On paper, Rockville and Silver Spring look almost identical. Same price range. Same Montgomery County school system. Both on the Metro’s Red Line. Same easy shot into DC.

When considering options like Rockville vs Silver Spring, it’s essential to weigh the pros and cons of each suburb.

But they are not the same — and right now, something is unfolding in Rockville that most people haven’t fully processed yet. If you’re planning a move and pick the wrong place without knowing the full picture, you will be miserable. Let me break it down.

The debate of Rockville vs Silver Spring has become increasingly relevant for potential homebuyers in Montgomery County.

Watch the full video here: Rockville vs. Silver Spring — Which Is Right for You?

Table of Contents

1. Where Each City Actually Is
2. Real Estate: Prices, Home Types, and What You Get
3. Schools: The Big Change You Need to Know About
4. Food: Where Each Town Wins
5. Things to Do
6. Who Should Choose Rockville?
7. Who Should Choose Silver Spring?
8. Bottom Line

1. Where Each City Actually Is

Rockville sits in southern/western Montgomery County. Two major corridors run through it: Interstate 270 (fun fact: it’s not actually an interstate — it runs from the Beltway to Frederick) and Rockville Pike, which starts in Georgetown as Wisconsin Avenue and goes all the way up to Frederick, Maryland. The Rockville Metro station is on the Red Line.

For those comparing Rockville vs Silver Spring, it’s crucial to understand the unique characteristics of each suburb.

Silver Spring is east of Rockville, closer to DC and the Beltway. The Silver Spring Metro station puts commuters downtown in about 25 minutes on the Red Line. Easy access to I-495 and I-95 makes it the better pick for anyone whose life revolves around the southeast or northeast corridors. The Purple Line connecting Silver Spring to Bethesda is also expected to be complete within the next couple of years.

Many people find themselves torn between Rockville vs Silver Spring when making a decision on where to live.

2. Real Estate: Prices, Home Types, and What You Get

As you evaluate your options of Rockville vs Silver Spring, consider the current real estate market trends.

Rockville

Rockville offers serious variety — condos, apartments, townhomes, and single-family homes. There’s a historic district (do not mess with it; you’ve been warned), homes over 100 years old, and relatively newer construction.

Whether you’re leaning towards Rockville vs Silver Spring depends on your lifestyle preferences.

Median prices over the last 6 months:

• Single-family homes: $706,000
• Townhomes: $750,000
• Entry point: ~$400Ks for a 3BR/2BA ranch that needs updating
• Upper range: mid-$1Ms for newly renovated 4–6 bedroom homes

Yes, you read that right — the median townhome price is higher than the median single-family home price. That’s because Rockville’s townhomes are large, newer, and typically updated. They’re not your average townhome.

Silver Spring

Silver Spring’s housing stock skews older — most homes were built in the 1950s and ’60s. Solid brick construction, ramblers, split levels. Not your glossy MCM Instagram bait, but genuinely well-built homes.

Understanding the differences in housing among Rockville vs Silver Spring can inform your buying decision.

Median prices over the last 6 months:

• • Single-family homes: $640,000

As you assess pricing, remember to consider the comparison of Rockville vs Silver Spring.

• • Townhomes: $505,000
  • Condos: $272,000

Potential buyers are often torn between Rockville vs Silver Spring for various reasons, including school quality.

You can still find a 3-bedroom single-family home in Silver Spring for under $700K — inside or near the Beltway. That’s increasingly rare in this market.

One thing buyers should know about Silver Spring: unpermitted renovations are more common here than in most DMV submarkets. Additions, finished basements, updated kitchens — often done by a family member or a friend-of-a-friend contractor. The work isn’t always cohesive, and it can feel patched together. Get a thorough inspection and have an experienced agent flag anything that looks off.

The shifting educational landscape raises questions in the Rockville vs Silver Spring debate.

In Rockville? Post your permits in the window or someone will slap you with a Stop Work order. Neighbors are more likely to report unpermitted work. That’s not a complaint — it just means the housing stock tends to be more consistently permitted and documented.

Looking for homes in either area? Contact me here — I’ve been selling in this market for 25 years.

For more insights on Rockville vs Silver Spring, feel free to reach out with your questions.

3. Schools: The Big Change You Need to Know About

Digging deeper into Rockville vs Silver Spring can reveal the most suitable option for your needs.

Rockville Schools — And Why You Need to Read This Carefully Right Now

People move to Rockville for the schools. That reputation is earned. But right now, the landscape is actively shifting in a way that should factor into your decision.

Here’s what happened: The Montgomery County Board of Education voted 7-1 in March 2026 to approve the relocation of Thomas S. Wootton High School to the new Crown High School in Gaithersburg — effective the 2027–2028 school year. The existing Wootton building in Rockville will be repurposed as a holding school for other campuses undergoing renovation.

Wootton has consistently ranked among the best high schools in Maryland. It has a well-regarded STEM program and has appeared on “best high school” lists in major publications for years. This decision drew enormous community opposition — parents walked out of the vote, legal challenges have been filed, and a group called Save Wootton is actively fighting the decision in court.

The City of Rockville’s Mayor and Council proposed an alternative that would have kept Wootton in Rockville. The Board rejected it.

What this means for buyers: If you’re purchasing in the Wootton pyramid because of the school, you need to understand that your child may be attending Crown High School in Gaithersburg — not the Rockville campus — by fall 2027.

The full Rockville high school picture:

• Wootton HS — being relocated to Crown HS in Gaithersburg (2027–28)
• Richard Montgomery HS — home to Montgomery County’s first IB program
• Rockville HS — eastern side of Rockville; offers both IB and AP programs
• Charles W. Woodward HS — set to reopen in 2027

One note on the district’s direction: MCPS is also moving toward a more regional program model, meaning programs that were previously concentrated at magnet schools will be more widely accessible. That’s an equity win, though it changes the traditional magnet school calculus.

Bottom line on Rockville schools: Don’t buy into a pyramid based on its historical reputation alone right now. Know exactly what pyramid you’re in and what that school looks like as of 2026–2027.

Silver Spring Schools

Silver Spring falls under MCPS (Montgomery County Public Schools), which has a strong overall reputation. But school quality varies more by boundary here, and those boundaries shift more often than in some other parts of the county.

The good news: Silver Spring is part of the Down-County Consortium (DCC), which includes five high schools across Silver Spring, Wheaton, Kensington, and Rockville. Your child gets preferential access to any of those schools, not just their in-boundary school. That’s a meaningful safety valve — and most people don’t realize it exists until they’re deep in the research.

Families considering the Rockville vs Silver Spring choice should note the school options available.

4. Food: Where Each Town Wins

Rockville

Big food news: In 2025, Wegmans opened its ninth Maryland location in Rockville near the Twinbrook Metro station. Twinbrook has been underrated for years — that Wegmans just put it on the map.

Beyond Wegmans, you’ll find every major grocery chain here: Safeway, Giant, Harris Teeter, Trader Joe’s, Mom’s Organic, plus a wide range of ethnic grocery stores. And the restaurant scene has genuinely leveled up. Downtown Rockville is a food mecca — heavy on Asian food, including a dedicated food hall. Highlights include:

• La Canela or El Mariachi for Peruvian and Latin food
• Terra Gaucha — a highly-rated new Brazilian steakhouse
• Mykonos Grill on Rockville Pike for Greek

You will not feel like you need to drive into DC for a great dinner. That’s a real quality-of-life win.

Silver Spring

Your dining preferences may also influence the Rockville vs Silver Spring decision.

Silver Spring is in a different league when it comes to international food diversity. The DC area has the largest concentration of Ethiopian restaurants outside of Ethiopia — and Silver Spring is the epicenter. That’s one reason WalletHub ranked Silver Spring as the #4 most ethnically diverse city in the United States.

The food scene reflects that: Salvadoran, Korean BBQ, vegan soul food, Italian, and everything in between. Every major grocery chain is here, plus an even wider selection of ethnic grocery stores than Rockville.

Winner on food diversity: Silver Spring. It’s not close.

5. Things to Do

Rockville

Rockville is built for families. Nearly three dozen parks, art festivals, parades, and community centers with robust programming for families and seniors alike. Check Rockville.gov for event listings — you can even subscribe to newsletters to stay in the loop.

Silver Spring

Silver Spring has a more urban energy, with a walkable downtown that feels more like a city neighborhood than a suburb — music venues, restaurants, and shopping all within walking distance. Outdoors, the Sligo Creek Trail is a local favorite for biking, jogging, and dog walking. Brookside Gardens inside Wheaton Regional Park is a gem — free to visit, and includes everything from a Rose Garden to Aquatic Gardens to a children’s garden. It’s worth the trip. (More on Brookside Gardens here)

Annual events include an International Food and Craft Festival, Arts & Crafts End of Summer Celebration, a Halloween Festival for families, and a Christmas Market.

6. Who Should Choose Rockville?

Pick Rockville if:

• Your commute takes you along the 270 Corridor. Rockville’s location makes it the natural fit for jobs in Bethesda, North Bethesda, Gaithersburg, Germantown, or Frederick.
• You have a more flexible budget. You’ll pay more for the same house than you would in Silver Spring.
• You want newer or larger townhome inventory. Rockville’s townhomes are a different product than what you’ll find further east.
• Schools are your primary driver — but only if you do your homework first. Know which pyramid you’re buying into, understand the Wootton situation, and verify the current boundary maps before you make any decisions.

7. Who Should Choose Silver Spring?

Pick Silver Spring if:

Ultimately, your choice between Rockville vs Silver Spring will depend on your personal circumstances and needs.

• Your commute or life revolves around I-95. Silver Spring’s Beltway access puts you in a much better position than fighting 270 traffic.

• Budget matters. You’ll spend less per square foot and have more options under $700K.
• You want the most diverse food and cultural scene in the county. Silver Spring has this, and it’s genuinely special.
• You want walkable, urban-adjacent energy. Downtown Silver Spring is the closest thing to city living you’ll find in this part of Montgomery County.

8. Bottom Line

In conclusion, the Rockville vs Silver Spring debate is highly personalized and varies from buyer to buyer.

Rockville vs Silver Spring are both excellent places to live — but they serve different buyers. Rockville has historically commanded a premium for good reason, but the ground is shifting on schools right now. Silver Spring is underrated, underpriced relative to what you get, and deserving of a much harder look than most buyers give it.

Either way, don’t make this decision based on a YouTube video alone (including this one). The details in your specific price range, in your specific target neighborhood, matter. If you want to talk through which makes more sense for your situation, I’m here.

As you weigh the Rockville vs Silver Spring discussion, remember to consider your specific lifestyle needs.

Want to Go Deeper?

I have full deep-dive videos on both Rockville and Silver Spring:

• 📺 Living in Rockville, MD — Full Guide (link to Rockville video)
• 📺 Living in Silver Spring, MD — Full Guide (link to Silver Spring video)
• 📺 Montgomery County Schools: What Buyers Need to Know in 2026 (link if applicable)

FAQ: Rockville vs. Silver Spring

Discussing Rockville vs Silver Spring can help you navigate your choices in Montgomery County.

Is Rockville or Silver Spring more expensive? Rockville runs higher. The median single-family home price in Rockville is around $706,000 vs. $640,000 in Silver Spring. Condos and townhomes in Silver Spring are also significantly cheaper.

Which has better schools — Rockville or Silver Spring? Both are in Montgomery County Public Schools (MCPS), which is generally strong. Rockville has historically had an edge, particularly the Wootton and Richard Montgomery pyramids. However, the Board of Education voted in March 2026 to relocate Wootton High School to Crown High School in Gaithersburg starting in 2027–28. This is an active and evolving situation. Verify current boundaries before making a school-driven purchase.

Those curious about the housing market will frequently find themselves comparing Rockville vs Silver Spring.

Is Silver Spring safe? Silver Spring is a large, diverse area. Like any community, some neighborhoods are more walkable and family-friendly than others. Work with a local agent who knows the specific streets, not just the zip code.

How long is the commute from Silver Spring to DC? About 25 minutes on the Red Line Metro to downtown DC.

As you explore your options, keep in mind the ongoing conversation around Rockville vs Silver Spring.

Can I still find a home under $700K near DC? Yes — Silver Spring is one of the few places inside or near the Beltway where that’s still possible for single-family homes.

What’s the deal with the Wootton High School closure? The Montgomery County Board of Education voted 7-1 in March 2026 to permanently relocate Wootton High School students to the new Crown High School in Gaithersburg, effective 2027–28. Legal challenges are ongoing. If you’re buying in the Wootton pyramid specifically for the school, get the latest update before you make any decisions.

For all your questions regarding Rockville vs Silver Spring, I am here to assist.

Everything New and Coming Soon to DC, MD, VA in 2026

I know what you’ve been hearing. Layoffs, DOGE, federal workers panicking. The media wants you to think the DMV is falling apart. But here’s what they’re NOT telling you: WalletHub just ranked DC as the #8 best place to find a job in the entire country. They analyzed 180 cities. EIGHT.

So let me show you the receipts. Because 2026? It’s absolutely MASSIVE for development in this region.

DC – RFK Development

Let’s start with the biggest story: RFK Stadium. That eyesore has been crumbling for years, and as of right now – early 2026 – they’re tearing it down. What’s coming is going to completely transform Hill East and frankly, put DC on par with what the suburbs have been offering for years.

This is the largest redevelopment in DC history. We’re talking different districts across the site. The Commanders get a new stadium by 2030. The Riverfront and Plaza Districts? 5,000 to 6,000 housing units, plus hotels, retail, restaurants. Recreation District gets multi-purpose sports fields and an indoor complex. Kingman Park District – more housing and recreation.

If you’ve been sleeping on Hill East, wake up. This changes everything.

Virginia – What’s Coming in 2026?

Now let’s cross the river to Virginia, where – surprise, surprise – the theme is still data and tech.

Potomac Overlook – Rosslyn

Or, as you may remember it – the Key Bridge Marriott. The 1960 hotel that was permanently stuck in the 1980’s closed, then became a squatter-city and had to be cleared by the entire Arlington police force. The hotel was finally demolished and is going to be developed into 1775 residential units and 200 hotel rooms with multiple buildings. At least, those are the plans as they have been filed. The owner defaulted on the mortgage so the bank holding the loan is pursuing approvals. 

One Rosslyn

Currently the site of two office buildings at 1901 and 1911 Fort Myer Drive. The plan here is for a half a billion dollar development. The two office buildings will be demolished for three new buildings that would be a mix of apartments, condos and retail. 

Falls Church City

701, 703, and 705 Park Avenue. Madison Homes wants to build 15 townhomes. Still pending approval, but Madison just got 20 townhomes approved across the street, and those are 80% sold. Falls Church City is HARD to build in, so when something gets approved, people jump.

West Falls Church 

This development consists of three separate phases. Phase 1 will have a hotel, apartments, condos and a medical office building. Phase 2 will be office and apartments, and Phase 3 will be residential. Here’s what’s unusual: there are ground leases here because some of this is municipal land. You don’t see that much anymore.

Potomac Yard 

There are still three blocks of land here that have yet to be developed, south of Target in the Potomac Yard Shopping Center. Toll Brothers is expected to build 120 townhomes and JBG will do retail and somewhere between 500 – 600 multi-family units, depending who you ask. There will also be 88 affordable housing units in a multi-family building.

Corso Tyson’s 

This is something interesting. Three luxury senior-living towers with 427 continuing care units. The renderings are absolutely gorgeous. Same developer – Galerie – who did The Mather in Tysons, which was 90% SOLD before the building was even finished. There’s clearly demand for this, and is a market that has long been overlooked.

Tyson’s Central 

This is at 8350 Leesburg Pike and there will be two towers. One will be a 29-story hotel and residential over retail, the other will be 38 floors of residential over retail.

AT&T – Oakton

AT&T had a campus here but they left for greener pastures in Chantilly. Since it was unlikely to find one replacement tenant, developers EYA and Carlyle entered the scene and plan to usher in a whole new neighborhood with multi-family residential, townhomes and retail in its place.

Rivana

This Sterling mega-development will be Loudoun County’s largest mixed-use development with a transit station. This so large it’s going to span two counties – Loudoun and Fairfax. There will be around 9M sf in the entire development. 

Manassas Mall 

The mall and surrounding parcels are being developed with six buildings being added. Over 1000 homes could be added including multi-family and townhomes. 

Other things to watch:

A Tyson’s Casino was shot down in approvals but that could resurface. That 1,800-acre Gainesville data center also got rejected but it’s in appeals. Watch these. 

Maryland

Maryland does Maryland things. And those things are NEVER REMOTELY CLOSE  to what Virginia is doing in terms of sheer volume. Virginia is more development-friendly. BUT – and this is important – Governor Moore just announced some major housing legislation for Maryland. 

Maryland has a 94,000 unit housing shortage. This legislation and Blue Line corridor strategy is MAJOR. This isn’t just “a few projects” – it’s a coordinated statewide push. They want to unlock 300+ acres of state-owned land near transit stations – that could mean 7,000+ new units. They’re focusing on the Blue Line corridor.

Montgomery County is already developed to capacity. But there is lots of concrete in Prince George’s County that officials are eyeing for development.  Capitol Heights Metro is one such area where there are plans for 300 new homes and 10,000 sf of retail. All of this is still so new, so it’s definitely worth staying tuned for more news.

An unbelievable honorable mention. 

Stop. The. Car.

Wayfair is opening an outlet in Arundel Mills.

Data Centers Y’all!

They’re happening. This is the hot-button issue everyone loves to hate. You won’t see them close to the city – there’s no room, and frankly, we need housing more. But out in Frederick County? They’re getting them. It’s controversial, but it’s happening.

The Bottom Line

The media wants you scared. Don’t be. This region is BUILDING. The projects I just walked you through represent billions of dollars and thousands of housing units coming online in 2026 and beyond.

If you’re thinking about buying, selling, or investing in the DMV, you need to understand where growth is happening. And now you do.

Ultra Wealthy To Live Near DC

You’ve probably seen those videos titled “Where the ultra wealthy live in DC.” They’re fun to watch, but if you’re a normal family relocating here, living next door to Bezos does absolutely nothing to help you figure out where your kids are going to go to school, where you can afford a home or whether you can get to work without crying on the Beltway.

So yes, I’ll tell you where a lot of that ultra-wealthy money tends to live around DC. But first I’m going to show you four real-people places where families with real budgets actually live: Silver Spring, Rockville, Alexandria, and Burke. If you care more about good schools and a sane commute than billionaire rooftops, you’re in the right place. Welcome to the non-BS side of DC real estate.

I’m Melissa Terzis, DC Real Estate Mama. I’ve been in DC-area real estate since 2001 and I help families buy and sell homes throughout DC, Maryland, and Virginia.

Real People Live in Silver Spring, Maryland

Silver Spring is the most underrated place to live in the DMV. It’s not bougie, it’s not chaotic and it’s not wildly overpriced. It is a real community full of real people. Just because Silver Spring has an affordable price point, doesn’t mean you are “settling” by moving here. I’ve helped a lot of families move to Silver Spring. 

Silver Spring is where city energy meets suburban comfort. On a Saturday, you can hit the farmers market downtown, let the kids run around, and be home in 10 minutes for nap time. There’s a diverse a food scene and easy commuting to DC. Downtown is filled with restaurants, shops, the Fillmore music venue, and AFI Silver Theatre. Around the corner there are tree-lined streets in quaint, friendly neighborhoods with yards, parks, and playgrounds. 

There are basically three Silver Springs:

1) Close-in and Walkable
Near downtown you have a mix of houses, townhouses and condos. Many of the condos downtown are mid-century – built in the 1960’s. Some of the houses are original 1950’s, some are newer builds where a little 50’s house was torn down and “mcmansioned.”

2) Just Outside the Beltway
Cute neighborhoods like South Four Corners, Woodmoor, Forest Glen and Franklin Knolls are just outside 495. These are almost all 1950’s homes. You can walk to a neighborhood park and some shopping, but you will also use your car as well.

3) Northern Suburban
More traditionally suburban. If you’re fine driving to most things, then the northern parts of Silver Spring may work better for you. The houses are bigger, the lots are bigger but the commute is longer.

The big draw to Silver Spring is both affordability and location. It is getting harder to find anything inside or near the beltway for $600,000. But in Silver Spring, you can. Most homes in here were built in the 1950’s and 1960’s. They are “mid-century” but not your classic MCM. These are solid brick houses, usually ramblers or split levels.  The median price of homes sold in all Silver Spring zip codes this year is $550,000.

Commutes are another win. There are two metro lines that come through Silver Spring. There is the long-standing redline that runs north-south into DC. In a couple years, the purple line will be finished which is going to be a game changer for cross-county commutes. You are right near the beltway too, so one person in your household can easily commute to Baltimore and the other to DC. It’s hard to find areas in the DMV where that is possible.

Wallet Hub ranked Silver Spring as the #4 most ethnically diverse city in the United States. 

Sligo Creek Trail is a local favorite for biking, jogging, and dog walking. Brookside Gardens and Wheaton Regional Park are also gems for families and outdoor lovers. Brookside Gardens is within Wheaton Regional, and there is a selection of different areas to explore – everything from a Rose Garden to Children’s to Aquatic Gardens. And it’s free to go in! 

If you want a diverse, down-to-earth community, decent access to Metro, and you’re trying to stay around or under the $600k mark, Silver Spring should absolutely be on your list.

Real People Live in Rockville, Maryland

Rockville has been named, by various websites and publications, a “best” city for families, for women entrepreneurs, for young professionals as well as one of the best suburbs of Washington DC. Rockville is also a very diverse community as noted in the Housing Market Analysis Report commissioned by the City. The median sales price for homes in Rockville is $635,000.

Rockville is just north of Bethesda, outside the beltway. The redline metro services Rockville and 270 runs from Bethesda to Frederick. Fun Fact – F Scott and Zelda Fitzgerald are buried here.

Locally when people think of Rockville, they think of Rockville Pike, which is a main drag with every single store you could ever want in your life. Some people find this to be the epitome of the soul-sucking suburban life. Disclaimer: I personally love it. I lived in Rockville for a few years and I spent many of my weekends on Rockville Pike. 

If a main drag with a lot of traffic and big box stores isn’t your thing, I have good news. Rockville has dozens of neighborhoods, each with their own personality. Less urban than Bethesda, but not quite as suburban as Mayberry, I personally think there is so much to love about Rockville and pretty much everyone can find their home here. There is a mix of condos, townhomes and single-family homes. If you want to spend over $1M, you absolutely can, but it’s not required to secure a home here. Think of Rockville as the slightly more expensive big brother to Silver Spring. If you like the idea of every store under the sun within a short drive, strong schools, and you’re okay being a bit more car-dependent, Rockville is going to feel very comfortable.

There is a lot that happens in Rockville from food and art festivals and community events, farmers markets and tons of culinary options. There’s a lot of Asian Restaurants near downtown Rockville, and Peruvian, Latin, Greek – the choices are endless.

Schools here are well rated as well. One of the high schools, Richard Montgomery, offers the IB Program – Montgomery County’s first IB Program. Wootton has a well ranked STEM Program and is often on the top high school national lists.

Real People Live in Alexandria, Virginia

Alexandria can mean two different things. Often people don’t know the difference until they live here. There’s Alexandria inside the beltway which is the City of Alexandria. Then there’s Alexandria that’s part of Fairfax County. The City of Alexandria is more expensive than the county. Alexandria in Fairfax County is where I’m speaking of today. There are several neighborhoods worth mentioning where the real people live.

Rose Hill & Virginia Hills are part of zip code 22310. The median sales price here is $677,000. These two neighborhoods are adjacent to each other and sit just south of the beltway. It’s a quick trip over to Old Town Alexandria, and easy access to get to 95 as well. These two neighborhoods were developed in the 1950’s so there is a lot of mid-century style here with the ramblers and split levels. 

There are shopping centers at the edges of these two neighborhoods but no true central shopping area unless you head over to Kingstowne where you’ll find almost everything! It’s also easy to get over to Route 1 where there is a ton of other shopping and dining options as well.

If you work in DC or at the Pentagon, want a yard and a 1950s rambler, but still like to pop over to Old Town for dinner, this pocket of Alexandria hits that sweet spot.

These aren’t the only areas of Alexandria where the real people live either. All the way east to the Potomac River, there are tons of neighborhoods filled with regular folk doing regular folk things – running kids to school during the week and sports on the weekends, commuting to work or working from home, mowing their lawn and chatting with neighbors.

Real People Live in Burke

Welcome to the suburbs. If you’ve been house hunting in Vienna or Arlington and your budget is maniacally laughing at you, check this out. Burke is the ‘we still get great schools and actual trees’ without your prices option. There are idyllic suburban neighborhoods in Burke. It is a nature lover’s paradise, best known for its parks and recreation activities and is very popular with families. People come for the schools. They are solid across the board – 7’s and 8’s on Great Schools and that includes the middle school! That never happens!

The median house price in Burke is $710,000. The price has risen quite a bit in recent years as people have been priced out of other, more expensive areas.

Burke Lake Park is one of the best parks in Northern Virginia. It was designated by the American Hiking Society as one of the top ten best fitness trails in the nation. The park and lake are spread out over 888 acres and have a ton of year-round activities and seasonal themes like Goblin Golf at Halloween and Winter Wonderland at the Holidays. 

Hidden Pond Nature Preserve is also in the Burke area.  They have a variety of camps and programs. They also have weekend birthday nature parties that feature a hike in the woods and an interactive animal session.  In October they have the Haunted Pond event that features campfires, a twilight walk through the woods, and scary and not-so-scary ghost story sessions.

Burke has many shopping centers spread throughout the area, but the most notable is Burke Centre Shopping Center. It has so many stores, but Kohl’s and Safeway are the two anchors. It has a very strong history in the community and has been a vital hub for Burke. Other grocery stores include Giant Food, H Mart and Lidl. 

The Burke Farmers Market runs from late April until the end of December.  It is on Saturdays and features so many vendors. They have everything from the typical vegetables and fruit to sweets, premade meals, pastries, bread and so much more!

Where the Real People Live

You will not see me doing helicopter tours of billionaire rooftops or standing in front of rented Lambos. But, if you’re genuinely shopping at $5M and up, you’re probably looking in DC Neighborhoods like Kalorama, Georgetown, Wesley Heights, Palisades or Kent. If Maryland or Virginia is your preference then Bethesda and McLean are where you want to be. 

What you will find here is real information for real people moving to or within DC, Maryland and Virginia. You are smart people trying to make smart decisions, not just drool over mansions neither of us will ever buy.

If you are trying to figure out where your budget and your life actually fit in this area, all my info is below. Reach out, tell me your story, and I’ll help you narrow this whole area down to 2–3 neighborhoods that actually fit your budget and your life – not where the ultra wealthy park their toys twice a year.

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.

5 Levels of Neighborhoods in DC Maryland & Virginia

Are you moving to the DC Area and wondering what are the different levels of neighborhoods in DC Maryland & Virginia? Today I’m breaking down five levels of neighborhoods in the DC Metro Area.

Understanding the various neighborhoods in DC Maryland & Virginia can significantly enhance your living experience. Each level offers unique charm and amenities that cater to different lifestyles.

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 homes in DC. If you hit like and subscribe it helps the channel grow. 

Almost every type of neighborhood can be found here, so it’s important to know the options. Let’s dive in.

Level 1 – Wait-and-Watch

There will always be neighborhoods in the wait and watch classification. Then development comes, and sometimes the neighborhood takes off, sometimes it doesn’t. Why doesn’t it? Well. Crime. Poor Schools. Low buy-in from residents. These are some of the toughest neighborhoods in DC but buyers land here when they are tired of renting, and can’t afford a house in the neighborhood where they rent. 

• Deanwood – Lower prices, but uneven development and still evolving. Long-term hold strategy needed.
  
• Congress Heights – Don’t buy unless you really know what you’re doing.
  
• Trinidad – Gentrification is real, but there will be times of momentum, and times where things seem to fall back to the days of higher crime.
  
• Columbia Heights – Used to be the “it” spot, now crowded, more crime complaints, and resale is trickier.

Level 2 – Flashy but Fraught

These neighborhoods are great for city dwellers who have a high tolerance for noise, speed of life and sometimes – street crime. 

• Adams Morgan / Logan Circle – Beautiful but very condo-heavy. There’s minimal yard space. These are the areas where nightlife outranks nap time.
• NoMa / Navy Yard / The Wharf – The development money has poured into these neighborhoods. All sizzle, lots of rental buildings, high fees. New doesn’t always mean better. Don’t rent or buy here from afar. You need to see these neighborhoods to ensure they will work for you.
  
• Downtown Silver Spring (MD) – The downtown area of Silver Spring has had several face lifts. It’s gritty but busy, filled with shopping, restaurants and live music. The metro means this is a great option for anyone who commutes via the red line metro and soon, the purple line.

Level 3: Energetic and Enduring

• Capitol Hill (Historic Core) – Think Eastern Market, charming rowhomes, and parks galore. Strong community vibe. People hang out in their front yards and chat over their fences. This is quintessential DC.
  
• Bethesda (Downtown) – Some people may not think of Bethesda as energetic, but it’s currently going through a huge re-development and there is a lot happening here. Between downtown Bethesda and Pike & Rose, Bethesda is building itself right into a destination.
  
• Arlington – Arlington has a few different personalities, but the neighborhoods of Rosslyn, Clarendon and Ballston have a lot of activity, restaurants, retail and foot traffic.
  
• Old Town Alexandria – People love the charm, and Old Town is dripping with charm. There are awesome restaurants, great shops and such a cool historic Old-Virginia atmosphere that Old Town really draws people in.
  
• Dupont Circle – One of the oldest and most charming neighborhoods in DC. Proximity to downtown and consistent interest from potential buyers and tenants make this a staple in the lineup of DC Neighborhoods.

Level 4: Solid and Stable

Here’s where we start to see the suburbs hit the list. These are the tried-and-true, proven neighborhoods in DC Maryland & Virginia. The resale value holds but there are no wild increases year over year. Infrastructure is in place, and it doesn’t have a transient vibe. You will know your neighbors. You will not be chasing the next cool restaurant that opened in the neighborhood because it’s not going to open in your neighborhood. It’s opening in the Wharf.

• AU Park / Tenleytown – Tree-lined, Metro-accessible, top schools (Janney/Deal/Jackson Reed.) This is the suburbs in the city. You can walk over to Wisconsin Avenue and hit the library, Target, Container Store and have restaurant options. People tend to stay and the sense of community is strong. This is move-up buyer gold.
  
• Cleveland Park – Big yards, historic homes, a real neighborhood feel. Walkable to Metro, yes, but also peaceful. The library was recently renovated and it’s a great centerpiece of the neighborhood.
  
• Chevy Chase DC – Feels like a suburb with sidewalks, but you’re still in the city. Schools are great, access to Rock Creek Park is easy and you’re just over the border from Maryland.
  
• Glover Park – Tight community, great schools, near Georgetown without the pretense. Good value if you don’t need a Metro stop at your doorstep.
  
• North–North-Arlington – Once you head north from the hustle and bustle of Rosslyn, Clarendon and Ballston are, you will find the leafy suburban part of Arlington.
  
• Vienna VA – Vienna is an adorable suburb that feels like a television show’s hometown. The downtown area has a lot of restaurants and retail. The schools are great and the sense of community is strong.
  
• Burke & West Springfield VA – These two areas are so close to each other and similar so they are worth packaging together. These are the quintessential burbs, but they are more affordable compared to many of the other areas. You can still get houses here under $1M. I know, I realize the absurdity of calling something around $1M “affordable.” 

Level 5: Luxurious and Lavish

You’re not just pre-rich, you’ve arrived! And these are the neighborhoods that let others know it. These people own multiple homes and paid more for their country club initiation fee than you did for college.

• McLean – You would be lucky to get in for under $2M. It’s not impossible, but it’s incredibly difficult. If you find a house that’s been renovated and doesn’t need work, you will want to have over $2.5M.
  
• Bethesda – We already talked about downtown Bethesda and all the development happening, but the neighborhoods surrounding downtown are in another league. Bethesda has been Maryland’s ground zero for the teardown frenzy. For decades now. It won’t be long before all these 40’s and 50’s houses are McMansioned or torn down.
• Potomac – Potomac is Maryland’s answer to McLean. Big houses, big lots, a walk score of zero because everything is so spread out. You will use your car for everything, you will lose power in storms because the trees will crash through power lines and you will be keeping up with the Jones’s. Wait. You Are the Jones’s.

I hope this gave you the rundown of the levels of neighborhoods we have here in DC Maryland & Virginia! Please reach out if you have any questions or need real estate help!

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.

BIG CHANGES Coming to Bethesda

If you haven’t driven through Bethesda lately, you might not recognize it. There’s so much redevelopment happening. There are mixed-use high-rises, luxury apartments, destination restaurants, commercial and trendy retail. The big changes coming to Bethesda are not tip-toeing toward urbanism – it’s diving in, and things are looking amazing! Bethesda is becoming a real hub for arts and entertainment as well. But here’s the real question: can Bethesda keep up with itself or will all the development be too much to support?

If you think all the urban suburban action is in Tyson’s Corner, think again. Bethesda is coming in hot. In 2024, Bethesda Row celebrated 30 years. There’s over half a million square feet of mixed-use space here. The success of Bethesda Row and Pike and Rose up the street has been strong.

Big Changes Coming to Bethesda Restaurants & Retail

The very popular Mon Ami Gabi is a French Restaurant that had closed for renovations. It’s open and back with a vengeance, with seating for almost 300. Remember when hotels were motels and their attached restaurant was like, Howard Johnson’s? No? Just me? Okay, anyway, Fialova is a new restaurant that opened in the Bethesdan Hotel – which is a Hilton. Bet they don’t have those clam strips and mac & cheese like HoJo’s did though.

Hailing from Miami, Pisco y Nazca Ceviche Gastrobar also opened in Bethesda this past spring. 

Evereve is a clothing store that opened this spring, and FP Movement also opened in the same strip of shops adjacent to Bethesda Row.

Sephora is slated to open next year. Now my daughter and her friends will have another outpost at which to spend their parent’s money.

Over at Pike and Rose (North Bethesda) there’s some new stuff happening too. Bouboulina is a new Greek restaurant, very pricey but the foodies are loving it. I have not eaten here, but I have eaten at seaside café’s in the Greek Islands so I have something fab to compare to.

And then, surprise! Brandy Melville opened their first Maryland store last month in Pike and Rose as well. If you haven’t waited in a line just to get into Brandy Melville with your teenager, have you really lived?

Bethesda’s New Infrastructure

The purple line metro development continues. Once complete, you will be able to ride between New Carrollton, Silver Spring and Bethesda. The connection to New Carrollton is critical because that’s also how you could hop on a train to get to Baltimore, New York or Boston. That is a huge win for people living in Bethesda who don’t have a vehicle or who don’t want to drive.

Also happening is the extension of the Capital Crescent Trail. The original trail went from downtown Bethesda to Georgetown. It will be extended from Bethesda over to Silver Spring where it will connect with other trails.

Bethesda Real Estate Development

If you are looking for new home developments in Bethesda, there’s just a couple chances left. There are only a few new homes left in communities. The other avenue for getting a new home is a teardown. Those are still happening in Bethesda, though not as regularly as they once were. Much of Bethesda has been redeveloped.

In the past few years, over 20 multi-family residential development projects have been approved, and it keeps climbing. This has happened thanks to the 2017 Bethesda Downtown Sector Plan which called for a 20-year vision to really re-build the downtown. The theme here is out with the old, in with the new. Many of the buildings being torn down are 50-60 years old.

The plan wasn’t all concrete though. Maryland values green space. There are 13 additional parks as part of the plan. Bethesda also expects there to be an additional 14,000 jobs by 2040. 

There is currently 30.4 million sf existing, under construction or part of an approved site plan – which means yes, it’s coming. The plan called for a cap of 32.4 million sf for downtown Bethesda, to include 10 apartment buildings. Before I go through the highlights of these projects, let me start with the properties for sale.

Condos & Townhomes

• There’s a mixed-use development planned just adjacent to a County Parking Lot – “Lot 25” which we’ll talk about in a moment. There will be a mix of condos and townhomes as well as 15 live/work units. There will be a public park and amenities for the residents.
• 4824 Edgemoor Lane was originally going to be 111 condos. Now it’s possibly going to be a combination hotel/condo building. That is going to make for some interesting financing.
• Amalyn is a community where they are still building gorgeous new homes and have some spec homes you can move right in to. 
• There is also a townhome development happening at Westbard.

Apartments

There are tons of big changes coming to Bethesda apartment living – which is a testament to what the county and developers have planned.

• At 7749 Old Georgetown Road, an assemblage of buildings will be demolished to build a 17-story apartment building. This is going to be part of Bethesda’s skyline as the building is expected to be 175 feet. 
• At 4861 Battery Lane, a 12-story apartment building is in the works, with 453 apartments.
• County Parking Lot 25 mentioned earlier also has redevelopment plans in its future, with 235 units planned and a 90-foot-wide public park.
• At the corner of Wisconsin Avenue and Montgomery Lane, a 26-story building should be complete by the end of the year. There will be 300 apartments.
• Just a block over, 4901 Battery Lane has a 12-story building planned. There will be 400 apartments.
• 4858 Battery Lane which is at the corner of Woodmont Avenue, currently has 6 mid-century apartment buildings that will be redeveloped over the next 10+ years. The building, when complete, will have 315 units and will be higher than the current height limit – allowable due to the Moderately Priced Dwelling Units they are including. 
• The Artena will be at 8000 Wisconsin Avenue with over 400 units and commercial space.
• Across the street at 8001 Wisconsin Avenue there will be a nine-story building with 350 apartments. There is also going to be ground floor commercial space here as well.
• 4719 Hampden Lane is going to be replaced with a mixed-use building of 150 apartments and over 300,000 sf of office/commercial space plus ground level retail. 
• 7-Eleven at 7820 Wisconsin Avenue is going to be replaced with a 31-story building with 430 apartments. I’d say How Could They, but I’ve moved on to Wawa or Mickey D’s for my diet cokes.
• 4725 Cheltenham Drive used to be a Midas, but it’s being turned into a building of 110 efficiency/junior one bedrooms. What’s different about this building compared to everything else covered is that there will be no parking here. There is clearly a plan here with aiming at a different demographic.
• 4405 East-West Highway is currently office space but may be redeveloped into a 10-story, 350 unit apartment building.
• Hampden House at 4700 Hampden Lane will be finished at the end of 2025. There will be 366 apartments within the 25 floors, and ground floor retail.
• 7155 Wisconsin Avenue is the Farm Women’s Cooperative. There are potentially 585 units and commercial/retail space coming and the current building will be moved.
• 7126 Wisconsin Avenue has a proposal for 355 apartments plus restaurant/retail space.
• Infill behind Bethesda Row – this is a sliver of a lot behind Bethesda Row that, if approved, would have 250 apartments

You probably noticed this is heavy with apartment rentals. Maryland just does things differently than you might see in Virginia or DC. Affordable housing is a major objective in Montgomery County. They will approve rental apartment developments and then require 20% or more to be “affordable” to help achieve that objective.

The million-dollar question is whether all the big changes coming to Bethesda will result in revenue? Growth doesn’t always mean dollars. Office vacancies are climbing region-wide, urban rents are flattening, and not all retailers are rushing back. 

Here are the takeaways. Bethesda is changing – rapidly. That’s not in question. It’s whether the developers, tenants and riders will match the ambition. We will see!

Moving to the DC Area? The DOJ Blew Up the Real Estate Industry

There is so much happening now in the real estate industry. I’m not really one for reporting the news and how it impacts us because I usually keep my head down and do my thing. I love it in the trenches, helping you all buy houses. But current developments and knee-jerk reactions are directly impacting you, the consumer. Between the governing bodies trying to make the real estate industry transparent and fair for consumers, some (not all) real estate brokerages trying to increase their market share, and portals like Zillow and Redfin choosing to only supply you partial information, things are getting wild. You need to know what’s happening and how to protect yourself.

To understand how we got here, we have to pick a starting point. Let’s rewind to 2020, when the National Association of Realtors, or NAR, instituted a Clear Cooperation Policy. Any listing by any member of NAR needed to be in MLS, the Multiple Listing Service, within 24 hours or face a $5000 fine. The reason behind this was a good one. NAR wanted to ensure that the consumer had equal access to all properties for sale. Should a seller want to be privately for sale though, they were allowed to do this by signing a form. 

Private sales, per NAR, that would NOT be listed in MLS, could also not be marketed and shared with anyone outside the listing brokerage.

In theory, very few properties should be privately listed. Think of the wealthy or those who don’t want people in their home. In practice, some real estate brokerages who had self-serving interests in mind, used this as an opportunity to double their revenue.

At the time Clear Cooperation was enacted, I was outraged. My then-broker said, “You are all about fairness, and you are a huge critic of another brokerage in DC that hoards their listings. Why are you not in favor of this?” I said, “Can you not be stupid for a moment. Do you think this solves anything? If you tell a room of 100 pedophiles that you’ll cut their nuts off if they molest any more children, will that stop all 100 of them? No. There will still be some who will go to extreme lengths to keep it even more secret – putting victims in even worse danger. This new regulation, courtesy of NAR, makes things worse for the consumer, not better.” 

He did not agree. But, this is exactly what happened. 

This new system for private listings played right into the greedy brokerages hands. They wanted to do what we in real estate call “double-ending the deal,” which is getting both sides of the commission. It made things terrible for the consumer. Sellers, who usually have the goal of getting the most money for their house, were dumped into a limited pool of buyers and convinced it was a better outcome. Buyers were worried about which agent to hire because some brokerages were marketing exclusive listings behind a wall, and you had to sign up with one of their agents to get access.

I saw a lot of people fall for these traps. And NAR helped that happen, which was exactly what they were trying to prevent.

Buyers felt pulled in different directions on which agent to hire to help them based on which brokerage had more “private listings.” Brokerages had outright lies on their websites, saying things like, “there are 1400 private listings you could have access to if you sign an agreement with one of our agents.” Straight up blackmail with a side of bait and switch.

If a seller’s primary goal is to net the best offer possible, then going to the open market where you have the most buyers and the most competition is almost always the right answer. Sellers were sold a bill of goods on why it was better to sell privately vs go out to the open market.

Then came the Department of Justice / NAR Lawsuit. The suit was filed by a group of sellers contesting the legality of being forced to pay buyer agent commissions where a legal relationship didn’t exist between the buyer agent and the buyer. This was only a thing in 33 states. DC, Maryland and Virginia were not in those 33 states. Even though locally in the DC area we were subject to the outcome of the lawsuit, nothing really changed. We always had buyer agency in DC, Maryland and Virginia and we were always required to obtain signed agreements before showing property to buyers.

When my brokerage did some company-wide calls and I was in group chats with Realtors in other U.S. cities, I was astonished at how they approached buyer representation in other cities. They never had signed agreements, never explained the whole process, didn’t have a book they provided to clients outlining this process. I’m no lawyer, but I could see the premise for why a lawsuit was filed.

With every action, there is always an equal reaction. So how did the industry respond?

By circling the wagons. 

One exciting change post-lawsuit is that there is more freedom in marketing private listings. They no longer have to be kept secret from other brokerages. There are a lot more properties listed privately now than ever before. The best agents will go on a daily fishing expedition to find those properties. I love puzzles though, so this idea of chasing down a square peg for a square hole is really satisfying for me on both a personal and professional level. I love finding a needle in a haystack for a client that they couldn’t have found on their own with the online portals. 

This is like old-school real estate again, much like when I lived in Connecticut and wanted to rent property. You either looked in the paper, or you hit the phones and called brokerage after brokerage to find out what listings they had. So, if you think about it, we’re going backward. Real estate transactions now are reminiscent of the 80’s and 90’s. 

Just when we thought the NAR lawsuit was the last of the high-drama we would endure, there’s more.

In response to the evolving private listing networks, the portals, i.e. Zillow and Redfin, have responded. Zillow has become a brokerage, but they are not a robust one. They don’t have an army of agents with listed property. Zillow is a portal first and they rely on listings to feed to their site from MLS. 

Zillow just announced that if a property was ever listed privately, they won’t allow it to feed to Zillow. Zillow can do what it wants. It’s in charge of its own website and it makes the rules. But, I would argue that it hurts the consumer. And it does, but Zillow doesn’t care. They only care about Zillow. And they aren’t a stranger to doing things that hurt others. Since their inception, they have sold advertisements for competing agents on the public listings that feed from MLS. They take an agent’s listing, put it on their site, and sell ad space to other agents to appear there as if they are the point of contact for that listed property.

That’s kind of like you building a house and another builder sticks their sign in the ground offering information about the house you are building. They collect phone numbers and then sell them back to you when it was your product that procured the lead to begin with. Not really fair, is it? This never really bothered me much because Zillow is a crappy platform, the information is constantly outdated, and I’ve never known anyone to use it.

Redfin said they would do the same as Zillow. My reaction here is the same. Redfin can do whatever it wants with its website. Their portal is good and very user friendly, but they haven’t managed to turn a profit. They were also just purchased by Rocket Mortgage. 

What does this mean now? Well, in addition to hawking their title company which has made serious mistakes when Redfin buyers have purchased my listings, they will now be hawking Rocket as a mortgage provider. This is how Redfin will become profitable – by offering ancillary services. Consumers will sign a form stating they acknowledge this, but many of them will still “choose” to use the Redfin-recommended mortgage and title companies.

So…behind the scenes, everyone is getting into bed with each other. 

What does all of this mean for you, the consumer?

This isn’t just lip service. It is more important than ever to hire the right agent. 

You want an agent who gives you recommendations for lenders and title companies where they have zero financial interest. 

You want an agent who can hustle and find you a home whether it’s on the MLS, in the off-market, or somewhere in between like a portal. 

You want an agent who knows what they are doing, can advise you properly and who can protect you from your home search through closing and beyond because it’s getting crazy out there, and it is likely to continue the spiral.

The New York Times is DEAD WRONG

The real estate industry has truly never had more drama that it does right now. Every day it seems like there is yet another development that directly impacts you all – the consumers. A handful of friends and clients messaged me about the latest shoe to drop – a New York Times Daily podcast that aired last week. It makes Realtors out to be sneaky deceitful snakes, openly flouting the Department of Justice. I’m all about truth, being direct and a straight shooter. I’m going to go through this podcast’s main points and compare for you what’s happening here in the DC Metro Area.

This was an interview with reporter Debra Kamin, titled: “The Housing Market Has New Rules. Realtors are Evading Them.” I listened to it. Twice. And while I love just keeping my head down and helping my clients buy and sell houses, this interview is spreading some false narratives that could have disastrous consequences. I can’t speak to the rest of the country, but I can tell you how things are unfolding here in the DC Area. 

I love what I do, and I know that this industry has bad actors. But they are the exception, not the rule, especially in the DC Metro Area. Housing is in high demand, people here are extremely smart, highly educated, many have law degrees. This kind of nonsense wouldn’t fly here.

Podcast Point: Kamin started by explaining that as a result of the lawsuit filed by the DOJ against the National Association of Realtors, commission amounts were going to go down, which should also reduce home prices. Kamin explains how this didn’t happen, and there’s been a “great workaround” in the industry.

Her first statement I want to address is: “post-settlement, the rules said that sellers pay their own agents, buyers pay their own agents. If you work with a real estate agent, it’s up to you to pay them. That was what was supposed to happen, which should have brought a lot more competition and negotiation into the marketplace… the settlement was very specific in its language that these conversations about splitting commissions could not happen on these databases. (MLS) So the real estate community was like, OK, we’ll just move these conversations elsewhere. It never said we can’t have them at all.”

Melissa says: She’s right. This hasn’t happened. At least not locally in the DC Area. Sellers understand that if they don’t offer compensation to the buyer’s agent, it could greatly reduce the number of buyers interested in their home. For most sellers, it’s about what they take home at the end of the transaction. If they have to offer a commission to the buyer’s agent to get more buyer interest and potentially competition and a higher price, that seems like a better avenue for them. I’m not sure why this is a problem either.

First, no one can really tell a seller what they can and can’t do with their money. Second, of course there are conversations had regarding commissions. We don’t work for free, so when we are advising clients on how to craft an offer, figuring out what kind of credit the seller is open to offering is kind of a useful data point to know. Commission conversations can’t happen on the MLS per the lawsuit, but of course they are happening elsewhere. Does anyone with a W-2 job have to guess how much they are getting paid every time they go to work? No. Why should Realtors?

Podcast Point: She goes on to say that some listings have photos with 3 pizzas on a counter, to imply to buyer agents that they get 3 percent. Or they have the movie “Three Amigos” playing on the TV in the photos. 

Melissa says: You guys, I can assure you that I’ve never seen something like this. No one I know would be stupid enough to try that, and probably no one would even get it if someone was doing this. But it does make for a good story doesn’t it? 

Podcast Point:  Kamin states, “Commissions haven’t moved at all. So, the American home seller is not getting any relief at a time when they desperately need it.”

Melissa Says: What relief did they expect? Imagine before the lawsuit that a home would sell for $1M with the commission at 5%, giving the seller a net of $950,000. Now, if they only have to pay half of that 5%, so, 2.5%, yes, that saves them $25,000. But, do they still get to sell their home for $1M? All things being equal – No, because if the buyer has to pay their agent’s commission, it’s coming from what they would have offered the seller. The commission the seller is paying may be reduced by $25,000, but, then, so would the home price. Now their market value is $975,000.

If sellers don’t like this, that’s fine. But they need to understand here that if the seller pays 2.5% and still sells for $1M, the buyer is now WORSE OFF because they are paying the inflated house price and an additional 2.5%. This is the crux of what blows my mind. I took Economic Theory classes in both college and grad school. HOW COME NO ONE PREDICTED THIS?

Sellers have a choice to make. They can a) offer a buyer agent commission, get the higher price which has the added bonus of enticing more buyers. Or, b) don’t offer a commission, probably get less buyers but the buyer pays their own agent. Either way, the seller STILL NETS THE SAME AMOUNT OF MONEY!

Podcast Point:  Kamin introduces us to “poor seller” Mike Chambers, a seller of a home in Boulder, Colorado who discusses the process of selling his $2.75M house, without an agent. He interviewed Realtors and said “I couldn’t find an agent who was willing to go below 2.5 percent to list my house.” Kamin says, “Every single seller who came to his home said, I’m not willing to negotiate, and wanted him to pay at least 5 percent commission. On a $2.75M house, that’s over $100,000. Chambers says to her, “Often times, it equates to about 10 to 30 hours worth of work.” She says, “Exactly. For many people in this country, that’s a salary for a year they could only dream of achieving.” Kamin tells the interviewer he could not figure out what the agents were going to do that was worth over $100,000.

Melissa Says: First of all, they forgot the part where that $137,000 commission would be split. One person isn’t walking away with all of it. They walk with half.

Second, Realtors aren’t non-profits. We are allowed to charge what we feel is fair. There are some agents who will work for less than 2.5%. He can go find one! But you don’t get the same level of expertise or time from those agents typically. While the commission may seem high, riddle me this. What job do you work with for months and months, sometimes years – with no retainer and no guarantee of payment? If it’s a listing, what job out there requires people to spend their own money for marketing, photography, video tours, social media advertisements, print ads, again with no guarantee of payment and no guarantee of reimbursement for expenses? This isn’t just a straight “how much per hour are you worth” conversation.

I’ve taken losses on listings up to $1000 when a seller is just wants too high a price for the current market, and they can’t or won’t reduce the price to sell the home and decide not to sell. No one reimburses me. And I don’t ask them to because I’m in this for the long haul and building goodwill and referral networks.

I love love love my job. And what I’m about to say is not a complaint. We take huge risks in this business, and we sacrifice a lot of our personal lives as well. All the naysayers see is the gross commission per home. They don’t understand that individual real estate sales don’t happen in a vacuum. To a buyer or seller they might look like they are isolated from everything else but there are all the other pieces that go into it. 

We are compensated well because of many reasons. The wildly unpredictable income stream, the expenses we front with no guarantee of a home sale closing and commission being paid and – we aren’t reimbursed, the gas and time showing buyers dozens of homes and they may end up not buying at all, the marital spats we end up in the middle of and have to put on a therapist hat to make sure these two don’t kill each other, the time we spend on vacation working, the late nights and holidays we work, the times our family is waiting for us to go to dinner or leave for a trip and we’re negotiating a contract because you need the house and another offer is coming in, the relationships we have with other people in the industry that we leverage to get our clients what they want. 

Everyone who thinks they could do it for less has tried, and they haven’t been profitable. See: Redfin. Also, see: Foxtons. Don’t remember them, do you? Neither does anyone else.

Podcast Point: Chambers decided to sell the house on his own. And he wanted to get it listed in MLS, the Multiple Listing Service. But he found there are costs and hurdles to doing so.

Melissa Says: Fun Fact, many MLS’s are owned by the local Realtor Associations. In Colorado, however, the main MLS serving the state is owned by a private company as of last year. They can make their own rules. If the MLS is owned by Realtor Associations, they too can make their own rules, within reason. I don’t get to park my car in your driveway do I? Why should someone be allowed to use MLS if it’s privately owned and the owner doesn’t want someone to list there? 

Podcast Point:  Chambers tried to list on Zillow, and finds that Zillow doesn’t put For-Sale-By-Owners front and center. They feature homes listed by Realtors first. 

Melissa Says: Dude, this is not some giant conspiracy. You’re not allowed to park in other people’s driveways. Zillow can do what they want. They are a for-profit company and if they make more money by promoting different listings that pay for a boost, or that they can sell agent-ads on, then that’s what they are going to do. Now you’re just being a baby.

Podcast Point: Chambers claimed he gets a phone call from someone who said: “Agents representing buyers at my company are talking to each other in text and in person saying ‘we’re not going to sell this guy’s house because he’s not playing by the rules.’” Kamin calls this steering. 

Melissa Says: Bullshit. You mean to tell me agents were allegedly “steering” their buyers away from Mr. Chambers home, knowing he would pay 2.5% of the sales price to them – the agent, because they didn’t like that he was selling his home himself? So these agents chose to steer buyers away from one solo buyer with his perfect giant house when they stood to make $68,750. Why should we let the truth get in the way of telling a good story, right?

Podcast Point: Mr. Chambers found a buyer. But, he said he decided to “pull out of the sale.” He said after seeing so much of the inside workings of the real estate industry, that he is starting a business to try to fix it.

Melissa Says: Sellers really can’t pull out of sales, so I think this is also some BS. Once they sign a contract, everything is out of their hands. Buyers are running the show, only executing releases on contingencies if they choose, but sellers can’t just say “I’m not selling my house to you anymore.” I don’t believe he had a ratified offer, which means, he had nothing.

Podcast Point: Kamin says, “So rather than moving his family to Costa Rica, which was his dream, he’s now going to stay in Colorado for the time being and work on this startup company that he’s created to try to change real estate commissions.”

Melissa Says: This has been tried a bunch of times before. Before he tries to “disrupt” the industry, he should work in it first. Truly. That is not a snarky statement. People are always trying to disrupt the industry. But to do that, they need to know the inner workings of it. It can’t just be disrupted with “tech.” We need disruption but it’s in the form of higher barriers to entry and stricter punishments for violating our Code of Ethics because don’t get me started on how Realtors are “self-policing.” I worked for a decade with (for no money) on Professional Standards for our local association which determines Arbitration and Code of Ethics violations. Hand slaps for everybody.

Mr. Chambers decided to toss out his family’s dream of moving to Costa Rica to “fix” the real estate industry. Does anyone see how unhinged this sounds? I can’t even imagine telling my husband and kids they have to sacrifice our family’s life-dream for the wild hair I just got up my ass.

Podcast Point:  Kamin relays that Chambers’ message is that you should be able to determine how much you want to pay for that service. And the industry is not allowing those conversations to come to the surface.

Melissa Says: Do you go to your doctor and tell them you only want to pay them $14? No. I fell down the stairs, spent 5 hours in the hospital and it cost $37,000. Service providers offer a service at a price that works for their business. You can say yes or you can say no. Just because this guy can’t find an agent who will take what he wants to pay doesn’t make it collusion.

Podcast Point: The interviewer asks Kamin, what would you say to people who are trying to figure this out, perhaps aren’t willing to do what Chambers did, which is actually take charge of the whole process themselves, but they just want to be able to navigate the current dynamic in the best way possible? Kamin says that buying / selling a home is scary. She did it and she remembers sitting down with the agent and signing papers that she didn’t understand. She thinks she paid 6%, but she doesn’t know, so if it can happen to her it can happen to anyone.

Melissa Says: There’s a reason you can’t buy or sell a home until you’re a legal adult but when you do, put your adult hat on and do some adulting. If you don’t understand the paperwork, ask. If you don’t like the answer, find an attorney to explain it to you. But just because she didn’t understand, it doesn’t mean she can blame the agent or say she was forced to sign. That’s silly. Take some responsibility here.

Everyone who has a home to sell is welcome to try it on their own. I currently have buyers under contract with a seller who chose to sell themselves. I’m doing a good chunk of the seller’s side too because the seller doesn’t know much about the process. I could be screwing the seller over but I’m not because I’m a nice person and I want my clients to get this home. If they had a listing agent that agent would be all up in my grill right now asking for proof the deposit was sent, that the loan was applied for, that the appraiser was called, that they secured an insurance policy for the home. I don’t have to offer up that information. I’m not saying you can’t sell on your own, but without someone who knows the process and the current landscape and works it regularly, you may be in for some unwelcome surprises.

Podcast Point: The interviewer then asked Kamin how she thinks this change will unfold, or if it will. She says, “I asked this question to the lawyer who brought the case that resulted in the settlement and won it, Michael Ketchmark. He said, Blockbuster Video, when movies started streaming did not shut down all of its stores the minute things started streaming. It took time.

Melissa Says: Be Kind. Rewind. They are missing a key difference. And DVD’s were commodity products that could be improved upon by changing the method of delivery. Yes, the real estate industry can be improved upon by having more education required and higher barriers to entry. But how do you automate service, the unique set of skills, the knowledge of the industry and relationships? Even AI can’t replace that.

The settlement did what it was supposed to do. It decoupled the real estate commissions. Not sure why anyone expected much to change other than that buyers are now alerted that sellers may pay all, some, or none of their agent’s commission.

I recorded this because I’m tired of the narrative that we are all uneducated losers who suck, that we are overpaid, that we don’t work for our money and we take money away from innocent people. Are there agents out there who fit that profile? Yes. But they don’t last in the industry. Because the other thing our industry is, is litigious. And if you screw up, people will come for you.