There are several sayings that I keep in my “Realtor tool kit,” aside from those catty, snarky comments, I hold two true and use them on a daily basis: “Date the rate – marry the home” and “You’re paying a 100% interest rate when you rent.”

It’s pretty simple. As we have seen rates fluctuate as much as some of our waistlines — mine included. Let’s look at the housing market in terms that we all know and understand: DATING! 

It’s important to realize that we are NOT marrying the interest rate we purchase our home with, instead we are merely dating — for however long or short it may be. Here in D.C. it’s often short; can I get an amen? But in all seriousness, we see rates come and go up and down. We were spoiled with the unsustainably low rates for the past several years below 4% and now that rates are, frankly, where they should be, we are claiming the victim role. Today is still a great time to buy. The rates we are seeing today are still historically low when you think about it. We are lucky to live in an area such as the D.C. metro where demand is always strong and a change in party means more than a recession in regards to the housing market. Rates have continued to drop in the past few weeks. 

Aside from the current rate that you are paying, it’s important to realize that you are marrying the house and just simply dating the rate. You can refinance your interest rate whenever you want. Trade that baby in for a new model with a lower rate. You are, however, married to the home that you decide to purchase. If you are currently in the market and see a home that you absolutely love — or in my case is like 80% okay because we all know that you are the arm candy here and hold up the relationship — or I mean the house has a dishwasher and central AC, then buy it. You can always refinance later to a lower rate.

Looking at the second saying in my bedazzled sparkling Realtor tool kit we have the saying “You’re paying a 100% interest rate when you rent,” which is for sure factual. You are paying someone else’s mortgage and as such that interest rate is 100%. Don’t get me wrong, when I first moved to D.C. from quaint Bethany Beach, Del., I rented as I was unsure of what neighborhood I wanted to call home. But once I got my bearings I stopped paying 100% interest and helping pad the landlord’s pockets and started living for myself, my future, and married the house. I would encourage everyone that is reading this and who is currently in a rental to speak to a mortgage broker – see what you can afford and if it makes sense for you to buy — I bet it will. In most cases, it is less expensive to buy than it is to rent in cities, including in D.C. Not only is it less expensive, but there are several grant and down payment assistance programs available to district residents to help with making homeownership a reality for you.

Start living for yourself, not your landlord, and always remember to date the rate and marry the home.

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.

After being on fire for the last couple of years, the housing market across the United States is finally starting to cool down. Various reports over the course of recent weeks have shown that record price growth and sales activity are finally starting to taper off. The long-range outlook throughout the end of 2022 and into 2023 is that the housing market will continue to cool down, at least slightly, from its current state.

It’s not entirely unexpected – after all, exponential growth can’t continue forever. Even so, any shift in current conditions can be slightly unsettling, and whether you’re a buyer or a seller, it can bring peace of mind to feel prepared and know how best to react when the market changes to maximize the chances of reaching your real estate goals.

So the question is: How do you prepare and maximize your potential? Let’s take a look at a few tips together.

TIPS FOR BUYERS

Be budget conscious: As a buyer, it is always a wise decision to decide on your budget and stick with it. Particularly with interest rates on the rise and home prices still generally higher than ever before, although trending downward slightly, it is easy to get carried away and decide to exceed the budget you planned on. Particularly over the last couple of years, scarcity in the market has led buyers to feel a sense of urgency about buying a home immediately, exceeding their budget, or paying over asking price. As the market begins to cool down, buyers should realize that they have some breathing room and that the right home will come along and is worth waiting for.

Finalize your finances: Be certain you have your financing secured and preapproved prior to making an offer. While not mandatory, this step can certainly give buyers an advantage in any market. Really think through your wants and desires in a house and what you can afford, and then seek a preapproval. Getting preapproved allows you to show a seller that you will be able to follow through with the deal if they accept your offer, and that offers peace of mind and assurance that many sellers find appealing.

Find an agent you trust: The importance of this step cannot be overstated. An agent who knows and loves the community that you’re interested in will be familiar with the market there. They will be able to advise you as to the trends in the area and whether the offer you are making is competitive, but not over and above what you should be spending on a particular home, particularly as the market calms down. They will also be able to help guide you toward a variety of homes that are within your budget, and truly fit your needs and desires.

ADVICE FOR SELLERS

Price your home competitively: As a seller, it is important to realize that as the market begins to cool down slightly, you will want to keep your home priced competitively. It can be tempting to ask for as much as possible and hope that you’ll receive it, but you may risk leaving your home on the market too long because it is priced too high, which can make some buyers wary. Consulting with an agent who knows your community well and can help you price your home competitively. Doing so can make a significant difference between a quick and successful selling experience and a stressful one.

Don’t forget curb appeal: Not all homes need major renovations, nor can all sellers afford them, and that’s okay. A little bit of hard work and sweat goes a long way. Clean up, declutter, and try to present your house in the best possible light. Presentation is important and can be a deciding factor in getting that  offer that you truly want.

Choose the right agent: In any real estate transaction, finding the right agent can make all the difference. Especially as markets begin to shift, cool off, and change, you will need an agent on your side who can help you price your home competitively, market it effectively, and generally work with you to achieve your real estate goals.

Ultimately the good news is that whether a buyer or a seller, and whether a hot market or one that is cooling down slightly, achieving your real estate dreams is possible and well within your reach. 

(At GayRealEstate.com, it’s our mission and our passion to connect LGBTQ buyers and sellers across the country with talented, and experienced LGBTQ-friendly realtors who know and love their communities. We know that having the right agent can make all the difference in the real estate process – and we believe you deserve the very best. If we can help you with any of your real estate needs, we’re ready to connect with you today and get started.) 

Jeff Hammerberg is founding CEO of Hammerberg & Associates, Inc. Reach him at 303-378-5526 or [email protected]. 

Should you buy a house despite higher interest rates? Well, that depends on where you want to put your money. 

If you are paying rent, let’s say even $2,000 a month, that comes out to be about $24,000 for an entire year. If you live in that apartment for three years and the rent doesn’t go up each year, that is $72,000. If there is a $350,000 condo for sale that you have your eye on, but the interest rate is higher, like 6%, yes, your monthly payment will be higher than it was had you locked in a 2.9% interest rate like some people did last year or the year before. But at the end of the day, do you ever get that rent check back?  

No, you don’t. Even with a higher interest rate, if you live somewhere for three or four years and then sell it, you are going to get some of that money you are paying toward your mortgage back. It’s what we call “equity.” Yes, most of your payment at first goes toward interest, but you can also get tax deductions from your mortgage payment. I have a client right now who is closing on a condo this week because he was tired of paying high rent and having nothing to show for it at the end of the day.  

If you go back to research interest rates, you will see that rates have been even higher than they are now in the past 20-30 years. Sometimes at 10%, or 12% or even higher. Rent prices seem like they are increasing too. I have helped several people find houses to rent recently and they have had to compete to get the unit and have had to sign multi-year leases to “win” the competition.  

If you have questions about home ownership, mortgages, or how to write winning offers please don’t hesitate to reach out and ask.  

Joseph Hudson is a Realtor with The Rutstein Group of Compass. Reach him at [email protected] or 703-587-0597.