Beltway Suburban Realty

Tag: #real estate

  • What is a mortgage, and how do I get one?

    What is a mortgage, and how do I get one?

    A mortgage is a type of loan used to purchase a home or property. When you take out a mortgage, you borrow money from a lender to cover the cost of the property. In return, you agree to pay the lender back over a set period of time.

    How a Mortgage Works:

    1. Loan Amount: The amount you borrow from the lender.
    2. Down Payment: You typically pay part of the property’s price upfront. This is usually 5% to 20% of the home’s price. This is called a down payment.
    3. Interest Rate: The rate at which the lender charges you interest on the loan, which affects your monthly payments.
    4. Monthly Payments: You will make regular payments to the lender. These payments typically cover the loan’s principal (the amount you borrowed) and interest.
    5. Collateral: The property you are buying acts as collateral. If you fail to make payments, the lender can take possession of the property through foreclosure.

    How to Get a Mortgage:

    1. Check Your Credit Score: Lenders use your credit score to determine your mortgage eligibility. It also affects what interest rate you get. A higher credit score generally leads to better loan terms.
    2. Determine Your Budget: Figure out how much house you can afford based on your income, debt, and expenses. A common rule is that your monthly housing costs should not exceed 28-30% of your gross monthly income.
    3. Save for a Down Payment: Most lenders require a down payment of at least 5-20% of the home price. The larger your down payment, the better your loan terms will be.
    4. Choose a Lender: Shop around for mortgage lenders (banks, credit unions, online lenders) to compare interest rates and terms.
    5. Get Pre-Approved: Getting pre-approved means the lender will review your financials (credit, income, assets, etc.) to determine how much they’re willing to lend you.
    6. Submit an Application: Once you choose a lender, you will submit a formal application. You need to provide details about your finances and the property you’re purchasing.
    7. Home Appraisal: The lender will require an appraisal to determine the home’s market value.
    8. Loan Approval and Closing: If your loan is approved, you will sign the necessary documents. You will then close on the property. This process officially transfers ownership.

    Once the mortgage is approved, the property becomes yours. You will start making regular payments as outlined in your loan agreement.

    Would you like more details on any specific part of this process? Would you like to get started with a mortgage company? This company was ranked #1 in consumer satisfaction by JD Power last year. 

    Start here, and the first client of mine to close this spring will receive a $500 credit towards closing costs. 

    Learn about types of loans. 

    #Mortgage #Realestate #Home #Maryland #Realtor #Finance

  • Guide to Buying and Selling Homes This Spring

    Guide to Buying and Selling Homes This Spring

    Long and Foster: For every moment, it's the one.

    The spring real estate season is right around the corner and all predictions are for a very strong market.

    If you or a family member or friend are planning to buy or sell a home, you may wonder where to start.


    While making one of your most important financial decisions, it’s more important than ever to align yourself with a trusted real estate agent who can provide the necessary experience and resources needed when purchasing a home.


    Here are a few of the ways I’ll be there to guide you through every step of the way.


    Expertise & Market Knowledge: I will analyze market trends, property values, and assess the features of each property to identify listings based on your preferences and budget.


    Guidance & Support: I’ll help you make informed decisions by providing insights into neighborhoods, schools, and local amenities – guiding you to the finish line.


    Advocacy & Negotiation: I will strategize with you to craft the strongest possible offer and negotiate on your behalf to secure the best deal, to protect your interests and maximize your investment.


    Streamlining the Process: I’ll handle all the paperwork, schedule inspections, and coordinate with my Long & Foster partners, ensuring a smooth and efficient process from start to completion.


    Overall Value: Through expertise, advocacy, and dedication I’ll help you achieve your real estate goals and provide a rewarding home buying experience.

    Let me help you explore your options.

    At Long & Foster, we’ve created an All-Inclusive Real Estate Experience to streamline the buying and selling process. From Mortgage, Insurance and Inspection, to Title, Moving, Property Management and beyond, we do it all. Let’s schedule a time to meet.

  • Understanding Maryland’s Renters’ Rights Act

    Long and Foster Real Estate

    Affordability is making it difficult for people to live in Maryland. A contributing factor is a shortage of houses. There was a 96,000-housing unit shortage in 2024. State legislators responded by enacting new legislation. Turning the Key: Unlocking Maryland’s Potential.  

    The Renters’ Rights and Stabilization Act in Maryland is legislation designed to protect tenants and renters by regulating rent increases. It ensures fair housing practices and offers tenants legal recourse against unfair or discriminatory treatment by landlords. It aims to balance the rights of tenants with the rights of property owners. While laws can vary across jurisdictions, there are a few key elements that apply statewide or in specific local areas. 

    1. Security Deposits:  

    Maryland has specific regulations around security deposits.

    • Landlords can’t require security deposits that are more than one month’s rent, with limited exceptions. 
    • Landlords can’t require more than two month’s rent (security deposit + first month) to be paid at lease signing and before move-in. 
    • Security deposits are to be returned promptly after a lease ends, as long as no damages or unpaid rent exist.  

    2. Rent Stabilization: 

    Some areas of Maryland have laws that limit how much a landlord can increase rent over a given period. The laws prevent sudden, large rent hikes that force tenants to leave their homes due to financial strain. 

    • Rent Increase Limits: Rent increases must be reasonable, with caps on how much landlords can raise rent within a year. 
    • Notice Requirements: Landlords should give tenants ample notice before raising rent (e.g., 60 days or more). 

    3. Tenant Protections: 

    The act includes provisions to prevent unjust evictions.

    • Eviction Protections: Landlords can not evict tenants without cause and must follow legal processes. Evictions can not be conducted during extreme weather conditions. 
    • Notice of Lease Changes: Tenants must receive proper notice if a landlord plans to end their lease or make significant changes to the lease terms. 
    • Right to Repair: Tenants have the right to request repairs if the property falls below a certain standard of habitability. 

    4. Fair Housing: 

    Maryland’s laws also prohibit discrimination based on race, color, national origin, religion, gender, disability, and family status. This ensures tenants can’t be denied housing or treated unfairly based on these characteristics. 

    5. Right of First Offer/Refusal: 

    HB 693 – Renters’ Rights and Stabilization Act of 2024 allows three scenarios for tenants to offer to purchase a property before a landlord lists it for sale. Landlords must go to the Right of First Refusal Portal.  

    Why Should Investors Care? 

    Investors in rental properties and homeowners should be aware of these laws for several reasons: 

    1. Regulation Compliance: Investors must comply with rent stabilization and tenant protection laws. Failing to do so could result in fines, lawsuits, or having to return rent increases. 
    1. Predictable Income: Rent stabilization can limit the potential for large rent increases. This means investors may not raise rents as quickly as they would like. 
    1. Tenant Retention: By respecting tenant rights and providing a habitable, fair environment, investors can reduce turnover and maintain stable rental income. Happy tenants tend to stay longer, reducing vacancy costs. 
    1. Reputation and Legal Risks: Landlords who violate tenants’ rights may face legal challenges, damage to their reputation, and potential lose property if lawsuits result in significant settlements. Investors need to ensure they have proper procedures in place to handle evictions, rent increases, and tenant complaints. 
    1. Market Conditions: Rent stabilization laws affect property value and rental market dynamics, especially in areas with stringent rent control measures. Investors should understand local regulations to gauge potential returns on investment. 
    1. Affordable Housing Incentives: Landlords may have tax break incentives or other benefits to maintain affordable rental rates. Investors should understand how these incentives work if they own properties in areas with rent stabilization programs. 

    In summary, renters’ rights and stabilization laws ensure fairness and affordability for tenants, while providing landlords and investors with guidelines to protect both their property rights and financial interests. For investors, understanding these laws is crucial for managing rental properties legally, ensuring tenant satisfaction, and making informed financial decisions. 

    Contact me for help listing or renting a property. Learn more.

  • Understanding the Annual Home Demand Index

    The Annual Home Demand Index is used by real estate professionals to gauge the home demand in a market area for a period of one year. It takes into account factors like buyer activity, inventory levels, and overall market conditions. It measures how strong or weak the demand is relative to the number of homes for sale.

    When it comes to the month a house is listed, the Annual Home Demand Index can offer some useful insights. For example: In January the home demand index is low, but buyer activity picks up in February to April. After that many houses get listed. So, listing a house before late spring and summer is a good time to catch increased demand but not compete with many listings.

    Seasonality: The index can highlight whether the time of year is a “high-demand” or “low-demand” period. For example, demand tends to be higher in spring and summer. Because many buyers prefer to move during these months due to school schedules and weather. A house listed in a month with high demand can get more buyer interest and higher offers.

    Price Strategy: If a house is listed during a month with a low demand it affects the pricing strategy. Homes listed during slow months need more competitive pricing or enhanced marketing to attract buyers.

    Buyer Competition: A high demand month usually indicates more buyers in the market, meaning there’s more competition for homes. Sellers listing during these months may see quicker sales and multiple offers. While homes listed during lower-demand months might sit on the market longer.

    Market Trends: By looking at trends over the course of the year, the index can determine whether a particular month favor sellers or buyers. If a market is experiencing high demand but the supply of homes is limited, a seller has an advantage for getting a higher price for their home.

    In summary, the Annual Home Demand Index provides a snapshot of the broader market conditions and helps both sellers and buyers understand the best timing for listing or purchasing a home. It can be a valuable tool for determining how competitive the market will be in the month a house is listed.

    See home demand index for Washington DC.

    To get a market report for your neighborhood, subscribe here:

    Washington D.C. | January 2025

  • 2024 Ends Strong: D.C. Real Estate Market Insights

    2024 Ends Strong: D.C. Real Estate Market Insights

    As we close out 2024, the housing market in Washington, D.C. and Montgomery County is showing remarkable strength, with several key indicators pointing toward robust growth. December data reveals a healthy surge in sales and prices. This is great news for both sellers and prospective buyers in these areas.

    1. Closed Sales See Significant Uptick

    In December 2024, closed sales in both D.C. and Montgomery County saw an impressive 24.4% increase compared to the same month last year. The rise in sales is a clear sign that both buyers and sellers are finding opportunities in the local market.

    2. Average Sale Price Rises

    The average sale price in the region rose by 8.7% year-over-year, signaling a continued upward trend in property values. This increase suggests that demand for homes in the D.C. metro area remains high, with home buyers willing to pay a premium for properties in desirable locations.

    3. Median Sale Price Gains Ground

    Similarly, the median sale price for homes in D.C. and Montgomery County also saw notable growth, climbing 7.4% from December 2023.

    4. Homes Are Selling Faster

    Despite higher prices, homes are selling quickly. The median days on the market in December 2024 was 24 days, indicating that homes are being snapped up at a relatively fast pace. This short time frame highlights the competitive nature of the market, where buyers are eager to secure a property before prices increase further. For sellers, this is encouraging news, as quick sales can help maximize returns.

    What Does This Mean for Buyers and Sellers?

    For buyers, the data shows that while prices are rising, the market remains active and there are still opportunities to find homes that meet their needs. However, quick decision-making may be essential as properties continue to sell fast.

    For sellers, December’s data signals a favorable environment, with strong demand and rising prices. If you’re considering listing your home, now could be a prime time to take advantage of the market’s momentum.

    In Conclusion

    The housing market in Washington, D.C. and Montgomery County ended 2024 on a high note, with substantial growth in sales and prices. With strong buyer demand, rising values, and homes selling quickly, both sellers and buyers should feel optimistic as we head into 2025. It’s clear that the D.C. metro area remains one of the most sought-after real estate markets in the country, and this trend looks set to continue well into the new year.

    Contact me to learn more or subscribe to neighborhood news. If you liked this post, please subscribe.

  • Why Rental Properties Are Key to Tackling Inflation

    Why Rental Properties Are Key to Tackling Inflation

    Are you looking for a strategy to combat inflation while ensuring a steady cash flow? One option worth considering is investing in rental properties. Real estate has long been an attractive way to build wealth, offering numerous financial and tax benefits. In this post, we’ll break down the key advantages of owning rental properties and why they can be an excellent choice for long-term financial success.

    1. Steady Cash Flow

    One of the biggest financial benefits of owning rental properties is the ability to generate consistent, passive income. When managed well, rental properties can provide a steady cash flow month after month. Ideally, your rental income will exceed your expenses, leaving you with extra money that you can reinvest, save, or use to fund your lifestyle.

    2. Property Appreciation

    Over time, real estate tends to appreciate in value, especially if the property is located in a desirable area. While short-term fluctuations in the market can occur, historical trends show that real estate values generally rise over the long run. This appreciation can lead to significant gains when you sell the property, or it can increase your equity if you hold onto it.

    3. A Hedge Against Inflation

    Rental properties are a great way to hedge against inflation. As the cost of living increases, so do rents. This means that your rental income is likely to grow in line with, or even outpace, inflation. If your mortgage payment is fixed, this can create a significant advantage. As inflation rises, your rental income can increase, while your mortgage payment stays the same, boosting your cash flow in real terms.

    4. Fixed-Rate Mortgages

    If you have a fixed-rate mortgage, your monthly mortgage payment will remain consistent even as inflation increases. This can be especially advantageous during times of rising prices. Meanwhile, your rental income can grow as rents increase, meaning your overall financial situation improves. Essentially, your mortgage payment is locked in, while your rental income can rise, allowing you to enjoy greater profitability.

    5. Tax Advantages of Rental Properties

    One of the most significant advantages of owning rental property is the potential tax benefits. One such benefit is depreciation. Depreciation allows you to deduct the cost of the property’s building (excluding the land) over a period of time—27.5 years for residential properties and 39 years for commercial properties.

    For example, let’s say you purchase a rental property for $300,000, and the land is worth $50,000. You could depreciate the building’s value of $250,000 over 27.5 years, resulting in an annual depreciation deduction of approximately $9,091. This deduction can help lower your taxable income, even if the property is appreciating in value.

    In addition to depreciation, other deductible expenses include operating costs, property taxes, insurance, travel, and mileage. All of these factors combine to reduce your overall tax burden, making rental properties an attractive investment option. As always, it’s best to consult a tax professional to understand the specific tax advantages available to you.

    6. Financing Options Based on Rental Income Potential

    If you’re unsure about whether you can afford a mortgage for a rental property, you may be surprised to learn that there are financing options available that are based on the rental income potential of the property rather than your personal income. This can make it easier to invest in real estate, even if you don’t have a high income or extensive financial history. Speak with a real estate loan officer to explore your options and find out what financing solutions might work best for your situation. Get started on financing.

    7. Partnering with a Real Estate Agent

    Once you’ve decided that investing in rental properties is the right move for you, it’s time to shop for the perfect property. A local real estate agent can be an invaluable resource in facilitating the buying process. They can help you navigate the complexities of property transactions and ensure that everything goes smoothly, from the initial search to the final paperwork. Contact me to learn more.

    Conclusion

    Rental properties offer a range of financial and tax benefits that can help you build wealth, stay ahead of inflation, and generate steady cash flow. From appreciating property values to passive income and tax deductions, investing in real estate can be a powerful way to achieve your financial goals.

    If you’re considering adding rental properties to your investment portfolio, now may be a great time to start. Be sure to consult with financial and tax professionals to ensure that you’re making the most informed decisions based on your unique circumstances. Happy investing.

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