Tag: Financial

on

by

As a real estate company, we understand that homeownership extends beyond the four walls of your property; it encompasses your role within the community and the broader societal landscape. With the election around the corner, it’s crucial for homeowners to recognize the power of their vote. Decisions made at the local, state, and national levels can significantly impact your home’s value, property taxes, and neighborhood services. When you cast your ballot, you influence policies that directly affect your community, from zoning laws to infrastructure improvements.


Voting allows you to advocate for issues that matter to you as a homeowner. By participating in elections, you ensure that your interests are represented, whether it’s pushing for community development projects, taxes, or funding for local schools. These decisions shape not only your living conditions but also the value of your investment. Moreover, engaging in the electoral process fosters a stronger sense of community, encouraging collective action that can lead to positive changes in your neighborhood.

As you prepare for the upcoming election, we encourage you to take the time to educate yourself on local propositions and candidates. Each election presents an opportunity to impact the future of your home and community. At Properties on the Potomac, we are here to support you not only in your real estate journey but also in understanding how these civic matters can influence your homeownership experience. 

Make your voice heard by voting this election season, and let’s work together to create thriving communities. Contact Properties on the Potomac at 703-624-8333 today to learn more about how we can assist you in your real estate needs and keep you informed about the issues that matter most to homeowners. Your vote is your voice—don’t let it go silent!

on

by

We understand that buying a home is one of the most significant investments you’ll make in your lifetime. It’s not just about finding a place to live; it’s about finding your sanctuary. But making that dream a reality requires careful planning and diligent saving. Here are some essential tips to help you start saving for your first or next home.

1. Set clear and achievable savings goals. Determine how much you need for a down payment (it may be less than you think, contact us for more info), closing costs, and any additional expenses associated with buying a home. Having a specific target will keep you motivated and focused on your savings journey.

    2. Create a budget and stick to it. Track your expenses and identify areas where you can cut back or eliminate unnecessary spending. Consider making small sacrifices now for the greater reward of homeownership later. For example, cut out automatic subscriptions/memberships, make home-cooked meals instead of eating out, or look for coupons/promo codes for everyday purchases.

    3. Automate your savings. Set up automatic transfers from your checking account to your savings account each month. This way, you’re consistently contributing to your home fund without even thinking about it.

    4. Explore ways to increase your income or generate extra cash flow. Whether it’s taking on a side hustle, freelancing, or selling items you no longer need, every little bit helps when it comes to saving for a home.

    5. Take advantage of homeownership assistance programs and incentives offered by governments or financial institutions. These programs can provide valuable resources and support to help you achieve your homeownership goals more quickly.

    6. Be patient and stay disciplined. Saving for a home takes time and requires sacrifice, but the reward of owning your own home is well worth the effort.

    Ready to take the first step towards homeownership? Contact us at Properties on the Potomac at 703-624-8333 today to learn more about how we can help you find your dream home and guide you through the buying process.

    on

    by

    Owning and operating a short-term rental property, such as an Airbnb, has become a popular investment strategy for real estate enthusiasts. This venture, while potentially lucrative, comes with its own set of advantages and challenges. Let’s dive into the pros and cons to help you determine if this path aligns with your investment goals.

    Have you ever dreamed of owning a home by the beach?
    Or maybe a mountain home is more your style.

    Pros
    1. High Income Potential: Short-term rentals often yield higher income compared to long-term leases. Guests are willing to pay a premium for the flexibility and amenities offered, especially in high-demand tourist destinations.

    2. Flexibility in Use: Unlike long-term rentals, short-term rentals allow you to use the property yourself whenever it’s not booked. This dual-purpose functionality is perfect for those who want a vacation home that also generates income.

    3. Diversification of Investment: Adding a short-term rental to your portfolio can diversify your investments, reducing overall risk. Real estate, especially in desirable locations, often appreciates in value, providing a solid financial foundation.

    4. Tax Benefits: Depending on your location, you might benefit from various tax deductions related to property expenses, including mortgage interest, maintenance costs, and depreciation.

    A condo in DC or Arlington makes for a good short-term rental.

    Cons
    1. High Initial Cost*: Setting up a short-term rental can be expensive. Initial costs include purchasing the property, furnishing it to a high standard, and marketing it effectively. These can add up quickly and require significant upfront investment.

    2. Inconsistent Income: Unlike long-term rentals with predictable monthly income, short-term rentals can be seasonal and affected by market fluctuations. This inconsistency can make budgeting and financial planning more challenging.

    3. Time-Intensive Management: Managing a short-term rental is often more time-consuming than a long-term rental. You’ll need to handle frequent guest turnovers, cleaning, maintenance, and guest communications, which can be akin to running a small hotel.

    4. Regulatory Challenges: Many cities have stringent regulations governing short-term rentals. These can include restrictions on rental periods, zoning laws, and licensing requirements. Staying compliant can be a complex and ongoing process. For example, DC has a 90-day limit on short term rentals.

    5. Potential for Property Wear and Tear: Frequent guest turnover can lead to increased wear and tear on your property. Maintaining the property in top condition requires regular upkeep and potentially higher repair costs.

    Investing in a short-term rental property can be a rewarding venture with the right approach. At Properties on the Potomac, we specialize in helping investors navigate the complexities of the short-term rental market. Our experienced team offers comprehensive services, from property selection to management solutions, ensuring your investment thrives. Contact us at 703-624-8333 today to explore your options and start your journey toward profitable short-term rental ownership.

    on

    by

    To Stage or Not?

    A professional stager at work.
    Sometimes decluttering is all a home needs to show its best.

    Home staging has become a huge trend in the real estate industry. An online search for “home stagers in my area” will result in myriad professional home stagers. With the prevalence of home staging on TV and in real estate photos, you may think that home staging is inevitable for your potential house sale. Sellers have been trained to believe that they live in a hovel and cannot sell their property without thorough staging. That is most likely not the case.

    While it is true that many buyers are not financially prepared to make major improvements to a property in order for it to be listed for top value, your house might just need some continuity, decluttering, or maybe even a coat of paint.

    Before embarking on selling prep, contact us. We are professional real estate experts and have seen and sold everything from minimalist showplaces to near-hoarding situations. We work with many buyers and “see” properties through their eyes. We know what they see and how they react to certain spaces and items.

    When we meet to review your plans, we will see your property and take a “reading” of it. If necessary, we will develop a plan that is efficient and effective for your specific property. While we do not charge for our staging service, we require a signed Listing Agreement before we proceed. Our goal is to give you our best advice whether rearranging furniture, bringing in some staging materials, recommending removal of some items, or repainting certain areas. Your finances are always key in our recommendations.  

    If you have lived in your property for a long time, we will discuss possible “updating” or curating certain items to present the best possible property image to appeal to the broadest range of qualified buyers. Our goal is to not spend your money and unless the circumstances are extreme, we would never suggest emptying your home and renting staging furnishings.

    If you are a collector, we might recommend packing up some of your collection(s). If you have beautiful antiques that are fragile, we will discuss safeguarding them. If you have amazing art, it might be beneficial to take some down to prevent distractions from the buyers’ purpose of selecting your house.

    What should you do with family portraits? That is a very personal matter. One or two might be fine. Walls of children’s school photos might be overwhelming. We look at every space and consider the overall impression the property makes to a buyer in the first 30 seconds. We offer our advice based on the Malcolm Gladwell principal presented in his book, Blink.

    We start from the street and work our way to the closets with our recommendations.

    Small touches like fresh flowers and greenery can make a house more warm and inviting.
    Extreme minimalism can be off-putting.

    In the end, everything has value. Doing nothing (should anything be needed) will generally yield a lower selling price. Excessive minimalism could be off-putting and not generate an offer quickly, thus possibly selling for less. We work with our sellers to develop a good balance of reselling a home to buyers in search of a home.

    Before you take matters into your own hands, call Properties on the Potomac at 703-624-8333 to discuss your goals and needs. Together, we will develop the plan that best suits you and captures the best buyers. Schedule your appointment with us today!

    on

    by

    Dear Friends:

    Change is inevitable. With over 100 combined years in the real estate industry, we have seen changes in real estate practices and lending practices. The industry has demonstrated resilience because after all, we all need a home in which to live.

    This week, as you have most likely read, The National Association of Realtors has reached a settlement regarding commission practices. The agreement is subject to legal approvals and much additional negotiation. We are closely monitoring these changes and will keep you updated.

    Regardless of developments, our commitment to first quality service to you and our future clients will remain unchanged. Your satisfaction and success remain our top priorities. This is a great time to contact us with any questions.

    Thank you for your loyalty.

    Sincerely,
    Krasi & Tiffany Henkel
    Properties on the Potomac, Inc.

    on

    by
    It takes many talented people to help settle your purchase!

    When it comes to buying or selling a property, choosing the right settlement agent is crucial. The settlement agent plays a vital role in ensuring that the legal transfer of property ownership goes smoothly. Here are five compelling reasons why you should be very selective when choosing your settlement agent:

    1. Expertise and Experience
    Not all settlement agents are created equal. It’s essential to select a settlement agent who has a proven track record of success and extensive experience in the real estate industry. An experienced agent will have a deep understanding of the complex legal processes involved in property transactions and will be able to navigate any potential obstacles that arise.

    2. Attention to Detail
    The transfer of property ownership involves a significant amount of paperwork and legal documentation. A single mistake or oversight can lead to costly delays or even legal disputes down the line. When choosing a settlement agent, look for someone who is meticulous and thorough in their work. They should have a keen eye for detail and be able to catch any potential errors or discrepancies in the documentation.

    3. Communication and Responsiveness
    Buying or selling a property can be a stressful and emotional process. It’s important to choose a settlement agent who is an effective communicator and is responsive to yours and your agent’s needs and concerns. They should keep everyone informed at every stage of the process and be available to answer any questions. A settlement agent who is difficult to reach or fails to keep everyone updated will add unnecessary stress and anxiety to a challenging process.

    4. Reputation and References
    Before selecting a settlement agent, speak with you real estate agent about their recommendations and experience. We vet all services carefully.  Our sources have a solid reputation and positive track record. At Properties on the Potomac, Inc. the settlement agent has a single point of contact for our clients to expedite and streamline the process.

    5. Cost and Value
    While cost should not be the determining factor in choosing a settlement agent, it is still an important consideration. Settlement agents charge a fee for their services, which can vary depending on the complexity of the transaction and the level of service provided. When comparing settlement agents, look for someone who offers a fair and transparent fee structure. Title insurance is an important determinant in selecting the settlement agent. Keep in mind that the cheapest option is usually not  the best choice, as they may cut corners or lack the necessary expertise to handle your transaction effectively.

    Since 2006, many of our clients have closed their property purchases with Highland Title. Through the years, we have formed a tight team of professionals who look out for our clients’ best interest through careful review, prompt attention to issues that could come up, and professional resolutions so that all parties in the transaction are protected. This week, we celebrated their 25th anniversary!

    In selecting a settlement company, as in selecting the agent to represent you, choose to work only with top professionals who will represent your best interests. If you are planning a real estate purchase, contact Properties on the Potomac at 703-624-8333 today! Once we find you the right property, we can help you chose your settlement company.

    on

    by
    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!

    on

    by

    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!
    on

    by

    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.

    on

    by

    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.