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Home sales in the time of coronavirus

A mixed bag for buyers and sellers in D.C. real estate market

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homebuyer, gay news, Washington Blade
October home sales, recession recovery, homebuyer, gay news, Washington Blade
Showings are down amid the coronavirus pandemic, but prices are holding steady in D.C.

Spring is almost always the strongest time of year to sell a property: buyers awaken from their winter slumber, all seeming to need to buy at the same time, and homes sell fast and sell high. For agents and sellers, spring is normally a season of plenty.

In the era of coronavirus, however, the market has undoubtedly changed. With government guidelines against gatherings and open houses, the traditional marketing process that is based on getting as many visitors as possible to a listing is turned on its head. One would think the real estate market would never survive such changes, and that prices would be in free-fall.

But interestingly, that is not happening. In fact, prices are, for the most part, holding steady. Many properties are getting multiple offers. Buyers are, indeed, still buying, and closings are still taking place. Perhaps, to the real estate market, COVID-19 might be just a mild cough after all?

Not so fast. It turns out, the effects are a bit of a mixed bag. Regulations restricting showings and open houses, and new procedures that agents and buyers are taking to protect their own health are having a negative impact on many types of properties. This is exacerbated by a tightening of lending in the investor community and an overall sense of caution for properties that are not thought of as mainstream. Some properties, like the recent listing at 142 Kentucky Av., S.E. in Capitol Hill, listed by my colleague Kara Johnson, received three offers and sold in just 4 days. Another move-in ready home at 3206 5th St., S.E. reportedly received 17 offers on April 1. But other properties, like a four-unit townhouse listing we have at 15th Street and U Street for $1.699M, and an enormous Mount Pleasant fixer-upper, are not getting many showings.

Kara, a long-time agent at Keller Williams Capital Properties, attributes her success to the character of the property, its price and the desirability of the location. ā€œIt just fits for so many buyers out there. It was a great price and it was move-in ready,ā€ she said. The four-unit, more interesting to investors, attracts a smaller pool of buyers, most of whom would see that investment as non-essential, and possibly more risky, soā€¦ crickets. From this experience, it seems that this could be an excellent time to negotiate a great price for investors who have cash and arenā€™t afraid of our long-term prospects.

The nationā€™s largest real estate showing tool, ShowingTime, reports that showings in our area are down 70.9% from this time last year. Yet prices have held steady for the market overall. So how are the ā€œmainstreamā€ properties getting buyers in the first place? The process has changed. Tyler Smith, on the Bediz Group team at Keller Williams Capital Properties, recently showed our clients a property in Woodley Park. ā€œIt all starts online,ā€ Smith said. ā€œMost good listing agents are spending the extra money for fully interactive, immersive 3-D video tours, which gives buyers a very good sense of the house before they ever leave their couch.ā€

That technology, developed by a company called Matterport, allows users to tour a home from their computer and see every corner, every angle and basically every detail from their phone or computer. ā€œOnce my clients saw all the properties out there online, they only wanted to see one or two in person,ā€ Smith continued. And by altering the normal showing procedure, from driving separately to those two properties, to bringing hand sanitizer and disinfectant spray for doorknobs and lockboxes, to maintaining as much distance on the tour as possible, it seems a showing can be done safely after all.

Once a property is under contract, the process changes a little bit more, but not noticeably. Brock Thompson, also on the Bediz Group, recently had a client go under contract for a condominium in Foggy Bottom. Once the buyer left the initial tour, he and Brock were never face-to-face again. The inspector was able to inspect the unit without interacting with Brock or the listing agent. The appraiser did what is called a ā€œdrive-byā€ appraisal, in which he or she relied on internet-based data, including photography from the listing, to confirm the value of the property. Everyone involved could work on their own. In fact, the buyer didnā€™t have to meet anyone in person again, until his settlement date. ā€œMy client is thrilled he could still realize his 2020 goal of home ownership, and stay safe and keep others safe at the same time,ā€ Thompson said.

The settlement process itself has also changed, albeit slightly. Rob Rothstein, a title attorney at Paragon Title & Escrow, developed an ingenious way of keeping buyers and his staff safe during this pandemic: drive-through settlements. While his office, in the heart of Logan Circle, is convenient enough, he knew that buyers, sellers and those refinancing would want to be able to do their business with as little human interaction as possible. He arranged to have all documents sanitized and brought to their customers in their car as they waited in front of his office. Once they complete signing and presented their identification cards, he is able to notarize the documents, then scan copies to them. For cash deals and with limited banks, he can even perform settlements using an ā€œe-notaryā€ service that eliminates the need for clients to even leave their homes. ā€œElectronic signing isnā€™t here yet for most real estate settlements,ā€ Rothstein said, ā€œbut perhaps one good thing that could come out of this is greater pressure to allow for it.ā€ Currently, electronic closings are not accepted by most mortgage lenders and jurisdictional recorders of deeds, but laws and lender requirements have been loosening slightly.

All in all, our experience shows that as a buyer, you may have an opportunity to buy with less competition at the moment, but just as in any market, the most appealing properties are likely to get multiple offers. Savvy investors, handy homeowners and cash buyers might be able to get a better deal on properties that donā€™t appeal to mainstream buyers. And anyone concerned about safety can rest assured they can complete the journey to homeownership with little risk of infecting themselves or others in the process.

David Bediz is the 15-year veteran leader of Bediz Group, LLC, a boutique real estate team at Keller Williams Capital Properties in Dupont Circle. He is licensed in Maryland, Virginia, Delaware and the District and can be reached at bediz.com, [email protected] and 202-352-8456.

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Real Estate

Donā€™t procrastinate buying your home

Some experts predict rates will fall in June

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Spring is in the air and itā€™s a great time to buy a new home.

As springtime fills the air, cherry blossoms are blooming, much of the year still lies ahead and many have started to think about how they are progressing with their 2024 goals. If the dream of buying a house was put on hold when the interest rates went from 3% to almost 8%, and life got in the way of an idea that had gotten onto your to-do list, maybe now is the time to dust it off. 

Mortgage lender Tina Del Casale from Sandy Spring Bank says, ā€œThere is still hope the Fed will be happy with inflation numbers by June to finally pull the trigger on lowering interest rates.ā€  

The rates might not be as low as they were in 2021, but historically, they are still not as high as they were 20 years ago. Some peopleā€™s parents remember getting interest rates that were 12%, 14% or even higher.   

One of the biggest questions I get at homebuyer seminars is about is the process. What is buying a house ACTUALLY like?  I usually tell them that itā€™s like anything else. One step at a time. One form at a time. One bank transfer at a time. One house showing at a time. One home inspection at a time. If you have the wherewithal to plan a vacation, you can buy a house. 

  • Finding a Realtor
  • Finding a lender to get pre-approved (how much is your budget and what is a comfortable monthly payment)
  • Are there any first-time buyer programs that could be used? Is there down payment assistance?
  • Looking at the houses.
  • Finding one you like, and putting an offer together:
    • An offer usually involves a sales contract, any special forms that the jurisdictions require (lead-based paint acknowledgements, what appliances and systems in the house are included/excluded, if the home is part of a homeowners association, or a condo association, etc.)
    • Any forms related to getting an inspection done.
    • Who is selling the house, who is buying the house, how much is it being sold for, where it is exactly, and who are the others involved in the transaction (title company, agents, etc.)?
  • Getting any inspections done.
  • Negotiating any changes in the sales price or terms, or credits for inspection items.
  • Getting the final approval for the loan and then going to settlement.

Many people get interested in buying a house, but the ā€œunknownā€ of it all can be daunting. It could be that the best way to think about it, is that like most things in life, you canā€™t cross every bridge BEFORE you get there. You just take it one day at a time. Some things will be surprisingly easy. Some things will require the advice of experienced lenders, Realtors, home inspectors and title attorneys.  

But if the process doesnā€™t begin somewhere, somehow, the idea just stays in oneā€™s head in the ā€œto do listā€ file.  And then 3 years go by, 5 years go by, 7 years go by. And your friends that DID buy a house laugh themselves to the bank when they go to sell the house they bought 3 years ago, 5 years ago, or 7 years ago.

If you need any recommendations for a local lender or Realtor, please donā€™t hesitate to ask.

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

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Real Estate

Down payment strategies: Financing your home purchaseĀ 

Understanding the options key to unlocking the door to a dream home

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Looking for your dream home? First, you need to understand how to make the down payment.

Navigating the path to homeownership can be a complex journey, especially when it comes to accumulating the necessary down payment. For members of our LGBTQ community, understanding the available options for saving and financing this crucial aspect of home buying is key to unlocking the door to their dream home. Let’s explore effective methods and resources specifically designed to support LGBTQ individuals on their path to homeownership.

Traditional Savings Strategies

Saving for a down payment often begins with traditional methods such as setting aside a portion of your income into a dedicated savings account. High-yield savings accounts and automated savings plans, some offering up to 5% interest in today’s market, can expedite the process, providing a disciplined approach to accumulate funds over time. Additionally, exploring investment opportunities that match your risk tolerance can offer potential growth for your down payment savings.

Down Payment Assistance Programs

A variety of down payment assistance programs exist to help homebuyers with their initial costs. These programs often offer grants or low-interest loans to first-time homebuyers or those who haven’t owned a home in the past three years. 

It’s essential to speak with a GayRealEstate.com agent to determine what programs may be available, plus online research into local and state assistance programs, as many are designed to support individuals in specific communities, including the LGBTQ+ community.

For medical professionals, police, teachers, firefighters, and other community heroes, there are several special loan and assistance programs designed to help with home purchases, often offering benefits like down payment assistance, reduced closing costs, and more favorable loan terms.

The Hero Home Loan Program provides first responders, including police officers, firefighters, and paramedics, with benefits such as lower interest rates and reduced closing costs. This program aims to make homeownership more accessible by offering more flexible credit score requirements and down payment assistance .

For educators, firefighters, law enforcement officers, and medical professionals, the Everyday Hero Housing Assistance Fund (EHHAF) offers closing cost assistance through gift funds. This program is designed to support those who serve their communities by making homeownership more affordable, with no repayment required for the grant fundsā€‹ā€‹.

The HUD Good Neighbor Next Door Program offers up to 50% off the list price of homes for law enforcement officers, pre-Kindergarten through 12th-grade teachers, firefighters, and emergency medical technicians. This initiative aims to encourage community revitalization by assisting these professionals in homeownership within the communities they serveā€‹ā€‹.

Homes for Heroes provides assistance specifically to first responders and offers significant savings through Hero Rewards when buying, selling, or refinancing a home. On average, participants save $3,000, with the program offering real estate and mortgage specialist connections tailored to the needs of first respondersā€‹ā€‹.

LGBTQ-Friendly Lending Options

Finding a lender that understands and supports the unique needs of our LGBTQ community can make a significant difference. Some lenders and organizations specialize in offering inclusive financial products and resources to assist LGBTQ+ homebuyers. These may include specialized mortgage products, financial planning services, and guidance through the home buying process.

The journey to homeownership is a milestone that requires careful planning and support. Remember, every step taken towards saving and financing your home purchase brings you closer to the dream of homeownership.

(GayRealEstate.com offers valuable resources and advice tailored to meet the unique needs of our LGBTQ+ community in their journey towards homeownership. For more comprehensive guidance and support in navigating the home buying process, visit GayRealEstate.com choose an agent and start a no-obligation conversation today.)

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at [email protected].

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Real Estate

Turn your bare walls into captivating focal points

Paint, wallpaper, statement installations and more

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Whether you prefer artwork, paint, wallpaper, or statement walls, there are countless ways to adorn and decorate your walls.

Are you tired of gray walls and white kitchen cabinets with white granite or marble countertops? Have you gone back to the ā€œBuilder Beigeā€ that was popular in the ā€˜90s?

Your walls are the blank canvases of your home, waiting to be transformed into stunning expressions of your personality and style. Whether you prefer vibrant artwork, paint, eye-catching wallpaper, or statement walls, there are countless ways to adorn and decorate your walls to elevate your space. Here’s a guide to help you turn those bare walls into captivating focal points. 

Wallpaper: Wallpaper has again become a versatile option for adding texture, pattern, and color to your walls. Whether you prefer subtle designs or bold prints, there’s a wallpaper to suit every taste. 

It now even comes in peel and stick rolls, so you donā€™t have a mess of water and paste. For some new designs, check out www.spoonflower.com

Before selecting wallpaper, consider the scale of your room and the atmosphere you want to create. For small spaces, opt for light, airy patterns to make the room feel more spacious. Conversely, in larger rooms, you can go bold with intricate designs or vibrant colors to make a statement. Don’t be afraid to mix and match wallpaper with paint, or even wallpaper the ceilings for a unique and dynamic look.

Statement Walls: Statement walls are a bold way to add personality and drama to any room. From accent paint colors to textured finishes, the possibilities are endless. Consider using a contrasting color or texture to highlight a specific wall and create visual interest. For a contemporary touch, try incorporating geometric patterns or asymmetrical designs with strips of wood. Hand-painted murals are another option for creating striking statement walls. Choose a mural that reflects your interests or transports you to another world for a truly immersive experience.

Paneling/Brick: The shiplap phase may be dying out, but there are still many ways to use wood and paneling in your wall dĆ©cor. Reclaimed wood is a popular option, as are wood slats such as the ones found at www.woodpanelwalls.com. Use them on walls or ceilings, or as a background for wall-mounted televisions and sconces. Amazon also has lots of options for wood veneer available and exposed brick is popular in many contemporary homes. If you donā€™t have a brick wall to uncover, select from options such as lightweight faux brick or stone.

Artwork: Art has the power to breathe life into any room. When choosing artwork, consider pieces that resonate with you personally and complement your existing dƩcor. Experiment with a mix of styles, sizes, and mediums to create visual interest. Hang artwork at eye level to ensure it is easily visible and balanced within the space. Enhance gallery walls by arranging multiple pieces in a cohesive layout. Remember that art is subjective, so whether you choose an inexpensive poster or a gallery quality painting, select pieces that speak to you.

Photo Displays: Showcase your favorite memories and moments with a curated photo display. Whether it’s a collection of family photos, travel snapshots, or artistic prints, arranging photos on your walls adds a personal touch to your space. Try out different frames, sizes, and layouts to create a gallery-style display that reflects your unique style. It makes a nice presentation on that odd wall going up your stairs. 

Mirrors: Mirrors are not only functional but also serve as decorative accents that can enhance the visual appeal of any room. Strategically placing mirrors on your walls can create the illusion of space, brighten dark corners, and reflect natural light. Choose mirrors with interesting frames or shapes to add an extra layer of style to your dƩcor. Try different sizes and arrangements to find the perfect balance between form and function.

Textile Hangings: Textile hangings are a bohemian-inspired alternative to traditional wall art. From tapestries to woven rugs, textile hangings add warmth, texture, and color to your walls. Hang a large tapestry behind your bed as a dramatic headboard alternative or layer smaller textiles with framed artwork for a cozy, eclectic look. Consider mixing and matching different textures and patterns to create visual depth and dimension.

Adorning and decorating your walls is a creative and personal process that allows you to infuse your space with personality and style. The key is to trust your instincts and have fun with the process. Use different techniques, colors, and textures until you find the perfect combination that speaks to you and transforms your walls into works of art. With a little imagination and creativity, you can turn any blank wall into a stunning focal point that reflects your unique taste and aesthetic.

Valerie M. Blake is a licensed Associate Broker in D.C., Maryland, and Virginia with RLAH Real Estate/@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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