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.
After attending the Loudoun County Chamber of Commerce ‘PolicyMaker Series: Postelection Aftermath’ I walked away with concerns and considerations. This blog is not intended to make or take a political stand, but to outline possibilities and current actions. Keeping you informed so that you can make the best possible decisions, is always my goal.
Politicians and analysts banter the term, affordable housing. Let’s unpack this concept and discover how, if at all, affordability can be affected.
The variables of affordability consist of the following obvious pieces:
The price of real estate
The mortgage interest rate
The mortgage term (number of years)
Cost to insure
Taxes
Income tax incentives (if any)
Housing supply and local zoning
To improve affordability, one or more of the above variables must be influenced as follows:
Private property values are subject to market forces.
Mortgage interest rates while variable, can be subsidized by jurisdictions or offset by tax savings
The term of the mortgage 15-30-50 affects the monthly payment
Insurance is partly environmental risk based, and partly determined by your desired value to insure and what to include.
Taxes – real estate taxes are based on jurisdictional assessments. You can appeal assessments. You can elect officials who would reduce tax rates.
The Federal government or even the state can make interest, taxes, etc. deductible at higher rates – AKA – subsidizing through deductibility.
Supply and demand shifts from scarcity to accessibility can partially be accomplished through thoughtful zoning and maybe expeditious reviews.
Below are possible solutions but will require bold federal and state participation.
Let’s clear one thing up – homeowners do not plan to decrease the asking prices for their houses in a scarcity scenario. Insurers have suffered massive losses and will likely not be reducing their rates, and their reinsurers will most likely not be doing the same.
Property taxes – you can evaluate your jurisdictional budgets and determine potential austerity measures with which to justify tax reductions. We all know that this is a long term project involving studies, hearings, and elections.
While on the topic of property taxes and local jurisdictions, one way to increase supply would be to loosen zoning regulations and shorten permit and inspection periods. All of that requires public hearings. Realistically, when was the last time a voting block voted to increase density?
Income tax deductibility or credits could be useful subject to income limits. This will require political maneuvering, bills, vetoes, and committees, and lots of talk and perhaps a little help.
Mortgage interest is a possible variant. When affordability is addressed, it is often addressed for first time home buyers. The US government, states, and local governments offer mortgage loans to offset cash down payments, and structure loans based on a variety of criteria. This is where creativity can set in and offers interesting options to consider.
Let’s look at Virginia for example. There are several assistance loan products including down payment and closing cost grants. After that there is Virginia Housing (formerly VHDA), which is funded through bonds and are not and do not affect the tax base. These loans come with quite a few strings and qualification can be onerous. Looking at today’s mortgage rate, I note that VHDA is offering their loan for 6.5%. Yet FHA, VA, USDA are all below 6%.
Another mortgage alternative is increasing the loan amortization terms from 30 to 50 years. Yes, the total interest paid will be higher, but the monthly payment can become affordable. Consider the example below:
$500,000 loan at 5.75%
30 year principal and interest (PI) payment: $2918
50 year principal and interest (PI) payment: $2540
The monthly savings will be: $ 378
That difference can make the difference in qualifying.
It will cost more over the life of the loan. The reality is that most people move every seven years. Loans can be refinanced if rates decline. I have met very few people who retained their original loan to its final payment. The 30-year mortgage was originally tied to the 30-year treasury bill. Though, the 10-year Treasury Note is a more direct benchmark. The 30-year treasuries are called “long bonds.”
Zoning:
Zoning adjustment measure has been on Virginia’s local jurisdiction radar for over five years. Since 2020 initiatives to modify local zoning to permit density increases have been proposed.
Last week, a circuit court judge recently ruled in favor of the City of Alexandria in the “Zoning for Housing” lawsuit, dismissing the case and allowing the city’s zoning reforms to stand.
The case had been brought by local property owners, Coalition for a Livable Alexandria, protesting the density changes and their perceived impact on their properties. This ruling allows the city’s “Zoning for Housing” ordinance to proceed.
A question: with the decision in place, can a developer now buy a single family house, tear it down and build a multi-family structure? What are the limits? What are the safeguards? Where will those residents park? How will the existing infrastructure support the additional density as far as education and traffic?
In Tysons, a similar initiative has been enacted. Click here to learn more about these and other Virginia measures.
While political promises abound, reality sets in. The recent election platform was heavy on affordable housing. When I inquired at the recent event, about the “how” of the promises, the moderator ‘ran out of time.’ I asked why VHDA loan rates outstrip all other loan rates. When I approached one of the State senators, he told me that they are “looking into it.” The urgency? Subject to interpretation. They seem focused on zoning changes as the primary solution.
There is no easy fix. Everyone must get involved and ask the hard questions: When politicians promise ‘affordable housing,’ ask them: Affordable to BUY, or affordable to RENT? Those are two very different things – one builds wealth and independence, the other creates permanent tenants beholden to landlords and government programs. The days of happy ambivalence are gone. You should pay close attention and make your decisions thoughtfully.
If you want to buy your first home, contact Broker Krasi Henkel. Her nearly 40 years of experience and exceptional lender network, produce dream-come-true scenarios. If you want to be one of the lucky few – text Krasi today – 703-624-8333.
If you recently received your property tax assessment and think it’s too high, you may have the option to appeal. Property tax assessments are used to determine how much you owe in taxes each year, and an inaccurate valuation could mean paying more than your fair share.
In the Washington, D.C., metro area, property owners in the District, Maryland, and Virginia each have different processes for appealing assessments. This guide will walk you through the basics of how assessments work, when you should consider an appeal, and the steps to challenge an incorrect valuation in D.C., Northern Virginia, and Maryland suburbs.
Understanding Your Property Tax Assessment Local governments assess property values based on market trends, recent sales of similar properties, and any improvements made to your home. This assessed value determines your annual property tax bill. However, assessments aren’t always accurate, and mistakes can happen, such as:
Failing to account for declining market conditions
If you believe your assessment is too high, an appeal may help lower your property taxes.
A professional appraisal can sometimes help an appeal.
General Steps to Appeal a Property Tax Assessment
Review Your Assessment Notice – Check for any discrepancies in your property details.
Research Comparable Properties – Find recent sales of similar homes in your area to support your case. Properties on the Potomac can assist with this.
Check for Errors – Ensure there are no mistakes in the assessment records.
File an Appeal by the Deadline – Each jurisdiction has specific deadlines and processes for appeals.
Present Evidence – Be prepared to provide documentation proving your property is over-assessed.
Now, let’s look at how the appeal process works in D.C., Northern Virginia, and Maryland suburbs.
Appealing Your Property Tax Assessment By Location: Click on the location to get additional details on how and where to file an appeal.
Washington, DC
Steps to Appeal:
Check Your Assessment – The Office of Tax and Revenue (OTR) mails annual assessments in late February or early March.
File a First-Level Appeal – You must submit your appeal to OTR by April 1 of the same year. The appeal can be filed online, by mail, or in person.
Attend a Hearing (If Necessary) – If your initial appeal is denied, you can request a second-level review with the Real Property Tax Appeals Commission (RPTAC).
Take Your Case to Court – If you’re still unsatisfied with the decision, you can file a case with the D.C. Superior Court.
Mail: Office of Tax and Revenue, 1101 4th Street, SW, Suite 550W, Washington, D.C. 20024
Northern Virginia: Arlington County, Fairfax County, Alexandria, Loudoun County, Prince William County
Steps to Appeal:
Review Your Notice – Assessment notices are typically sent in late February.
Request an Informal Review – Contact your local tax assessor’s office to discuss potential errors. This step is optional but may lead to a quick resolution.
File a Formal Appeal – Submit an appeal to the Board of Equalization (BOE) by varied deadlines (usually April-May, depending on the county).
Prepare for a Hearing – Provide sales data, appraisals, and other supporting evidence.
Maryland: Montgomery County, Prince George’s County, Frederick County
Steps to Appeal:
Review Your Assessment Notice – Maryland properties are reassessed every three years. Notices are sent out in late December for properties up for reassessment the following year.
Request a Reassessment (If Necessary) – If you believe your assessment is too high, you can file an appeal within 45 days of receiving your notice.
File an Appeal with the Supervisor of Assessments – If an informal review doesn’t resolve the issue, submit a formal appeal to the Property Tax Assessment Appeal Board (PTAAB).
Take Your Case to the Maryland Tax Court – If necessary, you can escalate your appeal beyond the PTAAB.
Meet Deadlines – Each jurisdiction has strict filing deadlines, so don’t miss your opportunity to appeal.
Use Comparable Sales Data – Provide recent sales of similar properties in your neighborhood to prove overvaluation.
Highlight Property Deficiencies – Document any structural issues, outdated systems, or factors that negatively affect your home’s value.
Get a Professional Appraisal – Hiring an independent appraiser can strengthen your case.
Final Thoughts A successful property tax appeal can save you money, but it requires research, preparation, and sometimes persistence. If you believe your home is over-assessed, following the steps outlined above for your specific jurisdiction can help you navigate the process.
If you’re looking for more guidance on property values or considering buying or selling in the D.C. metro area, our experienced team is here to help. Contact Tiffany Henkel at 703-989-7452 today!
The landscape of generational wealth transfer is undergoing a massive shift. Over the next two decades, baby boomers and the Silent Generation are set to pass down an astounding $84.4 trillion in assets, including real estate, financial instruments, personal property, and even pets and livestock. As a seasoned real estate professional, I’ve witnessed firsthand how this inheritance process can become an overwhelming and emotionally charged journey for many families.
The Inheritance Roadmap: Navigating with Wisdom and Care Here are five critical considerations when navigating an inheritance:
1. Open Family Communication: The foundation of a smooth inheritance process is transparent, honest communication. Initiate conversations about estate intentions early:
Locate and review important documents
Identify the designated estate administrator
Discuss the location of wills and trusts
Understand the family attorney’s contact information
Uncover details about potentially valuable collections (art, antiques, coins)
2. Sibling Harmony: When multiple heirs are involved, expectations management is crucial:
Have candid discussions about the inheritance
Set realistic expectations
Create a framework that prevents potential conflicts
Prioritize family relationships over material possessions
3. Objective Property Assessment: Approach personal property and inheritance with both sentiment and practicality:
Carefully evaluate what items truly hold value for you
Consider sentimental attachments objectively
Be willing to let go of items that don’t serve a purpose
Respect the memories associated with belongings without being overwhelmed
Establish a relationship with estate auctioneer(s)
4. Real Estate Strategy: Develop a comprehensive plan for inherited property:
Create a timeline for property assessment
Determine whether to sell or maintain the property
Budget for potential improvements or repairs
Consult real estate professionals for market insights
5. Tax and Legal Preparedness: Understanding the legal and financial implications is critical:
Consult with a tax professional
Learn about inheritance tax laws
Understand potential tax implications
Develop a strategy to minimize tax burden
Here are five critical pitfalls to avoid when navigating an inheritance:
1. Hasty Storage Solutions: Resist the urge to quickly box everything and store it away. This approach:
Leads to unnecessary expense
Creates logistical complications
Prevents proper sorting and decision-making
2. Home Clutter Accumulation: Avoid filling your personal space with inherited belongings:
Prevents home organization
Creates unnecessary stress
Delays necessary decision-making
3. Overreliance on Verbal Valuations: Never take valuations at face value:
Consult multiple experts
Get professional appraisals
Verify the true worth of items
4. Family Conflict: Prioritize relationships over possessions:
Communicate openly and compassionately
Be willing to compromise
Focus on maintaining family bonds
5. Procrastination: Time is of the essence:
Make decisions promptly
Address legal and financial matters quickly
Prevent complications from delaying action
Emotional Perspective: Honoring Memories
Inheriting a household is more than a financial transaction—it’s an emotional journey. Remember that your loved ones cherished these belongings, but memories persist beyond physical objects. Be kind to yourself and your family during this process.
Key takeaway: Things have no permanence. Some items are meant to be memories, not permanent possessions. Embrace the opportunity to honor your family’s legacy while creating your own path forward.
By approaching inheritance with preparation, compassion, and strategic thinking, you can transform a potentially stressful situation into a meaningful transition that honors your family’s memory and your own future.
Are you or someone you know stressing about what to do with inherited real estate? Reach out to Properties on the Potomac at 703-624-8333 today!
The holiday season offers savvy sellers unique opportunities in the real estate market. While conventional wisdom suggests waiting until spring, listing during the festive period can give your property a competitive edge. Here are the advantages of listing your property during the holidays:
Decorated properties can be emotionally appealing.The holidays can create an inviting atmosphere.Little details can go a long way.
1. Serious Buyers Only Holiday house hunters mean business. These motivated buyers often need to relocate for job changes or want to settle before the new year. With fewer casual browsers, your showings are more likely to convert to offers.
2. Less Competition Many sellers pull their listings during the holidays, creating a smaller inventory. Your property gains more visibility when fewer homes are on the market, potentially driving up demand and value.
3. Emotional Appeal Homes showcase exceptionally well during the holidays. Decorated properties create an inviting atmosphere, helping buyers envision their future celebrations in the space. The warm, festive ambiance can trigger emotional connections that drive purchasing decisions.
4. Year-End Tax Benefits Many buyers seek to complete purchases before December 31st for tax advantages. This urgency can accelerate the selling process and strengthen your negotiating position.
5. Corporate Relocations January is prime time for job transfers. Early-winter listings capture these motivated buyers who need to secure housing quickly.
The holiday season transforms potential challenges into strategic advantages for sellers willing to buck traditional timing. With the right positioning, your festive listing could be the gift that keeps giving.It is not too late to begin the selling process now. Reach out to Properties on the Potomac at 703-624-8333 to see if listing your property now makes sense for you.
Buying your first home is an exciting milestone, but it can also be a complex process with many decisions to make. To help you navigate this important journey, here are five essential tips that every first-time homebuyer should consider.
Check Your Credit Score Before you start looking at homes, it’s crucial to check your credit score. Your credit score will have a significant impact on your ability to secure a mortgage and the interest rate you receive. Lenders use your credit score to assess your reliability as a borrower, so a higher score typically results in better loan terms and lower interest rates. There are several different ways to check your credit online for free: annualcreditreport.com, through your credit cards, or creditkarma.com.
If your credit score needs improvement, consider paying down debts, ensuring bills are paid on time, and avoiding new credit inquiries. Small adjustments to your credit habits can lead to a big difference in your loan eligibility.
Get Pre-Qualified for a Mortgage Once you have a good idea of what your credit looks like, contact us at Properties on the Potomac. We can help guide you to the right lender so you can get pre-qualified for a mortgage. This process gives you a clear understanding of how much a lender is willing to lend you based on your financial situation. With pre-qualification, you’ll know the price range you can afford and avoid wasting time looking at homes outside your budget.
Understand Your Affordability Beyond the Mortgage Many first-time buyers focus solely on the mortgage payment when calculating affordability, but there’s more to owning a home than just the monthly mortgage. You also need to consider property taxes, homeowners’ insurance, utility bills, maintenance, and possible homeowners or condo association (HOA or COA) fees.
Compare Different Mortgage Options Mortgages are not one-size-fits-all. You’ll have options to consider, including how much you want to put down as a down payment (3%, 5%, 10%, 20% or more), fixed-rate versus adjustable-rate mortgages (ARMs), the length of the loan term—typically 15, 20, or 30 years. There are even different loan programs that can offer closing cost assistance.
Save for Upfront Costs While many first-time buyers focus on saving for a down payment, it’s important to also prepare for other upfront costs, such as closing costs, inspections, and moving expenses. These costs can add up quickly, so planning ahead will help avoid financial stress at closing time. Depending on the loan type, closing costs can range from 2% to 5% of the home’s value. Be sure to budget for these expenses to ensure you’re fully prepared when it’s time to finalize the purchase.
Buying your first home is an exciting yet challenging experience. By following these tips, you’ll be better equipped to make smart, informed decisions throughout the home-buying process.
Properties on the Potomac can help guide you through your next steps from start to finish. Whether it’s finding a top-quality lender or identifying the right mortgage option for your needs, we’re here to help. Contact us at 703-624-8333 today to start your journey toward homeownership with expert advice and personalized support!
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.
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!
On December 22, 2017, the President signed the Tax Cuts and jobs Act. This new law has specific impact on real estate. It impacts that which you already have and any future real estate you will acquire.
Below is a table summarizing the changes:
Tax Item Deduction
New Law
Prior Law
Maximum Loan Interest
$750,000 (For purchases after 12/14/17
$1,000,000
Equity lines of credit
None
Up to $100,000
State and Local Taxes total
$10,000
No maximum
Capital Gains Exclusion
No change
Must be owned 2 of last 5 years
Like Kind Exchanges (1031)
Unchanged for real estate only
Real Property Depreciation
Unchanged
Capital Gains Tax Rates
Unchanged
Much has been broadcast about the benefit of homeownership in relation to the new law. At Properties on the Potomac, Inc. we view homeownership as a form of supreme independence and wealth building for the following reasons:
Real Estate builds your wealth through
o Appreciation of a large asset and the use of OPM (other people’s money)
o Your mortgage payments pay down your principal, thus building your equity
Owning your own home gives you control over your living situation.
Tax savings remain a significant benefit of ownership.
Owning a home is a financially sound decision.
You can keep, rent out, sell, or will your real estate as you determine is best for you.
Properties on the Potomac, Inc. 