When the housing market is this tight, considering a home that needs a bit of work can pay off big dividends for flexible buyers.

Let’s face it, when purchasing a new home, most of us would prefer to purchase one with upgraded kitchens and baths, a new roof, new windows, new systems, and our favorite paint colors – oh, and in the ideal location. Most of us would also like to win the lottery. 

None of those are realities for most people. 

The housing market continues to struggle with a level of supply that is not keeping pace with demand. Buyers are competing for too few available houses and properties deemed “fixer-uppers” get less prospective buyer attention. However, these properties have untapped potential and should not be overlooked if a buyer is willing to take on the home improvement challenge and can identify the means to finance the effort. 

As different properties require various levels of effort to improve them, the methods of financing those improvements can also differ greatly. Some buyers are flush with cash and have enough to cover a large down payment, closing costs, and improvements. Others struggle with how to meet the minimum cash requirement just to purchase a home. Just as homes differ in big and small ways, buyers need financing options that differ as well. Here are some general questions to consider.  

Instead of making the down payment I had planned, can I make a smaller down payment and cover the cost of improvements with the cash I have retained? 

The smaller down payment means a larger loan which requires a higher monthly payment. But since we are talking about fixer-uppers, the starting price for the home is presumably lower and therefore the loan amount is lower than would be the case for a home that did not need upgrades and improvements.

Can I borrow from my active retirement account to increase my cash to cover the down payment and the costs of improvements?  

Most qualified retirement programs allow active participants to borrow for the purchase of a new home. The funds available can supplement or replace other savings which can then be used to cover the cost of repairs and improvements.

Does an FHA 203K loan make sense for my particular fixer-upper scenario?  

Some lenders provide FHA 203K renovation loans for home purchasers that allow them to finance 96.5% of the cost of the purchase price plus qualified improvements and renovations. 

• The streamlined 203K program allows for the purchase price plus non-structural renovations and upgrades up to an additional $75,000 in cost.
• The full 203K program allows for a purchase with major renovations up to a maximum loan amount in the Washington metro area of $1,149,825. 
• The FHA programs require only 3.5% of the combined cost of the home purchase and renovations or upgrades from the purchaser.

Am I ready to take on a construction loan to turn the fixer-upper into my dream home?  

Some lenders provide true construction financing which can finance anything from a major kitchen and bath renovation to buying a vacant lot and building a new home and can be an effective method to finance the complete renovation of a true fixer-upper. Often there is great value in the “bones” of the structure and the location of that structure but very little value in anything else associated with the property. A construction loan may be the best approach to acquiring and bringing new life to a tired, old, fixer-upper.

If you are lucky enough to find your perfect turn-key home in this competitive market, you can expect to pay top dollar for it. But savvy home buyers will tell you the best value is in properties that require some sweat equity and TLC. Keeping that in mind and identifying the best way to finance those efforts can open more homebuying opportunities in our tight housing market.

Please reach out to me or my colleagues at Atlantic Coast Mortgage to have a conversation about whether a construction loan works for your homebuying goals.

Brian Bonnet

SVP, Sr. Loan Officer, NMLS: 224811

Atlantic Coast Mortgage, NMLS: 643114

O: (703) 766-6702 | M: (703) 304-0188

Email Me

Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.

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Picking the right pro for the job takes a little homework.

There comes a day in every homeowner’s life when you realize: it’s time for reinforcements. Whether it’s a leaky pipe, a new electrical box, replacing an appliance, or drying a wet basement, finding a fix starts with choosing the right expert for the job. However, not all home projects are created equally, so how do you know whether to call a handyman or a licensed contractor?

(Renters, you will call your Landlord or Property Manager!)

The main differences between a licensed contractor and a handyman are the type and size of jobs they work on, their licensing requirements, and how many people they supervise. Contractors typically work on larger projects, like home additions or renovations, while handymen usually work on smaller projects and home maintenance. 

When it comes to licensing, do your research for the requirements in your area as some handyman work may require a contractor’s license. For example, there are three levels of general contractor license in Virginia, based on the size of the job being performed. The lowest level of general contractor’s license, a class C license, allows for residential contracting jobs between the amount of $1,000 and $10,000, including materials and labor, while Class A contractors perform or manage construction, removal, repair, or improvements for projects $120,000 or more, or when costs for any12-month period is $750,000 or more.

A handyman may do work that includes painting, drywall repair, window or door repair, replacing faucets or electrical outlets, swapping out light fixtures, laying carpet, hanging curtains, or installing shelves. For smaller jobs that can be completed in a couple of hours or a day or two, homeowners can check out popular options on sites like TaskRabbit and Thumbtack – like Uber or DoorDash for home projects, complete with client reviews – or Angi (formerly Angie’s List), which also offers contractors for larger jobs. Handyman fees can be charged by the hour or per the project and generally don’t require signing a contract.

States often require a contractor’s license for jobs that cost more than a certain amount, require structural changes, or involve electrical, plumbing, or HVAC work. Sometimes the project may require a permit for work being contracted, including these examples: 

• New windows. Replacing an existing window does not need a permit, but cutting a hole for a new window does. This includes new doors and skylights.
• Most municipalities require permits for siding projects whether you use strong cardboard or other materials.
• Not all fencing projects require a building permit but cities often place restrictions on non-permitted fences. For example, in Maryland’s Montgomery and Prince George’s Counties a permit is needed for fences 4-feet or higher while in Howard County it’s 6-feet or higher and in Calvert County it’s 7-feet or higher.
• Electrical and plumbing. If you’re installing new or removing current plumbing permits, you’ll need a permit. Any improvement project that includes installing a new electrical system also requires a permit.
• Water heater. You need a permit if you want to replace your water heater.

Who can apply for permits, expiration dates, and other details vary based on the type of permit required so be sure to check your local jurisdiction to confirm whether it will be you as the homeowner or the contractor who will apply for the appropriate permits. Regardless of whether you’re hiring a handyman or a contractor, interview a few professionals to see who fits best based on their expertise and how they answer these questions:

• How long has your company been in business?
• What experience do you have with this type of project?
• Do you have the necessary permits or licenses?
• Do you have references?
• What is the cost estimate?
• What is the timeline for this project?
• Are you insured?

Big or small, it can feel daunting to start a home improvement project, especially if it comes up unexpectedly due to damage or a breakdown. But with a bit of research and planning, you can find a home improvement professional who will work with your timeline and budget. And if you need recommendations, reach out to your trusted McEnearney Associates | Middleburg Real Estate | Atoka Properties agent to see who they use when they’re in need of the best!

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When “Show me the money!” meets “Not so fast!” in buying a home.

On the winding road from purchase offer to contract ratification to settlement, there are a few speedbumps that both buyers and sellers must navigate together. Contingencies are one type of speedbump, additional agreements that the contract will continue to move forward as long as certain conditions are met. 

Sonia Downard, Title Attorney with Vesta Settlements, recently spoke to our agents about guiding clients through the Financing Contingency for sales in Virginia and avoiding missteps along the way. She explained that while the financing contingency can benefit both the buyer and seller in a sale, it is decidedly buyer-friendly with several protections.

In a real estate transaction, the Financing Contingency is the clause that gives buyers time to secure the financing for the purchase of a property – usually through a mortgage with a lending institution – within a specific time period. If a buyer is unable to secure financing, they can void the contract using this contingency and avoid legal penalties or losing their EMD (earnest money deposit.)

The most common types of financing are Conventional (the most popular), VA (for veteran and military buyers), FHA (great for first-time homebuyers and those with limited cash for down payments and fees), and USDA (for properties in rural areas).

Financing contingencies can have an automatic extension or an automatic termination, and a buyer can satisfy or remove the contingency by delivering to the seller a written commitment from the lender for the required financing. If a buyer misses the financing contingency deadline and has an automatic extension, the seller can deliver a written notice to the buyer that they have three days to remove the contingency or void the contract. However, it’s more likely that the seller will allow a contingency to remain in place up until settlement as lenders complete their final underwriting tasks. 

If the buyer does not void the contract or deliver the written commitment from the lender, the contract stays in place without the protection of a financing contingency. On the other hand, if the buyer receives a written rejection letter from the lender for their specified financing and delivers it to the seller within the contingency time frame or within the three days of a seller requesting lender commitment, the contract becomes void. For contingencies with an automatic termination, the contingency expires on the specified date and the contract continues in full force and effect without the financing contingency protection.

An Appraisal Contingency plays a part in the financing contingency because the appraisal report is used to determine the value of the loan collateral, and if the property does not appraise for the contracted sales price the buyer could be denied financing. If the appraised value meets the contracted sales price or if the buyer elects to make up any difference between the appraised value and the contracted sales price, the appraisal contingency is removed. But if the property does not appraise, is not approved for specified funding (ex: denying a VA loan to be used to buy acreage), or has inadequate collateral (ex: an illegal living unit on the property that affects zoning requirements), the buyer can deliver notice to the seller to void the contract, along with a letter from the lender denying financing.

Some buyers skip including an appraisal contingency to make their offer more competitive, relying solely on the financing contingency for protection. But Downard reminds buyers to remember that the appraisal contingency relates to the value of the property and not the purchaser’s qualifications for the loan itself, and to keep in mind that the protections offered are different between the two types of contingencies. Note that VA, FHA, and USDA loans – as federally-backed loans – cannot waive an appraisal, and these specific buyers have the right to void a contract if the property does not appraise, bypassing any further negotiations with the seller. In this case, the seller cannot “save” the deal by lowering the sales price to the appraised value as they could have with a conventional loan buyer.

Lender-required repairs can also come up with financing contingencies – most often with VA and FHA loans – requiring the buyer to give the seller notice from the lender about needed fixes, and the two parties can negotiate how to complete the repairs and who will pay. Sellers have five days to give notice to buyers if they will make the lender-required repairs, and if the seller does not agree then the buyer has an additional five days to agree to make the fixes or void the contract.

Understanding the details of a contract and having the insight and experience to help people move through the different stages of homeownership is why Realtors® provide so much value to their clients. Connect with one of our McEnearney Associates | Middleburg Real Estate | Atoka Properties Associates and be confident you will be guided by the best!

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Economic signs point to some financial breaks for homebuyers through the end of 2024 into 2025.

September brought several positive changes to the real estate market for homebuyers, including the Federal Reserve’s decision to cut rates for the first time in more than four years, an improvement in the home affordability index by 4.1%, and an increase in household income by 3.1%. 

There are even signs that home prices, while still continuing to rise in markets with limited housing inventory, are increasing at a slower rate, reporting just a 0.01% uptick for the most recent report in July. Even better news for homebuyers in our region, seasonally adjusted monthly price changes from June 2024 to July 2024 were down by -0.7 percent in the South Atlantic division. Both presidential candidates have also announced their plans to increase housing affordability, following up President Biden’s White House proclamation in May with initiatives for tax credits, cash grants, elimination of some fees on federally-backed mortgages. 

While homebuyers in our area are definitely feeling the effects of a strong seller’s market, these small but steady shifts mean that those in the market to buy in the near future have reasons to be hopeful that a home purchase is within reach…with a bit of planning and a smart buying strategy.

Determine Your Budget & Timeline

Homebuyers should start their strategic planning by taking a detailed look at their monthly income and expenses along with their timeline for making a move, reviewing how much they need to save on a monthly basis to ensure that short, intermediate, and long term savings goals are funded. 

“There are many people who will give you the ‘Starbucks Example’ of savings and advise, ‘Just cut back on your weekly Starbucks runs, put that money into savings and you’ll start to see your nest egg grow,’” explains Chris Woods, a Certified Financial Planner and Founder of Silvis Financial. “But it’s the overspending on the Big Ticket items (like vehicles and vacations) that can significantly hamper someone’s ability to save money over the immediate long term. These are some of the most consequential financial choices you can make and it’s important to think through and plan for the impact it will have on your household budget for the years and decades to come.”

In addition to keeping an emergency fund of 3+ months of monthly expenses to cover unexpected and one time expenses, Woods advises buyers to consider other life events and goals that they might also be saving for: a vehicle, wedding, children, tuition, travel, monetary support for family members. 

“A hefty, fixed monthly mortgage payment can keep you from saving for some of your life goals and limit the discretionary spending on activities that you love to do,” says Woods. “A more manageable mortgage payment will give you margin in your budget in the event that your expenses increase or your income decreases down the road.”

Build a Nest Egg

As to how to help savings grow, Woods suggests that buyers who are looking to purchase in the next 3-12 months should put their money into a high-yield savings account, adding that sometimes online savings accounts will offer higher interest rates than brick-and-mortar institutions. He suggests checking out options at NerdWallet, an online resource for many financial milestones and experiences.

For a longer timeframe, say up to 3 years, Woods suggests parking cash in FDIC-insured CDs. Keep in mind that as the Fed continues to cut rates, CD returns will also decrease, and locking in a rate now can ensure a higher return.

Line Up Your Financing

The next step in a buyer’s strategy is connected with a local lender or their current financial institution to determine a budget, clear up any credit or debt issues, and establish a timeline for the homebuying process. One reason to consider working with a local lender over a national bank is their knowledge of local programs that can provide additional money and grants to buyers who qualify. (Tip: Realtors® are a fantastic resource here, too, and can help buyers find a great lender to speak with.) 

“Be firm in what you know you can afford before a lender tells you what you qualify for,” advises Woods. “This is important because a lender will look at a buyer’s income and current debt to determine the amount of loan they would qualify for, but those ratios aren’t taking into account savings and financial goals along with discretionary spending.” 

Woods advises that when trying to determine how much a buyer can afford, factor in all these items alongside known fixed costs to determine how much to spend on a mortgage payment.

He shared a story about clients who looked for properties that were 20% less than what they qualified for, which allowed them to continue to fund their other financial goals while also giving them flexibility if they found themselves competing for a home and needed to escalate their offer.

A reminder for renters: utilities, parking, condominium/HOA fees, and other housing expenses are often built into the monthly rental amount. Being able to afford $3,000 in rent doesn’t necessarily mean that the same $3,000 for a mortgage is equally affordable.

Buying a home involves many moving pieces but it doesn’t have to be overwhelming. Whatever your plans are, start a discussion now with one of our expert McEnearney Associates | Middleburg Real Estate | Atoka Properties Realtors® about getting started on the path to home ownership.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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By Bill Stern, Branch Manager for CMG Home Loans

A combination of political uncertainty, economic policy shifts, and broader market forces makes this a complex time for the housing market.

The housing market is at a crossroads, and a combination of economic policies and political developments will determine its path in the months ahead. One of the most significant recent developments was the Federal Reserve’s decision to cut interest rates for the first time in over four years. Consumers breathed a collective sigh of relief at the news, as the move is expected to lower borrowing costs and could help thaw a housing market that has been largely frozen by the low rates homeowners locked in during the pandemic. 

However, even with this potential relief, there are lingering challenges that both the Fed and policymakers can’t fully address—namely, high home prices and limited housing inventory.

The Fed is Starting to Cut Rates

After raising the cost of borrowing for 2.5 years, the Federal Reserve finally announced a rate cut that would ease costs for consumers. Though some experts expected this to be a quarter-point cut, it ended up being a half-point reduction – a welcome surprise for consumers. This marks the first rate cut since 2020 and brings the benchmark interest rate to 5%.

The Fed’s rate cuts are expected to continue into the last quarter of 2024 and 2025, providing further relief for consumers and businesses. The central bank is projecting a federal funds rate of 4.4% by 2024, which would represent a roughly 1% reduction from current levels. This gradual reduction in borrowing costs could help more prospective buyers enter the market, especially those who have been priced out due to high mortgage rates. As Powell mentioned, “As rates come down, people will start to move more, and that’s probably beginning to happen already.” However, any significant recovery in the housing market will likely depend on more than just rate cuts – it will require meaningful increases in housing supply and more affordable home prices.

Housing Costs Remain High

While the Fed’s recent rate cut is a step toward easing borrowing costs, it hasn’t fully offset the broader challenges in the market. Despite mortgage rates falling to their lowest level in over a year, home prices remain near record highs. The median U.S. home price is currently $388,085, marking a 3.7% increase year-over-year and just shy of the all-time high set in July. One of the primary reasons for these elevated prices is the limited supply of homes. The total number of homes for sale is down nearly 30% from pre-pandemic levels, creating a supply-and-demand imbalance that is keeping prices high even as interest rates begin to decline.

Home Buyers and the 2024 Presidential Election

Both presidential candidates have proposed solutions to address the issue of housing affordability, which has become a growing concern as home prices continue to rise faster than wages. A May analysis by Zillow revealed that rent prices have increased 1.5 times faster than wages in most major U.S. metropolitan areas over the past four years, putting additional pressure on buyers who are already struggling with affordability. However, it remains to be seen whether the candidates’ proposals will effectively address the underlying problems in the market, such as supply shortages and rising construction costs. 

According to a recent Redfin report, many home buyers are hesitant to make any major moves until after the upcoming presidential election. Historically, this kind of wait-and-see approach is common during election years, as buyers and sellers want more clarity on future policies that could affect their finances. The housing market tends to slow during these periods of uncertainty, with many potential buyers sitting on the sidelines until the election results are in. 

The combination of political uncertainty, economic policy shifts, and broader market forces makes this a complex time for the housing market. However, by staying informed and understanding the key factors at play, buyers, sellers, and investors can better prepare for what’s to come in the months and years ahead. Reach out to me and my colleagues at CMG Home Loans if you have questions about the market or mortgage rates!

Bill Stern

Branch Manager, NMLS ID# 267577 

CMG Home Loans, NMLS ID# 1820

540-222-0164 | Email Me

Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.

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Take a look at these smart and handy tips to keep yourself and your property safe.

September is Realtor® Safety Month and keeping a home safe takes the work of everyone. Here are some things your Agent would like you to keep in mind to protect both your person and your property as compiled from tips from the National Association of Realtors®.

The Basics for Your Home

• The key to home safety starts with…keys! Know the location of all your house keys at all times, and reconsider lending them out to friends and neighbors, no matter how trustworthy. Never use hide-a-keys or leave the key under the doormat, above the door, in a flowerpot, or anywhere outside the house. Thieves have seen it all and you aren’t as original in your hiding spots as you think you are.
• Keep your car keys and house keys on a different ring if you ever use valet parking or leave your keys with parking lot attendants or even at the mechanic.
• Make sure your home has adequate outdoor lighting and basic threat deterrence devices like a camera doorbell or security system. 
• Make sure that all your home’s doors to the outside are metal or solid, 1 ¾” hardwood, and have good, sturdy locks. 
• Maintain your property and surroundings in every season, and don’t neglect issues like peeling trim or an overgrown yard. If a home looks unkempt, thieves may think it’s abandoned and an easy target. Shoveling your walkways to clear them of snow and debris and removing holiday decorations and fallen tree branches in a timely manner will signal that the home is occupied.
• For more serious deterrence, install motion-detection devices and an external alarm system – the louder the better – that will call attention to a break-in. 
• If you have a garage, make sure you keep up with maintenance 

Keeping Financial & Techno Criminals at Bay

• Open your credit card bills and bank statements right away. Check for any unauthorized charges or withdrawals and report them immediately. Call if bills don’t arrive on time. It may mean that someone has changed contact information to hide fraudulent charges.
• Thoroughly shred all papers with personal information before you throw them away. Shred unwanted credit card applications and “convenience checks” that come in the mail, credit card receipts with your account number, outdated financial papers and papers containing other’ personal information.
• Before you act on an email request, check the Federal Trade Commission’s website for tips to avoid scams and how to report them.
• Don’t respond to emails requesting personal or private information such as passwords, credit card numbers, or bank account numbers. Even if a message appears to be from your bank or a trusted vendor, credible companies never request private information this way.
• Be sure that you don’t click on error messages that state “your computer has been infected with a virus” or “Trojan found”, warning that something is wrong with your computer and to download their protection service. These malware attacks are designed to download viruses and steal or lock your information.
• Block identity theft by contacting any of the three consumer reporting companies— Equifax®, Experian and TransUnion®—to place a freeze on your credit report. This puts you in control of who can access the details of your account to grant new credit, a good alert if someone is trying to open an account in your name.
• If you suspect your account has been compromised, you should alert credit bureaus, card companies, and other creditors to place a fraud alert on your account to monitor suspicious activity.

Did You Just Move Into a New Place? 

• Have the locks changed when you move in. For apartment and condo dwellers, the building’s maintenance crew may be able to swap lock cylinders for you.
• Just bought a new entertainment system? A bunch of empty boxes out by the curb triggers an alarm to would-be thieves. Instead of putting boxes out in plain sight, cut them down, and stuff them in trash bags.
• Another tip for those living in multi-unit properties: use only your last name, or if necessary last name and first initial, on your door or mailbox. This keeps strangers from knowing your gender or how many people live in your apartment.

If Your Home Is Currently Listed

• DON’T leave personal information like mail or bills out in the open where anyone can see it. 
• Consider installing an external mailbox with a lock so that mail delivery is secured, rather than a mail slot in your door where people entering the home could view or steal important mail.
• Be sure to log out of computers, laptops, and other electronics that require a login and password, as well as securing other expensive, easy-to-pocket electronics.
• Same goes for jewelry, medication, and other valuables. Keep them in a secured location or remove them from the home while the property is listed.
• Inform neighbors when open houses are happening, and ask them to be aware of anything that seems out of the ordinary, such as people walking around the property looking for access points.
• When you return home after a showing or an open house, take a few minutes to check if anything seems out of place. Doublecheck that windows and door locks are secure, that nothing has gone missing, or that anything has been left behind.
• Most importantly, remember Stranger Danger! Not all agents, buyers, and sellers are who they say they are and if someone comes to your home outside of a scheduled showing time, do not allow them to access your property. Instead, give them your Agent’s card and tell them to reach out directly.

Awareness, prevention, and maintenance go a long way to keeping you safe in your home. Reach out to your Trusted Advisor at McEnearney Associates | Middleburg Real Estate | Atoka Properties for more tips and advice and make home safety a natural part of your daily routine.

Take a look at our website for all of our listings available throughout Washington, DC, Maryland, Virginia, and West Virginia.

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Stricter lending guidelines for condominium sales mean some properties may not be eligible for certain financing.

Underwriting a residential mortgage loan involves a detailed review of the prospective borrower’s financial picture. It also involves a review of the property to be pledged as collateral for the loan. In the case of loans for condominiums, that review extends beyond the information included in a property’s appraisal report. 

Most lenders choose to make sure the entire condominium project is approved by the U.S. Department of Housing and Urban Development (HUD) for FHA loans and the Department of Veteran Affairs for VA loans. In the case of conventional loans, both Fannie Mae and Freddie Mac loans require completed condo questionnaires and are obliged to check the Fannie Mae Condo Project Manager (CPM) system to determine whether a loan in a condo project is eligible for sale to Fannie or Freddie. Depending on the responses provided in the condo questionnaire, the lender may then require additional documentation from the condominium association.

The collapse of the Champlain Towers Condo building in Surfside Florida in 2021 has prompted many condo projects to undertake engineering studies of their structures and the lending industry to ascertain whether a condo project presents collateral risk. This increased scrutiny has led to a considerable number of condo projects being listed as “unavailable” within the CPM system. 

My recent review of the “unavailable” condo project list for the District of Columbia revealed 30% of projects were on the list because critical repairs are needed and/or the project has significant deferred maintenance. As more condo projects undertake engineering reviews of their structures and facilities, it is likely more projects will be listed as “unavailable” and therefore ineligible for conventional financing until those identified deficiencies are corrected.

The inability to obtain financing for a unit in a condo project is problematic for both purchasers and sellers. Condominium Associations and management companies should be proactive in understanding the requirements of the mortgage industry in order to avoid being deemed ineligible.  When a project does  obtain the status of “unavailable,” those condominium associations should be equally proactive in making corrections and communicating with Fannie Mae in order to be removed from the unavailable list as quickly as possible.

Please reach out to me or my colleagues at Atlantic Coast Mortgage for more information about condominium loans and how to find the right lending program for your needs.

Brian Bonnet

SVP, Sr. Loan Officer, NMLS: 224811

Atlantic Coast Mortgage, NMLS: 643114

O: (703) 766-6702 | M: (703) 304-0188

Email Me

Notice: This is an advertisement and is not a commitment to lend. Contact a loan officer today to explore the financing options specific to each borrower.

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Whatever lifestyle you want to lead in your Golden Years, there’s a way home.

As we age, our housing needs and preferences evolve. For many seniors, part of that evolution involves choosing the right retirement community that can significantly impact quality of life, access to care, and overall well-being. 

Retirees are a significant demographic with wide-ranging financial resources, and retirement living is as varied as the residents they serve. Last week we looked at the option of aging in place, and we’ll now review options for those ready to leave home maintenance responsibilities behind. It takes planning and research to find the right kind of property and community to ensure the lifestyle you’re envisioning so we asked a few of our Associates who work with seniors about what to consider when making a retirement move.

The Downlow on Downsizing & Starting the Search

They say you can’t take it with you… but would you really want to even if you could? Downsizing can be an emotional, cumbersome, and time-consuming process but it can also be deeply satisfying and a little preparation will go a long way. Our agents advise the same thing when it comes to preparing for retirement living: start downsizing and start early. 

Debbie Miller, an Arlington Realtor® and Certified Senior Advisor, has written Doing The Right Thing: Simple Solutions, Essential Tips & Helpful Resources for Assisting Aging Loved Ones, a guide for finding “right-sized” living, and was featured in the “The Next Chapter” Senior Care Transitions Podcast and advises clients on managing the process from beginning to end.

“It’s important to bring in help as early as possible before someone makes those decisions for you,” Debbie said. “It can take up to a year to do the research on finding the right community, time to prepare your home for listing, and time to make the move.”

Peter Crouch of Crouch Realty Group has extensive experience guiding clients through retirement moves – he was awarded the National Association of Realtors® Senior Real Estate Specialist® (SRES) Outstanding Service Award in 2018 for his expertise –  and echoes Debbie’s advice. “It’s a huge learning curve. Some of these folks haven’t moved in 40+ years so it’s going to take time and assistance to work through the process.”

Realtor® Martha Floyd of McEnearney’s McLean office has worked with many clients who have made the move to retirement housing and offers these tips:

• Identify the space you’re moving into to determine which furniture will make the most sense in the new layout.
• Consult with your agent about resources and vendors – like Ararity, a local downsizing company – focused on who can take items for consignment, donations, and even for junk.
• Employ the Four Sort Method. Get four large boxes labeled Keep, Donate, Sell, and Trash/Recycle.

Martha suggests retirees work with a family member or their trusted advisor (often their real estate agent) to determine the criteria most important to ensure an easy transition to a new home. “Pay attention to the different pay structures at retirement communities,” she advises. “What is the monthly fee, what does it cover? What amenities are available? Are there different levels of care provided? How close to my current home is the new location to the shops and services I currently visit?” 

Peter noted that while some people might prefer to age in place, a drastic event like a fall can precipitate a move they weren’t prepared for. “You want to be in control of your future,” Peter counsels. “If you make your choices early you will have a better chance at being where you want to be, aging in a comfortable environment with the right care and people to spend quality time with, instead of being isolated.”

Once you’ve determined what will come with you and what type of lifestyle you want, the next step is to determine what kind of community fits your retirement vibe. 

Age-Restricted Housing

Age-restricted housing is residential communities that legally limit residency to a majority population of older individuals—typically 80% over a set age, usually with a minimum of 55 years old. We say “legally limit” because under the Fair Housing Act, age is a protected status against discrimination. Therefore, in order to qualify for the 55 or older” housing exemption, a facility or community must satisfy each of the following requirements:

• At least 80 percent of the units must have at least one occupant who is 55 years of age or older; and
• The facility or community must publish and adhere to policies and procedures that demonstrate the intent to operate as “55 or older” housing; and
• The facility or community must comply with HUD’s regulatory requirements for age verification of residents.

Operated through a homeowners or condo association, age-restricted communities offer a variety of amenities to residents that can be as luxurious as gated entries, golf courses, walking trails, dining clubs, and spas to more general offerings like fitness centers, community lounges, and scheduled group activities. As with traditional real estate, the more amenities included the higher the monthly association fee, so budget accordingly! 

The stringency of the rules varies based on the individual HOA bylaws and can restrict the ages of visitors and how long they can stay, or if a younger spouse is permitted to stay in the community following the death of their senior partner. Just as with any property purchase, it’s important to read the fine print in a community’s bylaws to ensure the best lifestyle fit.

Assisted Living Communities & Continuing Care Retirement Community (CCRC)

Some 55+ housing include an option to age into assisted living, where residents have their own private apartments or villas but can access help with activities of daily living as needed. These communities often include meal plans and may offer nursing care options. Memory Care Communities specialize in care for cognitive decline and cater to seniors with cognitive impairments, such as Alzheimer’s disease or dementia. These communities provide specialized care and support, focusing on cognitive stimulation, safety, and assistance with daily activities.

“Many folks want the security of all of the options in one place,” Peter shares. “They may be independent now, but want their housing to include all the care options they might eventually need.” For those seniors, a Continuing Care Retirement Community (CCRC), also known as a life plan community, delivers independent living with various lifestyle amenities and access to onsite higher-level care as medical needs progress. Residents may enter these communities as part of the 55+ crowd who live independently in their own units, and as they age will move to smaller units within the community for increased staff assistance as medical situations dictate. The living environments as care progresses could be private or semi-private rooms and include adult day care, memory care, nursing home, and respite services.

Making It a Family Affair

Debbie, who has years of personal experience in helping her own family members move in their golden years, said it takes careful planning and communication to make sure the process doesn’t get overwhelming. “The decision is yours to make but it’s important to rely on those you love and trust to help make it as stress-free as possible.”

And for children or other confidants who are called to assist a senior, remember your role in this milestone move. “Don’t be afraid to ask the questions but understand that your role is to support, not to interfere or control,” Debbie advises. 

Remember that it’s normal to expect some bumps along the way, “A lot of this will be emotional,” Debbie cautions, “But if you understand the options available and give yourself the time to make the right decision, the easier it will be to understand the process and manage it the best way for you.”

Many of our Associates specialize in helping clients find their best senior living community. If retirement is your next chapter, let a McEnearney Associates | Middleburg Real Estate | Atoka Properties agent help you make that next move.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

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There are different options for living out your Golden Years at home with benefits for more than just homeowners.

A first home purchase. Moving to a larger home. A major remodel. Downsizing. And then…

There are as many stages to homeownership as there are stages in life. Major milestones throughout careers, families, and financial circumstances often go hand-in-hand with changes in the type of home required or desired. And for many Baby Boomers and older Gen-Xers, retirement is the next milestone on the horizon. 

According to the National Association of Realtors (NAR), the 65-or-older segment now represents an important 15% of the population with numbers growing beyond 20% by 2050, and seniors are the fastest-growing population group in the country. According to a January 2024 report from Senior Housing News, nearly 60% of respondents to a summer 2023 survey by the American Seniors Housing Association (ASHA) said they were considering a move that potentially included transitioning to a senior living community within the next four years. But a total of 92% of respondents agreed or strongly agreed that remaining independent and self-sufficient was important to them, and just under a quarter of respondents said they preferred to live in their own homes.

Aging In Place and Senior-Sharing

For many retirees, moving simply isn’t an option. Whether it’s to retain the equity in a paid-off property; the cost of moving to a new community; leaving a circle of trusted friends, family, doctors, and vendors; the lack of nearby retirement-living options; or a desire to remain living independently, many people choose to stay in their current homes and adapt it to fit their requirements as mobility and accessibility needs change.

Ideally, one-level living offers the safest living floorplan with fewer stairs to navigate, but homes can also be modified with chair lifts (basic lifts cost between $2,000-$5,000) and elevators (cost ranges widely but are generally $20,000-$50,000). While these additions aren’t currently covered by Medicare or most insurance policies, there are grant programs and community groups that can help defray installation costs, including one offered through the Veterans Administration. Homeowners can also check with their local Department of Housing and Urban Development (HUD) office to see what grants are available in their area.

Aging in place is more than just adapting a home, it’s also about knowing you’re connected to your community with a trusted and caring network. The Senior Villages initiative of Washington, DC is a neighborhood-based nonprofit supported by volunteers that “makes it easier for older neighbors to continue living safely, comfortably and actively in their own homes and connected with their neighbors.” Residents can search for Villages in their area and find other resources for helping seniors thrive and get out and about in the community. At Home in Alexandria (AHA) offers a similar volunteer program, connecting seniors with local experts to help with home maintenance, technical assistance, and running errands.

One of the benefits of keeping a larger home in retirement is the option to bring in others to share in the upkeep and costs, whether they be family members, good friends, or renters. Senior-Sharing is growing in popularity, whether it’s with other seniors or intergenerationally where seniors are paired with college students or other young adults. 

For example, Montgomery County’s Housing Initiative Program has a home-sharing option that matches senior homeowners and renters to “reduce social isolation, create monthly income for homeowners, and offer new affordable housing options for home seekers.”  In some cases, light housekeeping – raking leaves, clearing snow, doing errands, and shared transportation – can be bartered for a reduction in rent. In Virginia, Fairfax County’s 50+ Community Action Plan has many housing initiatives, from adapting homes for accessibility and connecting seniors who want to share their home with other seniors or local residents. 

Affordability & Additional Resources

Affordable housing is a challenge, and this is even more acute for would-be and current retirees working with a fixed income, savings, and retirement resources that need to last for an indefinite period. AARP has a great online tool to find subsidized rentals and rent relief programs, connecting seniors with grants and affordable housing options in your area. (In fact, they have an entire section devoted to senior housing resources.) Here are some local resources that provide an overview of housing, lifestyle, and services for our DC, Maryland, Virginia, and West Virginia seniors.

Positive Aging Community – Founded in 1990 to provide individuals, families, and professionals with the most comprehensive listing of every retirement community, assisted living, nursing and rehab center, and home care option in the DC, Northern Virginia, and Suburban Maryland.

Alexandria Housing Crisis Assistance – Information on rental assistance, state funded resources for rent and mortgage relief, housing for seniors and persons with disabilities and the Senior Rent Relief Program.

Arlington County Housing Options and Resources – Resources for at-home retirement living and care, nursing home options, and other health and social services connections.

DC Department of Aging and Community Living – Links to various programs, events, and resources for senior living in The District.

Fairfax County Redevelopment and Housing Authority – Senior Housing Residences – Rental properties and assisted living facilities for people aged 55+ or 62+.

Loudoun County Health and Human Services – Various resources for housing and relief programs.

Maryland Department of Aging Housing Services – A roundup of community housing programs for seniors, CCRCs, and senior living subsidy programs.

West Virginia Bureau of Senior Services – Focus on the changing needs of older West Virginians with programs that promote health, dignity and independence.  

Many of our Associates specialize in helping clients find their best senior living community. If retirement is your next chapter, let a McEnearney Associates | Middleburg Real Estate | Atoka Properties agent help you make that next move.

Take a look at our website for all of our listings available throughout Washington, D.C., Maryland, and Virginia.

Don’t miss a post! Get the latest local guides and neighborhood news straight to your inbox!