July 2022 - Cat's Real Estate Newsletter
- catherinerobinson8
- Jul 19, 2022
- 4 min read
In this month's newsletter, read about...
How to make buying a second home affordable
Tools to ease the pain of inflation and rising interest rates
The current state of the DC Metro housing market
My buyer tip of the month
My seller tip of the month
DIY Inspiration from around the Internet
But before we get into it, I’m excited to share that I’m now licensed in Virginia. So if you’re looking to buy or sell in DC, Maryland, Virginia, or Delaware, I’m here to help!
Beach Home Bliss
As we are fully in the throes of another hot and humid summer, the idea of owning a second home at the beach is probably very attractive. Luckily, it can actually be more attainable than you think! You’re probably wondering, “What?” “How?”
The secret to making a second home affordable is renting it out. The demand for vacation rentals is very high, and if planned properly, the income your property generates can often cover your costs. For the last seven years, I’ve rented my place at the Delaware beaches to vacationers. I’m licensed in Delaware, and I’d be happy to share my tips for successfully running a vacation rental while also enjoying having a second home for your own use.
Even more reason to consider investing in a second home in Delaware today…
Along with the beaches we all love, did you know that the first state to ratify the Constitution boasts over 20 state and national parks, forests, and wildlife refuges? Check them out below, and then reply to this email to get started with your second home search!
And if your preferred beach towns are a little further south, don't forget, I’m now licensed in Virginia as well!
DC Metro Market Analysis
The latest numbers from the DMV show housing sales may be slowing but prices remain stable. Inventory continues to be lower than demand and transactions have decreased. However, the market is still competitive — not like 2021 competitive — and well-priced, properly marketed single family homes easily sell in the first weekend. Condos sales are more of a mixed bag and seem to be heavily dependent on each specific unit.
Inflation Got You Feeling Deflated?
Inflation and rising interest rates are today’s reality, but that doesn’t mean buying or selling a home isn’t worth it, thanks to some government and lender programs. Here are some options I can help you with:
Mortgage Credit Certificate (MCC)
Last month, DC relaunched the MCC program allowing those who qualify to claim a 20% federal tax credit on the mortgage interest paid each year. Qualification requirements include:
first-time homebuyer
income limit of $154,800 or $180,600 for a family of three or more
maximum loan amount of $647,200
Additionally, the remaining 80% of mortgage interest may still be claimed as a tax deduction, and it’s possible to pair MCCs with programs like DC Open Doors and the Home Purchase Assistance Program (HPAP).
Temporary Interest Rate Buydown
This one can get complex, but basically, a buydown allows the buyer to obtain a lower interest rate for the first few years of the loan. After the agreed upon term expires, the mortgage reverts to its actual interest rate. How can both buyers and sellers profit from a buydown?
For sellers, a buydown could make your property more attractive despite rising interest rates by allowing buyers to lower their monthly payment for the first few years of the loan.
For buyers, your monthly payment starts lower, then gradually increases depending on the terms of the buydown. If you predict a pay raise, inheritance, or other supplemental income in the future, this helps keep your payments low until those funds become available.
Reply to this email if you’d like to discuss your eligibility for one or more of these programs!
Buyer Tip of the Month
Always check your local regulatory agency to make sure there aren’t any unresolved issues for the property you're interested in.
DC makes this process easy with the new DCRA Scout website.
I just learned that the developers of my home, which I bought 5 years ago (before the new DCRA system), exceeded the scope of their permit, and DCRA issued a stop work order prohibiting any new permits from being granted. Now I can’t get a permit for my solar installation until I resolve the issues from the developers. What a nightmare! So my pro tip for buyers, and something I will be doing for all clients going forward — check your property before you buy!
Seller Tip of the Month
Don’t forget your home’s external features when preparing to sell.
On a recent tour of a property with a client, the developers only invested in remodeling the interior of the home. Even though the house had a decent outdoor area in the back, my buyer was immediately turned off because it was overgrown and hard to imagine how the space could be used.
So give a little love to those outdoor spaces before listing!
Cat’s Reno Corner: DIY Internet Inspiration
I came across two awesome ideas recently while browsing social media. One is this raised bed planter that hides your trash and recycling bins, turning an ugly space into a beautiful nature nook.
I just might have to give this a shot!
The other is simple and practical way to keep track of paint colors in case touch-ups are needed in the future:
What do you think? Would you try either of these?
Need an Agent Outside of DC Metro or Delaware?
If you’re moving out of the area and are looking for an agent, let me tap into my Compass network to find you the perfect match! Just reach out with a few details on the location, budget, and what type of property you’re looking for, and I’ll connect you.
Can I Ask for a Favor?
Most of my clients find me through referrals. If you have friends or family members looking to buy or sell a home, please reach out! I'd be forever grateful for any referrals you send my way.
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