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Sidelined by high interest rates?

Consider refinancing options, buying down points

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Fall means more inventory, but high interest rates are proving challenging for some buyers.

Unimpressed by the current offerings on these DMV streets? Yeah, me too. Luckily we are heading into the busy ā€œfall marketā€ where we are set to see an influx of new inventory hitting the market just after Labor Day. While you might still be unsure if buying in this current real estate market and with these higher interest rates really makes sense for you, I want to outline a few options that might make sense for you and make that dream of homeownership, in this current market, more attainable than you once thought.

DATE THE RATE – MARRY THE HOME

Iā€™m sure we have all heard this by now. Everyone is saying to date the interest rate and you can always refinance. I agree with this sentiment 50% of the time. None of us knows what will happen in the future, right? Will interest rates drop lower than they are currently sitting? Sure, I think that’s a safe assumption. So if we are using that logic then if you find a home that you simply cannot live without then you should buy it and hope that interest rates drop and you can refinance that mortgage into a lower rate. With current limited inventory and higher interest rates we are seeing buyers getting some pretty good deals across all categories of homes (condo, co-op, townhome etc.) and so it still might make sense to buy a home now. Also, your motivation to move out of your friendā€™s basement or a roommate situation might be the driving factor.

ADJUST YOUR MINDSET

If you are dead set on buying a home right now, I get it. I am an Aries and I want things done NOW. That being said ā€“ there is a great option for making the current interest rates a bit more bearable. Adjustable rates are a great way to save in the short term. The way that adjustable rate mortgages work is that you are basically locked into a lower interest rate for a specifically set amount of time and then once that time passes your rate is adjusted to the current market or whatever your terms are set to increase by. Adjustable rate mortgages get a bad rep because of what happened in the last market crash. The loans that were being handed out back in 2007 were what’s called ā€œno-doc loansā€ meaning that basically mortgage companies were not asking for documentation and would lend money out to everyone with very little verification of credit, employment, salary etc. In today’s mortgage market, the requirements to qualify for a loan are much greater and the same goes for an adjustable rate. Keep in mind that sometimes the terms of an adjustable rate loan do not make sense.

BUY POINTS

A newer method to make your mortgage more within reach is to buy down points. When it comes to your interest rate you have the ability, with most lenders, to come to the table with a specific percentage of the total loan amount, in cash, to buy down the interest of the overall loan and thus will result in a lower interest rate and lower monthly fee. This is, of course, only effective if you have that cash on hand needed to buy down the points and this would be outside of any down payment amount you have already put down on the loan. This is a costly method and sometimes depending on how long you see yourself in that home – it doesnā€™t always make sense.

TAKE A BEAT

Sometimes the best thing we can do in life is to just take a moment to breathe. This is also helpful in the real estate market, although I never do. Anyway, if you are just super stressed about home buying after writing a few offers and being beat out or if you just canā€™t wrap your head around the expense of these interest rates, then take some time and regroup. During this regroup you can make a few changes to your finances that will help you in the long run with your borrowing power and overall mortgage health.

Credit: your credit worthiness does affect your mortgage interest rate. Work on your credit score to help with your mortgage outlook and you will notice a change in your interest rate. It is pretty easy to work on improving your credit through healthy bill paying and spending. There are a few groups that can help with this, outside of your day-to-day healthy credit habits, but I always recommend speaking with a lender to help navigate you in the right direction.

Debt: pay off those student loans. Your borrowing power is surrounded by your debt to income ratio. Pay off loans that you have entirely or as close as possible. Just be aggressive with them. This will help you with the amount you can borrow in addition to your overall ā€œimageā€ when a lender looks at your file. While you are sitting on the bench waiting for more inventory or for the interest rates to drop ā€“ make smart decisions to buy down debt that you are currently carrying around.

As I mentioned before, economists’ predictions show that interest rates are sure to drop due to our current level of inflation being in a better place. It is likely that rates will drop, however no one has a crystal ball. The few tips listed above put the power in your hands and the ability to control what option makes the most sense for you in your home buying journey. Buying down points or adjustable rate mortgages are sometimes great options for some home buyers. Looking inward and working on your credit worthiness and debt are also great ideas for those that are not willing to subscribe to the refinance option or an adjustable rate mentality where the risk is too high. Home ownership is truly possible and when you have a toolkit outfitted with the right mortgage lender and realtor to help guide you through the process ā€“ it really is seamless.

(I am not a mortgage broker and do not claim to be.)

Justin Noble is a Realtor with Sothebyā€™s international Realty licensed in D.C., Maryland, and Delaware for your DMV and Delaware Beach needs. Specializing in first-time homebuyers, development and new construction as well as estate sales, Justin is a well-versed agent, highly regarded, and provides white glove service at every price point. Reach him at 202-503-4243,  [email protected] or BurnsandNoble.com.

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Real Estate

Navigating DMV real estate market during political unrest

Reductions in federal employment have introduced uncertainties

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Despite Elon Muskā€™s cuts to the federal workforce, D.C.ā€™s real estate market continues to thrive. (Washington Blade file photo by Michael Key)

The  Washington, D.C.-Maryland-Virginia (DMV) region has long been recognized for its robust housing market, underpinned by the presence of the federal government and a diverse economic landscape. Recent massive reductions in federal employment have introduced uncertainties, yet the area continues to offer compelling reasons for prospective homebuyers, particularly within diverse communities.

While the federal government has traditionally been a significant employer in the DMV, the region has proactively diversified its economic base. Sectors such as technology, professional services, education, and healthcare have expanded, mitigating the impact of federal job cuts. This diversification fosters some economic resilience, which offers our area a semblance of protection against the impending unknowns that we currently face. Nothing can shield real estate entirely; however, our area tends to survive these types of changes better than other parts of the country.

Despite concerns over federal layoffs, the DMV housing market has demonstrated notable stability. Analyses indicate that the number of active listings, sold properties, and median sales prices have remained steady on a year-over-year basis. This steadiness suggests that the market is adapting to changes without significant disruption. 

Furthermore, while there has been a slight increase in home listings, this trend aligns with typical seasonal variations and does not solely reflect federal employment changes. The luxury property segment, in particular, continues to thrive, indicating sustained interest and investment in the region. 

The DMV region is renowned for its cultural and demographic diversity, with areas like Montgomery County, Md., being among the most ethnically diverse in the nation. This inclusivity extends to various communities, including LGBTQ individuals, fostering a welcoming environment that enhances the areaā€™s appeal. Even though the current administration is fostering anti-diversity ideology, I remain confident that our LGBTQ community will continue to thrive even as these destructive forces work against us.

Local governments within the DMV have implemented policies aimed at promoting affordable housing and preventing displacement, particularly in the wake of economic shifts. Initiatives like the Douglass Community Land Trust in Washington, D.C., exemplify efforts to maintain housing affordability and support community stability. 

Additionally, jurisdictions such as Montgomery County have longstanding Moderately Priced Dwelling Unit (MPDU) programs that require developers to include affordable housing in new residential developments. These policies contribute to socioeconomically mixed neighborhoods, benefiting diverse populations. 

Despite Elon Muskā€™s brandishing of a chainsaw to the federal workforce, our real estate market continues to thrive. The DMV region maintains its appeal. Economic diversification, market stability, commitment to diversity and inclusion, and progressive housing policies collectively contribute to an environment that supports and attracts diverse communities. Prospective homebuyers can find reassurance in the regionā€™s resilience and ongoing efforts to foster an inclusive and vibrant community. These are only a few among the many reasons to have a positive outlook while considering real estate options in our area.

It is important to consider working with brokerages, brokers, agents, lenders and title companies who align with our community and our objectives. Not all LGBTQ agents work for brokerages that support or understand the needs of the members of our community. Do your research and find out who has donated money to what political causes. Now more than ever we must support members of our community to protect our way of life and our very existence.


Stacey Williams-Zeiger is president/principal broker of Zeiger Realty Inc. Reach her at [email protected].

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Real Estate

New trends for old kitchens

New trends for old kitchens

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Kitchen trends favor a modern, organic style. (Photo by zstockphotos/Bigstock)

Whether you are upgrading parts of your current home to prepare it for sale or enhancing the home you just purchased, kitchens and bathrooms are still at the top of the renovation list.

Kitchen renovations have always embraced a blend of functionality, personalization, and aesthetic appeal; however, homeowners are currently moving away from sterile, uniform designs, opting instead for spaces that reflect warmth, character, and individual style. Here are some of the most prominent trends shaping kitchen renovations this year.

Warm and Earthy Tones

The dominance of all-white kitchens is waning as homeowners gravitate toward warmer, earth-toned palettes. Shades like sage green, navy blue, and natural wood finishes are becoming popular choices for cabinetry, infusing kitchens with a cozy and inviting atmosphere. This shift reflects a desire for spaces that feel more personalized and less clinical. Flat panel and Shaker cabinets continue to be popular options.

Integration of Organic Modernism

The “modern organic” style is gaining traction, characterized by using natural materials, neutral color palettes, and serene layouts. Incorporating elements like soapstone countertops, Venetian plaster walls, slate floors, and greenery not only enhances aesthetic appeal but can also increase home values significantly. Fully outfitted outdoor kitchens further contribute to this trend.

Innovative Kitchen Island Designs

Kitchen islands continue to be central features, with designs evolving to incorporate textures, wood and tile cladding, multifunctional elements, and bold colors and materials. Integrated seating areas, waterfall countertops, and the use of monolithic stone or stacked marble are becoming increasingly popular. These islands not only serve as functional workspaces but also as striking focal points within the kitchen.

Concealed Kitchens for a Sleek Look

The concept of concealed kitchens is on the rise, emphasizing built-in appliances, flush cabinetry, and appliance garages to maintain a clutter-free environment. This design approach fosters a minimalist aesthetic, creating a seamless flow between the kitchen and adjacent living areas, particularly in open-concept homes.

Personalized Cabinetry and Storage Solutions

Customization is key in modern kitchen designs, with homeowners seeking tailored storage solutions that cater to their specific needs. Features like hidden storage compartments, integrated lighting, and unique hardware choices are being favored over generic, cookie-cutter options. This trend underscores a move toward kitchens that are both functional and reflective of personal style.

Revival of Traditional Styles with Modern Twists

Traditional kitchen styles are making a comeback, with a contemporary twist. Elements such as expanded backsplash coverage, classic tile shapes and patterns, use of mixed metals, and specialty appliances are being integrated into modern kitchens, blending the charm of the past with the conveniences of the present. Custom range hoods, coffee bars and microwave drawers are increasingly added to renovation projects. This fusion creates spaces that are both timeless and equipped for modern living.

Sustainable and Natural Materials

Sustainability remains a priority, with an increased use of eco-friendly materials like reclaimed wood, recycled metals and glass, and energy-efficient appliances. This not only reduces environmental impact but also introduces unique texture and shimmer into kitchen designs, adding depth and character to the space.

Use of Bold Colors and Accents

Homeowners are becoming more adventurous with color and texture, incorporating vibrant hues and tactile materials into their kitchen designs. Features like colorful window trims, two-tone cabinets, and the use of wallpaper and feature walls add visual interest and a personalized touch to the space. In addition to the familiar white, major appliances are now shown in matte black, navy, and jewel tones of red, green, and blue. There are even vinyl wraps and magnet covers that allow for more creativity and individualization with appliances.

Integration of Smart Technology

The incorporation of smart technology continues to grow, with appliances featuring automated cooking functions, sensor reheating, and control locks becoming more prevalent. Induction stoves are entering the mix. Charging stations and touch-activated cabinet doors and faucets are also popular. LED lighting lasts longer and prevents you from having to climb a ladder to change lightbulbs on a high or vaulted ceiling. These advancements enhance convenience and efficiency, aligning with the modern homeowner’s desire for a kitchen that supports a tech-savvy and busy lifestyle.

Multifunctional Spaces

Kitchens are increasingly being designed as multifunctional spaces that accommodate cooking, dining, working, and socializing. This has led to the inclusion of features like integrated seating, versatile lighting, and adaptable layouts that can easily transition between different uses, reflecting the evolving role of the kitchen in contemporary homes. Still, donā€™t be surprised to see a resurgence of self-contained kitchens with real walls.

So, whether the kitchen you want is sleek and modern, earthy and organic, or traditional and elegant, there will always be fresh new styles, ideas, innovations and classic touches that cater to your lifestyle.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH @properties. Call or text her at 202-246-8602, email her via DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.

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Spring cleaning your rental relationship

A guide for both landlords and tenants

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Spring is a good time to reassess your rental relationship. (Photo by neturama/Bigstock)

Spring is the season of renewalā€”a time to refresh, declutter, and make space for better things. But spring cleaning isnā€™t just for your home. Whether youā€™re a landlord or a tenant, itā€™s the perfect opportunity to reassess your rental relationship.

Are landlords feeling disconnected from tenants? Are tenants feeling like their landlord is absent? Before considering drastic steps like moving, both sides can take positive, proactive measures to improve communication, set clearer expectations, and foster a mutually beneficial relationship. This article encourages both landlords and tenants to take stock of their rental experiences and explore ways to clean up misunderstandings before they become deal-breakers.

1. Dust Off the Lease: Revisit Foundation of Your Relationship

The lease is the roadmap of your rental journey. Are both sides following it?

For Landlords:

ā€¢ Review Key Terms: Ensure you fully understand your obligations under the lease and DC law, including maintaining a habitable unit, providing essential services like heat and water, and ensuring repairs are done for safety compliance.

ā€¢ Clarify Expectations: Is there a disconnect between your expectations per the lease and what you are observing at the rental?  Remind tenants of areas that are covered in the lease in a proactive and positive manner to make sure all are on the same page.

ā€¢ Mid-Lease Check-Ins: A casual mid-lease meeting or email can clarify expectations and correct misunderstandings or interpretations of responsibilities before they become issues.

For Tenants:

ā€¢ Understand Your Rights and Responsibilities: Review your lease to see what your landlord is required to provide. In DC, landlords must ensure safe, habitable living conditions, but cosmetic changes or upgrades are not guaranteed, unless specified in the lease.

ā€¢ Know Whatā€™s Reasonable: Yes, you have a suite of rights in the District of Columbia which must be respected. Certain societal expectations may not be realistic if they werenā€™t part of the original agreement. You can always request improvements that are not required of the landlord, but be prepared to respectfully accept the outcome if the response is ā€œNoā€.

ā€¢ Proactive Communication: If you have concerns about your rental, present them as collaborative questions. For example, ā€œI noticed Xā€”how would you like for me to address this?ā€

2. Declutter Communication Channels

Miscommunication is often the root of rental frustrations. Letā€™s clean that up.

For Landlords:

ā€¢ Preferred Methods of Communication: Are you providing clear ways for tenants to reach you? Ensure youā€™re responsive to emails, phone calls, or portal messages.

ā€¢ Seasonal Reminders: Proactive messages about maintenance (e.g. start cutting the grass, apply pre-emergent weed control, etc) can reduce escalations later.

ā€¢ Feedback Opportunities: Invite tenants to share concerns in a structured mannerā€”perhaps a quarterly email check-in.

For Tenants:

ā€¢ Respectful Clarity: When reaching out, be specific about your needs. Instead of ā€œthe heater isnā€™t working,ā€ try ā€œthe heater hasnā€™t been turning on in the evenings and only blows cold air. Could someone check it this week?ā€

ā€¢ Understanding Response Times: Some complex issues take longer to resolve. Remain reasonable on expectations and consider the explanations for delays. Understanding that cosmetic concerns may not be prioritized can also help.

ā€¢ Log Your Communications: Keep a record of all major discussions for clarity and protection.

3. Polish the Relationship: Turn Good Experiences into Great Ones

Small efforts can shine a spotlight on the positive areas in your rental relationship.

For Landlords:

ā€¢ Recognize Good Tenants: Expressing appreciation for on-time rent payments or good upkeep fosters goodwill.

ā€¢ Offer Incentives: Small gestures like discounted renewal rates or minor upgrades can encourage long-term, responsible tenants.

ā€¢ Educational Resources: Provide additional information on how your tenants can maintain aspects of the home, such as garbage disposal care or HVAC filter changes.

For Tenants:

ā€¢ Be a Proactive Renter: Report maintenance issues promptly and keep the property clean and damage-free. Execute routine maintenance that is your responsibility, such as changing out air filters reliably.

ā€¢ Community Mindset: Participate in neighborhood events or property meetings, which can strengthen your relationship with the landlord.

ā€¢ Extend Courtesy: Flexibility with maintenance schedules and clear communication during repairs make things smoother for everyone.

4. Freshen Up Expectations: Reset Standards for Healthier Relationship

Spring is the perfect time to hit the reset button.

For Landlords:

ā€¢ Collaborate on Solutions: If there are tenant issues (e.g., noise complaints), approach them with a solutions-oriented mindset.

ā€¢ Transparency with Changes: If rent adjustments are necessary, provide clear explanations and as much notice as possible.

ā€¢ Renewal Conversations: Discuss future plans early to avoid surprises at lease-end.

For Tenants:

ā€¢ Understand Market Realities: Rising costs may mean rent increases. Assess whether your current rental still fits your budget and needs.

ā€¢ Negotiate Thoughtfully: If requesting upgrades or improvements, frame them as benefits for both sides.

ā€¢ Express Gratitude: A little appreciation can go a long wayā€”thank your landlord for prompt repairs or responsiveness.

5. Knowing When to Move On

Sometimes, despite best efforts, itā€™s time for a changeā€”but separation can still be positive.

For Landlords:

ā€¢ Identify Red Flags: Consistent late payments, damage, or lease violations may necessitate initiating a conversation about a potential move for the tenant.

ā€¢ Follow DC Regulations: The District of Columbia has strict tenant protection laws. Always provide proper notices and follow legal protocols to avoid complications.

ā€¢ Exit with Professionalism: Treat the end of a lease as a business transitionā€”keep emotions in check and document all steps.

For Tenants:

ā€¢ Know When Itā€™s Time to Go: If safety, habitability, or repeated issues arenā€™t resolved despite your best efforts, it may be time to move on.

ā€¢ Provide Proper Notice: Adhere to lease terms regarding notice periods and leave the property in good condition.

ā€¢ Leave on Good Terms: Positive references from previous landlords can make applying for future rentals more successful.

Conclusion: Spring Forward, Together

A little spring cleaning in your rental relationship can make a world of difference. For landlords, itā€™s about resetting expectations, enhancing communication, and retaining good tenants. For tenants, itā€™s about understanding your rights, being proactive, and collaborating for a better living experience. By refreshing how both sides approach the relationship, you can avoid unnecessary turnover and create a rental experience whereall parties can thrive. After all, sometimes a little tidying up is all it takes for a rental relationship to blossom anew.

Scott Bloom is owner and senior property manager at Columbia Property Management. For more information and resources, go to ColumbiaPM.com

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