for individuals with credit issues (minimum eligible credit score is 580).
  – FHA loan amount tops out at $970,800.
  – No requirement to be a first-time homebuyer.
  – Website: hud.gov/buying/loans

Federal Housing Loan Bank Down Payment Assistance (FHLB DPA) (D.C., MD, VA):

   – Down-payment assistance grant of up to $10,000 for eligible homebuyers.
  – Available in the District, Maryland, and Virginia.
  – Website: fhfa.gov

With an array of financing opportunities at your fingertips, homeownership is within reach. Take advantage of these programs and turn the key to your dream home.

Our team is dedicated to support you every step of the way. Contact Properties on the Potomac at 703-624-8333 today and explore these financing opportunities to make your dream home a reality. Our expert team is here to guide you through the process and help you find the perfect financial solution tailored to your needs.

Information is provided from the Greater Capital Area Association of REALTORS®. “Unlocking Your Dream Home: A Comprehensive Guide to Financing Opportunities.” GCAAR Housing Booklet. gcaar.com/docs/default-source/default-document-library/102623-gcaar-housing-booklet–single-pages.pdf, Accessed 01/23/2024. Please note that the information provided is deemed to be up-to-date as of the publication date but cannot be guaranteed. Real estate financing programs may undergo changes, and it is advisable to verify the latest details with relevant authorities or financial institutions.

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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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One of the most common issues homeowners face during winter is ice damming on roofs. Ice damming occurs when snow and ice accumulate on the roof, causing water to back up and potentially damage the interior of your home. Understanding what ice damming is and how to prevent it is crucial for preserving the integrity of your property. In this blog, we’ll delve into the details of ice damming, its causes, and effective prevention measures.

What is Ice Damming?
Ice damming is a phenomenon where ice accumulates along the edges of a roof, preventing melting snow from draining properly. The trapped water can seep into the interior of your home, causing damage to ceilings, walls, insulation, and more. The key factors contributing to ice dam formation include snow accumulation, outside temperatures, and the presence of heat sources within the home.

Causes of Ice Damming

  • Snow Accumulation: Excessive snow buildup on the roof is a primary contributor. As snow melts, the water can pool behind the dam of ice, finding its way into your home.
  • Temperature Fluctuations: If warmer periods cause snow to melt during the day, only to refreeze overnight, ice dams are more likely to form.
  • Heat Loss from the Home: Poor insulation and ventilation in the attic can lead to heat escaping from the home, warming the roof surface. This heat accelerates the melting of snow, contributing to ice damming.

How to Prevent Ice Damming

  • Insulation and Ventilation: Ensure your attic is properly insulated and ventilated to maintain a consistent temperature on the roof. Adequate insulation minimizes heat loss from the living spaces, preventing the roof from warming and promoting snowmelt.
  • Snow Removal: Safely remove accumulated snow from the roof using a roof rake or hiring a professional to clear the snow for you. Clearing the snow before it turns into ice reduces the risk of ice dam formation.
  • Sealing Gaps and Leaks: Identify and seal any gaps, cracks, or leaks in your roof. This prevents warm air from escaping and minimizes the chances of ice dams forming.
  • Professional Inspection: Schedule regular inspections with a professional roofing company to identify and address potential issues before they escalate. Professional advice and maintenance can go a long way in preserving your home.

Protecting your home from ice damming is essential for maintaining its structural integrity and preventing costly repairs. If you’re concerned about your roof’s vulnerability to ice dams or need help finding professional assistance to address the issue, Properties on the Potomac is here to help! Give us a call at 703-624-8333.

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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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As we continue to recognize the importance of sustainability in all aspects of life, it’s no surprise that the real estate industry is embracing sustainable design practices. Sustainable design goes beyond aesthetics; it’s about creating homes that are environmentally responsible, energy-efficient, and economically viable.

Here are some key principles of sustainable design in real estate:

  1. Energy Efficiency: Sustainable homes are designed to be energy-efficient, reducing both utility bills and carbon footprints. Features like solar panels, energy-efficient appliances, and proper insulation are common elements found in sustainable design.
  2. Use of Sustainable Materials: Sustainable homes often incorporate materials that are eco-friendly, renewable, and locally sourced. This not only reduces environmental impact but also supports local economies. Bamboo and reclaimed flooring are prime examples of sustainable materials.
  3. Water Conservation: Sustainable design includes features like low-flow fixtures, rainwater harvesting systems, and drought-tolerant landscaping to minimize water consumption. Many communities around the DMV are requiring special attention to rainwater runoff to help alleviate flooding. Some builders are opting for rain gardens and/or rainwater collection systems.
  4. Indoor Air Quality: Sustainable homes prioritize indoor air quality with ventilation systems and non-toxic materials. Adding UV or HEPA filters to you home can help improve the air quality, leading to healthier living environments.
  5. Waste Reduction: Construction waste is minimized through careful planning and recycling efforts. Sustainable homes are built with longevity in mind, reducing the need for frequent renovations.

Investing in sustainable design when buying or selling a home offers numerous advantages:

  1. Lower Operating Costs: Sustainable homes often have lower utility bills due to energy-efficient features, making them more affordable in the long run.
  2. Increased Property Value: Sustainable design can enhance your home’s market value, attracting eco-conscious buyers.
  3. Environmental Impact: Sustainable homes reduce greenhouse gas emissions and minimize environmental harm.
  4. Healthier Living: Improved indoor air quality contributes to better health and well-being for residents.
  5. Future-Proofing: Sustainable homes are built to last and adapt to changing environmental regulations. Current and future buyers will expect homes that last and are able to keep up with the modern requirements thus, helping maintain and build your property resale value.

Sustainable design is not just a trend; it’s a responsible approach to real estate that benefits homeowners, the environment, and future generations. The real estate experts at Properties on the Potomac are well-versed in sustainable design principles and can help you find or market your eco-friendly dream home. Let’s work together to build a greener future, one home at a time. Contact us today at 703-624-8333 to get started on your sustainable real estate journey.

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Are you planning to sell your home? Getting your home ready to sell can be an exciting and stressful time. You may be thinking about making updates or whether it’s worth it to stage your home. But one thing you should always consider before inviting potential buyers into your space is the safety of your home, valuables, and personal information. Below are valuable tips on how to keep your home and valuables safe while it’s listed for sale.

1) Secure Your Valuables & Medications: Before listing your home, take an inventory of your valuable items and consider moving them to a secure location. This might include important documents, jewelry, electronics, and heirlooms. If possible, use a safe or rent a safety deposit box at your local bank. Secure any prescription medications in a locked cabinet or drawer. This is both for your safety and to prevent potential theft. Put away any breakables as well.

2) Remove Personal Information: Remove any personal information from your home, including bills, mail, and identification. Identity theft is a real concern, and it’s best to safeguard your personal data.

3) Install Proper Lighting: A well-lit property is less attractive to potential burglars. This is especially important if you have already moved and no one will be living in your home while it’s on the market. Consider installing motion-activated lights around your property, especially in entryways and dark corners.

4) Update Your Locks: Ensure that all locks on doors and windows are in good working condition. Consider upgrading to smart locks that allow you to monitor and control access remotely.

5) Maintain Landscaping: Trim bushes and trees near windows and entryways to eliminate potential hiding spots for burglars. A well-maintained landscape also gives the impression that the property is actively cared for. Again, this is especially important if your home is empty before selling.

6) Be Cautious with Showings: When scheduling showings, work with your real estate agent to establish strict protocols. Ensure that all potential buyers are accompanied by a licensed realtor. Properties on the Potomac realtors always use tamper proof, electronic lockboxes–that way we can see a log of everyone who has accessed the box and when.

7) Consider Security Cameras: Installing security cameras can provide an added layer of protection. Nowadays, there are affordable options that allow you to monitor your property remotely through a smartphone app.

8) Get to Know Your Neighbors: Your neighbors can be valuable allies in home security. Inform them about your plans to sell your home and ask them to keep an eye out for any suspicious activity.

Keeping your home and valuables safe while it’s listed for sale requires careful planning and precautions. By following these tips and working with a reputable real estate company like Properties on the Potomac, you can confidently navigate the selling process while safeguarding your home and belongings. Your security matters to us, and we’re here to help you every step of the way.

Planning to sell soon? Give Properties on the Potomac a call at 703-623-8333.

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This week’s blog was co-authored with Ann Flaherty with First Home Mortgage.

As the federal government teeters on the brink of a potential shutdown, the consequences could ripple across various sectors, including the housing market. The looming threat of a government shutdown can have far-reaching effects, disrupting housing-related services and potentially harming homeowners, buyers, and renters. In this blog, we’ll explore the potential impacts of a government shutdown on the housing market, drawing insights from reputable sources like The Washington Post, HUD, and Newsweek.

1. Delayed Mortgage Approvals:
One of the immediate consequences of a government shutdown is the disruption of federal agencies’ operations, including those related to housing. As documented in The Washington Post’s report on the longest government shutdown, federal agencies like the Department of Housing and Urban Development (HUD) often operate with reduced staff or cease certain functions during a shutdown. This can lead to delays in processing mortgage applications and approvals, affecting both prospective homebuyers and homeowners seeking refinancing.

According to HUD’s Shutdown FAQs, during a government shutdown, “FHA will endorse new loans, but there will be no staff available to underwrite and approve new loans.” This can lead to frustrating delays for individuals in the midst of their home purchase process, potentially affecting closing dates and interest rates.

2. Housing Market Uncertainty:
A government shutdown creates uncertainty in the housing market. Potential homebuyers may hesitate to enter the market due to concerns about how the shutdown will affect interest rates, the availability of mortgage financing, and the stability of the economy. In the 2023 Washington Post business report, experts warned about the calamitous and costly impacts of a government shutdown on various sectors, including housing.

Uncertainty can lead to decreased demand for homes, which can impact sellers and potentially lead to reduced property values. Sellers may need to adjust their pricing expectations, especially if the shutdown persists for an extended period.

3. Risk to Flood Insurance:
The housing market also has a strong connection to flood insurance, particularly in flood-prone areas. A government shutdown can jeopardize the National Flood Insurance Program (NFIP), which is administered by the Federal Emergency Management Agency (FEMA). As reported in Newsweek, Congress’s actions during a shutdown can threaten the stability of the flood insurance program, impacting homeowners in flood-prone regions.

Without access to federally backed flood insurance, homeowners might find it challenging to secure affordable coverage, affecting the saleability and value of their properties. Furthermore, lenders often require flood insurance for properties in high-risk areas, so a lapse in the NFIP could disrupt real estate transactions.

4. Impact on Housing Programs:
Government shutdowns can also affect housing assistance programs. Low-income individuals and families who rely on housing vouchers, Section 8 assistance, or public housing may face disruptions in their housing stability. The HUD Shutdown FAQs note that while most HUD programs are funded for the short term, a prolonged shutdown could result in delayed payments to landlords, making it harder for those in need to find or maintain housing.

A government shutdown has the potential to create a cascade of challenges in the housing market, from delayed mortgage approvals to increased uncertainty and disruptions in housing assistance programs. As the October 1 deadline approaches, stakeholders in the housing market, including homebuyers, sellers, and renters, should remain vigilant and prepared for potential disruptions. It underscores the interconnectedness of government operations and the real estate sector, emphasizing the need for timely resolutions to budgetary disputes to maintain a stable and thriving housing market.

If you have questions about how a government shutdown could potentially impact your real estate plans, give Properties on the Potomac a call at 703-624-8333 today!

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The aspiration of homeownership, often regarded as a key driver of wealth for many Americans, faces significant hurdles in the current real estate landscape. The housing market has evolved into a complex arena, particularly for first-time home buyers. This blog post delves into the challenges encountered by these buyers, exploring factors such as high interest rates and soaring property prices that are reshaping the journey toward owning a home.

First-Time Home Buyers at a Crossroads
As economic conditions shift, those looking to purchase their first homes have found themselves facing slow economic growth since entering the workforce. Coupled with student loan debt and childcare expenses, their path to homeownership has been far from smooth. Rising interest rates and elevated property prices have further compounded their challenges, influencing their purchasing power and timelines. As a result, the median age of first-time home buyers has risen to 36, marking a departure from historical trends.

The Struggle for First-Time Buyers
The housing market’s changing landscape is evident from the numbers. Federal Reserve data indicates a 26% increase in median home prices since early 2020, with average prices reaching $416,100 nationally. This surge is particularly noticeable in the Northeast and the West. Meanwhile, the average 30-year, fixed-rate mortgage is currently hovering around 7%, nearly triple the rate recorded in 2021!

Navigating Uncertainty
First-time home buyers, regardless of their generational labels, find themselves at a crossroads due to the unpredictability of interest rates and property values. The adage “marry the house, date the rate” has gained popularity, suggesting that buyers secure a property and consider refinancing later when rates drop. However, experts caution that this approach comes with inherent risks and complexities. Refinancing entails costs that need to be balanced against potential savings from lower rates.

Planning for the Future
For those contemplating their first home purchase, the dilemma of whether to buy now or await changes in rates and prices is a significant consideration. Amidst the prevailing uncertainty, experts advise careful planning and preparation. Acknowledging the reality of high interest rates and planning for them is a prudent strategy. The historical pattern of fluctuating rates underscores the importance of making decisions aligned with long-term financial objectives, rather than attempting to time the market. If you wait until rates drop, we will see a surge of homebuyers flooding back into the market, raising prices further.

The evolving housing market presents a challenging landscape for first-time home buyers with dreams of owning their own homes. Despite the hurdles, first-time home buyers persist in their pursuit of a place to call their own, working to reshape the American dream for their generation.

At Properties on the Potomac, we understand the unique challenges that first-time home buyers face in today’s dynamic market. Our dedicated team of professionals has a proven track record of successfully guiding clients through these complexities to find the right property for them. With a deep understanding of market trends, interest rate fluctuations, and financial planning, we provide personalized solutions tailored to each client’s needs. Our commitment to empowering first-time home buyers sets us apart, as we strive to make the journey to homeownership a rewarding and fulfilling experience. Give us a call at 703-624-8333 today–with our expertise by your side, you can confidently navigate this intricate market and secure a place to call your own.