Real Estate
The Basics of Appraisals
Three types of loans are generally available in D.C.


If you’re buying a home, chances are you’ll need a loan to make the purchase. Once you have a contract, your loan officer will order an appraisal of the property.
There are three types of loans generally seen in D.C.: Conventional, Federal Housing Administration (FHA), and Veteran’s Administration (VA). Outside the Beltway we also see United States Department of Agriculture (USDA) loans.
The job of a licensed or certified appraiser is to determine a home’s fair market value. This lets the lender and the buyer know whether the value and the loan amount are in keeping with the what you have agreed to pay for the property.
An appraiser will view the home, take pictures and make notes to later be transposed to the Uniform Residential Appraisal Report and provided to the lender, who will share it with you. In the case of FHA, VA, and USDA loans, the appraiser’s requirements also include a limited property inspection.
Armed with that information, the appraiser will research properties that have recently sold to determine which are closest to the makeup of the home you are buying. Typically, the appraiser will look at properties within a half mile radius that have sold within the last six months and select at least three homes to compare.
Some typical items compared are lot size, square footage, number of bedrooms and baths, exterior features such as patios, decks and fencing, parking availability and features like central air conditioning and fireplaces.
The sales price of each property is the starting point. From there, the appraiser will assign a dollar amount to each item, then add to or subtract from the sold price to arrive at an adjusted sales price for each of the comparable homes.
For example, if the home you are buying has a fireplace and a comparable home has none, the appraiser will add a predetermined value (perhaps $3,000) to adjust the actual sales price of the comparable home to reflect the value if both homes had fireplaces.
Similarly, if the comparable home has two fireplaces, the appraiser will subtract the $3,000 to adjust the home’s value in line with the one fireplace your home has.
Also included are the age of each home and its condition and quality. The condition standards range from C1 (new construction) to C6 (deferred maintenance that affects structure and stability). Most commonly seen in our area is category C3 (well-maintained with some upgrades).
The categories that denote quality are Q1 (individually designed for a specific person or purpose using the highest quality exterior and interior materials) to Q6 (basic quality using lowest cost building materials). Once again, Q3 is what we normally see (higher quality with upgraded interiors and finishes).
Most appraisals will reflect the sales price of your property. If yours comes in above, congratulations! You got a bargain. But what happens if it comes in low?
If you have an appraisal contingency, you have five options: 1) challenge the appraisal, 2) proceed with the sale, adding money to your down payment to make up the difference, 3) ask the seller to lower the price to meet the appraised amount, 4) negotiate with the seller to split the deficit in a mutually agreeable manner or 5) exit the contract and have your earnest money deposit returned.
To challenge an appraisal, review it with your agent and look for discrepancies. Are the comparable homes located in the same area? Are there better homes to compare? Are there errors in describing the houses? Have specific items been properly adjusted?
Your agent can provide any new information to your lender, who will forward it to the appraiser to review and make a final decision. If your challenge is not successful, your agent will help you negotiate with the seller to find the best solution.
So, what’s the worst-case scenario? My own experience, of course. I attempted to purchase my current home four years ago with an FHA loan. I was all excited until the appraisal came back—at $90,000 less than what I had agreed to pay! And because of FHA guidelines, that appraisal would be tied to the property for four months until I could get a new one.
My loan officer provided the solution—change my loan to conventional and order a new appraisal. When I received it, I realized that the first appraiser had made a $50,000 error and used houses that were of much lesser quality as comparable homes. I had been avenged!
Valerie M. Blake is a licensed Associate Broker in DC, MD & VA with RLAH Real Estate. Call or text her at (202) 246-8602, email her through DCHomeQuest.com, or follow her on Facebook at TheRealst8ofAffairs.
Real Estate
City inspection codes: How easy is it to fail?
Be sure to check ventilation, smoke detectors, and more

In the District of Columbia, rental properties are required to meet certain health and safety standards. These standards are set by the District’s Department of Consumer and Regulatory Affairs (DCRA).
If you own a rental property in the District of Columbia, you may be required to have your property inspected by the DCRA to ensure that it meets these standards. The inspection process typically involves a DCRA inspector visiting the property and checking for any hazards or code violations.
It’s important to make sure that your property is in good condition and meets the District’s health and safety standards, as failing a rental property inspection can have serious consequences. If your property fails the inspection, you may be required to make repairs or upgrades in order to bring it into compliance. If you are unable to do so, you may be forced to stop renting out the property until the necessary repairs are made.
Overall, the likelihood of failing a rental property inspection in the District of Columbia will depend on the condition of your property and whether it meets the applicable health and safety standards. To minimize the risk of failing an inspection, it’s important to keep your property well maintained and address any potential hazards or code violations as soon as possible.
In the District of Columbia, landlords are responsible for maintaining their rental properties in a safe and habitable condition. If a rental property is not in compliance with the city’s health and safety standards, the landlord may be cited for code violations.
Some common code violations that landlords in the District of Columbia may be cited for include:
• Lack of adequate heating or ventilation: Landlords are required to provide sufficient heating and ventilation systems to ensure the health and safety of their tenants.
• Electrical or plumbing issues: Landlords are responsible for ensuring that their properties have functional electrical and plumbing systems. All plumbing fixtures must be properly sealed, in other words, no holes in the walls. All water heaters require pressure relief valves
Structural issues: Landlords must maintain their properties in a safe and structurally sound condition.
Pest infestations: Landlords are required to address and eliminate pest infestations in their rental properties.
Lack of smoke detectors: Landlords are required to install and maintain smoke detectors in their rental properties. Detectors must be placed 36” from ceiling fan blades and away from the path of the HVAC registers.
Proper locks: All exit and security gate locks must be easy to operate and must not require a key to exit.
It’s important for landlords in the District of Columbia to be aware of these and other code violations and take steps to ensure that their properties are in compliance with the city’s health and safety requirements.
Scott Bloom is senior property manager and owner, Columbia Property Management. For more information and resources, go to www.ColumbiaPM.com.

As we are closing out 2023 and getting ready to start 2024, now is a good time to review what tax benefits most homeowners are getting. There are several categories that you can look at to see if you will benefit from being a homeowner. According to RocketMortgage.com, here are some of them:
- Mortgage interest. Most newer homeowners are paying more on the interest in their monthly mortgage payment than on the principal, so this could be a big tax benefit.
- Home equity loan interest – HELOC (home equity line of credit) loans are like a 2nd mortgage on your home. Many homeowners can use it to make upgrades to their house and interest on these loans is deductible if you used it for that purpose.
- Discount points – for those of you that purchased in the last year or so these may apply, as these are the price paid to lower an interest rate on a loan.
- Property taxes – depending on where you live, your state and local property taxes may be a big source of tax deductions for you.
- Necessary home improvements – even if you did not use a HELOC to improve your home, some of your expenses in this category may be deductible.
- Home office expenses – as more and more people are working from home, this should not go unexamined in your search to find tax deductions.
- Capital Gains – a capital gain is the difference between the value of a home when you sold it versus when you borrowed it. So, if you sold your home for a significant profit and did not roll over those gains into a new property within a short period of selling the old property, then ask your tax professional up to which amount of these profits are not taxable.
We asked Tina Del Casale ([email protected]), a DMV-area lender with Sandy Spring Bank, what she thought about the tax benefits of homeownership, and here is her answer:
“Most homeowners wish they knew sooner that most every major home improvement can reduce your future capital gains when you are ready to sell your home. While the deduction for a single person is $250,000, and for married couples is $500,000, the DMV has seen property appreciation that outpaces those numbers. So keep ALL your receipts for replacement items like your HVAC, windows, doors, roof, major landscaping and updating bathrooms and kitchens. You will thank me later! Of course most importantly consult a tax adviser for up-to-date information!”
Please don’t hesitate to reach out to either of us if you have more questions and happy holidays! Let’s get you home for the holidays.
Joseph Hudson is a Realtor with the Rutstein Group of Compass. Reach him at 703-587-0597 or [email protected].
Real Estate
Celebrating friends and family at Thanksgiving
The kitchen is always a bustling hub during this festive season

By the time you read this article, you will likely have filled up on turkey, dressing, gravy and pumpkin pie. Perhaps you have unbuttoned the top button on your pants or are lounging in your sweats, watching football, playing board games, reading a new book, or braving the crowds at the shops on Black Friday.
Maybe this is the day you buy a Christmas tree or bring one out of your storage area, intent on spending the weekend decorating and drinking hard cider. Perhaps you are celebrating Thanksgiving (or Friendsgiving) at someone else’s home, or they may have come to your place, where you will be the gracious host.
Whatever your plans, Thanksgiving should be a time of gratitude and appreciation, offering a wonderful opportunity to reflect on the treasures within the sanctuary of our homes and the people who inhabit them, ruminating on things you are thankful for.
Wherever you are and whatever your role, the kitchen is always a bustling hub during this festive season and holds an abundance of reasons to be thankful. It’s where the aromas of childhood family recipes waft through the air, promising a delectable feast and a weekend of leftovers. The communal act of preparing meals together can foster bonds that remind us of the importance of laughter and togetherness.
Within the walls of our homes lie spaces of relaxation and repose. The warmth of a cozy fireplace crackling softly, casting a gentle glow upon the walls, invokes a sense of comfort. It’s a haven that shields us from the briskness of the outside world and encourages moments of reflection.
The soft embrace of a well-worn armchair or the inviting ambiance of a comfy sofa offer respite from the demands of the day. These items are more than just furniture; they become the cocoons where we can decompress and rejuvenate our spirits.
The belongings in your home, according to Marie Kondo, should spark joy. There may be a family heirloom passed down through generations, a gift from a special someone, or a shelf lined with well-worn and oft-read books that transport us to different worlds. These items, each holding a story or a memory, add richness and depth to the tapestry of our lives and the personality of our homes.
Outside, the surroundings also contribute to a sense of pride and accomplishment. The beauty of a well-tended garden, the soothing rustle of leaves in the wind, or the sight of a breathtaking sunset from the porch remind us of nature’s glory. These outdoor spaces offer a retreat, a canvas for moments of quiet contemplation and appreciation for the world around us.
For those embracing a full house during the holidays, ingenuity transforms shared spaces into impromptu sleeping quarters. Nooks and alcoves are repurposed, made comfortable with privacy screens or curtains, ensuring a sense of personal space in otherwise communal areas.
Pull-out sofas in the living room transform seamlessly into slumber zones, outfitted with pillows and extra blankets. Air mattresses can turn any available space—a study, a home office, or even a cleared-out corner—into a peaceful resting place. The hidden Murphy bed has also resurfaced as a viable alternative and, if you’re really crowded, consider a hotel or Airbnb – for yourself or for your guests.
The essence of hospitality lies not only in the physical comforts but also in the graciousness of hosts. A warm welcome and attentiveness to guests’ needs contribute to the overall experience that transcends mere sleeping arrangements, creating an atmosphere of connection and camaraderie.
Beyond the confines of the designated sleeping quarters, the true magic of hosting overnight guests during the holidays lies in the shared moments, the spirit of togetherness, and often, the ability to hold one’s tongue during uncomfortable conversations. Instead, laughter echoing through the halls, late-night chats by the fireside, and the joy of being together should evoke the true essence of the season.
Whether you live in an apartment, a condo, a house, or are meeting in another location, it is family, friends, and neighbors who fill our lives with love, support, and companionship. Their reminiscences and shared experiences enrich our lives and make our homes not just a series of rooms, but places to forge new memories.
So, what are you thankful for? Me, I’m grateful that I have a roof over my head and healthy food to eat when others have none. I am thankful to have helped many clients find housing amid the neighborhoods of the DMV. I am delighted to have beloved pets to keep my spirits up.
But most of all, I’m thrilled that I don’t have to cook.
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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