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Taxation with representation

Many conditions can change what you pay in D.C. property tax

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taxation, gay news, Washington Blade

taxation, gay news, Washington Blade

taxation, gay news, Washington Blade

For most of us, property taxes are still deductible, so let your accountant be your guide.

If you’re like 90 percent of today’s first-time home buyers, you begin by searching the Internet, focusing on an area or price range you’re comfortable with before taking the more serious steps of interviewing and hiring a buyer’s agent and beginning the mortgage pre-approval process.

Whatever type of housing you prefer, what you pay each month will likely be determined by the following pieces of the financial pie: the price of the home; your down payment, interest rate and applicable mortgage insurance; the cost of property insurance and monthly fees; and your annual property taxes.

Most of these costs are easy to ascertain, but then you innocently ask your agent, “How much are the property taxes on this home?” She shifts from foot to foot, shrugs her shoulders and replies, “It depends.”

Simply stated, D.C.’s Class 1 (residential and multi-family) annual property tax rate is 85 cents per $100 of the assessed value of the home; however, there are a variety of conditions that can change what you pay on an annual basis.

First, the assessed value is not what you or the previous owner paid for the house, but an amount based on information gathered by a group of assessors from the Office of Taxation and Revenue. They check public record information, review building permits, send out housing questionnaires to new owners and evaluate responses, drive through neighborhoods and, at times, even schedule home visits.

The resulting information is compared to the current tax values and assessments of neighboring homes that have similar features. Objectivity can be difficult to achieve, which is why there is a government-sanctioned appeals process that a homeowner can follow if he or she disagrees with the proposed tax assessment received each year.

Here’s a rundown of what you could pay on an annual basis, based on an example of a property assessed at $500,000.

The mathematical formula used for a residential or multi-family property that is not lived in by its owner would be $500,000 ÷ 100 x .85 or $4,250 per year.

If you occupy a property you own that has five or fewer units, you can apply for a homestead exemption of $70,200 which, when approved, is subtracted from the assessed value, reducing your payment by roughly $597 to $3,653 annually.

If you are disabled, or are a senior citizen, defined for this purpose as over 65, you may be eligible for an additional 50 percent reduction (to approximately $1,827), provided that you still occupy the home and that the total adjusted gross income of everyone living there was less than $125,000 during the prior tax year.

Don’t want to pay property taxes? Check to see if you qualify for the D.C. tax abatement program, which can exempt you from property taxes for five years if the value of your home is $356,000 or less, you occupy the property, and the combined income of all members of your household is less than the income limits established by the District.

Confused yet?

Don’t leave your home vacant for long or your tax rate can go up to $5 per $100 of assessed value or $25,000 per year on our $500,000 example. Exemptions are available for residents who are in the process of selling their homes.

Worst case? The “blighted” home can be taxed at $10 per $100 of assessed value. In the current real estate market where homes are selling faster than iPads, however, it’s hard to find a legitimate reason to pay $50,000 in annual property tax on a home that can be sold to an investor in a week or less. Yet it happens.

The good news?  For owner-occupants, the tax assessment is capped at 10 percent per year, meaning that in most cases, you will not pay more than 10 percent more than you did last year, no matter how much your assessment goes up.

The better news? Even at 85 cents per $100 of assessed value, property tax rates in D.C. are still significantly less than the current rates in most of our neighboring suburbs.

The best news? For most of us, property taxes are still deductible, so let your accountant be your guide.

That’s what we in D.C. call taxation with representation.

Valerie M. Blake can be reached at Keller Williams Capital Properties, 202-246-8602 or at [email protected]. Each office is independently owned and operated. Equal Housing Opportunity.

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Real Estate

‘Culture eats strategy for breakfast’

Real estate agents must adapt, learn how to manage from within

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A real estate agent is contractually bound to act on their client’s behalf. (Photo by Andy Dean Photography/Bigstock)

“Culture Eats Strategy for Breakfast” was a phrase often repeated in many of my management courses from the University of Illinois. The concept was discussed at length – how the best laid plans can sometimes be supported or derailed by the culture of the people involved in whichever project to be implemented. Whether it be a project to implement new software, roll out a new product or service, or just reaching a sales target, the way the team involved works together can indeed affect the outcome.  

Perhaps this is just another way to say, “teamwork makes the dream work!” Most teams usually have someone who is designated as a leader. The leader can try to lead through authority and control or can alternatively try to lead through influence and encouraging a more collective framework for solving problems.  

Why does this matter when picking the right real estate agent or team to work with? Besides having a job as a salesperson for the brokerage, the real estate agent is contractually bound to act on their client’s behalf. The buyer broker agreement is in place so that the agent and the client can work together as a team in communications regarding offer strategy, during negotiations, implementing marketing plans, as well as selecting which renovations or upgrades to choose before selling a property.  After the property goes under contract, the job isn’t “done”.  There is still work to do.  

At this point, the agents then turn into a project manager of sorts – coordinating communications between the lending team, the title attorneys, the other client’s agents, any governmental agencies that could be involved in down payment assistance or helping to clear a property for a sale, and often times groups like a condo board, a home inspector, or contractors when arranging repairs and estimates before a final walk through. 

In short, the agent takes on somewhat of a “leadership role” in the transaction and ensures that all the ducks stay in a row until the project is complete.  That agent will hopefully be very fluid and forthcoming with their information, copying the required parties on all communications and creating a “paper trail” of who said what or didn’t offer to fix A, B, or C, so that all the minutiae of the contract can be addressed and fulfilled before the settlement date.  The agent often must wear many hats and quickly learn the communication styles of an entire new set of people in a short period.  One person may not return calls for a week after being contacted.  Another person may go on vacation at the beginning of the process and not return emails for two weeks.  Another person may wish to have daily updates of the progress of the process. 

In this way – an agent quickly learns in each transaction that “culture can eat strategy for breakfast.” Because the agent must adapt to a wide variety of communication styles, learn how to “manage from within”, build support for closing the project by the due date, and somehow keep all the interested parties invested, engaged, and responsive.  

Who you work with matters when picking the right person to represent you in your next transaction – so, just remember that “teamwork makes the dream work!”


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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Real Estate

Does Pride decor resemble Trump’s design aesthetic?

Glitter, gold, and rejecting the idea that a home should be understated

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Trump’s White House decor features an astonishing amount of tacky gold leaf. (White House photo public domain)

Interior design is often a balancing act between taste, personality, and restraint. Sometimes, however, restraint leaves the building entirely. Such is the case when the colorful exuberance of gay Pride-inspired decorating collides with the famously excessive decorating style associated with the current occupant of the White House. The result can be a fascinating study in maximalism, spectacle, and unapologetic visual overload.

Donald Trump’s personal decorating style has long been a subject of debate among designers and critics. Admirers see luxury and grandeur. Critics see something else: a dizzying display of gold leaf, marble, mirrors, crystal, and oversized furnishings that often crosses the line from elegant into what many designers would call tacky. More is rarely enough. If one chandelier sparkles, three are better. If a room has gold accents, why not make every available surface gold? (See Oval Office and ballroom rendition for details.)

In many ways, this excess shares common ground with certain Pride celebrations. Pride has never been about blending into the background. It celebrates visibility, self-expression, individuality, and joy. Rainbow colors, dramatic costumes, glitter, flamboyant artwork, and bold statements have long been part of Pride culture. Yet there is an important difference. Pride’s extravagance is often playful, self-aware, and rooted in personal expression, while Trump’s aesthetic has frequently been criticized for equating luxury with sheer quantity and visual intensity.

Combining these influences creates an interior that could best be described as “glamorous chaos.”

Imagine entering a living room in which gold-trimmed mirrors stretch from floor to ceiling. Crystal chandeliers hang above a bright rainbow velvet sectional. Marble floors gleam beneath metallic furniture that appears determined to reflect every available light source. Pride flags become framed artwork surrounded by ornate gold moldings. A room designed this way doesn’t whisper. It shouts.

Color is central to the concept. Pride-inspired interiors often embrace the full spectrum of colors. Trump’s style, meanwhile, traditionally favors cream, gold, black, and glossy finishes. Combining them means introducing vivid jewel tones against a backdrop of faux-palatial luxury. Emerald green chairs, ruby-red draperies, sapphire-blue accent walls, and gold-trimmed furniture can coexist in a way that feels deliberately theatrical.

The key word is theatrical.

Many professional designers spend years learning how to create visual balance. A Pride-meets-Trump interior intentionally ignores many of those rules. Pattern competes with pattern. Shine competes with shine. Artwork competes with furniture. The eye rarely gets a chance to rest. For some homeowners, that sounds exhausting. For others, it sounds like the perfect party.

Lighting offers another opportunity to embrace excess. Crystal chandeliers, mirrored lamps, illuminated shelves, and color-changing LED lighting can transform a room into something resembling a cross between a luxury hotel lobby and a Pride festival. The goal is not subtlety. The goal is spectacle.

A dining room inspired by this combination might feature a massive glass table, gold dining chairs, rainbow floral arrangements, mirrored walls, and enough crystal accessories to keep a polishing cloth busy year-round. Critics would call it gaudy. Fans would call it fabulous.

Artwork becomes particularly important. Pride-themed pieces featuring LGBTQ+ history, activism, and culture can provide meaning beneath the decorative excess. Without these personal and cultural elements, the room risks becoming little more than a collection of expensive looking, but not necessarily expensive, objects. Pride design can work best when it reflects identity and community rather than simply displaying color for color’s sake.

While normally a haven for restful sleep, bedrooms can take a similar approach. Plush velvet fabrics, oversized tufted headboards, metallic and mirrored finishes, colorful accent lighting, and dramatic artwork create a space that feels more like a boutique hotel suite than a traditional bedroom. Again, the challenge is avoiding the temptation to add one more decorative element to an already crowded visual landscape.

What makes this design combination interesting is that both aesthetics reject the idea that a home should be understated. Both embrace visibility. Both invite attention. Both encourage occupants to take up space unapologetically. Yet where Pride design often celebrates authenticity and self-expression, Trump’s decorating style is frequently criticized for prioritizing conspicuous luxury over cohesion and refinement.

The result is an interior style that many people would consider delightfully outrageous and others would consider a decorating nightmare. Either way, nobody is likely to forget it.

In the end, a Pride-inspired interpretation of Donald Trump’s famously over-the-top aesthetic would be colorful, glittering, excessive, and impossible to ignore. It would break nearly every rule of minimalist design while embracing the philosophy that if something is worth doing, it is worth overdoing. Whether one sees that as fabulous or tacky may depend entirely on how much gold leaf and rainbow velvet one can tolerate in a single room.


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 at [email protected] or follow her on Facebook at TheRealst8ofAffairs.

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Real Estate

The advantages of owning your home

Looking beyond the financial perspective

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Renovating and customizing your home is just one advantage of homeownership. (Photo by Artazum LLC/Bigstock)

While one would hope it’s easy to calculate a break-even point for a home purchase – such as you could calculate for “how many widgets a month do I need to sell to break even?”  It’s not always easy when looking at the return on investment for a home purchase. Condo buildings can lose a view due to new construction next door. Weather patterns can expose deficiencies. Conversely, new dining and entertainment options in a neighborhood can cause home prices to skyrocket.  The addition of public transportation and employment options can make a neighborhood more desirable.  Or, as we have recently seen in the District of Columbia – an incoming presidential administration can severely affect the “vibe” of an entire city’s economy – for better or for worse.

Homeownership is not necessarily a get rich quick scheme.  Most homeowners find that staying in a house for at least 5-10 years – whether owner occupied or not, makes for a significant return on their investment.  An owner may not completely pay off a home in 10 years, but they might gain enough equity that they can receive quite a large check when they decide to sell or move.  And the old reasoning that “your apartment rental community does not cut you a sizeable check when moving out after 15 years.” still stands. Is homeownership for everyone?  Absolutely not. But many have reported other benefits besides purely financial gains. What are those benefits?

  • Feeling a sense of community.  – homeowners tend to take more pride in their buildings and neighborhoods, because they feel more invested and tend to want to protect their investment.  Neighborhood watch programs, getting to know elderly neighbors, forming building wide or cul-de-sac wide favorite TV show watch nights, super bowl parties, and other such communal and social ties lead to an overall sense of wellbeing and help to stabilize a nervous system in uncertain times.
  • Feng Shui?  Well, maybe there’s something to it. If you have been wanting to customize your own home but live in an apartment, there are many more restrictions on what you can do in a rental, than when you own your own home. Do you want new countertops?  Would you love to remove that popcorn ceiling?  Open up that kitchen?  Convert the back yard into a curated patio/cold plunge/hot tub time machine cookout/spring break adventure campsite of your wildest dreams? 
  • Forming longer lasting relationships  – sharing that CostCo membership with others on your floor, making a pan of lasagna and inviting the neighbors over for dinner, picking your neighbor’s brain for stock investment advice, asking your neighbor’s son to help you create a marketing plan for your new business, hosting the Friendsgiving you dreamed of – there are multitudes of reasons and ways that homeowners tend to feel a sense of community, sharing of resources, and realizing over time that “it takes a village.”  
  • Higher civic engagement – Studies have shown that homeowners tend to be more politically active in their districts, participate in local school boards, know the names of and how to contact their local representatives to affect change, etc.  Having a higher financial investment in and a commitment to stay in a neighborhood beyond just one or two years makes a big difference in who decides to show up at election time, especially for local elections. 

If you would like to know more about the research on homeownership, feel free to read the report from the National Association of Realtors here.


Joseph Hudson is a referral agent with RLAH. Reach him at 703-587-0597 or [email protected].

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