Real Estate
Is cash always king?
How to stay competitive in the face of all-cash offers
One of the frequently asked questions I get as a real estate agent serving the DC Metro area and Delaware beaches is: How can I be competitive in a market that is seeing an increase in all-cash offers?
I get it, the real estate market is super competitive, but it’s not just because of the low inventory, it’s also because of the cash offers sellers are seeing.
Money is money right? Why would a seller be inclined to take a lower all-cash offer versus a higher offer with a mortgage. Let’s break it down a bit.
An all-cash offer usually comes with very limited contingencies in addition to the more important piece, which is the timing. A cash sale can close in less than a week whereas a sale with a conventional mortgage can usually only be expedited to a 21-day close. Don’t lose hope! There are still a few ways you can have a competitive edge over cash offers with a few steps your agent can advise you through:
OFFER CASH – THEN ACQUIRE FINANCING: If the stars align and you are purchasing a home that the sellers currently reside in, you can expect that they will need some time to gather their items and move — they also have to gather their great great grandmother’s wedding dress and Uncle Fester’s golf clubs that they just HAVE to keep. This will allow you time to go the conventional mortgage route. Please note that this is a very detailed alteration and it is recommended fully that you speak with your real estate agent prior to doing this to ensure that you are fully educated with the pros and cons of this method and what is at risk. The biggest item to highlight is that a mortgage comes with the infamous appraisal. The appeal of an all-cash offer is that there is no appraisal. With a mortgage an appraisal is required. If the appraisal comes in low, you will need to be ready to come to the table with the difference in appraised value – in cash. For example: Appraised value is $100,000 and you are under contract for $200,000 – that is a delta of $100,000, which you will need to come up with in cash in order to continue with the transaction, separate from any other monies you have already placed down.
OFFER $$$ OVER LOW APPRAISAL: Following up on the appraisal aspect here – you can write a contract with financing in place from the onset and provide an addendum that you will pay the difference in low appraisal (referencing the example above) or you can offer an alternative that would be to pay up to XX over a low appraisal. In this example of paying a dollar amount over a low appraisal, you write into the contract that you are going to offer $50,000 over the appraisal if it is a low appraisal. So if the contract price is $150,000 and you offer to pay $25,000 over a low appraisal value and the property is valued with appraisal at $125k then you would have to pay a total of $150k for the home and that $25k difference would, again, need to be in cash. This allows a bit of leverage with lower cash amounts on hand – but again similar to the example of acquiring financing above, the sellers must allow for the timing of a mortgage application process to occur.
GIFTS FROM FAMILY: What is family for if it isn’t for providing you large sums of cash!? In all seriousness – this is a fully accepted method of cash funds. You will want to speak to a financial planner/tax individual to fully understand tax implications for both parties (giftor and giftee) to fully understand what this means, but there is always the ability to be gifted funds from parents, aunts, uncles etc., to ensure that you are liquid and can purchase the property of your dreams.
OFFER “RENT BACK” TO SELLERS: Following the guise that the sellers must find a property to purchase or perhaps they are moving across the country and need a month or two in order to get their affairs in order. This allows you to provide a “rent back” to the sellers and basically become their landlord. In this scenario you would typically charge them rent, which would be equal to your carrying costs for your home expenses. For the purposes of being competitive in this market, you can offer a “rent FREE rent back” where you afford them the ability to sell the home to you and they still reside in the home for an established time post closing at no cost to them. This sounds silly — why would you let someone stay in your new home rent free for two months when that means that you are paying for your mortgage and other expenses in addition to rent for an apartment or maybe shacking up with mom and dad again?
It’s important to remember that in order to get a property in this market there is the need to think creatively if you don’t have all the cash in the world — you can still be VERY competitive.
Justin Noble is a Realtor with Sotheby’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.
Real Estate
‘Culture eats strategy for breakfast’
Real estate agents must adapt, learn how to manage from within
“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].
Real Estate
Does Pride decor resemble Trump’s design aesthetic?
Glitter, gold, and rejecting the idea that a home should be understated
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.
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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