Section: Seller Strategy

Author: Susan Isaacs, Washington DC Real Estate Strategist

Mortgage Recasting

What is mortgage recasting and why haven’t I heard of it?

A mortgage recast allows borrowers to adjusting the amortization of their loan in order to lower monthly payments. If a substantial principal reduction is made, or the borrower has a considerable amount of equity, the mortgage is recalculated based on reduced balance of the loan.

How does a mortgage recast work?

The borrow pays down a certain portion of the loan principal (as a minimum principal reduction payment of $5k-$10k or more, or a principal percentage reduction) to qualify for a recast. The amortization schedule is then recalculated.

The basics of the mortgage, such as the loan type, term, and interest rate, remain the same.

Recasting doesn’t apply to every loan. FHA, USDA and VA loans can’t usually be recast, for instance. Conventional, high-balance and jumbo mortgage loans can often be recast.

There can also be restrictions to recasting, such as set timeframes in the loan where the lender will allow calculation to create a new amortization schedule. There may also be requirements for equity and payment history.

How many times can a mortgage be recast?

The answer to that is usually ‘how many times can you qualify?’

Most mortgage lenders don’t limit recasting if you meet the qualifying criteria and make payments on time.

Take Note

• Recasts don’t lower interest rate

• Almost any mortgage can be refinanced

• Prioritize needs + wants before touring

When is a mortgage recast better than a refinance?

Let’s say you got an incredible 2.65% interest rate on your mortgage in January 2021. In 2024, you came into a sizable chunk of money and want to use it to lower your housing overhead without losing that great 2021 rate by refinancing.

Recasting lowers the monthly payments and saves on interest. Recasting also requires no credit check or appraisal.

Is a mortgage recast cheaper than a refinance?

Yes, lenders typically charge a servicing fee of between $250. and $500. for a mortgage recast, while refinancing involves closing costs.

What are the steps to a mortgage recast?

1. Contact your mortgage lender to determine recast availability, loan eligibility and qualifying criteria;

2. Put aside funds for a lump sum payment;

3. Make a formal, written (or electronic) request to recast your loan;

4. Gain written approval;

5. Pay the recasting fee and lump sum payment to the principal of your mortgage balance;

6. Continue with your normal payment schedule until the lender formally notifies you of your new payment.

Refinancing A Mortgage

What are the goals of refinancing a mortgage?

To pay off your existing mortgage and any other encumbrances and obtain a new one offering terms that better suit your current needs.

Refinancing a mortgage is the preferred method to reduce your mortgage interest rate, change the type of mortgage you have (conventional, jumbo, high balance, etc.), lengthen or shorten the term of your mortgage, to eliminate mortgage insurance, or to change from a fixed-rate to an adjustable, interest-only, or other loan product.

What are the types of mortgage refinances?

Standard

Conventional, FHA or VA. Maximum loan-to-value (LTV) is typically 80-97%, varying according to loan type, amount, and lender.

Cash-Out Refinance

A cash-out refinance is when the new mortgage is greater in value than what you owe on the old loan, allowing you to cash out the difference. A cash-out refi can be used for any purpose such as paying off debt, paying tuition fees, making home improvements, or putting money away for a rainy day.

No-Cost Refinance

As mentioned in the intro, refinancing involves 2-6% closing costs, just like a regular mortgage. However, there is the option of not paying closing costs through what’s known as a no-cost refinance. The way it works is that the lender agrees to waive upfront closing costs in return for your commitment to spread the costs over the life of the loan. This is a great way to obtain the benefits of a refinance without having to pay anything now.

Streamline Refinance

A streamline refinance refers to the refinance of an existing FHA streamline loan (a type of FHA mortgage loan requiring limited borrower credit documentation). A streamline refinance reduces the time and costs to get a refinance. To qualify, your original mortgage must have been an FHA loan, the mortgage must be current (not delinquent), and the refinance must result in a benefit to you (by law, the lender cannot put you in a worse position in regards to the interest rate).

What are the basic steps to refinancing a mortgage?

You’ll need to qualify for the new mortgage by meeting income, asset, credit and other criteria, just as you did when you applied for your existing mortgage. You will also need home equity to qualify for a refinance.

Clarify your goals for refinancing. Is your primary objective to lower monthly payments? Reduce the loan term (from 30 years to 25 or 15)? Eliminate MIP or PMI? Cash out home equity?

Match your needs to the loan type that best addresses them. A rate and term refinance can reduce the interest rate of your mortgage and/or lengthen or shorten its term. A rate conversion refinance :provides the option to change an adjustable-rate or interest-only mortgage to a fixed-rate product, or vice-versa. A cash-out refinance draws from your home’s equity so you can use funds as needed.

When you’ve decided on a program, research rates, fees, requirements, and the terms of the loan you’re applying for. Be sure to factor in maximum Loan To Value (LTV) ratio, Annual Percentage Rate (APR), and closing costs.

Next, search for a lender. Request a formal Loan Estimate from several mortgage lenders, including your current one, if you wish. Here’s a great guide to shopping for a lender and loan products.

Once you decide on your lender;

• Make a formal application. Submit documentation as required by the lender;

• Complete the home appraisal;

• Review the terms of your approval;

• Close the refinance. Your previous mortgage loan and any other encumbrances will be paid off and your new loan will take its place.

What are the costs of refinancing a mortgage?

On average, a refinance costs between 2-6% in closing costs. A higher credit score, excellent payment record, and other qualifying criteria such as debt-to-income ratio, improve rates lenders will offer and the chance of your loan being approved.

SOURCES

Forbes

Investopedia

Bankrate

NerdWallet

Section: Seller Strategy

Author: Susan Isaacs, Washington DC Real Estate Strategist

Is your DC bedroom legit? A den, basement bunkhouse, glorified closet… or totally illegal?

Code says; As “Any room or space used or intended to be used for sleeping purposes in either a dwelling or sleeping unit.” But there are specific code requirements, too.

Read Before Renting Or Rehabbing

Whether you’re planning to carve a bedroom out of an efficiency corner, convert your basement to a rental, or stretch the bounds of a den to qualify as a bedroom for resale, it’s important to start with a sold understanding of District of Columbia codes for legal bedrooms.

Consult with an architect, contractor and the Department of Buildings before undertaking renovations.

Components Of A Legal DC Bedroom

Basic Code Requirements For DC Bedrooms

Size

Single-occupancy bedrooms must be a minimum of 70 SF of floor space, and 7′ in one direction. For each additional person occupying the same room, add 50 additional SF to the floor space requirement. Ceilings must be a min. of 7′ in height, or in the case of sloped or drop-ceilings, a 50%-plus portion must be at least 7′

Access

Direct bedroom access must be available from a common space or hallway, not via another bedroom or bath

Floors

Floors shall be in good repair and maintained free from hazardous conditions.

Lighting And Ventilation

Every space intended for human occupancy must have natural light by means of exterior glazed openings in accordance with Section 1205.2 of the Building Code and artificial light may not be used to meet the lighting requirements for bedrooms, living rooms and/or sleeping units. Windows must have a total combined glass area of at least 8% of the floor area, and the combined opened window area should be at least 4%

402.1.1.1 Adjoining Spaces

For the purpose of natural lighting, any room is permitted to be considered as a portion of an adjoining room where one-half of the area of the common wall is open, unobstructed, and provides an opening of not less than 1/10th of the floor area of the interior room or 25 Sqft, whichever is greater. It is permissible for glazing to fill a portion or all of the required opening between adjoining spaces. It is permissible to install doors in openings between adjoining spaces. However, opaque portions of doors will not contribute to meeting the minimum opening requirement of not less than 1/10th of the floor area of the interior room or 25 square feet, whichever is greater. Exception: Openings required for natural light are permitted to open into a sunroom with thermal isolation or a patio cover where the common wall provides a glazed area of not less than 1/10th of the floor area of the interior room or 20 Sqft, whichever is greater.

Privacy

Bedrooms and bathrooms must have privacy, and be separate from adjoining spaces. Such rooms to be arranged so that occupants can access common space without going through another room.

Electrical Outlets

Every habitable space in a dwelling must contain at least two separate and remote-receptacle outlets. Every laundry area and bathroom must contain at least one ground-type receptacle or a receptacle with a ground-fault-circuit interrupter.

Heating

Heat: Heating equipment must maintain a minimum temperature of 68° F in all habitable rooms and bathrooms between October 1 and May 1. With a two-pipe system, or any other system reasonably requiring more than 15 days to transition from air-conditioning to heat, the heat must be supplied during a period starting no later than October 15 and ending no earlier than May 1.

Air Conditioning

AC system must be maintained during the period no later than May 15 and ending no earlier than September 15. The inside temperature in rooms that the system is intended to serve must equal the greater of 78° F or at least 15° F less than the outside temperature.

Fire Safety

Smoke detectors are required in every sleeping room, on every level, and in the vicinity of all sleeping rooms.

Carbon monoxide detectors are required in the vicinity of all sleeping rooms where there is a fuel-burning appliance or in a building that has an attached garage.

Take Note

• Check DC housing standards before making plans

• Measure floor area of sleeping spaces

• Make sure legal access is allowed for bedrooms and baths

• Measure windows for regulation szes and height

• Review requirements for light & ventilation

Additional Code Requirements

Paint

Peeling, chipping, flaking, or abraded paint must be repaired, removed, or covered on windows, window frames, doors, door-frame walls, and ceilings. Pre-1978 structures must be lead-free.

Interior Surfaces

All interior surfaces must be maintained in good, clean, dry, and sanitary conditions. Cracks, loose plaster, holes, decayed wood, water damage, and other defective surfaces are not allowed.

Plumbing

All plumbing fixtures must be properly installed and maintained, and free from obstruction and leaks.

Egress

Emergency exits include doors that lead outdoors, or at least one window min. 24″ in height by 20″ in width, with an opening of at least 5.7 SF. Installation must be higher than 44″ from floor, and no lower than 24″ to prevent child access.

Windows & Screens

Windows must have screens from March 15 to November 15. Every window and skylight must be kept in sound condition, in good repair, held in position by window hardware, easily openable, and weathertight.

Window Bars

Bars on windows in sleeping rooms shall be releasable or removable from the inside of the room without the use of a key, tool, or force greater than that which is required for normal operation of the window.

Additional: General Property Requirements

Bathrooms

A bathroom must be private and have natural or mechanical ventilation. It must have a bathtub or shower, water closet, lavatory with hot water with a minimum temperature of 110° F), and cold running water. It must also have a waterproof floor and wall base.

Insects

All rental dwellings must be free of insects.

Cleanliness

Dwellings shall be maintained in a clean and sanitary condition.

Doors

All doors’ hardware and operating systems shall be maintained in good condition. All doors accessing the dwelling shall be equipped with a deadbolt lock without the use of a key or special knowledge for use from inside of the dwelling.

No Utilities

It is a code violation for a dwelling lacking utilities (water, gas, and electricity) to be occupied.

Hot Water

Water-heating facilities shall be properly installed, maintained, and capable of providing an adequate amount of water to be drawn at every lavatory, sink, bathtub, shower, and laundry facility. The minimum temperature of the water shall be 110° F as measured inside of the resident’s unit.

Cooking Room

All facilities provided by the landlord for cooking, storage, or refrigeration of food must be maintained in a safe and good working condition. Any cooking-room sink must have cold water and hot water available at a minimum temperature of 110° F for running water.

Stairs

Stairs shall be in good repair and maintained free from hazardous conditions. Handrails and Guardrails: Interior flights of stairs having more than three risers shall have a handrail on one side of the stair and every open portion of the stair. Walking surfaces, more than 30 inches (762 mm) above the floor or grade below, shall have guards.

Rodents

All structures and exterior property must be kept free from rodent harborage and infestation.

Foundation Walls and Exterior Walls

Foundation walls and exterior walls must be maintained plumb and free from open cracks and breaks.

Structural Members

Structural members shall be maintained free from deterioration and be capable of supporting the imposed dead and live loads.

Sanitation

The exterior of any structure and the outside property must be maintained in a clean, safe, and sanitary condition.

Porches, Decks, Balconies, and Stairways

Porches, decks, balconies, and stairways must be maintained structurally sound, in good repair with proper anchorage, and capable of supporting imposed loads.

Handrail and guardrails

Exterior and interior flights of stairs having more than three risers need a handrail. Guardrails shall be installed on balconies, porches, decks, ramps, and other walking surfaces. Walking surfaces, more than 30 inches (762 mm) above the floor or grade below, shall have guards.

Weeds

Properties shall be maintained free of weeds or plants growing in excess of 8 inches.

Roofs

Roof drains, gutters and downspouts shall be maintained in good repair and free from obstructions. Roof water shall not be discharged in a manner that creates a public nuisance. The roof and flashing shall be sound and tight and shall not have any defects that admit rain.

Trash

All structures and exterior properties shall be free from the accumulation of rubbish or garbage.

Sidewalks and Driveways

All sidewalks, driveways, walkways, parking spaces, and similar areas are to be maintained, free from hazardous conditions, and kept in a proper state of repair.

Wood Surfaces

All exterior wood surfaces including doors, door frames, windows, windows frames, trim, and fences shall be protected by covering or treatment. Peeling, chipping, and flaking paint shall be repainted. Pre-1978 structures must be lead-free.

Grading and Drainage

All premises shall be graded so that all storm drainage flows freely from all parts of the premises into an inlet or place of disposal.

DOB HOUSING CODE STANDARDS

Read Matt Yglesias’ take on windowless bedrooms Slow Boring

Author: Susan Isaacs, Washington DC Real Estate Strategist

District of Columbia Capital Gains Tax

Capital gains and losses in the District of Columbia are treated basically the same as they are under federal law. All realized capital gains are taxed, a deduction for net capital losses is allowed, and taxpayers can carry over unused capital losses to subsequent years.

What is Capital Gains Tax?

A tax on profits earned from asset sales. This can include real estate, a business, stocks and/or many other types of investments.

Many homeowners are not required to pay capital gains taxes on the sale of their homes. The IRS excludes up to $250,000 (or $500,000 for married couples) of gain on a primary residence, which applies to a good number of U.S. homeowners. But in high-value, transient locations like Washington DC, where house hacking is also common, it’s possible to owe capital gains tax.

Take Note

• IRS rules for sales of a primary residence are simple

• Trickier rules for investment + house hack properties

• Always consult a tax pro

Capital Gains Basic Calculation

Here’s the basic calculation in 3 steps:

1. Review IRS Publication 523 ebooklet (be sure to check for current revisions);

2. Determine your gain or loss from the sale of your primary home by using IRS Form 1099-S. Place gross proceeds from the sale in Box 2, then subtract expenses related to the sale, such as agent commissions, staging, advertising, legal, etc. The adjusted total is your realized gains;

3. Now reduce the realized gains by your home’s tax basis on the date of the sale (this is simply the home’s value for tax purposes). To do this, begin with the original cost of the property, plus commission, settlement fees and closing costs, updates or other improvements as allowed. (Ref. IRS Publicatons 551, 530 and 527).

Now you have your net capital gain.

Internal Revenue Service (IRS) rules on taxing capital gains include:

• Length of time you’ve owned the asset (unrealized gains)

• Cost of ownership + fees

• Amount of realized gains

• Income tax bracket

• Marital status

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.

A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.

However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.

Capital Gains & House Hacking, Rental Properties

IRS Section 121 exclusion allows homeowners to exclude $250,000 of capital gains when it has served as their primary residence for two or more of the previous five years, but house hackers should note that the exclusion applies soley to the owner-occupied portion of the property, so additional calculations must be made.

Rental properties have a specific set of rules outlined in IRS Publication 527. Factor in how long the property was used as a rental versus a primary residence, and/or the portion of the home used for primary vs income residence.

IRS now allows no exclusion for periods of nonqualified use. Filers may only claim the tax exclusion for periods of qualified use. What is qualified use vs. nonqualified use?Per IRS, it’s any period from January 1, 2009 when the property is not a primary residence.

For depreciation on a house hack or rental property, refer to IRS Form 4562

There’s also a tricky depreciation trap: Depreciation Recapture. Filers can’t exclude the portion of gain previously attributable to a depreciation deduction. This is known as depreciation recapture, which is specific to rental properties, and the amount previously taken as a depreciation deduction is taxed at a recapture rate of 25%.

There are numerous publications and articles on these topics. Here are just a few you may find useful:

1. IRS Rentals, Depreciation FAQ

2. IRS Publication 946 How To Depreciate Property

3. Rental Property and Capital Gains

4. Rental Property Sale FAQ

5. Kilpinger’s 2024 Capital Gains

6. IRS Real Estate Income & Deductions

Long Term Capital Gains Rates For 2026

There isn’t a separate, lower tax rate for long-term capital gains in the District. Instead, the city taxes all long-term and short-term capital gains as ordinary income using its progressive individual income tax brackets, ranging from 4.0% to 10.75%.

These progressive income tax rates are applied to capital gains without separate brackets for different filing statuses.

DC Tax Brackets for Capital Gains

• 4.00% on taxable income up to $10,000

• 6.00% on taxable income from $10,001 to $40,000

• 8.50% on taxable income from $40,001 to $60,000

• 9.25% on taxable income from $60,001 to $250,000

• 9.75% on taxable income from $250,001 to $500,000

• 10.50% on taxable income from $500,001 to $1,000,000

• 10.75% on taxable income over $1,000,000

While federal rules apply lower rates (0%, 15%, or 20%) to long-term gains, DC adds the gain directly to your ordinary income and taxes it at your marginal state rate.

Short Term Capital Gains 2026

Capital gains and losses are classified as long-term or short-term. In general:

• If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term.

• If you hold it one year or less, your capital gain or loss is short-term.

For exceptions to this rule, such as property acquired by gift, property acquired from a decedent, or patent property, refer to Publication 544, Sales and Other Dispositions of Assets; for commodity futures, see Publication 550, Investment Income and Expenses; or for applicable partnership interests, see Publication 541, Partnerships.

To determine how long you held the asset, you generally count from the day after the day you acquired the asset up to and including the day you disposed of the asset.

The term “net short-term capital loss” means the excess of short-term capital losses (including any unused short-term capital losses carried over from previous years) over short-term capital gains for the year.

The District doesn’t offer a lower tax rate for short-term capital gains (assets held for one year or less). They’re taxed as ordinary income using DC’s progressive income tax brackets, with rates ranging from 4.0% to 10.75%. DC uses the same tax bracket schedule for all individual filers regardless of filing status.

DC Income and Short-Term Capital Gains Tax Brackets

• 4.0%: On taxable income up to $10,000

• 6.0%: On taxable income from $10,001 to $40,000

• 6.5%: On taxable income from $40,001 to $60,000

• 8.5%: On taxable income from $60,001 to $350,000

• 9.25%: On taxable income from $350,001 to $1,000,000

• 9.75%: On taxable income from $1,000,001 to $1,000,000+

• 10.75%: On taxable income over $1,000,000

Unlike federal or states’ practices, The District of Columbia applies a single progressive bracket threshold structure to all filers instead of doubling brackets for married couples filing jointly

*Provided as General Information. For specific short-term capital gains tax rates, please check the latest IRS publications or consult with a tax professional.

From The IRS

Report most sales and other capital transactions and calculate capital gain or loss on Form 8949, sales and other dispositions of capital assets, then summarize capital gains and deductible capital losses on Form 1040 Schedule D, Capital Gains and Losses.

If you have a net capital gain, a lower tax rate may apply to the gain than the tax rate that applies to your ordinary income.

The term “net capital gain” means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss for the year.

The term “net long-term capital gain” means long-term capital gains reduced by long-term capital losses including any unused long-term capital loss carried over from previous years.

The tax rate on most net capital gain is no higher than 15% for most taxpayers. Some or all net capital gain may be taxed at 0% if you’re in the 10% or 15% ordinary income tax brackets. However, a 20% tax rate on net capital gain applies to the extent that a taxpayer’s taxable income exceeds the thresholds set for the 39.6% ordinary tax rate ($415,050 for single; $466,950 for married filing jointly or qualifying widow(er); $441,000 for head of household, and $233,475 for married filing separately).

If you have a taxable capital gain, you may be required to make estimated tax payments.

For additional information, refer to Publication 505, Tax Withholding and Estimated Tax, Estimated Taxes, and Do You Have to Pay Estimated Tax?

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim on line 13 of Form 1040 to lower your income is the lesser of $3,000, ($1,500 if married filing separately) or your total net loss shown on line 16 of the Form 1040, Schedule D (PDF).

If your net capital loss is more than this limit, you can carry the loss forward to later years. You may use the Capital Loss Carryover Worksheet found in Publication 550, Investment Income and Expenses, or in the Form 1040, Schedule D Instructions, to figure the amount you can carry forward.

Taxpayers with significant investment income may be subject to the Net Investment Income Tax (NIIT), imposed by section 1411 of the Internal Revenue Code. The NIIT applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.

For information on Survivors, Executors, and Administrators, see Topic 559.

Additional information on capital gains and losses is available in Publication 550 and Publication 544, Sales and Other Dispositions of Assets.

If you sell your primary residence, refer to Topics 701 and 703, and [the afore-referenced] Publication 523, Selling Your Home.

From A District of Columbia CPA

Because capital gain taxes can involve complex calculations and knowledge of the rules of law pertaining to real estate taxation, seek advice from a tax professional expert in real estate taxation. This webpage by Kronzek, Fisher & Lopez, PLLC is a helpful resource for preliminary questions and planning. It lays out many of the scenarios common to the sale of real estate:

KF&L PLLC

Capital Gains Calculator

SMARTASSET

Author: Susan Isaacs, Washington DC Real Estate Strategist

Steps To Take Before Listing Your Home

Unsure of the steps to take, and in which order? To avoid unnecessary spending and effort, follow our guide.

Where Do I Start?

Your first impulse might be to dive into your long-ignored ‘to do’ list before contacting a real estate agent. That would be a mistake 99% of the time. Why? Because you may max out your budget on work that:

• Won’t provide the highest return on investment

• Forego addressing issues that would make your home more valuable

• Make choices that appeal to you, but may not strike the right note with potential buyers.

Preparing a home for sale is literally the process of packaging a personal living space into a marketable product. A real estate professional should advise you.

What Can I Do Now?

Most homes will need at least some of these steps, many will require all of them.

Organization, Decluttering And Cleaning

Organize your garage, storage spaces, attic and other areas of the home where sorting and decluttering will take place.

• Declutter the entire home

• Clean the house from top to bottom. Floors, doors, trim, closets, baseboards, ceilings, light fixtures, hardware–all of it.

Assess Condition

A key factor in your home’s market value is condition, and the perception of condition. These are two different things:

1. The condition of a home includes its overall physical state, structural integrity and operation of its core mechanical systems. Home buyers are concerned with the soundness of the home’s foundation and roof, HVAC systems, windows, fireplaces and chimneys, and safety systems, as well as its ‘wear and tear’, and level of maintenance. Cosmetic flaws also factor into condition.

2. The perception of condition is essentially how it presents visually. Your home may be in reasonably good condition, but the front entry may be in disrepair. That sends a negative signal to buyers even before they’ve seen the inside of the home. If obvious issues aren’t addressed or simple maintenance has been deferred, they’ll wonder how larger issues have been handled. Is the home clean? Well organized and free of clutter? Are the windows washed? Drywall blemishes repaired? HVAC filter changed? Bathroom tile grout clean and unstained? Are all light bulbs working? Are outdoor spaces in good shape? These things give buyers the impression that the home has been well cared for and maintained.

Even if you’re selling ‘as is’ and the price has been adjusted for condition (1), you’ll want to address the perception of its condition (2).

Repairs

Get estimates for repairs in order to factor the cost into your listing price, but don’t commit to a vendor or schedule any work yet. Because these expenditures will affect your listing price and net, you and your agent should make these decisions together.

You may want to address big-ticket items which are worn, dated or non-functional (carpeting or hardwood flooring, HVAC units, roofing, windows, major appliances) prior to listing depending on your budget and listing strategy.

Assemble Paperwork

Compile a folder of receipts, warranties and documentation for title insurance, significant past repairs or additions, warranties, monthly and annual maintenance contracts, etc.

If your home was purchased within the past ten years, your buyer may qualify for a reissue rate on title insurance. Your title policy will be required to facilitate this discount, and you can expect the buyer to include this request as a term of the purchase contract.

• Do you have a home warranty that is transferrable? If so, make that information easily accessible to the buyer when they go under contract.

• Are any of the home’s major components still under warranty? HVAC, roof, plumbing, major repairs—all receipts and warranties will help.

• Have you retained receipts from contractors or other service providers? Include those, along with user manuals for appliances and electronics that will stay with the home should also be included.

• Floor plans, blueprints and other architectural or historic designation documents are a boon to buyers and should be made available.

Make sure you create an electronic copy of key items like floor plans for your real estate agent. You’ll be asked for them at several points during the transaction and need some in order to complete your DC Seller Property Disclosure when listing.

Other items to assemble are keys, codes, door/gate openers and fobs. Your agent will need two sets of keys for your listing; one for the lockbox and an emergency set for the agent. Other access devices and codes should be provided to your agent as needed, and ready to transfer to the buyer at closing.

Condos, Co-Ops and Townhomes

If you’re selling a condo, townhouse or co-op, some steos differ slightly from those recommended for single family homes.

Even though you’re not permitted to make changes to the exterior of the premises, there are things you can do inside and to personal outdoor space to help your home sell quickly and at a good price.

• Submit a request 30-90 days in advance of listing to your association or management company to have scuffed hallways touched up, hallway & entrance flooring cleaned, common area wall nicks and scrapes repaired, dim or expired light bulbs replaced, ask to have your front door painted/repaired/replaced if it is peeling, chipped or warped and make sure locks work smoothly

• Create an inviting space on your patio or balcony if you have one, by decluttering, cleaning stains and algae, light fixtures and rails

• Townhome owners can correct or replace warped or weather-damaged deck boards, repair fences and gates if HOA documents list these as owner maintained.

Condo and townhome owners should request the following information from the association:

• Copy of rules and regulations

• Advice on whether or not ‘for sale’ signs are allowed on the grounds (if so, where)

• Ask for the current investor ratio, FHA and VA status, rental rules and restriction details, pet restrictions and smoking restrictions.

Will I recoup my Expenses On Resale?

It’s a valid concern. The potential costs of updating a DC home are often higher than anticipated, but returns on the right investments can pleasantly surprise you.

Know what the ROI is before undertaking any work beyond decluttering and cleaning.

Compare the estimated cost of repairs and updates to projected return on investment (ROI). You’ll typically net a good deal more for an updated home than one that buyers perceive as dated and worn. Buyers often guesstimate costs far in excess of actual costs, but sellers rarely hear that conversation. Instead, buyers move on to a turnkey property, leaving sellers to wonder why their interest waned.

Preparing your property for sale is an essential step, but it can seem overwhelming. There are services that can help. Reach out to your agent for a list.

There’s a mistake I see DC sellers make over and over… and it’s not what you’d think:

It’s not pricing too low
It’s not neglecting repairs and improvements
Or skimping on presentation

It’s this:

Believing that your home will sell the way you want it to—because you want it to.

Emotional Pricing = Strategic Blind Spot

Here’s how it shows up:

• “We updated the _____ ourselves in 2019. It doesn’t need any work.”

• “There’s nothing like our house on the market right now.”

• “We’ll start high. We can always drop the price later.”

All of those may feel true.
But none of them guarantee results in this market.

Especially in Washington DC, where:

• Buyer expectations are high

• Turnkey properties sell first

• Presentation is paramount to generating offers

• Inventory has spiked and competition is fierce

The Real Risk of Emotional Pricing

• You miss your momentum window.
  The first 3–7 days on market are golden. Overprice, and the market moves on without you.

• Every day on market lowers price in buyers’ minds

• You invite lowball offers.
  Buyers assume overpriced homes are stale, stubborn, or flawed—and they price accordingly.

• You lose the buyer who would have paid full price—if it had felt fair.

What Strategic Pricing Actually Looks Like

• We price based on buyer psychology, not just square footage

• We analyze competition, not just comps

• We present your home the way your target buyer dreamed it

• We review the value of your upgrades from the buyer’s POV—not the appraiser’s

Sometimes we list at or slightly above market.
Sometimes we list just under—to create controlled urgency.
Sometimes we stay off the market entirely and sell quietly.

But we always lead with data and informed choices, not baseless emotion.

Zuzu’s Truth:

The price you hope for isn’t the one that sells your home.
The price that moves buyers to act—that’s the one that wins.

Want a custom pricing review before you list?
Reach out!