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What the tax bill means for buyers, homeowners

There’s good news and there’s bad news

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tax bill, gay news, Washington Blade, property taxes

There’s good news and there’s bad news in the new tax bill.

In case you missed it, the hotly debated new tax bill has officially passed. Since real estate is one of the key areas of change in the bill, everyone is asking us, “What does the new tax bill mean for me? Is this good news or bad news for D.C.-area buyers and sellers?” The answer, as it so often is in real estate is, “it depends!”

The initial version of this new tax bill would have been troublesome for real estate values in our area. It slashed the mortgage deduction in half, had big changes for capital gains, and made it much more expensive to move. Several changes were made between the initial draft and the final form, which makes the final impact of the bill more of a mixed bag. There’s good news and there’s bad news.

So without further ado, here are the main changes and takeaways affecting homeowners in our area.

MORTGAGE INTEREST DEDUCTION

THE CHANGE: Through the end of 2025, new homebuyers will only be able to deduct interest on the first $750,000 of a mortgage (down from $1 million). In 2026, the deduction cap will revert to $1 million in loan value. Existing mortgages will be unaffected.

THE IMPACT: None for existing homeowners or new buyers with loan amounts under $750,000. While this reduction is bad news for upper price point buyers, the news is much better than the original proposal, which was a reduction to $500,000 and would have affected the majority of mortgages in our area. Remember, these are loan amounts – NOT sales prices. Thus, the only impact will be for buyers with loans above $750,000 – which most often is homes above $825,000 – depending on how much the buyer is financing. While it is possible the bill could cause a small slowdown for “move-up” buyers in our market, we don’t anticipate this causing a major change now. The impact of the new cap will probably make it less attractive to refinance in upper brackets. If your loan existed before December 14, 2017 up to $1,00,000 can still deduct the interest as long as the new loan does not exceed the amount refinanced.

Let’s look at Buyers A & B to see how this new cap comes into play.

Buyer A is putting 10% down on a sales price of $825,000, meaning he has a loan of $750,000, which is the deduction limit. Buyer A would be unaffected.

Buyer B is putting 10% down on $1,000,000, which is a loan amount of $900,000. The deduction can still be taken, but can only be taken on the first $750,000. Buyer B would not be able to deduct the interest paid on $150,000 of the loan (the difference between $750K-$900K).

HOME EQUITY LOAN INTEREST DEDUCTION

THE CHANGE: The new tax bill also suspends the deduction for interest on home equity loans until 2026. Currently, deductions are allowed for loans up to $100,000. Caveat: the interest on a home-equity loan can be deducted if the proceeds are used to substantially improve the home.

THE IMPACT: This change makes it less attractive for homeowners to take out equity lines on their homes in order to do minor renovations or use their home’s equity to pay for other things like kids’ college tuition or other big purchases. While this change is certainly frustrating for those planning to take advantage of these loans, it shouldn’t affect the housing market in a significant way since it is typically utilized by homeowners who have been in their properties for several years (and have equity) and are planning to stay longer to regain the equity over time.

MORTGAGE INTEREST ON A SECOND HOME DEDUCTION

THE CHANGE: The interest deduction on loans for a second home will still be allowed. However, homeowners can only deduct the first $750,000 of interest on the combined value of loans on their first and second homes.

THE IMPACT: Owners of multiple properties will feel this one. The bad news is there is likely to be a large impact on housing markets in resort or second home areas, as it will certainly be more expensive to own more than one property. While we are not a second home market, we have many clients buying properties in our area to be near their kids and grandkids. Similarly, we have many service members who take advantage of their housing allowance and low down payment opportunities with VA loans to keep their homes in other areas while buying a home when they are stationed here in the DC area. The impact of this change remains to be seen.

“SALT” DEDUCTION FOR STATE & LOCAL PROPERTY TAX

THE CHANGE: Individuals can only deduct up to $10,000 in state and local income and property taxes or state and local property and sales taxes. Previously, there was no cap on this deduction.

THE IMPACT: Homeowners living in high property tax states (like New Jersey with an average rate of 2.38%) will likely see an increased tax bill come April. Nationally, ATTOM Data Solutions estimates that 4.1 million Americans pay more than $10,000 in property taxes so it will affect many Americans. Locally, average property tax rates are more reasonable (Maryland is 1.1% which is #22 nationally, Virginia is .78% which ranks #37 nationally and D.C. is .57% bringing up the rear at #46 nationally), so it should have less of an impact here than it does in some of the higher-taxed states.

DEDUCTIONS FOR WORK-RELATED MOVING EXPENSES

THE CHANGE: Reasonable moving expenses for work-related relocations are no longer deductible – with the exception of those in the military.

THE IMPACT: While it is possible that fewer people will want to move due to this deduction, generally these types of moves come with increased salaries and opportunity, so we don’t anticipate big changes to the market because of this change.

CAPITAL GAINS

NO CHANGE. Despite some back and forth, the deduction for up to $500,000 in capital gains (or $250,000 for single filers) from selling a primary home remains (so as long as it has been the primary residence for two of the last five years). This is a big win, as previous versions of the bill sought to make the tenure requirements five of the last eight years as the primary residence.

SO, WHAT DOES THE NEW TAX BILL MEAN FOR HOMEOWNERS & HOUSE HUNTERS?

The good news is that many of the real estate changes in the new tax bill will have much less of an impact than previous versions of the bill suggested. On the plus side, it’s possible that the impact of the lowered deduction could be offset by lower income taxes for these high-end homebuyers, specifically business owners or those in “pass-through” businesses, which will see a big tax deduction on their income.

The bad news is we might see an impact in our “move up” market. We will carefully watch buyers’ reactions to the home mortgage deduction limit to $750,000, which could make “moving up” slightly more difficult in upper bracket price points. This change is likely to have the biggest impact in our market. Nationally, we may see a decrease in people buying vacation properties so resort areas will likely take a hit. We’ve read statistics that predict the changes could lower home values by 4%.

The bottom line? While there might be some slow down and a temporary dip in values while everyone comes to terms with the changes in the new tax bill, we don’t anticipate a significant long-term effect at this point. This is certainly a change from our perspective just a few short weeks ago when the bill was still in draft form.

We have been following this bill closely and know how impactful these changes are to your life. We’re here to help you through this complex process. If you are thinking of buying or selling and wondering what these changes might mean for you and your bottom line, please reach out. We are always happy to help.

 

Allison Goodhart DuShuttle is lead agent for The Goodhart Group, Alexandria’s and McEnearney Associates’ top-producing real estate team. In 2015, she was nationally recognized by Realtor Magazine, being named to its “30 Under 30” club. Allison can be reached at 703-362-3221 or [email protected]

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Real Estate

Stress-free lease renewals during winter months

A season when very few tenants typically move

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Many landlords think of spring and summer as the heart of leasing season, but winter renewals hold their own kind of importance. (Photo by neturama/Bigstock)

January has a way of waking everyone up. After weeks of holiday noise, travel, family visits, and a general blur of activity, the new year arrives with its usual mix of resolutions, optimism, and responsibility. People start looking at their calendars again. To-do lists reappear. And tucked away in there is something many tenants didn’t give much thought to in December, their lease renewal.

Renewals in winter matter more than most people realize. It is a season when very few tenants typically move. The weather is unpredictable, schedules are tight, and most people are trying to regain their footing after the holidays. Because of this, renewal conversations tend to be more productive and more grounded. 

Many landlords think of spring and summer as the heart of leasing season, and while that’s certainly when moves are most common, winter renewals hold their own kind of importance. A well-timed renewal does more than keep a unit occupied. It provides predictability for the year ahead, strengthens relationships, and reduces the costly turnover that smaller landlords want to avoid.

In my experience, tenants who might hesitate during another time of year are often relieved to secure housing before the pressures of spring and summer begin. Uncertainty is one of the prime causes of unnecessary turnover. If tenants don’t hear from their landlord, they often start browsing listings “just in case,” or asking friends about other options. Once that door is opened, it can be hard to close. Initiating the renewal process early helps anchor tenants before doubts start creeping in.

Tenants often make clearer decisions in January than they would in November or December. During the holidays, people are distracted and stretched thin; emails are skimmed, not absorbed; and anything involving planning often gets deferred until “after the new year.” When tenants return home in January, they have a better sense of their plans, their budget, and their needs for the coming months. This makes it a much easier moment to start or restart a renewal conversation.

The practical reality is that most tenants don’t want to move in the winter. Who wants to haul furniture across icy sidewalks or deal with last-minute moving delays due to storms?  Beyond the weather, January is a time when people are reorganizing finances, filing paperwork, and settling into routines. The thought of a major transition simply doesn’t fit. Landlords can use this natural reluctance to create a smoother, more collaborative renewal process.

One thing I’ve learned over the years is that clarity is a landlord’s best tool. Tenants don’t need lengthy explanations, legal jargon, or complicated attachments. They simply want to know:

  • Are the terms changing?
  • If so, how?
  • What does their timeline look like?
  • Would the landlord consider another set of terms?

    A concise, well-laid-out renewal offer does two things. First, it demonstrates transparency, which builds trust. Second, it keeps the conversation focused and productive. When tenants understand exactly what’s being proposed, there is less back-and-forth, fewer misunderstandings, and a quicker path to a signed agreement.

Tenants are more receptive when they feel they’re being treated fairly and openly. If there’s a rent adjustment, a brief explanation helps tenants see the reasoning behind it, such as increased operating costs, significant maintenance completed during their stay or alignment with the market. 

Lease renewals are moments of connection. The best landlord-tenant relationships are built over time through small exchanges, transparency, and mutual respect. Renewal season offers an opportunity to reinforce that.

A simple acknowledgement of the tenant’s care for the home or their timely payments can set a positive tone. Even a short note of appreciation signals that you see them not as a lease term, but as a partner in maintaining the property. These gestures cost very little but create a sense of goodwill that carries through maintenance requests, policy reminders, and everyday communication.

Many landlords underestimate how much tenants value being treated as individuals rather than account numbers. A thoughtful, personal touch during the renewal process can make a tenant feel recognizednand more inclined to stay.

Renewals aren’t only about securing another term lease.They’re also a natural moment to check in on the overall health of the property and the tenant’s experience. J anuary provides a quiet space to step back and ask:

• Are there maintenance concerns the tenant hasn’t mentioned yet or that have not been fully resolved?
• Is the property due for upgrades or any preventative work?
• Are there responsibilities or expectations worth revisiting?

These conversations don’t need to be long or formal, but they help prevent the small issues of one year from becoming the larger problems of the next. A tenant who feels heard is more likely to take good care of the home, communicate proactively, and renew again in future years.

While landlords must maintain structure and protect their assets, a bit of flexibility can go a long way during the renewal process. Tenants are often rebalancing budgets after holiday spending. Offering digital signatures, Having brief calls to clarify terms, being flexible, or a few extra days to make a decision can ease stress without compromising the landlord’s position.

Flexibility is about recognizing human realities. Most tenants appreciate being treated with patience and professionalism, and often reward that consideration with prompt decisions and smoother communication. There are many reasons why a full year renewal may not coincide with their plans. Being able to work out mutually agreeable renewal terms makes the solution a win for both parties.

For landlords, especially smaller ones, stability is the foundation of successful property investing. A vacant unit, even briefly, costs more than most people realize. There are marketing expenses, cleaning, repairs, lost rent, and the unpredictable timeline of finding the right new tenant.  By contrast, securing a renewal with an existing reliable tenant protects cash flow, reduces risk, and creates predictability in planning.

January renewals, when handled well, deliver this stability right at the beginning of the year. They give landlords a clear roadmap for budgeting, maintenance scheduling, and forecasting. They also give tenants the security of knowing exactly where they stand, which reduces stress on both sides.

A lease renewal may seem like a small moment in the life of a property, but in practice, it shapes the experience of the year ahead. When the process is organized, honest, and respectful, it sets a tone that carries through every interaction until the next renewal date.

January is a time to consider leaning into this approach. The pace is slower, the mindset is clearer, and both landlord and tenant are ready to step into the year with more intention. A renewal handled thoughtfully now paves the way for a smoother, quieter, more predictable twelve months, something every landlord and every tenant can appreciate.


Scott Bloom is owner and senior property manager at Columbia Property Management.

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Real Estate

Child- and pet-proofing your home for the holidays

It isn’t about being perfect but about being prepared

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Christmas trees are tempting for pets to climb so be sure to anchor them well. (Photo by sharomka/Bigstock)

The holidays are meant to be joyful, cozy, and full of laughter — but if you have young children or pets, they can also feel a little chaotic. Twinkling lights, shiny decorations, guests coming and going, and tables full of tempting food can turn your home into a wonderland of curiosity and mischief. The good news? With a little thoughtful planning, you can keep the holiday magic alive while making your home safer for everyone who lives there.

There’s something oddly comforting about movies where animals go to war with holiday decorations, turning carefully strung lights and perfectly placed ornaments into chaos. Whether it’s a mischievous dog tangled in tinsel or a curious cat launching a full-scale assault on a Christmas tree, these scenes tap into a universal experience for pet owners. 

The humor comes from the contrast: the human characters are trying to create warmth, tradition, and picture-perfect cheer, while the animals see the decorations as toys, obstacles, or personal enemies. The resulting destruction — trees tipping over, ornaments shattering, lights blinking out—feels exaggerated but relatable, especially during the already hectic holiday season. 

Let’s start with decorations because they tend to be the biggest attraction. Ornaments sparkle, garlands dangle, and everything seems designed to be touched, pulled, or tasted. If you have little ones or pets, consider placing your most fragile ornaments higher on the tree and using shatterproof options on the lower branches. Tinsel and ribbon may look festive, but they can be dangerous if swallowed, so skipping them or keeping them well out of reach is a simple way to reduce risk without sacrificing style.

Holiday lights are another favorite fascination. Before hanging them, take a few minutes to inspect each strand for frayed wires or broken bulbs. Secure cords along walls or behind furniture so they’re harder to grab or chew and unplug them when you leave the house or head to bed. Not only does this help prevent accidents, but it also gives you one less thing to worry about during a busy season.

The Christmas tree itself can become a focal point for exploration. Make sure it’s sturdy and well-anchored so it doesn’t tip if a toddler tugs on a branch or a pet decides to investigate. If you use a real tree, cover the water base since tree water can contain additives that aren’t safe if consumed. For artificial trees, keep an eye out for loose pieces or needles that could become choking hazards.

Food is a big part of holiday celebrations, and it’s also one of the most common sources of trouble. Many traditional treats—like chocolate, grapes, raisins, alcohol, and foods containing xylitol—are dangerous for pets. Keep plates and serving dishes up high, secure the trash can, and gently remind guests not to slip pets or kids “just a little bite” without checking first. For children, be mindful of hard candies, nuts, and small treats that could pose choking risks.

Candles and fireplaces add warmth and charm, but they deserve extra caution. Flameless candles are a wonderful alternative if you want ambiance without worry. If you do use real candles, place them well out of reach and never leave them unattended. Fireplaces should always have a sturdy screen or gate, especially with crawling babies or curious pets nearby.

Holiday gatherings bring wonderful energy into your home, but they can also create new challenges. Doors opening frequently make it easier for pets to slip outside, so consider setting up a quiet, comfortable space where they can relax during busy get-togethers. This can help reduce stress for them and give you peace of mind. For children, stair gates, locked cabinets, and clear boundaries can help prevent accidents when there’s extra excitement in the air.

New toys and gifts are another thing to watch closely. Packaging, twist ties, plastic wrap, and especially button batteries should be cleaned up promptly. These items are easy to overlook in the excitement of gift-opening but can be dangerous if swallowed. Taking a few minutes to tidy up as you go can make a big difference.

Lastly, try to keep routines as steady as possible. The holidays naturally disrupt schedules, but familiar mealtimes, naps, walks, and bedtime rituals help children and pets feel secure. A calmer household often means fewer accidents and a happier experience for everyone.

At the end of the day, child- and pet-proofing your home for the holidays isn’t about being perfect but about being prepared. A few small adjustments can help you relax, enjoy your guests, and focus on what truly matters: creating warm, happy memories with the ones you love. When your home feels safe, the holidays feel even sweeter.


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

In real estate, trust the process

With rates coming down, we could see spring surge in buyers

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(Photo by zimmytws/Bigstock)

The average 30-year mortgage rate is falling, little by slowly. With predictions that the rate will continue to adjust downward in the next year or two, there may be a busier spring market than we have seen in the last few year, especially for the DMV market, which has been reeling from thousands of layoffs this past year.  The frenzied activity resulting from interest rates close to 3% for some borrowers will probably not occur; however, this spring could add up to be a few notches busier than the last. 

What does this mean for buyers and sellers? Lender Tina Del Casale with Waterstone Mortgage says she has seen “low to mid 6’s as the average for conventional loans.” If rates continue downward into the 5% range, there may be more activity than we saw in the last year or two. This could release a little bit of pent up demand.  

Many buyers will have found that for whatever reason, their current home is not meeting their needs. Sellers may want to finally take the plunge and put a for sale sign in the yard and online, now that they might find a more reasonable rate on their next home. This winter can be an opportunity to assess financial situations, home conditions, and optimize one’s chances to have a sale with more agreeable terms, or put one’s best foot forward in an offer. In addition to checking with a lender or favorite handy person, let’s review what sellers and buyers typically spend their energy negotiating while enjoying the lovely process called “going under contract”:

  • Timelines – Sellers might want to have their house solidly under contract (papers signed, thumbs up from the lenders, all inspection items decided upon and settled) so that they can put an offer down on a new home, and then negotiate that timeline with the other sellers.  Remember, making a move is not only about the buyer taking possession of a new home, but also about the sellers figuring out their situation as well. 
  • Sale Price – unfortunately for buyers, in the eyes of most sellers, “money talks.”  So, in a non-competitive situation, a seller might be happy to just get one offer at a price that was within the desired range. As soon as another interested buyer enters the equation, it can become a little bit like RuPaul’s Drag Race, and one will have to lip sync for one’s life, honey! And only one buyer will get to hear the words, condragulations!”
  • Tone/Vibes/Energy in the Room – Remember:  Human beings are emotional creatures. All of us have feelings. And all of us want to put energy into situations where we feel appreciated, where a level of self-awareness exists, and a sense that each side is trying one’s hardest to act in good faith.   The best transactions I saw were where a little grace was the “grease on the wheels” of the transaction.  Occasionally, a buyer had cold feet and wanted to see the unit a few more times before the settlement date, or a seller forgot to scrub the bathroom with a little extra elbow grease before the settlement date.  Life happens; misunderstandings can occur. A wise therapist once said: “You don’t have to like it, but can you allow it?” The tone of one or both parties in the transaction can be what seals the deal, or results in one party exiting the contract. (In the case of the dirty bathroom, the seller left a check with the title company for the buyer to pay a housekeeper to come clean what they couldn’t.) 


Joseph Hudson is a referral agent with Metro Referrals. He can be reached at 703-587-0597 or [email protected].

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