3 Things You Can Do As a Homeowner Now to Make Your Future Sale More Successful

I often talk to clients about micro-markets when it comes to real estate. Within one region or city, there often are smaller markets that have their own trends and dynamics. As a case in point, the DC condo market is currently friendlier to buyers, while we’re still seeing lack of inventory and escalation with detached homes in Chevy Chase and similar communities.

However, this isn’t a post on the ever-changing market (reach out for the latest on that, as always), rather it is about something equally important and that you can control. Regardless of the micro-market, there are several key things you can do as a homeowner to put you on the best footing when it is time to sell your home. While there are many more, my three top tips for savvy future sellers are:

1. Maintain Your Systems, Keep Your Records: Even if systems are older, they don’t have to be a barrier to buyers. Everything from your water heater to your HVAC has an estimated life and, while the actual lifespan can vary greatly, your stacking the odds in your favor for a longer lifei with regular servicing. So, sign up for the annual or biannual maintenance plan, change those filters and keep a digital or physical folder with manuals and records for easy reference when you’re ready to sell. And, if you think age of one more systems may still be a distraction, you can always opt to purchase a home warranty before you list that will transfer to the buyer and offer them peace of mind.

2. Keep Up With Cleaning: Habits matter…especially cleaning ones. As a real estate agent, I have seen the most meticulously maintained homes and ones that, while disgusting, make you feel less guilty about skipping a week of vacuuming at home. Make it your norm, beyond general housekeeping, to do a seasonal deep clean inside AND outside — emptying cabinets, scrubbing baseboards and trim, power washing and more. And, to really save money, please maintain the countertops in your kitchen and bathrooms (resealing and polishing granite 1-2 times per year, for example) and scrub that grout and strip and re-caulk bathrooms at the first signs of peeling and/or mold.

3. Consult the Pros Before Major Updates: If you know selling is on the horizon (especially in the next 1-5 years), reach out to a trusted design and real estate professional (it me) to get guidance on any and all of your plans. Some things are easier to change without much time or expense before listing (e.g., paint or a light fixture), but kitchens, baths and removing/adding walls to change spaces can easily open you up to more buyers (or turn them away). Also, don’t wait to invest in your home until it’s time to sell if it’s in your budget and it would enrich your home life now! And, just like maintenance, keep those records of expenditures so we can use them to market your home!

So, how would you rate yourself on these three areas? Real estate is powerful because its something you find daily utility in and that builds personal wealth at the same time…pour into it to maximize your enjoyment and equity today and beyond!

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

Is Live-In Landlord Life for You?

The Washington, DC area is known for many things — beautiful cherry blossoms, a great dining scene and so much more…but an affordable housing market is sadly not one of them. With cities around our region regularly ranking high among U.S. locales for average home prices, many homebuyers need help nabbing their piece of the market, and one strategy for many is seeking a home that allows for rental income that helps offset the mortgage.

Being a live-in landlord or owning investment properties that you lease out requires research, reading up and planning, but it may be an option for you or someone you know. There are two primary owner-occupied options we see in our neck of the woods:

1. Multi-Unit Properties: A multi-unit has two or more independent units allowing for multiple individuals/families to have distinct homes in the same building. You likely are familiar with the terms duplex and triplex, which are two- and three-unit properties.

2. Shared Single-Family Homes: If your home is larger enough to welcome one or more person, you may elect to have a roommate. The roommate could have their own separate area of the home, like a lower level, or simply occupy a bedroom with shared bath, kitchen, etc.

In either of these types of homes, you can choose to have longer-term tenants with leases or you may opt to welcome someone on shorter, more flexible terms through Airbnb or another platform. We’ve especially seen an increase in these among Millennial homebuyers. But, before you count your leasing income on that future home, here are a few things to keep in mind:

• Remember Income is Not Guaranteed: If you are only able to make a property work for your budget by renting, make sure you have a contingency fund and plan if market conditions change. You may need a buffer between tenants (and won’t have income for a period of time), see demand fluctuate (as we saw when a large number of college age students returned home during the pandemic and no longer were seeking off-campus housing, resulting in less demand and depressed prices) and/or (but hopefully not) run into tenants who can’t or won’t pay. So, know your numbers and have savings you can fall back on to ensure you can pay your mortgage if the income decreases or stops.
  

• Understand the Rental Market: You may have recently been a renter, so put your tenant cap back on for a bit. What are your target renters looking for? As a result of the pandemic, for example, more people began relying on personal vehicles over public transportation, so is there off-street parking and, if not, how easy is to park on the street? Another consideration is that secondary units are often in lower levels of homes, which are inherently less desirable than above-grade units. When you take all of this into account, you can best price your unit to find a tenant quickly.
  

• Know the Law: Every jurisdiction has laws that guide housing and rentals, with a focus on protecting tenants and their rights. (DC is notorious for being the most tenant-friendly jurisdiction in the U.S.) You’ll want to ensure the space you intend to rent is legal to rent, know what registrations and licenses you may need (and how much they cost) and understand regulations regarding important things like managing security deposits. As a reminder, laws are constantly evolving and you need to stay on top of those changes. One of the most recent changes that has impacted many owners limits short-term rentals for non-owner occupants but also introduces the need for short-term landlords to register with DCRA.
  

• Be Prepared to Handle Issues: As the landlord, the responsibility falls on you to address any issues — from a broken toilet to pesky pests. This means, just as any homeowner should, you want to ensure you have funds to pay for fixes and upgrades, as needed, and ensure you make yourself available and responsive to the concerns of your tenant(s). If this gives you anxiety or is not consistent with how you want to live, landlording may not be for you. Of note, landlords who don’t share properties with their tenants sometimes will hire a professional property manager for this purpose, but that comes at a cost and is likely not a fit when you’re on site.

• Talk to a Tax Professional: As you add another income source, you’ll want to ensure you account for that appropriately on your taxes. Make sure to talk to your CPA.
  

Do you think sharing your home may be right for you or your path to homeownership? Reach out and let’s dig in, crunch the numbers and see!

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

Four Cost-Effective Updates to Sell Your Home for More Sooner

When you decide it’s time to find a new owner for your home — whether you are moving up, relocating or otherwise, once you get past the emotion and nostalgia, you likely are most focused on maximizing your return on this important investment and doing so on your terms (including finding a buyer quickly).

As both a real estate agent and decorator, I work closely with each of my clients to create a custom plan to sell their homes for top dollar swiftly. And, while each property and micro-market (location, price point, etc.) is slightly different, there are four key areas I always focus on that offer cost-effective opportunities to optimize a home for the sale — ensuring it’s the best presented option in its price range and location.

Read on for my top tips and check out a few before and afters to show you their power:

• Paint & Your Overall Color Palette: Paint can be transformative and completely change the feel of a space — making it brighter, more welcoming and up-to-date (I’m looking at you yellow bathroom!). While walls are the focus, you also may want to consider painting cabinetry to say bye-bye to dated wood tones (think that original bathroom vanity in a honey tone) or just a fresh color on the front door to be on trend and intrigue buyers to schedule a tour. Another way to play with color is by changing textiles (which I often do when staging with client’s own furniture). A simple swap of a rug or set of throw pillows paired with neutral paint can transform a space and let you keep those red leather couches.
  

• Lighting & Hardware Updates: Changing a light fixture or faucet is a simple job for a handy homeowner or a hired professional, allowing you to banish dated brass candelabras and signal a contemporary feel for buyers. Even easier is changing knobs and pulls on cabinetry (or adding them if they aren’t installed)…and, when you do both together, magic! There are so many cost-conscious fixtures available from Wayfair and other online retailers, so there’s no need to hesitate!

This home sold for for more than 14% above list with seven offers (and set a new neighborhood record). We updated the palette with fresh paint and some new textiles, built on the iron railing by adding a matte black chandelier and ceiling fan and banished that wallpaper and chair rail in the dining room..voilà!

• Simplify & Streamline: Many design features are associated with a certain era (unnecessary pony walls, anybody?), and sometimes it makes sense when you are painting and making other updates to strip these away. For example, a chair rail can be beautiful but may date a dining room, and old window treatments and hardware may have seen better days (and won’t be needed by you much longer or at all). Other easy updates include removing wall mounted storage (like that shelf above a window or the cabinet above your toilet). You may have installed them to give you more room for all your things…but they also may signal to the buyer this space may not work for them.
  

• Surface Transformations: A dated bathroom may be ready for a larger refresh, but that may not provide the ROI you need (or work on your timeline). Instead consider updating the laminate vanity countertop with a new quartz one, re-glazing an older tub and/or swapping out the entire vanity set. You also may want to remove a dated kitchen backsplash and/or add a new one to create a fresh look. While a little more involved, when paired with some of the tips above, a refresh vs. a full renovation may just what the doctor, err agent, ordered!

A pre-fab vanity with matching mirror from Home Depot was an inexpensive update (along with paint and removing an extra cabinet) that dramatically changed the way this en suite bathroom showed.

Looking for custom tips as you think about your next chapter? Reach out today for a virtual or in-person, no pressure consultation (bonus: these recommendations are equally as rewarding if you are staying in your home but watching your budget)!

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

Buyer's & Agent's Eyes: What to Look for in Your Next Home

A Licensed Inspector Is a Great Resourced in Your Home Purchase — Whether Before an Offer or After (Even for Informational Purposes Only)

When it comes to identifying your next home, you may find yourself making the decision to submit an offer after only 15-30 minutes in the property (or, sometimes, without even stepping foot inside).

As an agent-buyer team, our shared goal is to find a home that fits your needs and wants — near and longer term. While a general home inspection and/or other inspections may be a part of your process (before an offer or after its accepted), we have to use our combined experience and knowledge to look out for any dealbreakers.

Often what a buyer’s eyes focus on upon the first visit is different than what an experienced agent who has seen thousands of homes may be looking for. With buyers, some of the top areas of attention include:

• Kitchen: The adage is true. Kitchens sell homes, as they can be among the more costly renovations and updating a kitchen while living in a home is not ideal (ask anyone who has done it).

• Primary Bedroom & Bath: If you’re paying the mortgage, you want your personal retreat to feel like just that. En suite bathrooms are preferred by most buyers who are purchasing a home with more than one bathroom, too.

• Bathrooms: Like kitchens, bathroom renovations are a little more involved and, if you only have one, you want it to be perfect.

• Curb Appeal: You want to walk or drive up to a lovely looking home, even if the inside is much nicer than what’s on the outside (it’s what’s on the inside that counts, right?)

• Flooring, Paint Colors, etc.: If the tone ans/or width of the floors are “on trend” or the wall color is neutral, it’s easier to picture making it your own. I have yet to hear a buyer say, “Oooh, I LOVE that orange wall!”

While these features of a home are all important, most have the common theme of being more cosmetic than not (all of which can be changed when you’re ready and at a range of budgets, usually). For example, sometimes simply painting walls, trim or a vanity can be transformative and cost effective. However, as a buyer’s agent, I strive to make sure we also focus on the “less sexy” features that can turn into projects that don’t give you the same level of satisfaction as a new bathroom or quartz countertops but can drain your wallet as much or more:

• Gutters, Grading and Drainage: Water is the enemy of any home. We’ll look at where it may travel when there’s a storm or otherwise (and hopefully it’s away from your home). With increasingly heavy downpours in the DC area, features like larger gutters with guards, sump pumps with battery backups, etc. are always nice to see.

• Foundation Issues: While I am not a structural engineer (and you likely aren’t, as well), we can look for visible cracks or feel for sloping in floors (just pull out that handy marble). If something seems off to us, you’ll want to bring in an expert to do an assessment.

• Basement Condition: This ties in with the first two, as basements can help reveal underlying/larger problems. Does it feel moist or smell musty or moldy? Do you see evidence of work — from re-poured sections of concrete to new paint and flooring? As much as we all love a finished basement, sometimes it’s great to have one with exposed ceilings and cinder block walls.

• Major Systems: While a garbage disposal can be replaced for under $100, a water heater or HVAC will cost much more. Older systems shouldn’t be a non-starter if your budget and homeownership plan allows for updating them or, at the least, a comprehensive home warranty.

• “The Bones": As much as possible, we want to look past the stylish finishes and pay attention to what you can’t change easily/cheaply or at all — think location, layout and underlying construction quality. If you want that brick house (right, Carolyn?), it may be better built and require less maintenance than another material.

So, does this mean we can’t look for, admire and place value in items on the first list? Of course not. But by prioritizing the second list you may find yourself considering a wider range of properties…and avoiding headache down the road!

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

What to Do When You're Ready to Buy...and Everyone Else Is, Too

Make Sure You’re Not Iced Out of Your Next Home

With everyone focused keenly on what they need and want in a home (thanks, COVID-19) and historically low interest rates, what normally would be the start of the “busy season” in DC area has been intensified to the nth degree.

With supply (number of homes for sale) and demand (number of buyers looking) so mismatched, if you’re looking for a detached home or townhome practically anywhere, you’ll likely be facing a multiple offer situation. And, while escalation clauses and pre-inspections are not uncommon in our market normally, we are seeing the number of competing offers on homes rise (we’re talking 10, 20 and more) at the same time as reasonable contingencies mean you won’t even make the short list of offers considered.

Both listing and buying agents long for a more balanced market but, until then, if you’re looking to buy you want to make sure you’re prepared and persistent. Here are a few tips to get you in the right mindset (and please reach out if you’d like a one-on-one consultation to learn more to inform you next move…now or later).

• Assemble the Right Team: You can’t do this alone, so you want to ensure you have an agent who is on top of the market, strategic and responsive. The same goes for your lender (let me know if you are interested in introductions to several of the best local ones) Remember that your offer is evaluated not just on the terms but also on the parties representing you. Are they good to work with? Do they deliver on time? You want to be able to give a resounding “Yes!” to those questions about your team.
  

• Know the Market: With the help of your Realtor, start learning about the specific market (geography, price point, house type) well before you are ready to make moves if possible. This will help you mentally prepare for the challenges and sometimes tough decisions you will face (like waiving a major contingency) in your journey.
  

• Know Your Numbers & Thresholds: Unless your name is Bezos (or another household name), you likely have limits — in terms of your finances and your risk tolerance. Work with your lender to model out scenarios and know what you have to bring to the closing table. You very likely will be faced with a situation where you may have to make up a difference between the appraised value and contracted sales price of your future home or assume risk by waiving an inspection (or, at the least, assuming responsibility for any issues you may find). Exploring what’s right for you in advance of writing an offer will allow you to be as aggressive as you can (and need to) be in this market while not setting yourself up to be house poor.
  

• Act Swiftly: The DMV real estate market generally moves quicker than most of the country, and I’m not just talking about closing in less than 30 days. It’s not uncommon in this market for showing appointments to be gone before a house even hits the market. By getting ahead of listings while in Coming Soon status or through your agent’s network and relationships, you can ensure you have a chance to take a swing when you find a home that hits the mark. Your speed comes in handy well beyond the initial showing — from squeezing in a pre-inspection and meeting offer deadlines to closing quickly and on time.
  

• Understand Types of Value: If your #1 criteria in a new home is getting a steal, now is not the time to buy. That being said, if you place value in quality of life and are financially ready, there’s no reason to wait. As always, think ahead to your five- and ten-year plans and consider your exit strategy. Since you will be paying a premium most likely, it may take longer for valuations to catch up and, as with all markets, real estate goes through cycles.
  

It’s a lot to unpack, which is why the first bullet is always the place to start. With a solid team and preparation, your next home is in sight!

Amber Harris is the owner of At Home DC, an interior decorator and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

The Price Is Right: Pricing Your Home to Sell

Photo Credit: TaxRebate.org.uk

As I meet with clients looking to sell their homes, the first question they often have as we start our consultation is “what can we get for it?” A home is usually the most valuable asset (or one of the most valuable assets) an individual or couple has, so what you’ll come away with is undoubtedly important. However real estate, like many things in life, is negotiable so you’ll want to remember the following as you prepare to go to market:

List Price vs. Sales Price
List price and sales price often aren’t one in the same. There are Three Ps that are critical to get right when selling your home: Preparation, Pricing and Promotion. Just like preparation (think painting and staging) and promotion (social content, print materials, etc.), pricing is a marketing tool. As with all our marketing, our goal is to reach the widest audience of potential buyers. The days of more than a dozen competing offers as the norm may be over (for now), but a list price on the conservative end of the estimated sales price has the ability to generate multiple competing offers — helping you get the highest price and most favorable terms.

Vacuums: Great for Rugs, Not for Selling Homes
While inventory may be low, your home always will be compared to other available homes (as well as those recently sold). The list price should take into account comparable properties, with the goal of being the best priced (and best presented) option for buyers. Depending on how much time has passed since you signed your listing agreement and are ready to go to market, that recommendation may change based on current market dynamics.

Nothing But Net
It’s easy to fixate on the list and sales prices, as they are what you see in marketing materials and what will post online and in public records when all is said and done. However, you should keep your focus on your net after you pay off your mortgage (if any) and closing costs. This is precisely why I go over estimated nets at various potential sales prices with clients, and together we set our sights on that bottom line.

Who Decides in the End?
While together we will set the list price, the market (i.e., homebuyers) ultimately sets the sales price. My role as your advisor and agent is to use data, trends and personal market insight to approximate that value so we can discuss a target net for you.

Finally, it’s also important to keep in mind that dollars aren’t the only currency in a transaction. For example, a buyer may offer you a 60-day rent back for free (worth two month’s of PITI) or they could offer to close in a week instead of 40 days (worth a month’s PITI). List price is simply a part, albeit a pivotal part, of the complex plan to make the most of your home’s sale — something that homeowners and their Realtors® always should discuss in depth and up front.

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.

How Do You Know It's 'The One'?

Picturesque Georgetown
Photo Credit: Picssr

Some people fall in love with every home they see, while others can pick each one apart — identifying flaws that may be consequential or not. Having spent countless hours working with buyers with a range of budgets and needs, when they find “the one” it’s usually pretty clear to me (then we move onto the harder part of structuring the best offer so it becomes theirs).

While it’s true that you’ll often see a property for 15-30 minutes and then find yourself signing a contract of sale for hundreds of thousands of dollars to buy it, that doesn’t mean you can’t prepare yourself to make that swift decision more easily and recognize if you’re ready to take the next step in the homebuying process.

As you prepare to buy your first (or next home), here are a few ways I guide my clients and help them discern what’s best for them and that you can use to help you (or your clients):

• Check(list) Yourself: Buying a home is an emotional process and you often have to go with your gut; however, that doesn’t mean throwing reason out the window. I always make sure to place a concise list of needs and wants at the top of showing sheets I prepare for my clients. This way, you can remind yourself that private outdoor space wasn’t a must but storage space was, for example. It’s easy to get distracted by shiny object (that gorgeous soaking tub!), so check yourself.
  

• Compare and Contrast: While you definitely should compare each potential new home to your list of needs, you naturally may find yourself comparing it to other properties you have seen. For this reason, if time allows, it is sometimes helpful to see a few more properties after you think you’ve found the one you want to offer on — most likely confirming how your feel and strengthening your resolve to make it yours.
  

• Picturing Your Future: One of the telltale signs someone is falling for a home is when they start placing their furniture (verbally) in a home and talking about how they would spend their time in the space. If you can envision not just special occasions but daily life in that home and neighborhood, it may be the perfect fit.
  

• What If…: I often ask clients how they would feel if we just found out that the home in question just went under contract with another buyer. If you’d be kicking yourself for not acting faster, the game of “what if,” is a great final check before making your offer.

In the Washington, DC area, the market moves fast and it’s natural to be nervous about making such a big decision so quickly…but by stepping back briefly, holding yourself to a few simple “tests” and, most importantly, leaning on your real estate agent as a trusted advisor will make sure you can act confidently and give yourself the best chance of nabbing “the one” (or the next one)!

What to Know When You Are Selling & Buying: Q&A with Greg Kingsbury

In the Washington, DC area, it's not uncommon for homeowners to climb the property ladder, gaining equity over time and upgrading to a home that better fits their longer-term needs (instead of buying that forever home from the start).

Kingsbury

Some owners will hold onto their first property as an investment but many will want or need to sell it to move onto their next house. In a less competitive market, having a contingency around the sale of a home is not uncommon but, in this region, it can make getting your offer accepted more challenging. However, there are options...and we tapped into the expertise of local lender Greg Kingsbury, who leads the Kingsbury Mortgage Team at Caliber Home Loans, to answer some of the most common questions when looking to sell and buy in short order:
 
What is the #1 question or concern homeowners come to you with when they are looking to sell their current home and buy a new home?

Of course all situations are different so many prospective borrowers will have different questions based on their individual scenarios. If I had to narrow it down to a single question, it would be how to qualify for a home prior to selling their current home. Most of the time this is based upon wanting to declutter and make minor improvements to their home so it looks best and will command the most value on the sale.

The advice that seems to get thrown around the most is to just go get a bridge loan. I find that most clients are told to go get one, but don’t really know what a bridge loan actually it is.  Many think it is some kind of magical loan that just gives you your equity to allow you to buy something new. The truth I find is that most people won’t qualify for a bridge loan. When getting a bridge loan, you have to qualify carrying your current mortgage, the new mortgage and a payment on the bridge loan. There usually also are substantial costs to the bridge loan, generally in the form of a few points paid on the amount (in addition to closing and recording costs). The other common misconception is that you can get a bridge loan for all of your equity.  Most providers of bridge loans don’t want to exceed 80% of the value of the residence you are departing inclusive of any outstanding debt.  

So, what options are available to sellers who are looking to qualify for and finance their new home purchase? 

There are several options to consider when trying to qualify to move up and buy a new home. There is the bridge loa, but often times, as noted above, that doesn’t work or isn’t cost effective.

“There is a lot of misinformation out there, so do yourself a favor and talk to someone that is local and, even better, someone that has been referred.”

— Greg Kingbsury of Caliber Home Loans

The second option is doing a lower down payment with the intention of paying down that loan after closing with the proceeds of the sale after the departed residence sells. This is usually accomplished by a principal reduction followed by a loan recast. (A loan recast is when your loan servicer re-amortizes your loan after a large principal payment.) Usually the minimum required for a recast is $5,000. This allows you to get a lower payment without having to refinance your loan and allows you to keep your current interest rate. The recast just takes your new principal balance and adjusts the payments to still keep the original loan maturity date.

A third option is a combo loan. This is where you have a first and second mortgage with the intention of paying off the second mortgage after the sale of the departed residence leaving you with just the single first mortgage. 

Aside from working with a top-notch agent, what recommendations do you have for your clients who are looking to "move up"?

Do your homework upfront and budget accordingly. Make sure you get all the numbers and consider things on a worst-case scenario. You never know if the market is going to turn, and you have to hold onto a property longer than anticipated. Consider backup plans in the event you can’t sell. Find out what the rental market would command for your property. Would you be able to carry both payments if you had to hold onto it and rent? 

Are there any potential pitfalls when selling and buying as it relates to mortgages? If so, how can clients avoid or minimize the chance of these?

The only pitfall I can think of is not having everything reviewed up front to make sure you really qualify for what you are hoping to get into. You may have your credit pulled and someone take a quick look and think everything is ok but, if they aren’t asking questions about the total picture, you could all of a sudden not qualify. If the debt ratios are close and a bank is only looking at a credit report and not asking if there are additional items such as condo fees, taxes not included in the mortgage, child support/alimony, etc., it could look on paper like you’d fully qualify and once all the pieces are put together you end up not qualifying.

This can all be avoided by being upfront about everything and making sure that the lender you speak to has the full picture when they are reviewing your file. 

The DC area real estate market is competitive and buyers often need few or no contingencies to win with sellers. How do you work with a buyer’s agent to strengthen their offer?

We try to get as much information at the beginning to make sure that there are no concerns with their ability to get financing. If there is an option to waive contingencies, this definitely helps win offers. However, waiving contingencies can put borrowers in a difficult spot and prove to be very costly if something were to go wrong. But, with the right questions asked and the appropriate documents supplied and reviewed, these risks can be mitigated to protect the borrower while also allowing them to present the strongest offer possible. We’ve been able to help buyers with financing beat out all cash offers with these strategies. 

What is the best piece of advice you have have for prospective homebuyers today? 

Take some time to set up a call with a trusted loan officer before you go out looking at anything. You should be able to have a conversation about your individual situation and get a real understanding of your options. From there, ask for scenario sheets to show you perspective loan options.

There is a lot of misinformation out there, so do yourself a favor and talk to someone that is local and, even better, someone that has been referred. A random contact from the Internet has no vested interest if they steer you wrong or something goes wrong. They can just move on to the next online lead. A local person lives on the referral. They have a more vested interest to see you succeed as their livelihood depends on satisfying each customer to keep the referrals coming.

Thank you to Greg for sharing his experience and knowledge, and make sure to connect with the Kingsbury Team on Facebook and Twitter for more mortgage insights.

Three P's of Selling Your Home

In a hot real estate market, like the Washington, DC area, there sometimes is the misconception that all you need to do to sell a house is put a sign in the yard and list it on the MLS. However, there is much more that goes into selling a home...and doing it for the maximum price possible in the current market. 

While there is a list of more than 100 things I do before listing a home for a client, I like to focus on the "Three Ps" when advising homeowners on what to expect in our initial consultation:

1. Preparation: Depending on the condition of your home, the market and your ability to invest in repairs and updates, there may be a short or long list of recommended items to tend to. Some will be absolutely necessary, like ensuring major systems are operational or that there is fresh, neutral paint throughout; while others may be advisable to increase your potential of top dollar, like updating features and fixtures in kitchens and bathrooms or staging your home.

Every property is different, and we'll talk through the reasoning behind each recommendation and why it may be a smart investment. Some projects may take a quick trip to Home Depot and a day of labor and others may require more planning and a professional. For this reason, you should consult with a real estate agent as soon as you know (or are fairly confident that) you will be selling. This allows Realtors like me to prepare a recommended plan and timeline, so you don't add undue stress to the homeselling process.

2. Pricing: At every initial consultation with a client, I will be prepared with a range of market insights, including relevant comparables (aka comps), so that I can make a recommendation on list price after seeing a client's home. That recommendation begins as a narrow range and where we land ultimately depends on the repairs and updates made, recent sales and available inventory at the time we list and other circumstances and requirements (e.g., you need a buyer who will allow you to rent back your home for 30-60 days). 

Pricing, ultimately, is a means to an end...maximizing your net after paying off your mortgage (if applicable) and other closing costs. The right price will get the greatest number of potential buyers in the door and, in some cases, you may get multiple offers that could escalate above list price; in other instances, you may find the market telling you that it thinks your home is priced too high -- either by a lack of offers or only offers that are effectively below list. The goal is to price right from the beginning leveraging data but to be prepared to make a swift changed if needed.

3. Promotion: Preparing your home with repairs & updates, as well as staging and pricing it correctly are the foundation, but promotion is key to ensuring that you reach the right audiences. Promotion spans dozens of activities, including:

• Professional Photography
• Signage & Flyers
• Custom Websites, Tours & URLs
• Email Marketing to Agents & Potential Buyers
• Open Houses for Neighbors, Agents & Buyers
• Social Media Content, Especially Graphics & Video
• Buyer Incentives, Like Home Warranties

There is no one-size-fits-all when it comes to promotion, so having an agent versed in PR, marketing and social media strategy is a huge asset. Strategic promotion will try to maximize the reach, but be targeted toward those who have the greatest potential of bringing or being a buyer.

As you can see in this brief exploration, there are seemingly limitless considerations that can have clear consequences on how much your home sells for (and how quickly). Ultimately, you're behind the wheel...but let a trusted agent be your navigator and partner on the road to the closing table. 

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia. 

Setting the 'Stage' for a Successful Sale

Staging. If you turn on HGTV or talk to anyone who actively stalks neighborhood listings online (you know you do!), it's a hot topic that generates various opinions — from being expensive and overrated to a must in this market.

As an interior decorator and real estate agent, I have clearly seen the value of staging for sellers but also know that the process can be challenging for homeowners. With that in mind, I thought I'd share a few tips for those selling their home on how to approach the topic when the time comes to list:

Property Staged with Owner's Furniture & Accessories

1. Staging vs. Interior Design: While it is not uncommon for interior designers and/or decorators to run staging businesses, interior design is not the same thing as staging. Staging focuses primarily on the visual aspects of spaces, while interior design (well, good interior design) focuses on the function just as much, if not more. 
    
2. Staging Is Expensive: While staging an empty house is not inexpensive, market research has proven time and time again that staging has a positive correlation with the contract price and length of time before contract. It is important to look at staging as an investment and not simply an expense because, if done well, you will recoup and make money because of it.
    
3. It's All or Nothing: While you certainly will have more work to do if you are starting with an empty house, staging doesn't always mean fully furnishing every living space. For properties with more than two bedrooms, I sometimes recommend selective staging. You want to focus your efforts on the most important spaces to most buyers (living room, kitchen, master bedroom, etc.) and then add on other spaces as need and budget allows. For example, you may want to stage a smaller or potentially awkward space to illustrate how it can function, say as an office or nursery. 
    
4. No Need to Stage If I'm Living Here: If you are living in a house while it's on the market, that's an even bigger reason to stage your spaces. One of the services I offer my clients (and other Realtors) is working with their existing furniture and accessories to highlight their home and appeal to the most potential buyers. Decluttering and depersonalizing spaces is the first step in any staging plan. 
    
5. It's Personal: Selling a home is an emotional process, and it's important to realize the moment you decide you are selling that the home is no longer yours. As an agent, my goal is to help you meet yours — whether that's a high offer, quick close or any other number of terms. When you separate yourself from the property and realize the recommendations made and actions taken are necessary to reach your goals, you can appreciate (or at least tolerate) creating and living in a show home temporarily. 

Leave Room for Buyers to See What a Space Could Be

If you are thinking about selling your home, you have many choices when it comes to hiring a Realtor. Beyond setting the appropriate list price, marketing (which includes staging) is the most important factor in optimizing your outcome. Make sure your agent is an expert in real estate as well as all aspects of marketing (design, social media, digital advertising, etc.) and you'll be on your way to the closing table. And, of course, if you need that breadth and depth of experience in the DC metro area, you know where to find me!

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia. 

Avoiding First-Time Home Buyer Flubs

There's nothing more exciting than making the decision to go from tenant to homeowner, but buying your first home can be daunting (the number of legal documents and signatures required before you even go under contract can be maddening enough).

Source: Max Pixel

At times we all fancy ourselves chefs, handy(wo)men and more thanks to technology, social media and a generous dose of can-do spirit, buying a home is a big decision and commitment. While a wealth of information and tools — from seemingly up-to-the minute listings arriving in your inbox to mortgage calculator apps — are a great start for the novice, this is one area where a dollar spent (specifically on a real estate agent), will net more than that in one or more ways.

It's true there are about as many tales about challenging first-time home buyers as there are about annoying agents, but I find working with first timers enjoyable and rewarding. For that reason, I thought I'd share a few myths I have had to debunk with clients if you are considering starting your search:

• Pre-qualification or pre-approval...it doesn't matter which I choose. If you are looking to buy in the Washington, DC area, you will likely face stiff competition. One of my key roles as a Realtor is to help you make the most competitive offer, and financing is a big component of that (we include a copy of your pre-approval letter in your offer). Before you walk in the door, you should know that you have the ability to buy that property if it's "the one." Pre-approval is one step beyond pre-qualification and means your lender has done due diligence and is even more confident that it can handle your mortgage needs (giving the seller confidence that if they accept your offer the deal will close).
  

• As long as I have the money in time for close, I'm set. With the high price of real estate in the area, often clients are relying on family loans or gifts to help them with closing costs. As a part of the pre-approval process, you will need to document the sources of your funds, and extra scrutiny is usually placed on funds that haven't already been in your bank accounts for at least a few months prior. This means it's wise to have the funds in place as soon as possible and to be prepared to provide a loan agreement, letter or other documentation (sometimes from the person lending or gifting the money) in order to have your loan underwritten.
  

• Every renovation is created equal. In the local market, many buyers want properties that are new construction or that have been recently updated. While those white kitchens with quartz countertops look amazing in the photos, not all updates are created equal. Look at the quality of the finishes when you visit the property and for signs of cutting corners (which sometimes can also been indicative of shortcuts taken behind the fixtures and walls).
  

• New is always better. While I caution first-time home buyers against biting off more than they can chew (financially, maintenance-wise, etc.), some buyers are open to renovations — from a fresh coat of paint to kitchen and bath updates. If you can look past outdated fixtures, you may get your hands on a great property that others have passed over. Whether you have the cash in hand or are considering a 203k loan, make sure to add a healthy buffer in terms of budget and time to your plans.
  

• It's only a starter home... When you buy a new home, you invest more than just the down payment at closing. For this reason, it usually is beneficial to own property for several years before selling. If you think you are going to stay in the area, you may want to expand your search to find a property that meets your anticipated future needs (or that could). For example, if you are thinking of starting a family, you may want to find a home that allows you to not just comfortably raise a baby but also a young child (and that takes into account their educational needs). If your budget does not allow you to buy as much house as you know you will want (with the features you want), look for properties that may need cosmetic updates you can do over time or that have a lot that would allow you to expand the house to add livable space.

As I mentioned at the top of this post, technology, social media, a can-do spirit and even a blog post are not substitutes for a professional. If you are (or know someone) thinking about buying your/their first home, please reach out!

Amber Harris is the owner of At Home DC and a licensed real estate agent with Keller Williams Capital Properties working with clients in DC, Maryland and Virginia.