Government Shutdown Took Real Estate on a Wild Ride

You know what question I’ve heard nonstop lately? “So… how’s real estate holding up for you?” Whether it’s a Republican in office, layoffs or the shutdown, we hear this a lot. And considering the government is the largest employer in the entire DC metro – nearly one in four local workers – the market is probably in freefall right now, right? Well…there are some twists here.

So, is the government shutdown tanking the DC housing market? If you’re a visual person, I’ve made a chart to better explain things.

The short answer is “it depends, but mostly no.” People are surprised by this. Let’s talk about why the answer is no. And this isn’t just me saying that things aren’t crashing because this is how I make my living. I have multiple sources I am going to cite here. The main takeaway is going to be this – DC is RESILIENT. Watch this.

The ground zero of where we gather our information is from the big daddy of them all – Bright MLS. This is where 98% of all listings are posted. It is what we as Real Estate Agents use to find homes for our buyer clients and where homes are listed for sale for our sellers. It is also what you, as consumers, view. But you get this information via a portal like Zillow or Redfin because there is no direct consumer access to MLS.

How are DC Area Buyers and Sellers Reacting to the Shutdown?

We’ll cover the topside stats first, which includes the entire region. New listings for the past month (October 2025) are up 6.3% over last year for the same time period. Zooming in to the weeks, new listings are down almost 15% over last week. Some of this is to be expected though as shifts this time of year are highly dependent on weather and how close we are to the holidays. I’m advising my seller clients to hold tight if they can, and we’ll list in the new year. Why? There’s no new-news here. It’s the same reason year after year. Demand naturally wanes by late fall. You can list a house now and struggle to get one decent offer or you can wait until January when a flood of buyers naturally come back into the market. 

As of the last week of October, pending contracts are up 6.2% in the DC Area over last year. Last year, we had a different President, there were no teenage DOGE disciples using a magic wand to decide the fate of thousands of government employees, and there was no government shutdown. Consumer sentiment was better a year ago. But here we are, with pending contracts up 6.2%. 

Urban Turf, a local e-news publication that reports on real estate, summed up the Bright MLS data for the housing market like this: It’s “cracking, but not fractured.” 

Prices have held steady, even in areas that typically feel pressure first. Those areas are ones that are usually more geared to first-time buyers because of price point. But there is still pent-up demand. The buyer activity indicates that lower mortgage rates, more homes for sale and finally some room for negotiation have brought some off the sidelines. I have several buyers right now who are not affected by the shutdown. They are using this opportunity to secure a contract with terms more favorable to them than they would have been able to achieve in the past.

Is the Government Shutdown Killing the DC Real Estate Market?

I’ve been talking regionally so far, but this is a tale of two markets. Let’s look at each specific area – DC, Maryland or Virginia. DC is first.

Right now, inside the city limits, the market is very slow. The city seems to be affected by many factors. Bright MLS cites more recent events like the National Guard Presence in August 2025 and the government shutdown in October, 2025 as prime factors affecting the market in the city. The truth is, the city has been struggling since Covid. That was the first strike when people decided they wanted more space and yards and thought remote-work was here to stay. 

But it didn’t end there. No, there was a parade of events that happened that landed us where we are now.

By 2023, people were not moving back into DC. And if they HAD thought about it, they quickly un-thought about it. The homicide and carjacking numbers skyrocketed – hitting all-time highs. At the end of 2024, Trump was re-elected. Then in January came DOGE layoffs, summer brought us the National Guard and October brought a shutdown. 

PEOPLE HOW MUCH MORE CAN WE TAKE? I’ll be 100% honest with you though, as I always am. Today shall be no different.

1) I don’t care what anyone says, we needed the National Guard. Yes, there was outrage. There were protests. There was a lot of complaining that we need to be able to govern ourselves. I do not disagree, in theory. But, when you have 10 -15 year old car jackers who are stealing cars by gunpoint, joyriding, then totaling them, and get a slap on the wrist, we needed help.

2) The National Guard were not deployed around the city though, in a meaningful way. August 29 from ABC: “SE DC Residents Question Federal Troop Deployment as Violence Persists in Wards 7 & 8.”

Quick lesson on Wards. DC has 8 Wards. Wards 1-6 are on the west side of the Anacostia River. Wards 7 & 8 are east of the river. East of the Anacostia homes are priced significantly lower than the rest of the DC. This area has suffered with more crime compared to the other wards, though there are some exceptions. Wards 7 & 8 have some really great, leafy, suburban feeling neighborhoods – some with fantastic city views and little crime. Then, west of the river – Columbia Heights is in Ward 1 is one of the highest crime areas in the entire city. This isn’t me spouting nonsense. We have DC Crime Maps. You can look them up. I even did a whole video on how to navigate our Crime Maps.

In DC, new purchase contracts are down 12% compared to last year and showing appointments are down almost 15%. 

What’s the Government Shutdown Doing to Maryland and Virginia Real Estate Markets

Northern Virginia Buyers are still showing up. Showings are up 6-7% in Arlington, Alexandria and Fairfax County.

Buyers are still out. They’re still writing offers. And yes, they’re still competing – especially for anything remotely move-in ready or in a prime location. Shutdown or not, people still need homes. Babies are still being born. Families are relocating. Jobs are still transferring people into this market. And we’re still short on inventory.

I’m not in the $3M+ “luxury” market, but the agents in my company who are universally report that there’s no change there. Things are still moving at the same pace as they have in the past. That’s to be expected though, right? Those are people usually in the private sector, not in government or government contracting positions.

I’m working with several buyers in Maryland right now. When it comes to new construction, things are selling slower. Builder incentives run the gamut, and it’s ultra-important to price everything out because of what I call the “Builder Shuffle.” They offer this awesome sounding credit of $20,000 or $30,000. But what they don’t tell you is they aren’t paying any closing costs. You as the buyer are paying all of it. And you have to use their lender to get that money. And their lender is exorbitantly expensive, so they find ways to recover that money anyway. 

Right now, I’m really cautioning people against new builds. Not all builders are created equal. I’m seeing that the builders who have land development in-house have better pricing than those who buy finished lots from developers. It’s a weird disparity for sure. The builders are also reporting foot traffic is down, so watch for added incentives there.

In the Maryland resale market, about half of what I see with clients has a contract within the week. In Virginia, things aren’t lasting long enough to go see them. 

When I work with sellers, right now I am telling them if selling is the most important issue, then they have to price aggressively so they don’t sit on the market. With buyers, I am encouraging them to enjoy the time to take a breath and think overnight instead of making quick decisions – but don’t think for too long because there are enough other buyers out there who can snap it up.

Why Isn’t the DC Area Real Estate Market Crashing?

Resilience! The DC metro market is one of the most resilient in the country.
Federal instability? We live with it. It’s baked into our market cycle like humidity in August.

What really drives our market isn’t fear, it’s fundamentals:

• Limited housing inventory
  
• High demand in desirable neighborhoods
  
• Strong school systems
  
• Walkability, commute times, and quality of life

And when people find the right house?
They’re not putting the brakes on because of congressional drama. There are a lot of smart people here and they know that this too, shall pass. 

We’ve seen shutdowns before. This isn’t our first rodeo. This is, however, the longest one we’ve seen. Yes, there’s anxiety in the air – especially in a region like DC, where a quarter of  jobs are tied to the federal government. But right now, the data is showing a dip in pace, not a plunge in prices. So here’s my advice whether you’re buying or selling.

Buyers:
Don’t let headlines distract you from a solid opportunity. It might be your window to get into a neighborhood that’s normally hyper-competitive. I’m looking at you, Bethesda, Maryland.

Sellers:
Don’t panic. Yes, pricing matters more right now than anything else, but so does condition. Buyers are cautious but not gone. If your home is staged, well-priced, and in good shape, you will get activity.

And if it’s not? That’s a strategy conversation we need to have.

Condo Financing

You found the perfect condo. The finishes are great, the location is ideal, and the price is surprisingly reasonable. For the past few years, buying condos has been a bit easier as there is more for sale and less demand. But wait – can you actually get financing for it? That’s the million-dollar question. Thanks to Fannie Mae and Freddie Mac, the answer might be: not anymore. What happens if the condo you want to buy isn’t eligible for financing and what do you need to know before you get your heart set on a new home?

I’m Melissa Terzis, DC Real Estate Mama and I’ve been in DC Area Real Estate since 2001. I help people like you buy and sell homes throughout DC Maryland and Virginia so shoot me a message if you want to chat.

After the Surfside collapse, Fannie Mae and Freddie Mac started reviewing guidelines for how they assess the risk of a condo building. These guidelines are constantly being reviewed to ensure lending in these condo buildings and communities is as secure an investment as possible. If the building collapses, the master insurance policy is what determines the rebuilding process. Right now, things are getting stricter, particularly with insurance requirements. 

These aren’t minor tweaks being instituted. These are sweeping changes to underwriting guidelines—some experts think 30–40% of condo buildings might not qualify under the new rules.

And the timing? Impeccable, as always. Between rising insurance costs and lingering post-pandemic repair delays, this is hitting condo communities hard. Just when the condo market was recovering in some areas too. Locally in the DC Area, condos have had a burst of traffic the past few months.

What are the Fannie Mae & Freddie Mac Changes for Underwriting Condos

1. Replacement Cost Requirement
Insurance policies must now cover 100% of the cost to rebuild – not just the depreciated value. You know how insurance used to say, “That 20-year-old roof? Yeah, it’s worth about $50”? That’s done. Full replacement value or bust. The lender has to provide documentation on how the replacement value was calculated.

2. Required Perils Are Now Standardized
Think fire, smoke, wind, water damage—those kinds of things. And no, buyers can’t just tack on a separate policy anymore. These risks must be included in the master policy, regardless of location. Last year I bought a condo in Florida. For some reason there was no wind insurance in the master policy insurance. My mortgage company came back and said, “You need wind coverage.” You know what insurance companies in Florida don’t want to cover? Wind. The mortgage company assigned a policy to me. Uh…thanks?

3. Deductibles Must Be Reasonable
Policies with more than a 5% deductible of replacement cost raise an automatic red flag.

4. Inflation Guard Clause
Insurance policies must include inflation protection on reconstruction costs. Because lumber prices don’t exactly stay the same year to year. My DC Condo Association recently learned that the master insurance policy replacement value hadn’t been updated since the building was built. In 1981. So had something happened to the building, the policy would rebuild. But everyone would end up getting carpeted floors and low-grade cabinets because the policy didn’t account for upgrades or inflation.

5. Waiver of Subrogation
In plain English? If the roof leaks and damages a unit, the insurance company can’t turn around and sue the owner. The master policy has to waive that right.

What’s Happening With Condos Now?

One of my go-to lenders, Kari Sansom at Atlantic Union Bank, shared what she is are seeing locally in the DC Area. She’s awesome so I’m going to share her contact info: 

Kari Sansom
Kari.Sansom@atlanticunionbank.com
(301) 767-6354

Insurance:
Many condo buildings are underinsured. Their current policies only pay out depreciated values—because hey, cheaper premiums, right? But that’s not going to cut it anymore. And most condo boards don’t even know this is an issue. As they learn of the changes, premiums are going to increase so that the insurance can cover what’s needed.

Deferred Maintenance:
New inspection requirements mean more eyes on the building. And those eyes always find something. If it’s structural or a safety concern, forget financing until it’s fixed.

Litigation:
If the building is in the middle of a lawsuit, that’s another strike.

Other common disqualifiers:
Too much commercial space, one owner holding too many units, high condo fee delinquencies—these are all reasons a lender might say: “Hard pass.”

If a condominium isn’t eligible for Fannie / Freddie financing, then they need to pursue the change to insurance with the condo board and management. If not, alternate financing paths – FHA or VA, or non-qualified lenders are options. But the mortgage rates are usually 1-2% higher, and FHA and VA are going to be more restrictive than conventional financing.

What Does this Mean For You?

If you’re a buyer, understand this: it’s not about you. It’s about whether the building qualifies. That’s frustrating, especially if you’re pre-approved and ready to go. But this is a building-level issue. Previous sales are not an indication on whether a property is eligible for financing. And this is where having a local lender is going to be a huge asset. Don’t roll into town with your mom’s credit union contact in Colorado. 

If you’re a seller, know that your buyer pool might shrink to cash buyers only. That’s going to affect pricing and marketability.

And if you’re a condo owner? Get. On. The. Board. Or at least get involved and attend meetings. I say this all the time, but now it’s critical. You need to know what coverage your building has and push for changes if necessary. Your ability to sell—or refinance—may depend on it.

These aren’t necessarily bad changes. You want your condo building to be structurally sound, financially solvent and adequately protected. Get informed. Ask questions. And work with the right Realtor and Lender who are asking questions for you, before you get your heart set on something that may fall apart.

Buying a House in DC

If you are planning on buying a house in DC, should you believe the headlines or are they all hype?  We are just more than halfway through one of the most tumultuous real estate years we have seen since Covid. Why, despite the headlines and the mortgage rates, is owning property still one of the smartest long-term moves you can make? You’re going to learn why today once I tell you about the one real estate mistake I made.

I want to repeat a word I said in the introduction. Long-Term. Above anything else, this is how you should always think of real estate, and especially if you are buying a house in DC.

Inventory is still tight Northern Virginia and Maryland, especially for move-in ready homes with great schools in walkable neighborhoods. Buyers are circling. They are waiting. They are watching. They are moving slower because rates are hovering in the mid-6s to low-7s, and people are cautious.

Some homes listed for sale are sitting while others get snapped up in days. Every single agent I have spoken to has said the same thing. If they got multiple offers, they are feeling very lucky. If they have a listing that’s not selling, they can point to a perfect comparable across the street or around the corner that just sold for more money. It’s a weird, patchy market right now. 

So, what does this mean for you and your home search? Is buying a house in DC, Maryland or Virginia a good idea or not?

Before we jump into that, I’m not going to make you wait to hear what this big mistake I made was. Yes, I have made mistakes. My real estate intuition is excellent, but it’s been honed over many years of doing this. 

I bought my first home in a balanced market, and I sold it in a market that was heating up but wasn’t near peak yet. I received multiple offers and got over list price. A few years later, I found myself buying a house in DC for list price in a crazy multiple offer market, and I still own that home. The real estate market then hit the 2008 bubble, and because I was working in the homebuilding industry, I suspected this was going to happen. I had been saving my money. The market was terrible, and off I went to buy a newly built home in a second-home-market, near the beach.

I loved it, but it was in a planned community. There was a lot of drama with the people who lived there, the developer who built the homes and the town.  The house was about 15 minutes from the beach, but that drive turned to 45 minutes during the summers when all the tourists came to town. Several years later, it got old once the girls were born. We would sit in traffic to get to the beach, then turn around and the girls would be fast asleep. 

After a few years, I thought, “We never come out here anymore, it’s time to sell it.”

My carrying costs on this house were very low, but I didn’t think it was a house that would get a decent long-term renter. I wasn’t interested in being a landlord. It became a drag to maintain so I listed it for sale and within a few weeks I had a contract. House was sold. I made some money, not a lot but I made some money.

A couple years later when Covid hit, I was like darn it, I miss that house. That would have been a good place to camp out. A couple years after Covid, the people I sold it to ended up selling it. For twice what they paid when they bought it from me. I about fell out of my chair. I never would have predicted that would happen, and I still don’t get it. They got lucky, because none of the other homes have sold for that much. But, the development wave finally hit that town, some of people who made it not so great ended up leaving, new people moved in and prices started skyrocketing. 

I never should have sold that house. My insecurity about it came from the fact that I always questioned if it was a good deal when I bought it, in 2008. The market was terrible, and second-home markets do not move with any predictability or regularity. It can take 5x as long for second home markets to rebound when there’s a crash. It was eight years with very little increase in value. But then it took off, and doubled in five years.

I wasn’t wrong for buying in a depressed market. That was the good decision. But I stopped trusting my decision when it took extra-long to feel like a good investment. I know two things now. First, I know how to make more calculated investments. The infrastructure must be there. Houses must be in desirable areas with desirable features and not have any fatal flaws. Since I sold that house, I have purchased one home a year and I won’t be selling any of them – ever.  

Second, I know that buying in a down-market or at unpredictable times is always worth it. Why? Because unless something catastrophic happens, house prices always go up. 

Oh and hello! We’re perceivably in a down-market right now depending on who you ask. Buyer sentiment is down even though some areas are still selling. Many areas in Northern Virginia are still seeing multiple offers – yes, even in the middle of summer. But other homes are sitting with no discernable reason. Like I said, it’s patchy – which is why the agents I have spoken with are all baffled when their home sits without offers but one across the street in similar condition sells for $100,000 more within a few days of being listed.

There is no waiting for a unicorn market. There is no magic moment where prices drop, rates drop, and the perfect house with a yard, walkability, top-tier schools, and a kitchen that doesn’t need gutting just appears. That doesn’t exist. Right now, there are pockets of opportunity that many buyers miss, unless someone points them out. (Hi, that’s me.)

Where are the Opportunities if You are Buying a House in DC?

Inside DC is where there is the most opportunity. If you are looking to live in the city or want to pick up an investment property, now is the time. This isn’t a risky gamble. The city may not be super appealing to a lot of people right now but will this last? It’s not like we’re some small town in the middle of a huge state and the town’s only employer left.  Let’s drill down.

One of the most historically competitive DC neighborhoods has been Zip Code 20016 of which most is AU Park. The median price for the last 6 months is $1.4M which is down 18%. If you can bet on anything here, it’s that this neighborhood has a lot of DOGE casualties.  Cleveland Park’s median price down 12%, standing at $1.675M. Palisades prices are down 20%.

But here’s something super interesting. The higher the price point, the more the price increases. Kalorama’s prices are up 32%, with an average price point of $3.95M. Forest Hills prices are up 14% to almost $2.4M. Georgetown prices are up 16% to $2.35M. Spring Valley up 17% to $2.45M and Wesley Heights up 34% to $2.18M. Dupont and Logan Circles – also up almost 20% from last
year, but coming in just under $2M.

Guys. DC isn’t dead. People with money are spending money. People at the price points under $1.5 are still cautious and holding on.

Maryland is the next place where I’m seeing opportunity. Take Bethesda as an example. One of the shining stars of Montgomery County, Bethesda has rarely seen a market where homes don’t sell. Yet, there are properties sitting on the market that would have been snapped up in hours anytime in the past 15 years. In the last 90 days, the average Days-on-Market for Bethesda properties to get a contract is 21 Days. The median Days-on-Market is 8 though – meaning that half the homes sell in less than 8 days. But currently, for the actively listed homes, the mean Days-on-Market is 54! 

What happened? What’s not selling? Homes that start out overpriced. And we always have a summer slowdown, but this is hitting some homes harder than others. 

Walt Whitman High School in Bethesda is regarded as the premier high school in the county. I’ve argued that it’s not any better than the other Bethesda High Schools but that’s a conversation for another day. Just know that the perception is that Walt Whitman is the Harvard of the area, and the things people go through to buy a house in Whitman is mind-boggling.

I’ve conducted searches over the past decade for clients who had to be in Whitman. There is usually nothing for sale under $1.5M. Today? There are 80 total homes for sale in Whitman and 21 of them are under $1.5M. The average and median Days-on-Market for these homes is at 32 days.  

Here’s the good news too. Prices aren’t falling in Bethesda. They are up a very respectable 4% over last year.

While Northern Virginia has been on fire, there is a chance for opportunity is in many parts of Northern Virginia. The Days-on-Market averages on homes sold in Arlington in the last three months – median is 7 days and average is 22 days. But for the homes currently for sale? Average Days-on-Market is 90, median is 67.

Fairfax County is also at a median 7 days on market for houses closed in the last three months, and 19 days on average. Currently though, there are also homes sitting on the market the county. Median Days-on-Market is 47 for and average is 76. Fairfax County is very diverse though. Not all areas are faring as well as others. It’s important to drill down to not even the town, but the neighborhood. Again, remember what everyone is saying – patchy. 

I keep saying this but it’s worth saying again. Historically, buying a house in DC has been fraught with multiple offers and tons of competition. But, buying a home in a market where people are fearful, in an area of the country that won’t collapse, that always shows increases in market value, will always be worth it. Down-markets are rare. We’re in one. If it was ever in your plan, buying a house in DC now that you plan to hold indefinitely is a great plan. Where people get in trouble is when they plan for real estate to be a short-term investment. 

Most sellers right now are concerned and hoping for the best. If they don’t receive an offer in a couple weeks, they start to consider a price reduction. Catch that seller right before a price drop. This is when they are at their most vulnerable. Once they drop the price, the seller has a renewed confidence for the home to sell, plus, it regenerates buyer interest. Buying a house in DC has never seen this kind of opportunity!

Real estate isn’t about what a neighborhood or a market looks like right now. It’s about where it’s going. If you can hold on for the long haul, and have a bit of faith and a bit of courage, you can absolutely win by going while others hesitate.

Whether you’re upgrading or relocating, buying a house in DC is one of the most powerful tools for growing generational wealth. I don’t care what the rates are this quarter. They’ll change. But you know what doesn’t change? Land in the DC Metro. They’re not making more of it.

Buying a Home in Washington DC

“My real estate agent didn’t tell me that!” I have heard this no less than a couple dozen times. When people find out I sell real estate, they share their stories no matter where they live and where they bought property. Of course, some things may depend on what the local process is in your area as it does differ in different states. But I do know all about buying a home in Washington DC and we will talk about it today!

If you’re new here, I’m Melissa Terzis, DC Real Estate Mama, and I’m a Realtor in metro Washington DC to include Maryland and Virginia. I talk everything about moving to, living in and buying a home in DC. If you hit like and subscribe it helps the channel grow. Let’s dive in.

The Entire Buying Process – Step by Step

I spent a decade sitting on a committee that hears grievances against Real Estate Agents and then determines a course of action if a violation is found. I saw a lot of crap. But a few cases stuck out over the years. One case was a young couple who bought their first home. I can’t even go through everything that happened to them. Their complaint was against the listing agent who was also the owner of the home.

But what came out was that their agent – the buyer’s agent – was terrible, and they didn’t even realize it.

They thought it was normal for them to get a combo code and tour a house by themselves.

They thought it was normal to that the home inspection happened without them being present and they used who their agent recommended.

They thought it was normal that they were given the combo code to walk through the house on their own prior to closing. They didn’t know what to even check for – which is how they closed on a home that had no heat – in the middle of a deep winter freeze.

Buying a home in Washington DC isn’t hard. But it can be a disaster if you don’t even have a minimum understanding of the process.

If your agent doesn’t sit down and explain the buying process for you, if your agent doesn’t hold your hand through each step of the process of buying as you navigate it, if your agent isn’t on your side and in the trenches with you, something’s wrong. If all they do is take down what you’re looking for and set up an MLS search – run.

We Can’t Talk About Crime – Unless You Know What Questions to Ask

Have you ever asked a Real Estate Agent if a neighborhood is safe, and they clam up and awkwardly stammer, “We’re not allowed to discuss crime.”  It is true – Real Estate Agents are expressly forbidden from telling you a neighborhood is safe, or from telling you that a neighborhood is going to hell. We have to direct you to verified sources like police crime stats or other sites. Most agents handle this all wrong though when someone asks if a neighborhood is “safe.” There’s no need to for agents to be completely stupid here. There are ways to help the buyer through this. But many get scared and they don’t.

So, you are going to have to research the crime yourself.

You can find crime stats for various jurisdictions. But they don’t always tell the whole story. In a neighborhood that most people would consider safe, almost all crime is reported. Stolen package? Someone ran over your planter box? Speeding through your community? You’re going to hear about it. If a car were to be broken into, you can bet multiple people will call the police.

This flies in stark contrast to what happens in the “less safe” neighborhoods. People may not report every car break-in or mugging. It may feel like “life as usual” to them, or they may be afraid of retaliation.

Crimes happen where are three things present: means, motive and opportunity. You cannot prevent someone from having means and motive. But you can observe for opportunities. Deep dive into neighborhoods. Ask questions. Walk around at night and on weekends. See how it feels. 

If that isn’t enough and you want to know the real truth? Ask me if I let my kids run around my neighborhood in DC. (I do.) Then ask me if I would let them run around in “this” neighborhood. I’m allowed to tell you that. Ask me if I walk my dog late at night in my neighborhood. Ask me if I would do that in “this” neighborhood. You see where I’m going with this? And of course, if your agent isn’t me, you need to ask this question in person and watch their face. You’ll see it.

The last thing I want is someone buying a home in Washington DC on my watch and for them to be miserable because I didn’t give them basic information on where to find crime stats.

You Can Always Negotiate

Another case I heard when I was on the infamous committee was filed by the seller of a home against his agent. He felt that his agent didn’t try hard enough to get the most money for his home. After reading through case documents for this case I thought it sounded like he was just bummed he didn’t get multiple offers. But then something interesting happened during the hearing.

He described the process of deciding on a listing price for the home, and then how he learned a neighbor was interested in the home. The neighbor submitted an offer. He didn’t think his agent fought hard enough for him to get more money. I said, “Why didn’t you just counter?” He said, “What?” I said, “I’m confused why you just accepted what was offered and didn’t counter.” He said, “I didn’t know that was an option.” He started to tear up.

For whatever reason, his agent was not clear with him that this was not a take-it-or-leave-it offer. He could have countered it. If you don’t know, ask. But negotiations aren’t over until they are over.

Some States Handle the Legalities Differently

I wanted to buy a house once in New Jersey. I learned that Jersey is an “attorney state.” This means your agent helps you find the home. Once you want to proceed to an offer, you have to engage an attorney. Each side has their own. Here in DC, Maryland and Virginia, that’s not the case. When you are buying a home in Washington DC, Maryland or Virginia, you select an attorney to handle the closing. They operate as a neutral third party representing the contract, interpreting language when there’s a question, running title and conducting the closing. Which leads me to my next item.

NEVER Let the Seller or Either Brokerage Hold the Earnest Money Deposit

With your contract, you will be required to post a deposit. There were times where one of the brokerages would hold that deposit. Never agree to this. While there are laws that govern escrow accounts (where your money will be held,) you want this money held by the title company, in THEIR escrow account. Because as stated above, they are the neutral third party.

I own properties in multiple states. Every contract has treated the deposit differently. In Florida, your deposit is forfeited after a certain period. It’s not that black and white here in the DC Area. Making sure the deposit is held by a neutral third party is critical.

Don’t Fixate on School Scores

There are a few things to know. First, it’s very international here, and if English isn’t the first language, the standardized tests that translate to test scores and then to school scores are tough to navigate. Second, people say they want their kid in the “#1” school but the 1-10 schools are all basically #1. And sometimes #2 is actually better.

I always say this about the draw to Whitman High School in Bethesda. People will outbid their mother on a home just to get their kid in Whitman. But Whitman has not fared as well the past few years compared to the other Bethesda High Schools when it comes to college acceptances. Keep that in mind.

You May Not Be Able to Get Homeowner’s Insurance

You probably have no idea what I’m talking about if you’re one of those like me who would just call an insurance company and secure a policy. Homeowner’s insurance companies nowadays will do anything possible to not pay out a claim. I recently encountered a situation where the sellers of a home my clients were buying had filed FIVE SEPARATE INSURANCE CLAIMS IN FOUR YEARS OF HOMEOWNERSHIP. For stupid crap too.

Your homeowner’s insurance Company shouldn’t be on speed dial. They are not an ATM machine. They are there in the event you really need them, not when there’s a $1000 defect in the venting of your HVAC. I’ve seen some people and some homes just not able to obtain insurance because any claim you file goes on your permanent record! This isn’t a good place to be to find yourself uninsurable. One day you may need them. But trust me, until then, they don’t want to hear from you.

5 Washington DC Homebuyer Mistakes Buyers Are Still Making

Have you been sitting on the fence this past year, wondering what to do about this real estate market? Interest rates are up, you need to move but you aren’t sure it’s the right time to buy? Now there’s been an election, that guy is back and interest rates still haven’t budged. What is a homebuyer to do!?!

Today we are going to talk about how the real estate market shifts throughout the year here in the DC Metro Area or DMV. Along the way I’ll dispel 5 DC homebuyer mistakes that you may not have considered. This information is going to serve many of my incoming spring clients well, so it should be a great help to you also.

DC Homebuyer Mistakes
“There Are More Houses for Sale in the Spring, I’ll Just Wait Until Then”

Yes, you and everyone else think this – making it first of the 5 DC homebuyer mistakes. Buyers approach the spring market with high hopes, and they can quickly be destroyed.  Let’s go over seasonality.

Every season brings its own variety of crazy to the real estate market in the DC Area. We have the infamous spring market, which everyone believes is the best time to look for homes. The school year will soon be winding down, so the kids won’t be disrupted with change. Most people believe, and it does prove true, that the most homes are for sale in the spring. I typically sell 80-85% of my annual sales in the first half of the year.

How does the Spring Market unfold? Here’s what happens. In January and February, the eager beavers are out there. They have been waiting for months, perhaps years, and this is it. They are going to buy a home. Initially you will see a lot of demand on the homes that are new to the market. By February when we are post-Superbowl and as the weather gets warmer, more homes are listed and more buyers are out there.

In the DC Metro area, Memorial Day at the end of May is the “unofficial” start of summer here. This is when half of the buyers from spring are gone. Some bought homes, others are burned out and the rest decide to enjoy their summer. For those who remain in the market though, it is strong in the DMV well through July. Then it’s very quiet in August. Not much is listed, but it’s a really good time to buy a home. In fact, it’s the second best time to buy a home in this area.

Fall is a short market. September and October are when homes will be listed again, though it’s nothing like the volume you will have experienced in the spring. It starts to slow down by Halloween. A few homes will be listed in November before it all comes to a halt. There is usually one or two homes that may work for you that are listed between mid-November and mid-December. Those are the sellers who just don’t want to wait two more months for the spring market. This, my friends, is the BEST time to buy a home. November and December. There’s practically no competition, and you have a captive seller who is motivated to sell.

After the holidays, we’re back at the New Year which is basically Spring. Once you lay it out like that, it a sobering reality on how short the opportunities are during a regular year to lock down a home.

DC Homebuyer Mistakes
“I’ll Just Wait for the Interest Rates to Come Down”

Do you hear yourself? You do not want to wait for the interest rates to come down because just like with waiting for spring, you are not the only one with this idea – which is why it’s next on the list of the 5 DC homebuyer mistakes. When rates come down and the cost of ownership comes down, demand goes up.

The housing shortage is all over the news. Estimates indicate that the U.S. is in a deficit of between 2.8M and 4.5M homes. That’s a lot of homes! And that means there are more buyers trying to get into them. You should think about getting into a house when your competition can’t stomach buying at these rates. Rates will come down again.

DC Homebuyer Mistakes
“This House Checks Most, But Not All of the Boxes, Let’s Keep Looking”

Do you know who our #1 Employer is here? It’s a little something called the Federal Government.  All the employees of the Government, related agencies and contractors need places to live. Finding a home in the Maryland and Virginia suburbs of DC can be extremely difficult – especially if you’re not realistic about the market. Being realistic about our market conditions is very difficult if you are moving here from somewhere else. This trial-by-fire situation we have here is difficult to comprehend.

You are not going to get a 10 out of 10. It just doesn’t happen. It doesn’t even really happen with new construction. The goal here is to get the best house that works for you and your family for at least 5 years. It’s probably going to be a 7 or 8 out of 10. I wish the news were better here, but your alternative is to rent. That’s also fine, but at $3000 a month for a small house, with rent increases you will pay close to $160,000 of someone else’s mortgage for the next 4 years. If that’s okay with you, then all good. You can see yourself out. By the time most people contact me, they’ve already decided that’s not okay with them.

DC Homebuyer Mistakes
“It’s Been on the Market a Bit, Can I Write an Offer Below List?”

Sure. Like T.I. Says, whatever you like.

If you’re a parent, you probably have a hard time watching your kid make a decision you know they are going to regret. Usually though, with kid decisions, they can be corrected because they aren’t catastrophic. Usually.

As your advisor, I have such a hard time watching someone play around with a house that clearly has their name written all over it. No, not because I’m calculating my commission. I’m foreseeing the future. The future where you are like that forlorn ex, comparing every house to the one that got away. It’s not a good place to be.

I hate nudging people. I have historically been passive with my clients, letting them weigh things out. I provide the comparable sales and let them decide if they want to make an offer and at what price and terms. I will tell them there’s currently no other offers but that could change at any second. I never want my clients to feel like I’m not helping them negotiate but we don’t live in a market of negotiation. The sellers have had the upper hand here for over a decade.

I have learned that some of you don’t realize when you’re making a decision you are going to regret. It is so hard when I know that you are putting a hurdle into your offer that is going to render you bid the losing bid. I had three clients lose out on homes in the past month. Despite knowing that in each case this was “their house,” and guiding them as best as I could, they put the offer together that they wanted. I don’t want anyone to think I’m pushing them. But in all cases, they didn’t get the house.

Do you know how sad it is to get that call from your client asking you to call the listing agent to let us know if anything fell through? Because in most cases, things don’t fall through. And in each case, my clients felt like they lost the house that should have been theirs. That. Sucks.

DC Homebuyer Mistakes
“I’m going to use a VA/FHA Loan”

This is the worst news for most buyers who move to the DC Area from somewhere else in the country. You would never expect that this would be one of the 5 homebuyer mistakes in DC but, it’s rare to get a VA/FHA offer accepted. I’ve had people say, “Well we looked up the seller and they bought with VA, so we hope they will feel camaraderie with us.” No. Everyone goes for the cold hard cash. No one goes for the emotions.

Why will the listing agent encourage the seller to take conventional financing over VA? VA loans have “built in” contingencies that protect the Veteran from losing their earnest money deposit in the event of a loan denial or appraisal coming in under value. In a multiple offer situation, a seller will prefer to take an offer where there are no contingencies to protect the buyer. The VA Buyer cannot waive the contingency like a conventional buyer can and often will. Couple that with the conventional buyer having a high down payment and a high earnest money deposit, and it’s very difficult to get an offer accepted with VA or FHA financing.

Another reason VA home loans are tougher to get accepted is because of the home appraisal requirements.  Conventional financing can sometimes be awarded a “waiver” of the appraisal if the value on paper is there and the buyer has a very high down payment. VA home appraisals are not eligible for that waiver. Additionally, Veteran home appraisals have strict requirements to protect the Veteran. They may require repairs to the home that the conventional loan wouldn’t – such as requiring a handrail down a staircase or front walk-up, which is a common condition.

VA loans also have longer closing times where conventional loans can close in 2 weeks.

7 Houses You Should Never Buy

I’ve bought and currently own a lot of homes. Between my personal experience and what I see every day showing homes to clients and doing home inspections, I’ve got a list for you of seven homes you should never buy. Stick with me because I have tips for how to mitigate the problem or how to spot some of these house types. It is not always immediately obvious. It’s not all bad news here. I’m going to let you in on a secret near the end: One gem of a home that if you find it, you should absolutely buy it. It’s totally contradictory from a lot of advice you may hear. Along the way, I’m also going to throw water on what other real estate “experts” warn about when they say to never buy old homes.

A House with an Insurance Loss

Homeowner’s Insurance is a huge deal right now. Have you happened to notice this crazy weather we’ve had in the past decade? Well so has your insurer. Insurance companies have been paying out unbelievable claims for damage from all the various natural disasters we have experienced. Couple that with rampant insurance fraud and the problem is catastrophic.

Insurers decided to get proactive instead of reactive. There are companies that will drop you if your roof is over a certain age. Even if it doesn’t leak, they may not renew your policy. This means you either have to find other insurance that will take you, which of course will cost more, or you have to replace a roof that may have some life left to it. Fifteen years for a regular asphalt shingle roof is about the cutoff where some insurers say “Get a new roof, or get a new insurance company.”

If a loss was ever paid on a home, most insurers won’t touch it. There are homes which may be in perfect condition, maybe even rebuilt after damage like a fire or flood, and still – they won’t be insurable.

If you think you can forego insurance and you have a mortgage, guess again. Your mortgage company won’t let you. They will buy you a policy and make you pay for it via your mortgage payment.

Some states like Florida are in such a crisis that people are either selling and leaving the state or having to go with the insurance company of last resort, offered by the state. However, those companies are usually cost-prohibitive.

Hot Tip: How do you know if a house had a claim paid? Much like a credit report, the insurance industry has the CLUE Report. This report can be pulled to find out what claims have been paid out on a home to any previous owner at any point in time. Our contracts here used to require that the buyer secure homeowner’s insurance within 7 days of closing. Now they state that you have to secure insurance within 7 days of ratification – which is when all parties sign and agree to the offer.

Flips

I’m tired of people calling these flippers “Developers.” Developers actually develop property. They develop land, add value, work out issues with jurisdictions and utility companies, and negotiate with contractors, city or county reviewers and other interested parties in the community. I’m married to one, and the complexity of his job is nothing like what house flippers do.

There are good flippers. They are the ones who will take a house “down to the studs” and re-do everything to include all plumbing and electrical systems. I’ve been in so many flips in DC that when I find a house that’s flipped poorly, it screams it loudly. Flippers put lipstick on a pig, stage it elegantly and hope you don’t notice.

Hot tips coming at you: How can you tell if it’s a crappy flip? Flooring is new but uneven? Problem. I’ve said this line 100 times but if the backsplash is crooked that’s not a problem but it’s a problem. Anything new that was touched and re-done should be perfect. Straight, level, in perfect condition. Not crooked, not uneven, not done with cheap materials.

Another way to tell – Are there permits? Most jurisdictions have a way to look up permits online. See what’s been pulled and if they are final and closed. Also, not all jurisdictions operate equally. There are a couple counties in the DC Area where permits mean nothing. Contractors either don’t get them and there’s no repercussions or the government is so lazy that they don’t stop illegal construction or enforce standards.

When you buy a home, there should be receipts from tradespeople that the seller should provide. Their crew will have handled the general renovation to the house – demolition, drywall, painting and potentially structural issues. Specific items like the roof, plumbing, electrical, heating and cooling systems should have been completed by those tradespeople. There should be receipts and warranties that will convey to you.

1980’s Construction

There are a few time periods of construction I hate. The 80’s are my #1 time-period to avoid. My parents owned two different condos built in the early to mid 1980’s. I currently own two condos built in the early to mid 1980’s. Three of these 4 condos between my parents and I have a similar story that goes like this: Developer built the condo building, ran out of money, cut corners at the end. Forty years later people are still dealing with fallout. Water intrusion and spalling are the two most common issues we’ve experienced.

Why did this happen? I went on a witch hunt to figure it out. In 1981, the Economic Recovery Act was passed which made real estate into a great tax shelter for people. A lot of foreign investors came to purchase property in the U.S. Money supply grew, and lending was going wild for banks. In 1986, tax reform eliminated the tax shelters. Even though someone shut the music off, the party kept going. Banks kept lending. Savings and Loans crashed, rents began to fall, and the money spicket was cut off.

Most everything that was built was thrown up quickly so they could keep moving and make money on the next project.

My parents sold their two properties. I still own my two 1980’s, legwarmer, rubiks cube specials. One is a problem. The other has been managed well and seemed to be okay but we’ve got a meeting this week to discuss a “special assessment.”

Remember Surfside – the Champlain Towers Collapse in Miami? 1981. That’s all you need to know. Your hot tip on this issue is this – There’s almost no way around it. Early to mid 1980’s construction should mostly be avoided.

A Rundown Rental House

Poor house. It’s not its fault that the owner is a slumlord. Much like an Enterprise Rental Car, lots of abuse is doled out to rental homes. And owners tend to not keep the homes in peak condition. We have what I call a “group house” next door. The owner is never around, and she rents the house to four unsuspecting young professionals. She turned her garage into a bedroom to get more rent and her contractor, if you could call him that, just lay plywood across some beams. Water was pouring into the garage under the floor until it finally flooded. Then came the mold.

We unfortunately share a chimney with this b*tch. The liner needed to be replaced and she refused to do it. So we had to pay. I don’t expect she will ever reimburse us because she sucks. I hope she sells it soon but I expect that she won’t as long as she can milk the money out if it while doing minimal repairs.

If you find a great house that was a rental and you want to buy it – great! But get all the home inspections possible and be prepared to negotiate hard for the major systems and big ticket items.

Hot Tip: One of the telltale signs a house is a rental? All the bedroom doors have locks on them.

Houses with Deferred Maintenance

Did you know I’m psychic? I can tell you right now what homes in any market are going to have the most deferred maintenance. The ones built between 2000-2010. Most of these homes still have the original everything. It seems like the owners decide to sell instead of replacing things. And because we’re 15-25 years out from the build date, I can guarantee you that everything is going to fail at one time. After houses cycle that period of time, owners tend to replace things as required. So a house built in 1995 for example, has probably already had a roof replaced and a new HVAC.

One or two things needing repair or replacement is to be expected. But all the Big Ticket Items – Roof, Plumbing, Electrical, Heating, Air, Water Heater. Don’t do it. I always say, “Don’t make YOUR problem, MY problem.”

You may not know that everything needs repair until you do a home inspection. But believe me, and here’s your hot tip – spending a few hundred dollars on a home inspection and walking away is cheaper than spending a few hundred thousand for a house that needs new “everything.”

Wet Basement

If a house currently has or has ever had water in the basement, you are pretty much guaranteed that it will always be a problem. You will hear all kinds of reasons but all I can say is that no matter how much regrading of the outside, how many sump pumps are installed, how much waterproofing has happened, don’t buy it.

Hot Tip: How will you know if a house has a wet basement? Look for the dehumidifier in the basement. Look in the closets, and in the garage. You’ll find it. It’s always there somewhere.

Stupid Yard

Finally, don’t buy a home where the backyard goes uphill, so the low-end is close to the house. Here’s something you can always count on with water. Water comes downhill to look for the lowest spot to land. That will be right against the foundation of your house. And if that’s not bad enough, you won’t be able to go outside for weeks after rain or snow, because there will be a mushy moat right outside your backdoor.

What’s the good news? And what should you not listen to other real estate advisors about?

They all love to say don’t buy “Old Homes.” They are all clearly using the same AI to write their video scripts. People who say to not buy old homes don’t understand old homes. Houses will never be built like they used to. I live in a 1930’s home and I love it. Yes, the plumbing and electric has been updated. Yes, we had to add central air conditioning and remove an oil tank to convert to gas. But it’s all brick which is impossible to find on new homes now. Brick insulates unbelievably well. We have original wood floors and gorgeous trim that thankfully no one painted white.

Old houses are amazing. The structure and the “bones” as they say have stood the test of time. Yes it can be very sexy to buy a new home, but the charm and solid construction, use of real hardwood floors and brick, radiator heat – I wouldn’t trade it for anything.

Finally, I promised to tell you the one home type you should buy as soon as you walk into it?

It’s the home people always call the “grandma home.” The curtains, carpet, and furniture with plastic covers on it are usually the giveaway. There’s been no renovations since it was built in the 50’s or 60’s. This is the house you want. It’s solid, built well and hasn’t been destroyed by a parade of various owners with bad renovations over the years. You have a fresh canvas on which to make your new home into your own.

7 Disastrous Mistakes Homebuyers Make

1 – Not Researching the Location

You know what they say about Location, Location, Location? It will never fail as great real estate advice, yet, this is always one of the mistakes homebuyers make.

Research the location but you also need to spend time there. Eat in the restaurants in the neighborhood. Drive through the streets at various times of day and night. Are there kids running around during the day when they should be in school? Are there things that happen at night that don’t seem innocent?

Check the school scores and how many students live in-boundary if that’s provided – even if you don’t plan to have kids or your kids are grown. Good school scores and high in-boundary attendance indicate that people who live in the neighborhood have made more than just a financial investment there.

I made this mistake with the first condo I purchased when I was in my 20’s. I didn’t drive through the neighborhood at various times. I was so excited to find something in my budget that I neglected to notice several things that severely impacted my quality of life. First, I didn’t calculate the commute time to work. I spent a lot of time in traffic and that was when I was working full time for a Real Estate Developer and in Grad School also full time, spending time in traffic was not a luxury I had to spare.

Second mistake? I didn’t notice that the community was filled with a bunch of nasty old women. My first night in the condo I was warned that I better not have any parties. It was all downhill from there. Third mistake? Schools were abysmal. That didn’t directly impact me as I was in my 20’s and didn’t have kids (the good old days) but there were a lot of problems at the high school and that spilled over to our shopping center. Thankfully, I sold that condo but I drove through there a couple months ago and even the Giant Grocery Store closed. Unreal.

2 – Skipping Home Inspection

First let me say this and yell it from the back of the room: No one has skipped a home inspection on my watch. Well. One person did but they were engineers. Regardless, skipping a home inspection is one of the mistakes homebuyers make that will come back to haunt them.

Every single house, to include new construction, has things that need to be adjusted, fixed, repaired. In the crazy heyday of real estate, many people would do “pre-inspections” which was essentially a home inspection prior to the offer being submitted. This way you could waive the inspection as part of your offer but not be in the dark about the home’s condition. This also used to mean that there could be a dozen other people doing the pre-inspection, so it was always a disaster because you knew only one of those people was getting the house. You tried to be polite to the other buyers but really you wanted to claw their eyes out.

Skipping a home inspection can have catastrophic consequences. I could go through all the worst-case scenarios, but you know what they are. Leaking roofs, basement floods, structural issues, decades old water heaters or A/C units, failing boilers, rodents.

Just don’t do it. Always get a thorough home inspection.

3 – Not Checking Permit Status

There’s no way to really find out what percentage of home repairs are unpermitted, but I would bet it’s a lot. Probably at least 50%.

Locally, you can easily check for permits in most jurisdictions in the DC Area. There are lots of “flips,” where the permits are non-existent. There are some places like DC and Prince George’s County, Maryland, where they have been historically lax at enforcing permits.

I recently purchased property in Florida. The first thing the title attorney did was inform me there was an open permit on the property that he managed to get closed within the day. Impressive. I don’t even know what it was for, but it was interesting that they actually checked for that. It’s not something that is done here in DC. I do it for clients and will flag anything for the home inspector, but with so much information available online, this is important to do. When the market turns into a seller’s market, a lot of unpermitted garbage gets sold to unsuspecting buyers. And that will usually come back around as a problem.

4 – Not Buying Sooner

This is one of those mistakes homebuyers make that they don’t realize until they put on their hindsight glasses. The best time to buy is always five years ago. In Washington DC, we’ve experienced a consistent seller’s market for the past few decades. There is always strong demand here, and there are always people moving here and people leaving. The trick though, is that people who leave often have plans to return, and they hold on to their homes. This leaves less homes for sale for others who arrive in town hoping to buy.

This past year has been one of the slowest in terms of sales, however, median prices are still up 6% over last year. This was what was so surprising as each month ended and the stats came out, all we heard was how bad the market was, how slow sales were and yet, prices continued to rise.

This doesn’t apply to all markets because there have been some serious slowdowns in other parts of the country. If you live somewhere and don’t have the country’s largest employer, who has set up camp in your town, the Federal Government, the reality may be different. But if you zoom out and look at purchasing a home now versus five years ago, in almost all cases the average and median prices are higher now.

5 – Not Hiring the Right Agent

Next on the list of mistakes homebuyers make is hiring the wrong agent. You may have heard of a little lawsuit the Department of Justice filed against the National Association of Realtors. Prior to the NAR Settlement, only 17 states and Washington DC required Buyer Representation Agreements. The settlement was really directed at those 33 states where the premise of who represented the buyer and who paid the buyer was anything but transparent.

I understand the rest of the country is experiencing a lot of turmoil over this, the settlement changed very little for us locally. Buyer representation was always standard in Virginia, Maryland and DC and it is still a hugely critical part of the process.

There’s lots of chatter though over whether a Buyer’s Agent is necessary. I can’t speak for all Buyer’s Agents, but I can speak for myself. What is it that makes me valuable? First, let’s talk about what can happen if you hire the wrong agent.

Someone contacted me recently. He was watching my videos much like you are now. He purchased a condo from a flipper who renovated the whole building. He said they were having a lot of issues in the condo. I looked the condo up in MLS and saw two things. First, he purchased with an agent who works for a discount brokerage model. Second, I had shown a couple condos in this building to a client while they were all for sale. It felt very cheaply done and the floor felt unstable. I noted this to my client at the time, and we moved on.

Discount brokerage models can work for some buyers and sellers. But here’s the issue. You don’t know what you don’t know until it’s too late. Discount brokerages make money by working on volume. They have to close a certain number of homes “or else.” This means, you’re just telling them what you want to do and they may not offer up a solid opinion. They are more order-takers and less “advisors.” In fact, you may not even tour with a knowledgeable agent. You may be touring with an inexperienced assistant. Because they work on volume, once you sign with them, they will move on to the next client and turn you over to hourly administrative employees.

I asked if his agent was helping him navigate the process and he said no. This, unfortunately, is what happens to so many buyers when they don’t get the right people on their team. They are abandoned when they really need help.

I’m not a door opener. Finding the house is the easy part. You can do that online and you know it. My job is to navigate the process to get you TO and BEYOND closing. Almost 90% of agents don’t even sit down to explain the buying process to their clients. It takes an hour. If they can’t tell you what’s coming in a clear and understandable manner, are you even in good hands?

I work at times well after everyone else is in bed. I work when I’m on vacation with my family. I work on holidays when no one else in the world is working. And I’ll be working for you, with no retainer, and no guarantee of payment. If you don’t close, I don’t get paid – not even $1.00. Only when you close on a house is that commission paid. I work for a specific amount and, lawsuit or no lawsuit, not much has changed here. We are seeing that in most cases the seller still covers the commission.

A commission isn’t paid for opening a door or emailing a link to a house. You aren’t just paying for the time spent – you are paying for risk mitigation, time and money saved, the expertise and executing the protections they put in place for you. This is the kind of agent you must hire.

Choose wisely, my friends. This is ground zero of mistakes homebuyers make. Interview agents. Don’t just hire your friend who sold three houses over the past five years. Don’t be the agent I talked to the other day who said, “My phone’s not on from 9-5 because I’m at work.” What work?

Ask for specific examples of how they saved a client from a mistake, how they navigate the process, and what they will do for you.

6 – Thinking New Construction is Best

For some buyers, the idea of new construction is very appealing. You’re not buying someone else’s house and having to deal with the choices they made. Those model homes are designed to sing to people’s hearts. So it comes as a surprise to many that it’s often one of the mistakes homebuyers make to think new is best.

You should know that buying from a builder is not like a normal transaction. They have their own contracts that protect them fully and do nothing to protect you as the buyer. They also won’t negotiate on anything. They offer what seems like a huge closing cost credit but it’s wrapped in with you using their preferred lender and title company. Sometimes they own the lender and title company.

You also pay a premium. Builders have to squeeze a profit out of the house they are selling and they won’t sell unless they achieve that profit. If they are publicly traded on the Stock Exchange, good luck. They won’t budge an inch. You won’t have equity in this house for several years, so if you are planning to sell in a few years, this is not the way to go. You would be better off financially buying a home that needs work and fixing it up to secure your best chance to come out ahead, financially.

7 – Choosing the Wrong Lender

Another of the mistakes homebuyers make is choosing the wrong lender. I work with several excellent and well-vetted lenders. I don’t refer you to someone who is going to screw things up or who gives me kickbacks which is illegal. Sometimes people want to use a lender from their hometown several states away and while you can do this, know that not having a local lender can really impact your chances of getting a house. There’s a huge learning curve getting buyers to understand the local market, if the lender has to also figure out the nuances of getting a home it can really impede the process.

Pros and Cons of Living in Maryland

Are you trying to decide where to live in the Washington DC Area? The pros and cons of living in Maryland is always a popular topic! We’re going to talk about everything I love about Maryland – except for two things.

1. Green Space

Maryland is excellent at preserving green space and trees. There is rarely a development that wasn’t thought-out well. Each jurisdiction responsible for approvals gives serious consideration to every single tree on a property when there is a development application. They use something called “tree banks.” What are those? The counties all have “master plans” that guide the development rights and standards. Within that plan there are requirements on the number of acres of trees and green space, and allowable approaches when dealing with existing trees.

When someone submits an application to develop a piece of property or change the use, the county in question has to consider this for approval. If the location would be served well by more homes instead of less, then the approval may be granted and developer allowed to remove more trees than allowed by the zoning. To compensate, they may be required to purchase from a tree bank – which is another area in the county that will never be developed. This keeps the overall proportions of development to green space within the original design intention (that “master plan”) of the county.

Some counties in the country will want to save all the trees at any cost, others will not. Maryland tends to lean on the side of saving the trees – even when multiple 3rd party arborists testify that they are dead.

2. Location

The location of Maryland is amazing for both its proximity locally to everything you need but also in the country. Depending on where you live, you will have the choice of two international airports – Baltimore and Dulles in Northern Virginia, and then Reagan National in Arlington for domestic flights.

The location is also great for taking advantage of weekend getaways. Day trips to Baltimore, Frederick or Annapolis are all a lot of fun. You can get to the mountains in less than 2 hours, the beach in 2 hours, and on a good day you can get to New York in 4 hours by car or bus, but definitely by train. It’s also easy to get to Philadelphia or Hershey Park in Hershey, PA for a quick weekend trip.

3. Diversity

When clients contact me asking about diversity and inclusion for their family, I can count on so many locations in Maryland to be a place they will feel at home. Montgomery County is the main area I service in Maryland and there is such a diversity in so many capacities – not just backgrounds. Yes, people can come from all over the world and find their place to call home in Maryland. But there is also a diverse array of lifestyles.

If you want to live in an urban or city environment, you can find that in Maryland. If you want more rural, you can find that too. And some communities are even progressive such as places like Takoma Park where you can vote in local elections at 16 years old.

4. Crabs, I Mean – Food (but I really mean crabs)

When I lived in Rockville, I would sit at Tower Oaks Lodge every weekend inhaling their crab artichoke dip. If you like crab, there is no better place to be on the east coast than Maryland. If you’re a crab-purist, and you don’t like your crab mixed with artichokes and cheese, you can find many crab houses where you can hammer away at fresh crabs and pull your own meat. It’s an art, and I can teach you! If you have a shellfish allergy, I’m sorry. But there is so much more here in the way of ethnic foods. We benefit tremendously from such a diverse population in the metro area with so many restaurants and ethnic grocery stores.

There are so many different food choices that you would have trouble hitting them all without gaining a few dozen pounds. French, Italian, Lebanese, Ethiopian, Middle Eastern, Greek, Asian, Farm to Table, Cuban, Mexican, Brazilian – the list goes on and on as does the eating!

5. Climate

Depending how you feel about the weather, climate could appear on either side of the pros and cons of living in Maryland. I feel it’s thankfully quite mild here in the DC Area. We have four seasons. Actually, locals say that we have 12 seasons. They are: Winter, Fool’s Spring, Second Winter, Spring of Deception, Third Winter, The Pollening, Actual Spring, Summer, Hell’s Front Porch, False Fall, Second Summer, Actual Fall.

Seasons like Actual Spring? That lasts for about 45 minutes so enjoy it.

Expect to wear shorts for June, July, August and September. Hats and gloves in December, January and February. Our winters are usually not too bad, we don’t often get weather below 20 degrees Fahrenheit. Summers can get to 100 but it usually tops out in the 90’s. If you live north toward Frederick or north of I-70, you may actually have snow when it’s 15 degrees warmer further south. I lived northwest of Baltimore and would routinely arrive at work in Columbia, 20 minutes away, with snow on my car and everyone else thought I was lying until they went to the window and looked.

6. Education

The school systems for the kiddos are top notch. Montgomery County Schools are progressive and very highly sought after. There’s a lot of school choice as well, and different consortia where you have options to go to different high schools within a region.

There are several top high schools in the country that are located in Montgomery County, but when Bethesda Magazine puts out their annual college issue, the results are staggering. Students at the many of the county high schools are very successful well when it comes to college applications. There is no one “top” high school here like people may say, there are close to a dozen in the county that rank extremely well.

7. Recreation

The outdoor recreation in Maryland is so unbelievable. It’s easy to hop on the various trails like the Capital Crescent Trail which goes from Bethesda to Georgetown in DC or all the trails along the Potomac River or through Rock Creek Park if you want to get close to nature. Maryland is very pedestrian friendly, and you will notice that on any road you drive. You can also take advantage of the many recreation centers where they offer all kinds of classes from fitness, dance, art & crafts, martial arts – there are a ton of choices.

People who move here from the west coast and more progressive areas tend to really like Maryland and everything it has to offer. Don’t forget that I promised you a couple things I don’t love, so let’s do that next.

Cons of Living in Maryland’s Suburbs of Washington DC

Traffic & Drivers

Because Maryland home prices have trended slightly lower than neighboring Virginia, and Maryland has a lot more of the “close-in” affordable areas, there are more commuters heading back to Maryland after work. If you drive, you will be in this traffic. The metro also doesn’t go as far into Maryland as it does on the Virginia side, so this creates the perfect storm for flows of traffic.

A tidbit of good news – so far, Maryland has not imposed any toll lanes. There is an HOV overpass lane on 270 you can use to get to 270 and flyover the traffic below in the interchange, but lots of people cheat so this doesn’t always save a lot of time.

Now a tidbit of bad news. Well, it’s more than a tidbit. Maryland drivers are some of the worst I’ve seen in this country. I talk about it all the time. People move here and think I was joking then they say, “Nope, you were right, they are truly bad drivers.” I can’t explain it, I can only repeat it incessantly because defensive driving takes on a whole new meaning in Maryland.

Cost of Living

It’s expensive in Maryland. Some slight good news – there is more housing affordability on the Maryland side close to the beltway than you could ever find on the Virginia side. You can get homes in Silver Spring in the $600,000’s. It’s virtually impossible to find a single-family home in the $600,000’s on the Virginia side until you’re pretty far from the beltway. This is definitely not the case in Maryland. But that doesn’t mean life is cheaper on this side of the Potomac!

Maryland has a state income tax similar to Virginia. It’s not a flat tax, you move up in brackets, but it caps out where Virginia does – 5.75%. There’s one huge difference though. The Maryland counties impose income taxes as well. In most cases, this adds another 3% or more to the income tax you will owe. Virginia does not have income tax at the county level.

That sums up the pros and cons of living in Maryland. I hope this gave you all the details you need to consider in your move to the Crab State (it’s not really called the crab state.) If you are ready to crack some crab shells, my contact info is coming next!

North Bethesda

North Bethesda? There’s a place called North Bethesda? North Bethesda is a big joke here with the locals. If you live in the DC Area, you probably know why it’s a joke, but I’m going to talk about that, I’ll tell you the secret about Tower Oaks Lodge as well as everything else you need to know about the community of North Bethesda.

I do these videos for you every week and break down living in DC, Maryland and Northern Virginia. I’ve lived here over 20 years and I know these areas. I go deeper than anybody. Make sure you subscribe so you don’t miss the new videos.

North Bethesda is a CDP or Census Designated Place. CDP’s can have fluid boundaries but generally North Bethesda includes the triangular area created by the beltway and the two spurs of 270 as well as the area east of 270, with Montrose Road as the northern border and Rock Creek Park on the east. I don’t agree that the boundary goes all the way to Rock Creek Park. On the eastern side of 355, which is your major thoroughfare through North Bethesda, there is a small area that belongs to a super-odd non-contiguous part of Kensington. Then, many homes that are considered Rockville and others that are Garrett Park. I’m going to say that North Bethesda’s eastern boundary actually goes to Rockville Pike and no farther.

North Bethesda is also home to many government agencies as well as the headquarters for Lockheed Martin, Host Hotels & Resorts, and several large non-profits.

Red line Metro runs right through here from Bethesda to Rockville, with a stop in North Bethesda.

Real Estate

There is such a mix of homes here – you have everything from apartments and condos to townhomes and single-family homes. Condos start in the mid $100,000’s for efficiency units and run to the $600,000’s for 2 bedrooms. The condos are either high rises – many of which have amazing views, or they are garden style homes. The average price for all condos is $350,000 and the median is $295,000.

Townhomes cost anywhere between the $700,000’s to $1.5M. The average price of townhomes sold in the last six months is $1.035M and the median is $920,000. There have been some new townhome communities here too, so it’s not all old housing stock in North Bethesda.

Single family homes can start in the low $1M range and run into $2M’s. Many of the townhomes and single-family homes are brand new – having been torn down and rebuilt. The average price here for a single-family detached home is $1.4M. The median price is $1.3M.

The oldest homes you will find here are the 1950’s ranchers. Some of them still exist, but North Bethesda has been a hotbed of development. In the last year alone, 22% of all sales in North Bethesda have been single-family homes built in 2020 or later.

Parks & Fun

Pinstripes has a huge location in Pike & Rose. There’s bowling and bocce, plus really good food.

Strathmore is a music and arts center offering shows and programs. They have free concerts on their lawn on Wednesdays as well as year-round programming with music and art exhibits.

There’s also an Escape Room in Pike & Rose called Escapology. I can never figure these rooms out but it doesn’t stop me from trying!

I’d love to discuss the Kennedy Shriver Recreation Center with their pool but it’s closing this year for a renovation, so we’ll have to table that for an update video in the future. It’s within Wall Local Park but all you can use right now is the playground there.

There’s Wildwood Manor pool which is a membership based pool. You can also head to one of the parks in North Bethesda. Fleming Local Park and Timberlawn, have sports fields and a playground. Tilden Woods has a playground as does Stratton Local Park, Wells Neighborhood Park and Druid Drive Neighborhood Park. White Flint Park is in this tiny area within North Bethesda that has a Kensington mailing address, but don’t let it fool you. This is North Bethesda!

Families & Kids

Public schools here are top rated, Walter Johnson being the main high school serving North Bethesda.

There is Little Town Children’s Museum in North Bethesda too. This is an indoor playspace with 16 different “rooms” that your kids can explore. They have a mock grocery store, fire station, restaurant, and gym among other rooms.

Remember Strathmore with their Wednesday Concerts on the lawn? Well they have Concerts for Kids on Thursdays in the summer as well. They also have a Children’s Chorus with 5 different ensembles offering options for various levels of experience.

Nearby in Bethesda you have a whole host of other options. There is the YMCA which has a robust gymnastics program in Bethesda as well as other sports and classes. Imagination Stage which offers dance and theatre classes. Glen Echo Park has classes and camps in arts, dance, music and there is also an aquarium.

Cabin John Regional Park is one of Bethesda’s most popular parks. The park has plenty of ball parks and courts with summer-time indoor ice skating at the Cabin John Ice Rink! There’s also a great playground for kids and miles of hiking trails and a train to ride.

If that’s not enough, there’s Bowlero Bethesda with 34 bowling lanes.

Food

There are two main locations for restaurants. You will find many along 355 / Rockville Pike. There’s a heavy Asian food influence here with a lot of hot pot and ramen restaurants. The other area where you will find a lot of restaurants is in the Pike & Rose Development where Rockville Pike intersects with Old Georgetown Road. There’s also Fogo de Chao which is Brazilian, Nando’s Peri Peri and a mix of other restaurants in Pike & Rose.

Piccoli Piatti in the Wildwood Shopping Center has some of the best pizza in the area.

You aren’t just limited to what’s in North Bethesda though. Rockville to the north and Bethesda to the south have a ton of restaurants.

Just north of Montrose is one of my homes-away-from-home. Tower Oaks Lodge is part of the local Clyde’s chain. They have awesome décor. If you find the canoes hanging in the back bar kitschy, here’s a secret. They are filled with bras from patrons-past.

There’s also Farmer’s Markets – in addition to four farmer’s markets in Bethesda there’s the Pike Central Farm Market open 9-1:30 on Saturdays.

Grocery stores here include Giant, Whole Foods, Harris Teeter, Target Grocery, ALDI, MOM’s Organic, Rodman’s which is a local chain, Balducci’s and Trader Joes and Fresh Market which are just over the North Bethesda “border” with Rockville.

Something else that’s fascinating to know – this area has a lot of specialized grocery stores. There’s a Russian Grocery Store, Indian Grocery Store and a Mediterranean Grocery Store.

Dogs

The Cabin John Park has a dog park.

Or you can head to North Bethesda to Bark Social and get a beer or coffee while your pup plays in the dog park.

There’s also a nearby dog park in Kensington as well as the trails in Rock Creek or the C & O – Chesapeake and Ohio Canal Path along the Potomac River.

I know what you’re thinking. You are thinking that this all sounds fantastic, but why did I say that North Bethesda is a joke?

Because locally it is – sort of. Do you know how no matter where you are, if someone plays Sweet Caroline, everyone within earshot has to scream Bum Bum Bum? It’s like that whenever you mention anything about “North Bethesda.” Someone will always snort then try to “correct” you and say “You mean Rockville?” And now you can tell them to shut it because North Bethesda is real, it’s been real since the 1970’s when Montgomery County defined the boundaries in the North Bethesda Master Plan. Now you can tell them learned all about it here!

Living in McLean VA

McLean Virginia is a Census Designated Place or CDP in Fairfax County Virginia. McLean is home to large homes and lots, the CIA Headquarters, the MARS Headquarters and a lot of wealth in the DC Area. The median income is $250,000. Over 85% of the residents have a bachelor’s degree or higher.

What is it like living in Mclean? And, how do families feel about living in McLean.

My last video about Living in McLean continues to be one of the most popular videos on my channel. But my experience filming for you all didn’t go so well when some woman told me I couldn’t take video of her ugly subdivision on a public, ungated street. I grew up in a town like McLean, but up in Connecticut, so I’m well versed in the behavior of some people who have more money than the rest of us. And unfortunately, I’ve got yet another unbelievable encounter with another resident of McLean to share with you too.

Location

McLean is located west of Arlington and Washington DC. The Potomac River, The Dulles Toll Road (267) and the Arlington County border make up the border of McLean. McLean is a CDP though Census Designated Place, meaning it is unincorporated and the boundaries are fluid. This is why you will see some areas by Tyson’s Corner also have a McLean address. McLean is 15 minutes from DC.

McLean Real Estate

McLean Virginia ranks as one of the wealthiest areas in the country. Let’s dive into the housing market and see how things look.

In the last six months, the prices of single-family detached homes sold for $1M at the low end and $10.5M at the high end. What does $1M will get you? A 1500 sf ranch style home which most buyers will tear down. The value is in the land and people pay for it because they love living in McLean. The houses priced at $10.5M have over an acre of land, 6 or more bedrooms and most were paid for in cash. The average price of all homes sold in the last six months is $2.4M, and the median is $2.1M.

Townhomes range from $800,000 to $1.8M. The average price of all townhomes sold in the last six months is $1.1M and the median price is $1.04M.

What kind of house styles are in McLean? There is a tremendous variation. Many of the older colonial homes that used to be here have been torn down and McMansioned. McLean has been one of the ground zeros in the DC Metro Area for tearing homes down, due in part to the fact that many homes date back to the 1950’s to 1980’s. Some of these newly built homes are gorgeous. Some are…not.

If you recall my other McLean video, when I was driving around, I passed a road which was filled with the ugliest houses I have seen in my life. When I was filming and giggling to myself about the ugly houses, Jabba the Hutt’s wife Karen came running out yelling at me. She said, and I quote: “We don’t want anyone to copy what we have here.”

Holy moly lady, no one wants to copy this. She said she and all her neighbors were watching me and that I should go back to DC. I’m afraid this is what living in McLean might be like. I grew up in a town like this, filled with Karens, and I escaped.

This was not my only run-in with the mean of McLean. For me, McLean is the gift that keeps giving. I’ll let the video do the story telling for me. I’m in an office park in McLean trying to get through the only road that leads to my awesome Pilates class. And this guy stopped his giant truck next to a car that was already stopped where it shouldn’t be. He effectively blocked the road and anyone from passing. He didn’t like that I beeped and told him he was blocking everyone behind me from passing. Here’s what happened next.

As you can see, my luck here in McLean in finding considerate and friendly people who are either visiting or living in McLean is not so good. To be fair, while he was in an office park in McLean, he may not live in McLean. There are a lot of high-ranking government officials living in McLean. Perhaps many of the people here are just used to everyone jumping when they scream how high.

There are several condo communities, Lilian Court, the Rotonda, Fountains at McLean, Gates of McLean, Regency at McLean, Colonies at McLean – you get it. The high-rise buildings have very high monthly condo fees – think in the $1000’s, like New York City prices. This is due to the size of the building, amenities and staff on site.

Schools in McLean

The most recent census information states that about 40% of the households in McLean have children under 18.

Elementary, middle or high school, the scores are high here. These are Fairfax County Schools, which is often considered one of the best school systems in the country. If you go by Great Schools, the scores are 8, 9 and 10. All schools feed to either one of two high schools – McLean or Langley.

McLean offers Honors, AP and Dual Enrollment Courses where you can get college credit. Languages offered are Spanish, French, Chinese, Latin and German. McLean High School is walking distance to the downtown area of McLean. Many students head over after school to grab Starbucks or hang out with friends. This really gives it a small town kind of feel.

Langley High School offers AP classes. The languages at Langley are Spanish, French, Latin, Russian, Chinese and Japanese. Langley was recently renovated.

What’s the difference between AP and IB? IB Courses are writing heavy and tend to cover less material. AP classes are more focused on the college credit, but they go deep into the subject matter. Fairfax County instituted IB into underperforming high schools to allow for a standout group or a school within a school as it’s often called. AP existed at the higher performing high schools

Historically, these schools were different. A 1978 Washington Post Article compared the two schools. With respect to redistricting, a Langley student who may possibly be redistricted to McLean said: “It’s a whole different class of kids that go to Langley. The kids who go there come from all over the world; they’re more cultured and intellectually stimulating than the ones who end up going to McLean.”

Here we are 45 years later and the topic du jour is still redistricting.

Langley High School is under enrolled as of right now. According to the demographics on Fairfax County’s website, Langley’s population is 53% white, 30% Asian, 7% Hispanic, 1% Black and 8% other. Just 2% of the students are identified as English Language Learners. Langley is on Georgetown Pike, in a very residential neighborhood.

McLean High School is close to the downtown areas of McLean. Despite things you read on message boards and see online, McLean’s demographics are similar to Langley. The population is 49% white, 26% Asian, 14% Hispanic, 4% black and 6% other.

Why Living in McLean is Great for Families

Aside from school, what else is here that makes it such a great place for families?

There’s Child’s Play which is a toy and bookstore for kids. For playtime, check out MyGym for the little ones. We took various levels of tumble classes at MyGym and I had the best time with the kids.

Clemyjontri Park is one of my top 5 must-do parks in the DC Area. Clemyjontri Park has a carousel and several different play areas for various ages and abilities.

There are a lot of neighborhood parks in McLean as well – McLean Central Park and Meadow Lane Park are neighborhood parks with a playground. There are several of these neighborhood parks throughout McLean.

McLean is the quintessential suburb with extraordinary natural resources. Scott’s Run Nature Preserve has hiking trails. Great Falls Park has a McLean mailing address but it’s a few miles north of McLean, heading toward Great Falls. You can hike along the Potomac River where trails and overlooks have some amazing views of the falls in the river.

The Alden Theatre is part of the McLean Community Center. They have close to 400 seats for guests of their musical or comedy acts that stop here. There’s teen improv and other programs for kids. McLean Project for the arts offers camps from age 3 through teenagers. The Old Firehouse is a recreation space for teens. The Community Center also offers classes and camps, live music and other shows. There’s a concert in the park series in the summer, the Community Center is the hub of entertainment offerings in McLean.

There are also several membership-based swim and tennis clubs. There’s Highlands Swim & Tennis, Chesterbrook Swim & Tennis, Kent Gardens Recreation Club, McLean Swim & Tennis and Tuckahoe Recreation Club.

We were members for three years at Tuckahoe. I woke up one day and thought, “this place is the worst” and I canceled it. There’s not enough lounge chairs, the pool is always freezing even when it’s 100 degrees out and the lifeguards are really mean. They are on their whistles constantly for the silliest little “infractions.” It’s also expensive and then this past year they sent a letter to all members saying there was $3M in deferred maintenance so dues were going up 20%. That, plus one lifeguard screaming across the pool at another lifeguard was enough for us.

Finally, I have to mention Dolley Madison Library. They don’t have just books! They offer a ton of programming geared toward kids too. Storytime, book clubs, classes, games, cooking classes, art, improv – the library is another source of entertainment for the kids.

There’s also Tyson’s Corner which is the DC Metro Area’s largest shopping mecca. If you can’t find what you want in Tyson’s, it probably doesn’t exist!

Food

It probably goes without saying that an upscale suburb is going to have a variety of food options. Most everything you need is in the downtown area. The restaurants are clustered on Old Dominion just south of 123 or Dolley Madison and also along Chain Bridge and Old Chain Bridge Roads. J. Gilberts is a steak and seafood restaurant on 123 and is always packed. There’s Mexican, Afghan, Italian, American and pizza as well. Aracosia is Afghan food that gets all thumbs up from people born in Afghanistan. There’s also an Iranian restaurant that gets high marks – Amoos.

There’s Lidl, Giant and Balducci’s in the downtown area. Over in Chesterbrook Shopping Center there’s a Safeway. Chesterbrook Shopping Center just got a makeover so some stores were closed and now it’s reopening and coming back to life. They have opened the ever-popular Call Your Mother deli here as well.

I hope this helped you in learning why living in McLean is very appealing to families. Getting into a home here is definitely costly. But with the schools, recreation centers, parks, trails and proximity to jobs in DC or Tysons, this is one of the top suburbs of choice for active families!