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Sidelined by high interest rates?

Consider refinancing options, buying down points

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Fall means more inventory, but high interest rates are proving challenging for some buyers.

Unimpressed by the current offerings on these DMV streets? Yeah, me too. Luckily we are heading into the busy “fall market” where we are set to see an influx of new inventory hitting the market just after Labor Day. While you might still be unsure if buying in this current real estate market and with these higher interest rates really makes sense for you, I want to outline a few options that might make sense for you and make that dream of homeownership, in this current market, more attainable than you once thought.

DATE THE RATE – MARRY THE HOME

I’m sure we have all heard this by now. Everyone is saying to date the interest rate and you can always refinance. I agree with this sentiment 50% of the time. None of us knows what will happen in the future, right? Will interest rates drop lower than they are currently sitting? Sure, I think that’s a safe assumption. So if we are using that logic then if you find a home that you simply cannot live without then you should buy it and hope that interest rates drop and you can refinance that mortgage into a lower rate. With current limited inventory and higher interest rates we are seeing buyers getting some pretty good deals across all categories of homes (condo, co-op, townhome etc.) and so it still might make sense to buy a home now. Also, your motivation to move out of your friend’s basement or a roommate situation might be the driving factor.

ADJUST YOUR MINDSET

If you are dead set on buying a home right now, I get it. I am an Aries and I want things done NOW. That being said – there is a great option for making the current interest rates a bit more bearable. Adjustable rates are a great way to save in the short term. The way that adjustable rate mortgages work is that you are basically locked into a lower interest rate for a specifically set amount of time and then once that time passes your rate is adjusted to the current market or whatever your terms are set to increase by. Adjustable rate mortgages get a bad rep because of what happened in the last market crash. The loans that were being handed out back in 2007 were what’s called “no-doc loans” meaning that basically mortgage companies were not asking for documentation and would lend money out to everyone with very little verification of credit, employment, salary etc. In today’s mortgage market, the requirements to qualify for a loan are much greater and the same goes for an adjustable rate. Keep in mind that sometimes the terms of an adjustable rate loan do not make sense.

BUY POINTS

A newer method to make your mortgage more within reach is to buy down points. When it comes to your interest rate you have the ability, with most lenders, to come to the table with a specific percentage of the total loan amount, in cash, to buy down the interest of the overall loan and thus will result in a lower interest rate and lower monthly fee. This is, of course, only effective if you have that cash on hand needed to buy down the points and this would be outside of any down payment amount you have already put down on the loan. This is a costly method and sometimes depending on how long you see yourself in that home – it doesn’t always make sense.

TAKE A BEAT

Sometimes the best thing we can do in life is to just take a moment to breathe. This is also helpful in the real estate market, although I never do. Anyway, if you are just super stressed about home buying after writing a few offers and being beat out or if you just can’t wrap your head around the expense of these interest rates, then take some time and regroup. During this regroup you can make a few changes to your finances that will help you in the long run with your borrowing power and overall mortgage health.

Credit: your credit worthiness does affect your mortgage interest rate. Work on your credit score to help with your mortgage outlook and you will notice a change in your interest rate. It is pretty easy to work on improving your credit through healthy bill paying and spending. There are a few groups that can help with this, outside of your day-to-day healthy credit habits, but I always recommend speaking with a lender to help navigate you in the right direction.

Debt: pay off those student loans. Your borrowing power is surrounded by your debt to income ratio. Pay off loans that you have entirely or as close as possible. Just be aggressive with them. This will help you with the amount you can borrow in addition to your overall “image” when a lender looks at your file. While you are sitting on the bench waiting for more inventory or for the interest rates to drop – make smart decisions to buy down debt that you are currently carrying around.

As I mentioned before, economists’ predictions show that interest rates are sure to drop due to our current level of inflation being in a better place. It is likely that rates will drop, however no one has a crystal ball. The few tips listed above put the power in your hands and the ability to control what option makes the most sense for you in your home buying journey. Buying down points or adjustable rate mortgages are sometimes great options for some home buyers. Looking inward and working on your credit worthiness and debt are also great ideas for those that are not willing to subscribe to the refinance option or an adjustable rate mentality where the risk is too high. Home ownership is truly possible and when you have a toolkit outfitted with the right mortgage lender and realtor to help guide you through the process – it really is seamless.

(I am not a mortgage broker and do not claim to be.)

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.

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Real Estate

When buying a home, it’s decisions, decisions, decisions

Keeping notes on the process makes for an informed purchase

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If you’re buying a home, take careful notes throughout the process. (Photo by Andy Dean Photography/Bigstock)

When looking to buy a home, there are lots of details to consider. Many of my clients would come to me and say, “Joe I want to buy a place, but I haven’t decided which neighborhood to buy in.” And the struggle was real. A few clients had everything decided from the color of the hallway walls to the cabinet handles and sometimes which three square blocks they wanted to look at. 

But other clients were occasionally looking at properties in areas as distinct as Union Market/NOMA, Brookland, Logan Circle, and then we would even go across the river to look at a property in Shirlington or the Van Dorn areas of Virginia, which all have their own unique flavor and characteristics.

Sometimes clients would tell me, “I only want to look in Mount Pleasant or Adams Morgan.” Or, “don’t even show me any properties west of this street or south of that street.” My job wasn’t to convince people where to live. It was to just take the parameters they set for me and find as good of a property in that zone as I could, coordinate the showings and, if necessary, offer the strategy.  

One can see that buyers often had more decisions to make than a seller. From a seller’s perspective, the house was where it was, and we just had to make the best of it. But working with a buyer could mean looking at five different neighborhoods, and then being a “thought partner” to help them figure out which were the top two or three areas they had seen, and then further distilling those down into what was available and weighing those options against each other. 

One house could have the dream bathroom but also be located six blocks further from a Metro stop, walkable shopping and dining, and “just too far away from my friends.” Another house could have all the neighborhood options a client was looking for, but was just not in turnkey condition, and would require an additional $30,000 of upgrades once purchased to make it into the dream home they envisioned.  

One activity I often asked buyers to do was to keep an active list in their heads of the properties they liked, and to keep a running rank of the top three. I often encouraged them to bring a notebook along on the journey where they could take notes and write down questions they thought of as they looked. It was an important decision, and sometimes the largest purchase of their lives. Why not take it a little seriously, and take notes? This could often help the buyer later when they felt it was time to decide.  

The point here is, keeping a notebook handy can sometimes help a person with what feels like an overwhelming process. It provides a space to explore how one feels, jot down important details to remember, and then use that to make an informed decision.  


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

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Under-the-radar Delaware beach towns smart buyers are targeting

There are other options if Rehoboth prices are scaring you off

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If you want to escape the crowds and nightlife scene of Rehoboth Beach, Sussex County offers plenty of options. (Blade file photo by Daniel Truitt)

Look, we love Rehoboth. We will always love Rehoboth. Queer folks have been flocking there since the 1940s, and with scores of LGBTQ-owned businesses and a Pride calendar packed tighter than the boardwalk in July, “Rehomo” earned its crown fair and square.

But let’s be honest with each other: trying to buy property there right now feels a lot like trying to get a reservation at the one good restaurant in town on a Saturday in August. Everyone wants in, inventory is tighter than your swim trunks after Labor Day brunch, and the prices have officially entered “are you kidding me” territory.

So here’s a thought: What if you didn’t fight the crowd? What if, instead, you let Rehoboth keep doing its glorious, chaotic, glitter-bomb thing and you quietly built your beach life 15 minutes away for considerably less drama and considerably more square footage? Here are four towns ready for their close-up.

Lewes: The Charming Overachiever

Lewes is what happens when a beach town actually has its life together. Historic charm, walkability, proximity to Cape Henlopen State Park, less crowding, and a strong year-round community. Unlike towns that turn into ghost towns after Labor Day, Lewes maintains a real community all year long, which is more than we can say for some situationships.

And right now, the market is practically begging you to make a move. It’s one of the most desirable and stable markets in the county — built for buyers thinking long-term, not flippers, and Sussex County overall has flipped into genuine buyer’s market territory for the first time in years. Translation: you finally get to be the one with leverage. 

Bethany Beach: My Personal Pick

Full disclosure: I own in Bethany. So consider this section a little biased — and also the most honest thing I’ll tell you in this whole article.

When I drive down from D.C., I’m not looking for more of D.C. I love this city, but I also love leaving it — and yes, some of the people in it too (you know who you are, and so do I). Bethany gives me that full exhale. It’s quiet in the way that actually means something: fewer crowds, slower mornings, a soundtrack that’s mostly waves instead of nightlife. It leans hard into its “quiet resort” reputation, with low property taxes and a limited geographic footprint, and it is not the least bit sorry about it. 

But quiet doesn’t mean isolated. I’ve got a genuinely excellent food scene nearby, real shopping, and a string of charming neighboring beach towns — and when I do want a taste of Rehoboth’s energy, it’s a short, easy drive away. I get to choose my dose of chaos instead of living inside it.

And here’s the part that matters most for this article: the price. If you’ve looked at Rehoboth listings and quietly closed the tab in despair, I need you to hear this — you can absolutely afford a beach house. It just doesn’t have to be in Rehoboth. Bethany’s average home value sits around $848,592, which is still real money, no question — but it buys you more house, more land, and more peace than the same budget gets you closer to the boardwalk. Bethany is welcoming too, just without Rehoboth’s decades of built-in queer institutional history — and for plenty of us, that trade-off is more than worth it. 

Fenwick Island: Small Town, Big Flex

Fenwick rarely gets mentioned and, frankly, it should be insulted. It’s tiny, it’s quiet, and it has beach access without the carnival energy. The market data tends to lump it in with Bethany, where single-family oceanfront homes clear $1 million while entry-level condos start in the $600s — proof that “under-the-radar” doesn’t mean “bargain bin,” it means “fewer people fighting you for it.” 

South Bethany: For the Boat Gays

Some of us want sand between our toes. Others want a private dock and a boat named something deeply unserious. South Bethany’s canal communities are built for the latter — water access on both sides, fewer crowds, and a lifestyle that says, “I have a captain’s hat and I am not afraid to wear it.”

The Math Works in Your Favor Now

Here’s the part that should really get your attention: Sussex County’s median sold price has dropped to $440,000, down 3.3% year-over-year, and buyers are routinely closing around 88 cents on the dollar compared to asking price. That’s a far cry from the unhinged bidding wars of 2021 and 2022, when overpaying was basically a competitive sport. Inventory across the county sits at nearly 2,500 active listings — the most of any county in Delaware, meaning you actually get to be picky for once. Revolutionary, we know. 

And no, choosing one of these towns doesn’t mean leaving your people behind. Sussex Pride serves the entire county, not just Rehoboth proper, and CAMP Rehoboth’s resources extend well beyond town limits too. You’re not exiling yourself to the suburbs of queerness — you’re just getting a bigger kitchen, a quieter porch, and a much shorter line for the bathroom. 

Add in the fact that Delaware has no estate tax and some of the lowest property taxes around, savings that genuinely add up over a retirement horizon, and the case writes itself. Rehoboth will always be the beating, sequined heart of queer beach culture in Delaware. But if you’ve been telling yourself a beach house isn’t in the cards — I’m here to tell you it absolutely is. It just might be 15 minutes south, with your own quiet porch, your own salt air, and considerably more room to breathe. 

Have a real estate question or Rehoboth market tip? Reach out to [email protected] for LGBTQ-friendly real estate resources in the Rehoboth area.


Justin Noble is a Realtor licensed in D.C., Maryland, and Delaware with Monument Sotheby’s International Realty. Reach him at [email protected] or 302-897-7499.

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‘Culture eats strategy for breakfast’

Real estate agents must adapt, learn how to manage from within

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A real estate agent is contractually bound to act on their client’s behalf. (Photo by Andy Dean Photography/Bigstock)

“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].

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