DC Real Estate Channel: Everyone Guides

Avoiding DC Wire Fraud

Susan Isaacs — Sat, 05 Sep 2026 11:31:44 GMT

Avoiding Wire Fraud

Section: Everyone Guides
Author: Susan Isaacs, Washington DC Real Estate Strategist

Wire fraud is becoming more common in the U.S. These attacks, in the form of email hacks and phishing schemes, have increased dramatically, with an unprecedented number of attempts globally. Real estate transactions are a prime target because the numbers are large and transaction details are often sent and received via vulnerable email accounts.

How Does Wire Fraud Occur In Real Estate?

Scammers hack email accounts of real estate agents, title companies, or buyers. These criminals may monitor messages for weeks to confirm closing dates, transaction participants’ names, whether or not wire transfers will be used, and the exact dollar amounts for those deposits and settlement funds. When the time is right, they send a convincing email with new wiring instructions, typically just before the settlement occurs. Once the buyer wires funds, thieves intercept it and quickly move the money. The recovery rate for this type of theft is very low.

Wire Fraud Warning Signs

Last Minute Changes: An email claims the title company’s wiring instructions have changed
High Urgency: Messages pressure you to wire funds right away
Email Errors: The sender address differs slightly from the ones you’ve received previously from your real estate agent, lender or title representative.

Steps To Protect Yourself From Wire Fraud In Real Estate

The best protection for a real estate consumer is to avoid interacting with real estate agents, mortgage lenders and other third partirs regarding details of wire transfers.

Always use phone communication, not email, with your bank and title company
Always use the phone number you’re positive is valid, not numbers provided in email requests
Beware of changes in wiring instructions. Contact the title company immediately using the phone number you know, to discuss and confirm. Speak with the person you know. If you’re at all uncomfortable, don’t wire. Change your method of payment
Never email financial information
Do not CC your real estate agent or other transaction parties when communicating about wire transfers

Other steps you can take:

Immediately report and delete unsolicited e-mail (spam) from unknown parties
DO NOT open spam e-mail, click on links in the e-mail, or open attachments. These often contain malware that will give subjects access to your computer system
Do not use the “Reply” option to respond to any business e-mails. Instead, use the “Forward” option and either type in the correct e-mail address or select it from the e-mail address book to ensure the intended recipient’s correct e-mail address is used
Beware of sudden changes in business practices. For example, if a current business contact suddenly asks to be contacted via their personal e-mail address when all previous official correspondence has been through company email, the request could be fraudulent. Always verify via other channels that you are still communicating with your legitimate business partner.

Are Wire Transfers In Real Estate Insured?

Typically, no. Standard insurance and bank protections do not automatically cover consumers for real estate wire transfer theft.

Standard bank error protections and Federal Deposit Insurance Corporation (FDIC) insurance do not cover authorized wire transfers sent to a fraudster
Most standard personal homeowner’s insurance policies or personal umbrella policies exclude social engineering and wire fraud losses
Business vs. Consumer: While real estate brokerages or title companies might carry cyber liability or commercial crime insurance, these policies rarely protect a homebuyer’s personal funds directly and often carry strict security requirements or low caps.
KVS Title’s Safeguards: KVS Title uses Qualia Shield, which includes facial recognition identity verification, public records checks, and suspicious email detection as provisions that can stop wire fraud before it happens.

If You’re A Victim Of Wire Fraud

If your funds are transferred to a fraudulent account, it is important to act very quickly:

Contact your financial institution immediately upon discovering the fraudulent transfer to see if it can be recalled or traced
Request that your financial institution contact the corresponding financial institution where the fraudulent transfer was sent
Contact the title company immediately to alert them of the situation. Request that they immediately contact their financial institution
Contact your local FBI office if the wire is recent. They and the U.S. Dept of Treasury Financial Crimes Enforcement Network might be able to help return or freeze the funds
File a complaint, regardless of dollar loss, with www.ic3.gov or, for BEC/EAC victims, bec.ic3.gov
Contact the Enforcement and Consumer Protection Division of the District of Columbia Department of Insurance, Securities and Banking at (202) 727-8000.

When contacting law enforcement or filing a complaint with IC3, identify your incident as “BEC/EAC”; also consider providing the following information:

Originating business name
Originating financial institution name and address
Originating account number
Beneficiary name
Beneficiary financial institution name and address
Beneficiary account number
Correspondent bank if known or applicable
Dates and amounts transferred IP and/or e-mail address of fraudulent e-mail

Detailed descriptions of BEC/EAC incidents should include:

Date and time of incidents
Incorrectly formatted invoices or letterheads
Requests for secrecy or immediate action
Unusual timing, requests, or wording of the fraudulent phone calls or e-mails
Phone numbers of the fraudulent phone calls
Description of any phone contact, including frequency and timing of calls
Foreign accents of the callers
Poorly worded or grammatically incorrect e-mails
Reports of any previous e-mail phishing activity.

For additional tips, visit IdentityTheft.gov.

Disclaimer

We are not attorneys, legal experts, investment counselors, or CPAs. The content on this channel is presented for informational purposes only and derived from reliable sources, but should not be considered legal, financial, investment, transaction or real estate practice advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific real estate transaction. Homebuyers should read applicable D.C. law and code as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

Asbestos In DC Homes

Susan Isaacs — Sat, 05 Sep 2026 10:22:39 GMT

Asbestos In DC Homes

Section: Everyone Guides
Author: Susan Isaacs, Washington DC Real Estate Strategist

What Is Asbestos?

Asbestos is a mineral fiber that occurs in rock and soil. Because of its strength and heat resistance, asbestos has been used in a variety of building construction materials for insulation and as a fire retardant. It has also been used in a wide range of manufactured goods, mostly in building materials (roofing shingles, ceiling and floor tiles, paper products, and asbestos cement products), friction products (automobile clutch, brake, and transmission parts), heat-resistant fabrics, packaging, gaskets, and coatings.

Due to its prevalence, you can expect to find asbestos products in pre-1989 homes unless it was previously remediated. Six asbestos minerals were commonly used commercially - chrysotile, amosite, crocidolite, anthophylite, tremolite and actinolite.

Is Asbestos Dangerous?

Left undisturbed or undamaged, asbestos may pose little or no threat, but when asbestos-containing material is disturbed, tiny asbestos fibers are released. These fibers enter the body through inhalation or ingestion. Exposure has been found to be a factor in the development of lung cancer, asbestosis, mesothelioma and gastrointestinal cancer.

Toxic Substances Control Act

Actions to protect the public from exposure to asbestos under the TSCA include the following:

1989 Partial Ban on the manufacture, import, processing, and distribution of some asbestos-containing products. EPA also banned new uses of asbestos which prevent new asbestos products from entering the marketplace after August 25, 1989. These uses remain banned. The April 2019 final rule does not provide a way for these uses to return to the marketplace.
April 2019 Final Rule to ensure that asbestos products that are no longer on the market cannot return to commerce without the Agency evaluating them and putting in place any necessary restrictions or prohibiting use. The uses covered under this rule were not already prohibited under TSCA and could have returned to the market at any time.
Risk evaluation of asbestos under TSCA. EPA is reviewing a handful of very limited, still ongoing uses of asbestos. The evaluation of the risks associated with ongoing uses of asbestos is required under TSCA section 6. If EPA finds unreasonable risk, the Agency will take prompt action to address those risks.
Asbestos was widely used in home components
Not dangerous if undisturbed
Toxic Substances Control Act bans uses

April 2009 Final Rule Protections

The public is protected from uses of asbestos that are no longer on the market and are not covered under any other laws or regulations. Products like certain asbestos vinyl floor tiles, insulation, and other building materials, as well as clothing and manufacturing products, are prohibited from being produced and sold before EPA reviews them and puts in place any necessary restrictions or prohibits use.

EPA is not allowing new uses of asbestos. Persons subject to the rule are required to notify EPA at least 90 days before commencing any manufacturing, importing, or processing of asbestos or asbestos-containing products covered under the rule. These uses are prohibited until EPA conducts a thorough review of the notice and puts in place any necessary restrictions, including prohibiting use.

Uses of asbestos covered under the partial 1989 ban will remain banned. This rule keeps these prohibitions in place and would not amend them in any way. In other words, this action does not provide a means by which these prohibited products could return to the marketplace.

Testing involves placing a detector in a designated area, making sure the environment is not disturbed (airing out) for the prescribed number of days, then sealing the detector back in the package. If it is determined that there is a build-up in an area of the home, use only recommended mitigation methods.

Actions to protect the public from exposure to asbestos under the TSCA include the following:

April 2019 final rule:

Banned uses of asbestos
Risk evaluation under TSCA
Regulatory history

How To Identify Asbestos In The Home

It’s best not to poke around yourself, as even a minor disturbance can release asbestos fibers into the air or onto your skin. Here are some of the common areas where asbestos was used in the home:

Roofing and/or siding shingles (asbestos cement)
Insulation (pre-1970)
Textured paint, wall and ceiling repair compounds (banned in 1977)
Vinyl floor tiles, vinyl sheet flooring backing, adhesives
White heating duct tape
Pipe coatings and/or coverings for hot water/steam
“Popcorn” ceilings
Roofing and siding shingles
Walls and floors installed around wood-burning stoves
Artificial ashes and embers for gas fireplaces

DC’s DOEE Asbestos Abatement

DOEE’s Asbestos Abatement Program ensures that asbestos removal contractors protect their own health and safety, and the health and safety of building occupants and the general public. The program is tasked with:

Issuing asbestos abatement permits to licensed contractors and collecting permit fees.
Inspecting and monitoring asbestos abatement projects and reviewing asbestos abatement reports.
Investigating asbestos complaints.
Prosecuting violators who fail to comply with asbestos laws and regulations.Important Information On Asbestos

*DOEE does not regulate asbestos removal from single-family homes, so homeowners must research and compare bids and terms from contractors and vendors.

Resources

How to Identify Materials That May Contain Asbestos
What to Do If You Have Asbestos in Your Home
Asbestos Do’s and Don’ts for the Homeowner
If You Have an Asbestos Problem
Asbestos Professionals: Who Are They and What Can They Do?
Before You Hire an Asbestos Professional
If You Hire an Asbestos Professional Inspector
If You Hire an Asbestos Professional Contractor
Asbestos Brochure for Residents & General Public
Mesothelioma in DC

Disclaimer

Washington DC Permit Guide

Susan Isaacs — Thu, 03 Sep 2026 09:50:46 GMT

Washington DC Building Permit Guide

Section: Everyone Guides
Author: Susan Isaacs, Washington DC Real Estate Strategist

What Is A DC Building Permit?

A building permit is an authorization to build according to a specific scope of work, including approved plans. You are required by law to get a permit for construction in the District of Columbia. Any modification of permit scope or approved plans must be specifically approved.

What Kinds of Work A Residential Building Permit Covers

For interior renovations (kitchen or bathroom remodels), an Alteration and Repair is the correct permit type.

All projects require a cost estimate to assess the total permit fee and some will require floor plans (depending on the scope of work).

Here’s the shortlist from the DC Dept. of Building:

New construction and foundations
Additions, alterations, or repair of existing buildings (decks qualify as additions)
Demolition
Razes
Construction of retaining walls, fences, sheds, garages, or vault construction
Erection of signs, awnings or canopies
Layout changes to interior space in new buildings (e.g. remodeling; changing the floor plan of a building from ten one-bedroom units to five two-bedroom units)
Water or sewer excavation
Mechanical permits for supplemental systems installation (electric, plumbing, and HVAC)
Public Space permits if a dumpster(s), fencing or retaining walls are installed between the structure and the curb.
Commercial buildings have additional requirements. Find more detail on DC DOB

Take Note

The DC Department of Buildings has an online Permit Wizard
Always obtain a required permit before starting work
Have your information and materials ready for your permit application

Updates To DOB Permitting

Key 2026 Permitting Changes

Expanded Instant Permits:
- Eligible residential solar panel installations up to 15 kilowatts and in-kind replacements of up to 15 windows are included in the fast online process.
Construction Code Updates:
- The DOB is transitioning local building codes toward modern International Code Council (ICC) standards
- A series of public virtual listening sessions run through June to September 2026 to gather feedback on residential, commercial, electrical, and mechanical codes before formal rules are proposed.
Mandatory Pre-Submission Checklists:
- All ProjectDox plan submissions require an online pre-submission checklist, ensuring you upload the exact minimum required documents for your specific project scope.
Streamlined Portals and Accounts:
- All applications require an AccessDC login, routing single-family projects through the Permit Wizard and larger commercial or solar jobs through the Citizen Access Portal.

Questions & Answers

What Doesn’t a DC Building Permit Cover?

A DC building permit does not give you the authority to build in or occupy public space, remove or prune trees greater than 55” in circumference (18” in diameter) on public or private property & occupy your building after construction.

How Much Does a DC Building Permit Cost?

That depends on what you’re building. Here’s a link to the DC Building Permit Fee Schedule

How Long Is A DC Building Permit Valid?

Any issued DC building permit will become invalid if the authorized work is not begun within one year after the permit is issued, or if the authorized work is suspended or abandoned for a period of one year, after the date work is begun.

Is It Ok To Start Work Before Obtaining A Permit?

Absolutely not. You will be fined if you start construction before you get a DC building permit or work after it expires. DCRA can also require that all permitted work be removed. Work must be inspected on completion for the final approval to be issued.

In fact, there’s a special department at the DOB just for folks who think that’s a good idea. It’s called DOB Targeted Enforcement. District law now allows DOB to deny issuing a building permit to individuals or entities who have received more than five Stop Work Orders (SWOs) in a 12-month period.

They also compile a publicly-posted list of those who may be subject to heightened enforcement for potentially violating the Construction Code and jeopardizing safety. This list identifies individuals or entities associated with permits issued, and who have large numbers of SWOs. Check it out: VIOLATORS LIST

When Is A DC Building Permit Necessary?

Unless your property is located in a DC historic district, the following work does not require a DC building permit:

Brick pointing
Caulking
Patching and plaster repair
Installation of cabinets and architectural millwork
Installation of window screens and storm windows
Repair of existing fences with ‘like’ materials
Retaining walls 18″ (0.46m) or less in height
Construction of garden storage sheds complying with DC Code Section 105.2.6
Painting (exception: painting with fire-retardant paint)
Replacement of non-rated windows & doors
Siding, gutters & downspouts
Private sidewalks, driveways & patios
Non-rated suspended ceiling tile
Floor coverings up to 160 SF (9.3m) of gypsum board
Duct work of up to 10 linear feet (3.05m) in non-hazardous and commercial kitchen exhaust systems.

Information on permits in historic districts.

Permit requirements can change. Please check with the DOB for definitive answers on permit requirements.

The DC Permit Wizard

When the Department of Building was created from the restructured DCRA a few years ago, it undertook streamlining of the permitting process. The Permit Wizard is their ‘customer-friendly’ application designed to be intuitive, simple, and easy to use.

The “wizard” guides you through a series of questions. In response, the program will:

Identify the permits needed for your entire project, eliminating guesswork;
Estimate the total cost of permits;
List anticipated plan reviews by DoB and sister agencies, required documentation, anticipated inspections, and;
Provide advisories and notifications about your property.

Use the Permit Wizard for all new DC residential building permit applications, including trade, solar, raze and demolition permits. The Permit Wizard has also been expanded to include trade permits for commercial projects if no building permits are required, or for projects having already obtained building permits.

All other commercial permit applications are handled through the Citizen Access Portal.

Applying For a Residential Permit

Select Permit Wizard on dob.dc.gov and use your single sign-on, Access DC, account to log in;
Name the project, identify the professionals associated with the project, enter the project detail. The following materials and information will be required to begin your project application:

The professional license numbers for any building professionals working on your project. This may include permit expediters, architects, interior designers and landscape architects, professional engineers, etc.;
Have business license numbers available for any general or home improvement contractors that you expect will complete work on the project;
Electronic copies of any drawings or plans for your project;
Contracts with building or design professionals, and cost estimates associated with your project.

3. Submit your application.

Disclaimer

DC Homestead Deduction

Susan Isaacs — Wed, 02 Sep 2026 19:36:10 GMT

Section: Everyone Guide
Author: Susan Isaacs, Washington DC Real Estate Strategist

The 2026 District of Columbia Homestead Deduction

The District of Columbia Homestead Deduction reduces your real property’s assessed value by $87,600 (for tax year 2025/2026), which translates to an annual tax savings of $744.60 for most homeowners.

The Homestead benefit is limited to residential property. To qualify:

An application must be on file with the Office of Tax and Revenue;
The property must be occupied by the owner/applicant and contain no more than five dwelling units (including the unit occupied by the owner); and
The property must be the principal residence (domicile) of the owner/applicant.

If your application is filed from October 1 to March 31, the property receives the Homestead benefit for the entire tax year and all tax years going forward. If filed from April 1 to September 30, one-half of the benefit reflected on the second-half tax bill will be realized, with full deductions for subsequent tax years.

Who Qualifies For The DC Homestead Deduction?

An owner-occupant of one residential property (1-5 units). Must be a principal residence;
Resident of the District of Columbia. Proof of residence may include a DC driver’s license, voter registration, vehicle registration, or DC tax returns;
Must be a US Citizen in most cases. Some G-4 visa holders may qualify as residents by providing a letter from their international organization employer.

To qualify for the homestead and receive the deduction, an application must be filed with the OTR and provide any additional information as required for approval.

How the Savings Are Calculated

The Tax Rate: The standard residential property tax rate in DC is 0.85% of the assessed value.

The Deduction: The deduction subtracts $87,600 from your home’s total assessed value before the tax is calculated [1, 2, 3].

The Math: $87,600 × 0.0085 = $744.60 in annual savings

Homestead Deduction Timetable

If a properly completed and approved application is filed during the period October 1 through March 31 of the tax year, the real property shall receive the deduction for the entire tax year. Notwithstanding subsection (a) of this section, if a properly completed and approved application is filed during the period April 1 through September 30, the real property shall receive 1/2 of the deduction for the second installment only.

Who Can Claim It?

An individual may only claim one lot as a homestead. If a homestead comprises more than one lot, the deduction may only be applied against the estimated market value of one lot and the other lots shall not receive the deduction. Only one person in a household shall be entitled to claim a homestead in the District. The real property tax bill shall indicate whether the real property is receiving the deduction.

Homestead Deduction and Cooperatives

To qualify for the DC Homestead Deduction in the case of a cooperative housing association, the unit must be occupied by the shareholder (or member) as his/her principal residence, and the benefit is granted to the cooperative (which will supply and collect the applications). Co-op units are not owned by the shareholders so the corporation gets the deduction.

Homestead Deduction and Trusts

In the case of property transferred to a trust, the property may qualify for the DC Homestead Deduction benefit if: The property was eligible for the Homestead benefit before the transfer; The property is transferred to a revocable trust; The transfer is not for money (or other consideration); and The property remains the principal place of residence of the applicant/transferor/trustor before and after the transfer.

How To File

E-Mandate for filing Homestead Benefit Applications (ASD-100)

Title companies provide the application form for the buyer to complete at settlement, then file it with the rest of the recordable documents as an accommodation. In 2010, the Homestead Unit of the OTR created a new “supporting documentation” requirement compelling the homebuyer to provide a DC driver’s license copy, a DC voter registration card, and a copy of first 2 s of their DC income tax return. Obviously, not all homebuyers can comply with these requirements, especially those who are just moving to the District. The OTR states that the buyer will have 30 days from settlement date to register to vote, obtain a DC driver’s license and register his/her car in DC, and file with his/her employer a new DC Tax Form D-4 (Employee Withholding Allowance Certificate). Most DC title companies will continue to file the application for buyers at settlement, but be sure to furnish your title officer with the required documentation within 30 days of settlement in order to ensure you will qualify for the benefit.

Paper Filing Method

The Homestead, Senior Citizen and Disabled Property Tax Relief Application can also be filed using the paper form by requesting a waiver from the electronic filing requirement. If waiver is granted, the application can be obtained through Customer Service by calling (202) 727-4TAX (4829).

Homestead and Senior Citizen Tax Benefit Appeal Application
Homestead Reconfirmation Audits
Statement of Income

For assistance, please contact OTR’s Homestead Unit at MyTax.DC.gov.

Homestead Deduction Updates

The DC Homestead Deduction may be updated annually. Check at the DC Office of Tax and Revenue.

If you’re purchasing a home in the District of Columbia and you qualify for the DC Homestead Deduction, your title company should provide the form at settlement.

Homestead Deduction Application

Additional Programs & Updates

These tax changes took effect October 1, 2022, unless otherwise noted, for the following tax types:

Seniors and Individuals with Disabilities Real Property Tax Increase Limit Amendment Act of 2022: The senior citizen assessment cap credit limits taxable assessment increases to 2 percent, beginning with TY 2023 (the current taxable assessment increase limit is 5 percent). The increase in the amount of the benefit will be reflected beginning with the first half TY 2023 real property tax bill. It’s automatic for seniors/disabled individuals who are already receiving the tax benefit.
Disabled Veterans Homestead Exemption Amendment Act of 2022: A $445,000 homestead deduction (deducted from the assessed value) has been established for individual real property owners who have a total and permanent disability resulting from a service-incurred condition or are paid at the 100 percent disability rating level as a result of unemployability. The benefit is subject to the Senior/Disabled Tax Relief household income threshold, currently $139,900 for TY 2022. The veteran must have obtained certification of eligibility from the DC Office of Veteran’s Affairs.
Tax Abatements for Housing in Downtown Act of 2022: Tax abatements have been established for certain real property undergoing a change of use to provide at least ten housing units. For each property meeting the requirements, the real property tax shall be abated in an annual amount per residential square foot for a maximum of 20 years, subject to total program annual ceiling limits.

Disclaimer

DC Mortgage Interest Deduction

Susan Isaacs — Wed, 02 Sep 2026 19:07:40 GMT

Section: Everyone Guides
Author: Susan Isaacs, Washington DC Real Estate Strategist

Mortgage Interest Deduction For DC Homeowners

One of the perks of ownership, but it’s not as much of an advantage as it used to be for large mortgage loans.

What Is The Mortgage Interest Deduction?

The home mortgage interest deduction allows mortgagees to reduce taxable income from the prior year by the total interest paid on mortgage debt up to $750k.

Is It Still a Relevant Deduction For Homeowners?

The mortgage interest deduction is much less relevant for most taxpayers today because high standard deduction amounts mean very few people itemize their taxes.

For the 2025 tax year, the standard deduction is $15,750 for single filers and $31,500 for married couples filing jointly. For itemizing to make a difference, the filer must exceed those thresholds;
You can’t take the standard deduction and claim mortgage interest;
Changes from the Tax Cuts and Jobs Act raised the standard deduction significantly, causing the percentage of taxpayers who itemize to fall.

Mortgage Interest Deduction Rules and Limits

For new loans closed after December 15, 2017, the maximum mortgage principal eligible for the deductible interest is $750,000 of mortgage debt ($375,000 if married filing separately), which was lowered by TCJA. Loans closed before that date retain their pre-TCJA $1 million limit ($500,000 for married filing separately) unless the property is refinanced;
Standard deductions were nearly doubled by TCJA;
The mortgage must be secured by a primary residence or second home, and the loan funds must have been used used to purchase, build, or vastly improve the property;
Mortgages higher than the cap still get a deduction, but only on the portion of interest related to the first $750,000.

Lenders send form 1098 for filers who pay $600 or more in mortgage interest during the year. Review IRS Publication 936 for official guidelines.

Home Equity Loans (HELOC)

TCJA also partially eliminated the ability to deduct interest on home equity debt. Homeowners can deduct the interest only if it’s used to buy, build, or improve the property and doesn’t bring your total outstanding mortgage debt above the revised $750k limit. This change took immediate effect, even on existing home equity loans, with no grandfathering provisions.

Previously, homeowners were able to deduct interest on up to $100,000 of home equity debt. The law allowed for unrestricted use of the funds, with the interest still being deductible.

Capital Gains Tax
1031 Exchanges

What Counts As Mortgage Interest When Taking The Itemized Deduction?

The portion of your total mortgage payment that goes toward paying interest:

Points paid during the initiation of your mortgage
Private mortgage insurance

The increase in the standard deduction effectively eliminated the tax benefit of paying home mortgage interest. If the total itemized deductions don’t exceed the raised standard deduction, taxpayers won’t itemize, and the mortgage interest is not deductible.

What The Mortgage Interest Deduction Allows

A mortgage interest deduction allows homeowners to reduce their taxable income by the interest paid on the loan which is secured by their principal residence (or, sometimes, a second home)
If a home buyer earned $100,000 a year, paid $10,000 the previous year in interest and claimed the mortgage interest deduction, the IRS would tax only $90,000 of the income (not including additional deductions)
The IRS previously allowed deductions on interest for second homes or on home equity loans of $100,000. or less and for mortgages of $1M dollars or less
The mortgage interest deduction was beneficial for homeowners within the first five years of their purchase since the majority of the typical conventional mortgage loan monthly payment goes to interest, not principal, during that time.

Sources

Disclaimer

Lead Based Paint In Washington DC Homes

Susan Isaacs — Wed, 02 Sep 2026 16:02:24 GMT

Lead Based Paint In DC Homes

If your home was built before 1978, there’s a good chance it contains lead-based paint in some areas.

Wasn’t lead paint banned a long time ago?

Lead paint was outlawed in the late 1970’s

In 1978, the federal government banned consumer uses of lead-containing paint, but some states banned it even earlier. Lead from paint, including lead-contaminated dust, is one of the most common causes of lead poisoning, but it is still present in millions of homes, sometimes under layers of newer paint. Deteriorating lead-based paint (peeling, chipping, chalking, cracking, damaged, or damp) is a hazard and needs immediate attention.

Why is lead paint a problem?

Lead is a highly toxic metal that may cause a range of health problems, especially in young children. When lead is absorbed into the body, it can cause damage to the brain and other vital organs, like the kidneys, nerves and blood.

Lead may also cause behavioral problems, learning disabilities, seizures and in extreme cases, death. Some symptoms of lead poisoning may include headaches, stomachaches, nausea, tiredness and irritability. Children who are lead poisoned may also show no symptoms.

Both inside and outside the home, deteriorated lead-paint mixes with household dust and soil and becomes tracked in. Here is important information for DC homeowners:

EPA’s Lead-based Paint Enforcement 2018 website
Sources of lead at home

Will I know it if I see it?

Lead paint looks no different than other types of paint. But you can look for areas containing peeling, chipping or flaking paint and test it.

There are tests available to DC lead based paint content in your home at EPA;
If results are positive, you’ll need to take special steps to remove or remediate;
If you’re selling your home, you’ll have to disclose your knowledge of the presence of lead based paint on your DC real estate disclosure forms.

Removal And Remediation Of Lead Based Paint

It’s a job for the pros

There are a number of ways certified professionals can remediate lead based paint in Washington DC homes:

Encapsulation of DC lead based paint is favored as the least expensive option for lead based paint remediation in Washington DC, and the one requiring the smallest investment of time and effort. Many DC Metro rehabbers use the encapsulation method and you’ll notice examples of this in period homes throughout the region when you see overpainted baseboards and other trim, window frames and doors carrying multiple layers of paint with old drips and flaws glossed over by a new coat of paint rather than being stripped and sanded. This is likely because the rehabber didn’t want to deal with the expense of lead paint removal. Encapsulation is simply coating the paint with a special sealant that you can roll or brush on. The downside? Sealant can be worn or chipped off over time. There is also an aesthetic downside. You’ll be unable to remove the layers of paint beneath the sealant. Often we see trim and moldings that have many layers of paint built up, some less than perfect (drips, gouges, uneven layers, etc.) and you won’t be able to correct those imperfections. Encapsulation sealants start at about $35 per gallon. The amount you’ll need will depend on the amount of woodwork in the home;
Enclosure is also a popular method of dealing with lead-based paint associated with DC real estate. Enclosure involves covering the old material with new, whether drywall or cladding. The downsides to this method are that you’ll lose some small increment of space to the addition of a new surface, curved and ornate surfaces will be difficult or impossible to cover (the encapsulation method can be used for these) and if you remove the new surface, you’ll have to deal with the problem all over again. Cost will depend on the surfaces requiring enclosure in your DC Metro home and the enclosure product you choose;
Removal and replacement are the most effective ways to deal with lead based paint, also the most expensive options in the short term. In the long term, they become more cost effective since you’ll have to do it only once and removal/replacement will enhance the resale value of your DC real estate. Removal should be performed by a licensed, certified professional familiar with DC real estate. The contractor may employ a variety of methods including wet scraping and wet sanding (which requires specialized sanding equipment), wire brushing and the use of liquid stripping products and tools. There are prohibited methods of removing lead-based paint, such as machine sanding without the proper HEPA sanding equipment, power washing or sand blasting without the appropriate containment equipment and strategies, burning and torching. There are laws that apply to lead-based paint removal and you’ll be required to adhere to them. Replacement involves removal of the contaminated surfaces and installing new ones. There are prescribed methods of doing this, as well.

Monitoring Lead Based Paint

What about DC lead based paint that isn’t chipping, peeling or flaking? Experts say if the lead-based paint surfaces in your home are in good condition, and if there are no children under the age of 6 in the home, you may be able to leave things as they are and monitor the surfaces for changes. If you put your home on the market, you’ll be required to disclose the existence of DC lead-based paint if you know it exists, and lead based paint disclosures are required when selling real estate in the DC Metro region.

Resources

Lead Based Paint

Disclaimer:

Mortgage Recasting vs Refinancing

Susan Isaacs — Wed, 02 Sep 2026 15:55:11 GMT

Mortgage Recast vs Refinance

Everyone knows what a refinance is, but how many of us have heard of the recasting option? Here’s what mortgage recasting is and why you may want to consider it.

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. But 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.

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?

Contact your mortgage lender to determine recast availability, loan eligibility and qualifying criteria;
Put aside funds for a lump sum payment;
Make a formal, written (or electronic) request to recast your loan;
Gain written approval;
Pay the recasting fee and lump sum payment to the principal of your mortgage balance;
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.Forbes

Sources

Investopedia

Bankrate

NerdWallet

NVA Septic Systems

Susan Isaacs — Wed, 02 Sep 2026 15:45:11 GMT

Northern Virginia Septic Systems

Nearly 550,000 households in Virginia depend on onsite systems to take care of sewage disposal. Northern Virginia real estate buyers considering properties in neighborhoods like McLean and Great Falls may encounter septic and well systems for the first time. While the magnitude of information on these systems may be overwhelming, it is important to understand the basic design and functionality of septic and well systems, as well as how to evaluate and maintain them. This knowledge can save you thousands on a purchase, and minimize costs over the life of ownership.

Why Septic, Not Sewer?

A septic system’s purpose is to dispose of sewage on a private lot in lieu of pumping it to a waste treatment facility. This system is utilized in many homes located in Great Falls and McLean, Virginia which do not have access to public sewer lines, either because the properties pre-dated the sewer install and never connected when it became available, or because the properties are too far removed from a public sewer line to be reasonably connected.

The Septic System Explained

The Septic Tank

A septic tank is an underground, watertight receptacle that holds waste products until solids settle, becoming sludge, and scum rises to the surface. Waste water exits the septic tank and flows to the drainfield, then through percolation into the soil where organisms perform the final step in purifying the waste water. Each time new water enters the drainfield, the existing partially-treated water is pushed further down for further treatment until it finally enters the groundwater level.

The septic tank typically contains two chambers separated by a dividing wall with openings located about midway between the floor and roof of the tank. Wastewater enters the first chamber of the tank, allowing solids to settle and scum to float. The settled solids are anaerobically digested, reducing the volume of solids. The liquid component flows through the dividing wall into the second chamber where further settlement takes place, with the excess liquid then draining in a relatively clear condition from the outlet into the drainfield (also known as leach field or see field).

Newer tanks have removable lids for easy access in cleaning.

Request pump records from seller
Title 5 upgrades required before property transfer

Additional Components

Inlet And Outlet Tees

Pipes running from the house to the septic tank and from the tank to an additional treatment component (screens etc) or to the drainfield.

Drainfield

Soil beds in which microbes in the soil digest or remove most contaminants from wastewater before it eventually reaches groundwater. Some systems have alternating drainfields controlled by a flow diverter valve. Turning the valve causes the system to use the alternate portion of the drainfield, which extends the overall life of the total field. Suitable soil is necessary for successful wastewater treatment. If your property is severely sloped, if the drainfield is too close to groundwater or surface water, if there are too many conventional systems in one area, or if the soil isn’t suitable for a conventional septic system, an “alternative” system may be used. Some alternative systems rely on sand, peat, plastic media, or wetlands/lagoons instead of soil to promote wastewater treatment.

Additional Equipment

Depending on grade, some septic systems also include a pump to move waste water through the system “Alternative” (non-conventional) systems have different components such as float switches, pumps, aerators, or disinfection devices, among others. The type of device depends on the system.

EPA Statement

“When septic systems are properly designed, constructed, and maintained, they effectively reduce or eliminate most human health or environmental threats posed by pollutants in household wastewater. However, they require regular maintenance or they can fail. Septic systems need to be monitored to ensure that they work properly throughout their service lives.”

Regulation of Northern Virginia Septic Tank Systems

The Virginia Department of Health (VDH) has extensive rules to make certain septic systems do not cause health issues. They have also instigated the mandatory septic tank pump-out every five years in areas that are in danger of contamination from septic discharge. Franklin county and Chesapeake Bay area come under this rule. Northern Virginia real estate owners are required to obtain a certificate verifying their pump-out from authorized personnel certified by the Virginia Department of Health.

NVA Requirements

Virginia law requires real estate owners to have their septic tank pumped every 5 years. Without regular pumping, the sludge at the bottom of a septic tank or the grease at the top could be pumped into the drainfield, clogging the network of pipes that make up the drainfield and preventing the wastewater from percolating into the soil.

Northern Virginia real estate buyers should request pump records from the current homeowner.
Title 5 conforming systems in Virginia can cost between $8,000.00 and $20,000.00, depending on the environmental factors of the site.
Title 5 upgrades are required prior to a property transfer. Purchasers of properties with septic systems should request records from the homeowner concerning these upgrades.

Alternative Systems

In Virginia

Virginia has laws regulating the maintenance and legal operation of alternative septic systems. Any non-conventional system is considered “alternative”. Eco-Flow, Sandfilter, puraflo and Advantex are a few examples. These systems have been available to Northern Virginia real estate owners over the past two decades.

Required

Assure that the licensed operator visits, collects samples and makes adjustments as needed for proper maintenance of system and to be in compliance with the regulations.

Required

Make the records available to anyone who purchases the property. In Loudoun County Virginia, an annual 1067 inspection is also required. The inspector must on the Loudoun County approved inspectors list.

Cost

The system type will determine the cost of inspections and maintenance, however it should not exceed a few hundred dollars per year, about the same or slightly less than the annual cost of public sewer bills. *When hiring contractors, be aware that Virginia licenses are separate for installers and operators. Contractors may carry both, or just one. Northern Virginia real estate owners should make sure it’s the right one for their needs.

Regulations Can Change

Over time, regulations can be updated or change. Be sure to consult the septic authority in your location for the most recent updates. This article is provided for informational purposes only.

Questions NVA Homebuyers Should Ask About NVA Septic Systems

Does the seller have the drainfield plat from the county water & sewer authority? (If not, your agent can obtain one for you)
How many bedrooms does the system rating cover? This information is often not contained in the property listing.
What type of system is in use? Conventional or alternative system? Does it have a concrete or steel tank? What is the tank size? Is there just a drainfield, or are there separate drywells or see pits?
Where is the equipment located?
Can the current Northern Virginia homeowner provide records for the service and repair/updating and/or replacement history of the system? Maintenance/pumping records? If a new tank was installed is the seller still using the old drainfield(s)?
When was the tank last pumped? (Some time should have elapsed between pumping and testing of the system) Has the seller used any additives (such as CCLS)?
Consider the property’s age and the length of time, if any, the property has been vacant. Accurate testing requires the system to have been consistently utilized up to the time of testing

What Does An NVA Septic System Inspection Include?

Locating the system
Uncovering access holes
Flushing the toilets
Checking for signs of backup
Measuring scum and sludge layers
Identifying any leaks. Inspecting mechanical components
Pumping the tank if necessary.

Your Northern Virginia service provider should inspect for leaks and look at the scum and sludge layers in your septic tank. If the bottom of the scum layer is within 6 inches of the bottom of the outlet tee or the top of the sludge layer is within 12 inches of the outlet tee, your tank needs to be pumped. Remember to note the sludge and scum levels determined by your service provider in your operation and maintenance records. This information will help you decide how often pumping is necessary.

Four Major Factors That Influence Pumping Frequency

The number of people in your household
Amount of wastewater generated (based on the number of people in the household and the amount of water used)
Volume of solids in the wastewater (for example, using a garbage disposal increases the amount of solids)
Septic tank size

Water Conservation

Inspect every 1-3 years
Pump every 3-5 years, at least
Reduce water usage to extend the life of your drainfield. The more water a household conserves, the less water enters the septic system. Efficient water use can improve the operation of the septic system and reduce the risk of failure
Install high-efficiency toilets
Keep plumbing in good repair. Average indoor water use in the typical single-family home is almost 70 gallons per person per day. Leaky toilets can waste as much as 200 gallons each day!
Reduce the use of soaps and cleaning products. These kill the “healthy” bacteria that break down the waste in the tank. If you’re a heavy soap and cleaning product user, there are additives you can use to help balance the bacteria. This does NOT mean you do not have to pump as recommended. Check with your local health department before using additives. Commercial septic tank additives can be harmful to the system
Avoid disposing of harsh chemicals, fats and greases in the sink (for the same reasons as above)
Limit tree growth near the septic tank and drain field – tree roots can create hard-to-detect damage just as they do with sewer lines
Don’t run vehicles or heavy equipment over the drainfield. This compresses soil, inhibiting aeration
Keep roof drains, basement sump pump drains and other rainwater or surface water drainage systems away from the drainfield. Flooding the drainfield with excessive water slows down or stops treatment processes and can cause plumbing fixtures to back up
Rotate drainfields (if you have more than one) every six months.

Who To Call

Please don’t call us about problems with your septic system, or service requests. We are real estate agents, not septic service providers. This Information Is furnished on our site as a courtesy to our real estate buyers and sellers. Instead, call a professional septic company in your area.

Owning Investment Properties In DC

Susan Isaacs — Wed, 02 Sep 2026 14:49:45 GMT

Owning Investment Property In Washington DC

Rental Real Estate Is Profitable In DC, But Know The Rules

If you’re thinking about purchasing DC investment property, due diligence is essential. It’s not as easy as buying a row house with a basement and putting up a ‘for rent’ sign.

You’ll need to understand DC’s unique landlord/tenant laws, short term rental restrictions, TOPA for multiunit rental buildings, plus what’s required to obtain your Basic Business License and get your rental property prepared, inspected and exemption perfected.

Once you’ve navigated the process once, you’ll find it simple to repeat. Here’s a guide to get you started.

Rent Control vs Rent Stabilization

Rent stabilization refers to rent increases in qualified units, which are subject to a set percentage rate determined by a number of factors, including market rates, location, and local economy.
Rent control refers to rental rates capped at a certain value.

DC Law

Rental Housing Act of 1985 (DC Law 6-10) as amended (the Act), codified at DC Official Code § 42-3501.01 et seq.

Definitions

Under the 1985 Act, an apartment building or apartment complex is called a housing accommodation, and a single apartment or house is called a rental unit. A renter is a “tenant,” a landlord is a “housing provider.” The Rental Accommodations Division (RAD) administers the Act.

Applications

The Act applies to all rental housing accommodations in the District of Columbia. Certain parts of the Act, such as eviction protections, apply to all District tenants.

Title II of the Act pertains to rent stabilization. It applies to any non-exempt rental unit. All rental units must be registered with the RAD either as subject to rent control or exempt from rent control. For any unit that is not registered with RAD, rent control automatically applies. The most common exemptions from rent control are for rental units that are:

Federally or District-subsidized
Built after 1975
Owned by a natural person (i.e., not a corporation) who owns no more than four rental units in the District

Vacant when the Act took effectHousing Categories

Apartment
One Family Rental
Two Family Rental

One-Family Rental

Includes single-family homes, townhouses, duplexes, individual condominium units, or individual rooms (includes individual rooms in a dwelling licensee also occupies);

Two-Family Rentals

Includes rentals of English basements and converted basement apartments or carriage houses in single-family homes where the main residence is occupied by the property owner or another tenant;

Apartment Houses

Includes buildings with three or more units.

Landlord Resources

DC Rental Housing Business
Corporate Registration
Tax Registration
Small Business Resource Center
Housing Provider Ombudsman
BBL Inspection Requirement
DHCD Rent Control
DHCD-Stamped Rental Accommodations Registration
Certificate of Occupancy
DOPA
TOPA: Conversion & Sale
DC Courts: Landlord & Tenant

DC Council Caps Rent

2023 - 2025

The rate cap applies to rent-stabilized apartments, which includes most multifamily buildings constructed before 1976. It prevents property owners from raising prices by more than 12% over two years. Seniors see more aggressive protections, with new rent increases capped at 8% total over the next two years.

2026 Pricing Schedule

For all rent-controlled units, the maximum standard rent increase for rent control year 2026, May 1, 2026, through April 30, 2027:

Standard Units: Maximum increase of 4.1% (calculated using the 2.1% regional CPI-W plus 2%).
Elderly or Disabled Tenants: Maximum increase of 2.1% (tied to the lowest of CPI-W, Social Security COLA, or 5%).
Requirements: To get the lower rate, tenants must register their status with the D.C. Office of the Tenant Advocate or Rent Administrator.

RC Exemptions

Rent control applies to any unit that does not have an exemption. The most common exemptions are:

Buildings built after 1975
Units owned by a “small landlord” (natural person (not a corporation) who owns four or fewer rental units in DC)
Units subject to a government subsidy (federal or District-subsidized)

Elderly | Disabled Reasonable Accommodation

The federal Fair Housing Act protects tenants who have such physical or mental impairments against eviction. It does so by requiring the landlord to make “reasonable accommodations,” including for example “heavy-duty housecleaning” to cure housing code violations, or assistance from a social worker in paying the rent.

Perfecting Your Exemption

Every. Single. Landlord. Yes, that means you.

All rental units must be registered with the RAD, either as subject to rent control, or exempt from rent control. Any unit that is not registered with RAD as “Exempt” is automatically rent controlled.

You must give your tenant written notice of the exemption at the beginning of the lease, or simultaneous with the filing of the Claim of Exemption. Without it, your exemption is invalid.
When a landlord perfects the exemption, rent increases are not regulated, and rent increases don’t require prior filings or fulfillment of formal notice requirements.
If the exemption is not perfected, the exemption is void, rent control limits the amount and frequency of rent increases, and landlords must comply with rigorous filing and notice requirements.
Consequences for failure to file and perfect your exemption are illogically severe. The Rental Housing Commission insists landlords strictly comply with their filing requirements, so don’t neglect to file immediately.

Disclaimer:

Radon In DC Homes

Susan Isaacs — Wed, 02 Sep 2026 01:38:28 GMT

Radon In DC Homes

What is Radon?

Radon is a form of ionizing radiation; an odorless, tasteless and invisible gas produced by the decay of naturally occurring uranium in soil and water.

Uranium and radium are both commonly found in soil and are released harmlessly into outdoor air. Problems occur when Radon is trapped inside, where it becomes a proven carcinogen.

Where is Radon Found?

Radon has been found in elevated levels in every state in the U.S. and in the District of Columbia. According to EPA statistics, one in every 15 homes has elevated radon levels.

Radon gas starts out in the soil and enters through cracks in the foundation or walls, openings around floor drains, pipes and sump pumps. Once trapped in the home, it can build up and create a health hazard. It can infiltrate from soil in any location around or under a home, even if it doesn’t have a basement, crawl space, or is built on a slab.

Review the Radon map for levels in your area.

Radon testing is available
Research mediation methods

Radon Testing

The EPA and the Surgeon General recommend testing for all types of homes at or below the third floor;
A home inspector can perform testing during a standard home inspection. There is an additional cost, and the inspection will be a two part appointment rather than a single appointment;
Washington DC homeowners can test themselves, by ordering a free test kit from the DDOE. District residents can call the Radon hotline at (202) 535-2302 or submit online at request free test kit;
Testing involves placing a detector in a designated area, making sure the environment is not disturbed (airing out) for the prescribed number of days, then sealing the detector back in the package. If it is determined that there is a build-up in an area of the home, use only recommended mitigation methods.

When Radon Mitigation Is Recommended

The EPA recommends the reduction methods if levels in the home exceed 4 pCi/L (or 0.02 working levels if your lab uses that reporting method).

Radon levels less than 4 pCi/L still pose a risk, and in many cases, may be reduced with mitigation.

Take steps to prevent device interference when conducting a radon test. Radon is estimated to cause thousands of lung cancer deaths in the U.S. each year.

Common Radon Mitigation Methods

Soil Suction: This is a system that draws Radon from underneath the home, then vents it away using pipes;

Sealing Infiltration Points: Sealing limits the flow into the home Pressurization This method uses a fan to create pressure differences that help keep Radon from entering the house;

HRV (Heat Recovery Ventilator): Installed to increase ventilation, HRV uses the heated or cooled air being exhausted to warm or cool the incoming air. This type of system is most effective when used to ventilate only the basement of a house. Heating and cooling costs will likely rise when an HRV system is in place.

Your radon mitigation contractor can offer complete details about different types of reduction systems and will be in a better position to recommend the “best” system for your house after determining how Radon is entering your home. Costs vary, but most systems can be installed for $1,000-$3,000.

New construction: You can have an inspection performed as part of your general home inspection. Installation of a mitigation system is less expensive if the work is performed while the home is being built, but most builders will not allow a vendor to work on the home until it is delivered. If you’re building a custom home or the builder will allow it, however, take advantage of the timing and savings.

Testing For Radon Before Selling Your Home

If you are selling your home, you may opt to have it tested for radon before listing. If your inspection report determines that mitigation is required, you’ll need to perform the work and provide the inspection report with a copy of the mitigation completion report and invoice to potential buyers.

For new homes, ask if radon-resistant construction features were used and if the home has been tested. Undertake mitigation if the home if the radon level is 4 picocuries per liter, or pCi/L, or higher.

Free Test Kits: D.C. residents can get a free test kit through the DC DOEE Radon Program or by calling the radon hotline at (202) 535-2302

Disclaimer

We are not attorneys, legal experts, investment counselors, inspectors or CPAs. The content on this channel is presented for informational purposes only and derived from reliable sources, but should not be considered legal, financial, investment, transaction or real estate practice advice. Susan Isaacs and Compass, their principals and/or representatives, do not guarantee or warrant its accuracy, completeness, or applicability to any specific real estate transaction. Homebuyers should read applicable D.C. law and code as part of their due diligence, and seek help from licensed, qualified professionals for interpretation and application to their specific transaction.

Rear Additions In Washington DC

Susan Isaacs — Wed, 02 Sep 2026 01:28:55 GMT

Rear Additions To Washington DC Homes

The District of Columbia restricts attached and semi-detached rear additions to residential property to a maximum of 10 feet beyond an adjoining neighbor’s farthese rear wall in order to prevent blocking of natural light, air and privacy.

§§ 306.3 and 306.4

These code updates were implemented to address concerns about excessively disproportionate rear extensions adjoining attached and semi-detached buildings in the R-2, R-3, R-13, R-17, R-20, and RF zones.

The rule(s) was adopted by the DC Zoning Commission (effective April 2017) and applies to most residential zones with attached or semi-attached housing.

What Types Of Properties Are Not Affected?

The restrictions do not apply to detached buildings because a detached building, including any rear addition, would be subject to side yard requirements that provide separation from adjacent buildings.

Are Special Exceptions Allowed?

Going beyond the 10-foot limit on an attached home requires a special exception process through the DC Board of Zoning Adjustment (BZA).

Other Notes:

Constructing a rear addition requires a building permit processed via the DC Department of Buildings (DOB), and may require historic preservation review if your property is located in a historic district.

Disclaimer

TOPA In Washington DC

Susan Isaacs — Tue, 01 Sep 2026 22:34:27 GMT

TOPA

The homeowner/landlord must comply with all TOPA laws and provide tenants with appropriate disclosures when applicable.

What Is TOPA?

Tenant Opportunity to Purchase Act is a law in the District of Columbia that requires owners of real property to provide tenants first right of refusal.

TOPA Has Changed

Changes In 2025

D.C. Law 26-80. Rebalancing Expectations for Neighbors, Tenants, and Landlords (RENTAL) Amendment Act of 2025

Effective December 31, 2025, the DC Rental Act of 2025 enacted major reforms to the Tenant Opportunity to Purchase Act (TOPA). Key changes include a 15-year exemption for new construction, an exemption for 2-4 unit properties not owned by corporations, and new limitations on tenant compensation for assigned rights.

Details

New Construction Exemption: Buildings with a certificate of occupancy issued within the last 15 years are exempt from TOPA. This applies retroactively, meaning a 10-year-old building is exempt for another 5 years.
Small Building Exemption: 2-4 unit buildings are exempt, provided they are not owned in majority by a business corporation.
Increased Exempt Transfers: Exclusions from TOPA include estate planning, family transfers, certain tax sales, and bona fide foreclosures.
Negotiation Limits: Tenant negotiated compensation for assigning rights is capped, often at the lesser of one year’s rent or $12,000.

Notice of Transfer: Even when exemptions apply, owners must provide a Notice of Transfer to residents.

This Notice of Transfer is used to notify tenants and the D.C. Department of Housing and Community Development, Rental Conversion and Sale Division (”Rental Conversion and Sale Division”) of the transfer of an ownership interest in a business entity.

Notice of Transfer, Single Unit - English

Notice of Transfer, Single Unit - En Español

Definition Changes: The definition of “tenant” has been explicitly clarified to include those with month-to-month leases and those without written leases.

Changes In 2022

On February 3, 2022, DC Tenant Opportunity to Purchase Act registration and negotiation time periods were tolled retroactively from January 5, 2022, through February 15, 2022.

Changes In 2018

TOPA SINGLE FAMILY HOME EXEMPTION ACT OF 2018

Changes exempting single family dwellings from TOPA, unless occupied by elderly or disabled tenants. Owners of single-family homes are not required to offer tenants TOPA rights, only to comply with notice requirements.

The significant provisions of the TOPA Single-Family Home Exemption Amendment Act of 2017 (Bill 22-0315) are:

Also exempted from TOPA: Single family dwellings with an Accessory Dwelling Unit and a single rental unit in a condo, co-op or homeowners’ association.
An owner of exempted units must give tenants notice within three calendar days of receiving an offer of sale.
Elderly and disabled tenants who signed a lease to occupy an exempted unit by March 31, 2018 and took occupancy by April 15, 2018, will have a limited opportunity to purchase or assign their rights. They must provide documentation verifying their status.
DHCD’s Rental Conversion and Sale Division (CASD) will determine an elderly or disabled tenant’s status.

TOPA laws and forms can change. As always, check the dc.gov site for the most up to date information and documents.

TOPA Notices

The DC Department of Housing and Community Development offers TOPA forms online. They designate whom is to be given notice, when notice must be given and how notice is to be given. The forms also specify notice and submission timeframes for all parties. Giving notice to each tenants (even those without a formal lease) is not sufficient. Landlords must also give notice to the Mayor c/o District of Columbia Department of Housing and Community Development – Rental Conversion and Sale Division.

Read the law and seek interpretation from a qualified real estate attorney.

Disclaimer

Winterize your DC Home

Susan Isaacs — Tue, 01 Sep 2026 16:51:27 GMT

Winterize Your DC Home

Prevent Seasonal Damage

A surprising amount of damage can result from failure to take frigid weather precautions in Washington DC. Create annual and seasonal checklists for the care and maintenance of your home in all weather conditions. Follow these steps to combat weather wear and tear year-round, and be sure to effectively winterize your Washington DC home.

If you take only one step in winterizing your Washington DC home, make it this one: Evaluate and update your safety systems, devices and components. There’s nothing more important that keeping yourself and your family safe and secure in harsh weather conditions.

Emergency Kit

Compile an emergency kit and keep it in an accessible area of your home when you winterize your DC home. The kit should include a box of waterproof matches, bottled water, flashlights, batteries, battery-operated radio, extra blankets, canned and pet food, first aid kit, water testing kit, utility co. phone numbers, and emergency numbers. Review and practice your evacuation and safety plan in case of fire or natural disaster.

Test smoke and carbon monoxide detectors. Change batteries whether or not its needed, and update the devices with newer models if they’re more than four years old
If none exist, install carbon monoxide detectors in rooms with furnaces and/or water heaters
Check security alarm systems, including door and window contacts, service box and wiring. Schedule your security company annual review
Check and test battery back-ip systems for sump pumps and the pump itself. Repair or replace as needed
Install moisture detectors near water heaters and washing machines
Replace fire extinguishers if they are more than five years old
Locate your flashlights, replace batteries whether or not its needed, and store where they’re easily accessible in an emergency situation
Assemble tools and materials
Order safety items first
Create an annual checklist
Create a seasonal checklist

HVAC Systems

Heating, ventilation, and air conditioning are among the most expensive components of your home, cruicial to hot and cold winter month comfort, and the most important to maintain regularly to prevent expensive replacement and repairs.

Your HVAC system should be serviced each fall and summer. It is important to include an AC check in your fall service visit since you will not be able to operate the AC system during frigid winter and spring months. A check of your heating system each fall will ensure a safe and effective heating system for your family in the winter and early spring
Have a certified pro perform a furnace inspection and duct cleaning before you switch the heat on for the season
Clean your wall, floor and ceiling vent covers to prevent dust and debris from traveling through your home
Keep 3 months’ supply of furnace filters and change them as instructed by the product manufacturer
Replace your old thermostat with an programmable model to save on energy costs. Choose a model that allows you to operate the system from your phone if you are away from home for extended periods of time
Bleed radiator valves.

Plumbing

Plumbing and winter have a contentious relationship. Uninsulated pipes can take down your house in a matter of hours during a major freeze. Take precautions in late summer so nasty winter weather events don’t threaten your structure.

Seal exposed areas around interior and exterior pipes
Locate your main water shutoff value in case of emergency and leave a note on the refrigerator clearly stating its location
Drain all garden hoses and remove from exterior spigots. Shut off water to the spigots from the main shutoff and open all exterior valves to drain. Leave open until the 3rd consecutive week in spring with temperatures above 68 degrees
Insulate every exposed plumbing pipe, and those beneath homes and other structures
Drain air conditioner pipes and turn off shut-off valve, seal areas around the unit if leaving installed. Seal faceplate for the season to prevent infiltration of air, insects and other pests
Always leave heat on in the winter, even if you’re away, to protect your plumbing. Keep at a minimum of 62 degrees.

Fireplace And Chimney

Late summer and early fall are the best times of year to get an annual chimney and fireplace inspection. You’ll want to make sure the chimney is capped with a cage to prevent bird, animal and debris from lodging inside. Stock up on fuel and firewood for cold months and store them at least 500 feet from the structure in a dry place Arrange a professional chimney sweep inspection and make repairs as recommended.

Doors And Windows

When you winterize your DC home, be sure to address air infiltration from doors and windows, along with their condition and operation.

Check door locks and hardware. If your locks are “sticky” or keys have been lost, replace them in late summer. Lock issues worsen when wood swells or contracts during season changes, and locks get icy in winter. Update any hardware that isn’t functioning properly, has deteriorated, or is visibly stressed due to load or misuse
Evaluate your doors. If doors are rotting, gaping, sifting or sticking, have them evaluated and repaired, or consider replacing them. Rescreen screen doors as needed, remove, clean and store mid-fall, and replace with storm doors
Check windows to make sure they’re in good working order, repair as needed. If your DC home has window grilles installed, check for rust, rot and peeling or chipping paint, loose or missing screws, and inoperable locks. Fix or replace elements as necessary to ensure effective entry prevention and smooth emergency exit acccess. If your windows need replacement, late summer is an ideal time. Keep in mind that the replacement process includes permitting and HPO review in DC’s historic districts
Apply weather stripping to doors where necessary to block cold drafts
Caulk windows to seal out frigid air
Cover basement windows and install storm windows
Sand/scrape, prime and paint exposed wood on the exterior of the home to prevent weather damage

Roof

A little prevention goes a long way towards extended the life of your roof, one of the most expensive components of your home.

In early fall, inspect roof, gutters & downspouts for gaps, peeling, deterioration of rubber roofs, missing or loose shingles, flashing or tiles
Add additional insulation to your attic if needed, and be sure to apply it evenly
Clean gutters and flush downspouts with a strong stream of water
Install leaf guards to keep your gutters free of clogs
Install downspout extensions to direct water away from the home.

Foundation

When you winterize your DC home, don’t forget about a less visible, but key component: its foundation. Your home’s foundation is its most important element and one of the most expensive to repair if significant damage is done. Prevent deterioration with good annual maintenance and be sure to check the landscaping checklist on this for key measures that relate to your home’s foundation.

Rake material and vegetation away from the foundation in late summer and early fall. Take this opportunity to inspect for cracks, gaps and deterioration or damage
If noticeable wear or damage is found, contact a structural engineer for an inspection, then hire a certified professional to make recommended foundation repairs. This will help prevent damage to the rest of your home
Seal exterior window sills and surrounding areas to prevent leakage, exposure damage, dry rot and pest activity
Seal, repair and secure all crawlspace entrances

Landscaping

Home owners are often surprised to learn that their landscaping is to blame for roof, foundation and flooding issues. Here’s what you can do to minimize risk:

Trim tree branches close to the home and electrical wires. Check with a pro regarding timing so as not to damage the trees
Repair and seal driveways, patios and decks
Have a landscape grading expert evaluate the grading of your front and rear yards. This is typically handled by a civil engineer. An evaluation should cost a few hundred dollars and could save you many thousands. An effective grading plan diverts water away from your home to an approved storm drain system. If your yards aren’t correctly graded, water from storms and irrigation can run back toward the home and cause damage to the foundation wall, or saturate the soil next to the foundation causing hydrostatic pressure against the wall, resulting in foundation cracks, structural damage and soil erosion. An improperly graded lot can also cause issues for your neighbors, for which you could be held liable. Late summer is a perfect time of year to make adjustments.

Tools And Equipment

When you need winter tools or supplies, you’ll want them to be accessible immediately, and in good working order. To prepare for fall/winter maintenance, take the time in late summer to organize, clean, sharpen and repair your tools so they’ll be ready to help you make short work of important tasks.

Clean, dry and store summer gardening equipment to prevent damage, and sharpen tools as needed to ready them for early spring work
Replace any equipment that can not be repaired
Service your snowblower if you have one
Drain gas-powered lawnmower, clean and store in dry place with accessories nearby
Buy ice-melt, rock salt and/or sand supplies for steps, driveway and walkways. If you wait until late fall, you may find a limited supply
Prepare for power outages by purchasing a portable generator to power a emergency lights and your refrigerator. Follow instructions carefully and be sure to ventilate well

Disclaimer

Washington DC Historic Preservation Design Guidelines

Susan Isaacs — Tue, 01 Sep 2026 08:32:54 GMT

Washington DC Historic Preservation Design Guidelines

Considering the purchase of an historic home in Washington DC? Here’s a guide to the Historic Preservation rules for homes in your neighborhood.

DC Historic Preservation Guidelines

Whether you’re updating a historic DC home or purchasing one, understanding historic preservation protections and restrictions is important.

Check your home’s historic district status
Learn about historic preservation rules
Approval required for changes

Many DC Neighborhoods have their own guidelines, so be sure to check the rules for yours. Not sure if your home is a historic building? Check your address on this interactive map.

Guidelines By Type

ADDITIONS TO HISTORIC BUILDINGS

The Historic Preservation Office assists owners and tenants in historic structures to maintain, preserve, and enhance additions to their property, or create new ones.

Additions Guide

BASEMENT ENTRANCES & WINDOWS

The Historic Preservation Office has developed guidelines for Basement Entrances and Basement Windows on Historic Properties.

Basement Guide

ENERGY CONSERVATION

The Historic Preservation Office assists owners and tenants in historic structures to enhance energy conservation on their property.

Energy Guide

LANDSCAPING & SECONDARY FEATURES

The Historic Preservation Office assists owners and tenants in historic structures to maintain, preserve, and enhance the landscaping, landscape features, and secondary buildings on their property.

Landscaping Guide

NEW CONSTRUCTION

New Construction in Historic Districts: The Historic Preservation Office assists owners and builders to design new buildings in historic districts.

New Construction Guide

PORCHES & STEPS

The Historic Preservation Office assists owners and tenants in historic structures to maintain, preserve, and enhance porches and steps on their property.

Porch & Step Guide

ROOFS

Roofs on Historic Buildings The Historic Preservation Office assists owners and tenants in historic structures to maintain, preserve, and enhance the roofs on their property.

Roof Guide

UTILITY METERS

The Historic Preservation Office has developed draft guidelines for placement of utility meters on landmarks and properties located within historic districts. The guidelines were formally approved by the Historic Preservation Review Board on May 3, 2012.

Utility Meter Guide

WALLS & FOUNDATIONS

The Historic Preservation Office assists owners and tenants in historic structures to maintain, preserve, and enhance the walls and foundations on their property.

Walls & Foundations Guide

WINDOW REPAIR & REPLACEMENT

Window Repair and Replacement: Preservation and Design Guidelines: In October 2011, The Historic Preservation Review Board approved an updated guidance for window repair and replacement for historic structures in the District of Columbia.

Window Guide

Uncovering Your Historic Home’s History

Learning About & Preserving Your Historic Home’s History:

HOME HISTORY SERVICE

DCC LIBRARY RESOURCES

Resources & Sources

Washington DC Home Appraisals

Susan Isaacs — Tue, 01 Sep 2026 08:03:04 GMT

Washington DC Home Appraisals

Your appraisal must return a value equal to or greater than the contracted price of the home you’re purchasing. If your appraisal comes back low, you’ll be required to make up the difference in cash at the closing table. We outline how appraisals impact your transaction, how to protect yourself, and how DC home appraisers determine value.

What is a DC home appraisal?

A home appraisal is a professional property valuation performed by a licensed appraiser, typically ordered by a lending institution to establish collateral value.

Appraisals apply to most residential property types, including detached and attached single-family homes, townhouses, cooperatives and condominiums.

Common reasons for ordering an appraisal include initiation of mortgage loans, home refinance loans (HELOC), and tax assessment valuations.

How Do Washington DC Home Appraisers Determine Value?

Home appraisal can be quite complicated, and a good resource is Basic Real Estate Appraisal, 9th Edition.

But explained in basic terms, Washington DC home appraisers use a number of approved methods of valuing real property, some of which are:

The sales comparison approach
The Cost approach
The income approach (multifamily)

The sales comparison approach calls review of recent sales and listings of comparable properties in order to estimate value. Contributing factors include the square footage of the home, land area, architectural style, age of the dwelling, quality of construction, number of bedrooms and bathrooms, presence or absence of a basement, garage, outbuildings, etc.

The cost approach can be used to appraise most types of improved property, but is the most reliable when valuing unique or new construction properties. It generates a value based on the sum of the estimated land value, plus the depreciated cost of the dwelling and other improvements.

An appraiser may utilize the income approach for multifamily properties, where income is a factor.

Some lenders work with appraisal companies that utilize automated property valuation systems in addition to human field appraisers.

The Uniform Residential Appraisal Report (Fannie Mae) is the standard form utilized by most residential appraisers. It provides for:

Neighborhood characteristics and trends, including stability, buildup, growth, supply & demand, adverse conditions and marketing time
Property characteristics, including size, zoning details, use and utilities and flood zone
Dwelling information including a general description of the home, foundation, interior and exterior, parking, and amenity details
Comparison properties (comparables) recently sold within a specific radius of the subject property

Appraiser assessments must meet the Uniform Standards of Professional Appraisal Practice (USPAP) guidelines.

DC Real Estate Lending
Streamlined 203k
Adjustable Rate Mortgages
Assumable Mortgages

How Do Appraisals Differ From CMAs?

Appraisal value is used by appraisers to establish the value of property, while a Comparative Markey Analysis sets a value range for the property’s price for sellers in determining a listing price, and for buyers determining an offer price. Taken into account are:

Market Research, including price per square foot during the previous 3-6 month period;
Sold-to-list price ratio for sold, similar homes in the immediate neighborhood;
Market activity within a one mile radius;
Individual property comparisons for properties within the same radius having similar attributes, including size, age, condition, upgrades and additions, and other attributes;
Adjustments for differences.

Agents may also take into comsideration market influences, time of year and buyer preferences.

How An Appraisal Impacts Your Home Purchase

Offer terms are nearly as important as the price offered for the home in the competitive Washington DC real estate market. Buyers balance terms and price to submit the strongest possible offer package.

Terms can include escrow period, earnest money deposit, form of payment (cash, mortgage loan, assumption, etc.), special accommodations such as seller rent-backs, seller home-to-purchase contingencies, buyer payment of special assessments or seller closing costs, etc., and contingencies such as inspection, financing, and appraisal.

Lenders require the appraisal to match the purchase price of the home, at minimum. If an appraisal returns a value lower than the purchase price, the buyer must make up the difference in cash at settlement, along with their downpayment and closing costs, unless they are able to renegotiate the purchase price with the seller.

For this reason, when DC home buyers are financing a purchase, they often wish to include financing and appraisal contingencies in their sales contracts.

These provisions offer specified protections individually, and complete mitigation of risk when included in a sales cotract together, assuring the buyer that their Earnest Money Deposit will be returned in full and they’ll be released from the contract without penalty should their mortgage application fail.

This seems understandable, even advisable, but in the aggressive DC real estate market, where homes sales outpace comps, and bidding wars are the norm, adding financing and appraisal contingencies can quickly sour a seller on the buyer’s offer. Why?

Financing and appraisal contingencies are two of the most important considerations for sellers when evaluating offers, especially in multiple offer situations, because the buyer protections contained in these clauses shift risk to the seller.

While the buyer who includes one or both of these contingencies may offer a higher purchase price than completing buyers, sellers know that the appraisal may come back below value, forcing them to negotiate the price down or walk away from the deal. That’s quite a gamble since taking a home off-market for one to three weeks to await appraisal results, then re-marketing it means they not only lose their original pool of eager buyers, but their property has been somewhat stigmatized by the fallout of the contract and increased days on market.

For this reason, appraisal contingencies can cause buyers to lose a multiple offer competition, or pay more for a home than they would with a clean offer.

How Does The Appraisal Process Work In DC?

Appraisals are ordered by the Buyer’s lender, who becomes the appraisal’s client, even though the Buyer pays for the appraisal.

Each lender works with an appraisal company, or AMC. Appraisal Management Companies AMCs maintain a pool of state-licensed/qualified appraisers, and provide administrative duties for the appraisal process, including selecting an appraiser, ordering the appraisal, tracking progress, and delivering the appraisal report to the lender. For this service, they receive a cut of the appraisal fee. AMCs are not new, but the industry grew substantially from the 2008 sub-prime mortgage crisis when the subsequent Dodd-Frank Wall Street Reform and Consumer Protection Act and the Truth in Lending Act laws obligate lenders to use independent appraisers.

AMCs have come under fire from appraisers, who say they are delaying appraisals for days, even weeks while shopping for appraisers with the lowest fees. Other complaints include claims of deteriorating appraisal quality due to AMCs’ focus on hiring the cheapest (least experienced or qualified) appraisers and fast delivery. Tacking on additional fees to contractors and lenders results in higher appraisal costs for the consumer. Regulation of the AMC industry is lax in most states, resulting in a lack of transparency.

Affiliations with appraisal companies and AMCs are a consideration when selecting a lender.

Your loan officer is legally prohibited from contacting an appraiser directly; he or she must rely on the underwriting department for scheduling, review and correction of appraisals; but regulations allow real estate agents, or ‘other persons with an interest in the real estate transaction’ to communicate with the appraiser in order to provide relevant property information.

The appraiser will determine if the property and loan qualify for a ‘desktop appraisal‘ generated using computer software, floor plans, and data from tax records and the MLS, or requires a full appraisal, with the appraiser inspecting the home in person, taking photos, measuring and evaluating the condition of the home firsthand. Generally, a desktop valuation is an option for homes in average condition, while a full appraisal is recommended for homes in below average or highly upgraded condition.

The Buyer’s lender will furnish the appraiser with a copy of the sales contract. Government Sponsored Enterprises (GSEs) require that an appraiser must confirm analysis of the contract on the appraisal report. The appraiser looks at the terms of the contract and compares them with what is typical in the market, reviews the interest rate, down payment amount, seller contributions and any personal property items that might be included in the sale, such as furnishings. The appraiser must also verify that the property seller is the owner of public record.

Once the appraisal is completed, it is sent to the lender’s underwriting department for review. In its final form, the appraisal is released to the loan officer, who passes it on to the Buyer. If the value is equal to or above the sales price, the property has “appraised” and an appraisal contingency can be removed. If the value is lower than the sales price, the Buyer and Seller have options depending upon the terms of their contract:

The Buyer can opt to pay the difference between the appraised value and the purchase price. This has to be paid in cash, adding to the rest of the Buyer’s closing costs;
The Seller and Buyer can negotiate the purchase price down to the appraised value, or somewhere in between;
The Buyer can challenge the appraisal. In the past, this has been very difficult to do and most often unsuccessful. But in 2024, HUD and GSEs announced the introduction of a new appraisal review process to become effective in August. Read about it here. A closing date extension may be required to facilitate a re-appraisal if one is granted, or if the Buyer decides to change lenders. Seller would have to agree to both;
The contract can be voided if its terms allow.

Does the GCAAR Financing Contingency form provide appraisal protection for buyers?

The GCAAR (Greater Capital Area Association of Realtors) contract form (2017) does not offer the same protections as a separate appraisal contingency. Ask us to explain appraisal ramifications and contingencies for your DC real estate transaction.

Updates to the District of Columbia Home Appraisal Contingency And Notice

In July 2022, GCAAR (Greater Capitol Area Association of Realtors) revised the Addendum of Clauses form, which contains the clauses relating to appraisal contingencies, and the Appraisal Notice/Addendum form.Who regulates District of Columbia Property Appraisers?

The District of Columbia Board of Real Estate Appraisers regulates the real estate appraisal practice, including the functions of a state appraiser certifying and licensing agency under Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, approved August 9, 1989. The Board protects consumers by enforcing the District of Columbia real estate license law.

The Board consists of five members appointed by the Mayor. Three members are real estate appraisers licensed in the District, one is a real estate broker licensed in the District, and one is a consumer member. Three members of the Board constitute a quorum.

The Board meets on the third Wednesday each month at 10:00 AM. You can access the calendar at OPENDC.

DC Real Property Tax Rates

Susan Isaacs — Tue, 01 Sep 2026 06:39:55 GMT

DC Real Property Tax Rates

DC real property is taxed based on its classification. A tax rate is the amount of tax on each $100 of the assessed value of the property.

How are DC property tax rates computed?

DC real estate property tax rates are set by the Council of the District of Columbia, and administered by the DC Office of Tax And Revenue. The property tax rate may change annually.

The amount of tax due is determined by dividing the assessed value of the property by $100, then multiplying that amount by the applicable tax rate for the property.

For example, a property classified as Class 1, has a tax rate of $0.85. It is assessed at $100,000. To determine the tax, divide $100,000 by 100 for a sum of $1,000. Multiply $0.85 by $1,000. The annual tax is $850. (before the homestead deduction, senior citizen deduction, and/or trash credits).

If a property is classified as Class 2, the tax rate varies according to the property’s value. For instance, commercial and industrial property valued under $5M is taxed at a rate of $1.65. Assessed at $100,000. divided by 100, multiplied by $1,000., the annual tax is $1,650.

But if that Class 2 property is assessed at $3.5M, the tax is computed at a split rate of $1.65 for $3M of the property assessment, and $1.85 for the balance ($500,000): Divide $3 million by 100. That amount is $30,000. Multiply $1.65 by $30,000. That result is $49,500, which is the tax on $3 million of the total assessment. The balance of the total assessment, $500,000, is divided by 100. That amount is $5,000. Multiply $1.85 by $5,000. That result is $9,250. The total annual tax is the sum of the tax on $3M ($49,500) and the tax on the balance of $500,000 ($9,250), which totals $58,750.

To learn more about Vacant and Blighted property tax rates (Classes 3 & 4), refer to the OTR.

Check for property tax updates
Consult a professional before filing

DC Property Taxes 2026

The following are the current rates for Class 1, 2, 3 and 4 properties in the District of Columbia:.

Current Classes and Real Property Tax Rates

Class 1A – Residential real property, including multifamily: $0.85 per $100 of assessed value.

Class 1B – Residential real property with no more than two dwelling units:

The first $2.558 million of assessed value is taxed at $0.85 per $100.
Any amount above $2.558 million is taxed at $1.00 per $100.

Class 2 – Commercial and industrial real property, including hotels and motels:

$1.65 per $100 if assessed value is not greater than $5 million.
$1.77 per $100 if assessed value is greater than $5 million but not greater than $10 million.
$1.89 per $100 if assessed value is greater than $10 million.

Class 3 – Vacant real property: $5.00 per $100.

Class 4 – Blighted real property: $10.00 per $100.

Tax assessments are related to market values determined by appraisal. Residential real property assessment/sales ratios compare the average ratio of assessed values to current market values.

DC Code § 47-823(c) requires OTR to publish a real property assessment/sales ratio study. The report measures assessment quality by looking at the most recent assessment program and comparing the results of that effort to actual market conditions. View the studies

If a DC taxpayer feels their property tax assessment is incorrect, information on appeals and other remedies can be found here.

The District of Columbia currently utilizes an annual assessment cycle. All real property may be valued for property tax purposes annually.

DC Property Tax Programs

District of Columbia property owners may be eligible for property tax relief. The District offers several programs to assist property owners and first time homebuyers. Select from the following programs to check eligibility and filing requirements. For more information about these tax relief and credit programs, contact the DC Office of Tax & Revenue at 202.727.4829.

The following are some programs to research:

Assessment Cap Credit

The housing market in the District of Columbia has caused a surge in the assessed value of residential real property. In an effort to limit the increase of real property taxes for homeowners, eligible homeowners will be provided an Assessment Cap Credit.

The Assessment Cap currently provides that a property may not be taxed on more than a 10% increase in the property’s assessed value each year. This credit does not reduce the assessed value of your property on the tax roll or the assessment notice, but it will appear as an automatic credit against your real property tax bill.

Senior Assessment Cap Credit

The senior assessment cap credit generally provides that a real property may not be taxed more than a 5 percent increase in the property’s taxable assessed value of your property on the tax roll or the assessment notice, but it will appear as an automatic credit on your real property tax bill. The property must be receiving the homestead deduction and Senior or Disabled Owner Real Property Tax Relief for this credit to be automatically applied.

For more information, property owners may call the OTR Customer Service Center at (202) 727-4TAX (727-4829). If you have been denied the Assessment Cap Credit and you believe that you are eligible, please contact the Homestead Unit, PO Box 176, Washington, DC 20044 or call Customer Service at (202) 727-4TAX (727-4829).

Homestead Deduction

Reduces real property’s assessed value by $78,700 prior to computing the yearly tax liability.

The Homestead benefit is limited to residential property.

DC Historic Properties Program

For information on special District programs for historic real properties, please contact:

DC Office of Planning

Historic Preservation Division

801 North Capitol Street, NE, Suite 3000

Washington, DC 20002

Phone: (202) 442-8800

Fax: (202) 535-2497Code of the District of Columbia § 47–844. Historic property tax relief

Agreements for maintenance and use of buildings:

The Council may provide that the owners of historic buildings which have been so designated by the Joint Committee on Landmarks of the National Capital may enter into agreements with the government of the District of Columbia for periods of at least 20 years which will assure the continued maintenance of historic buildings in return for property tax relief.

Requires reasonable assurance that such buildings will be used and properly maintained to encourage the preservation of historic buildings. Read more

Owners of historic properties that are income-producing (all or part of a building) may be eligible for a 20% income tax credit for rehabilitation work. Detailed information regarding the Federal Rehabilitation Tax Credit Program is available on the National Park Service website.

For additional District of Columbia property tax reduction or relief programs, follow the link below:

Programs

DC Real Estate Agency And Agreements

Susan Isaacs — Mon, 31 Aug 2026 11:44:50 GMT

Real Estate Agency In DC

Explainers and resources to help you understand the roles, agreements and choices available for your transaction.

Listing Agreements And Terms

Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.

Open Listing: Owners can sell their home themselves under the terms of this non-exclusive agreement. Owners may have listings with more than one brokerage. Commission is paid to the agency who is the procuring cause for a ready, willing and able buyer who makes an offer on the property. Should the owners find the buyer themselves, no commission is due;
Exclusive Agency Listing: The broker will be the only brokerage representing the owner, but the owner may still sell the property themselves and avoid paying commission under the terms of that provision. The broker may cooperate with other brokerages to bring in a buyer and the listing commission is split between the two brokerages. Exceptions and deadlines may be included in the agreement;
Multiple Agencies Listing: When a seller uses more than one brokerage to list their home, the listing agreement used must be for the jurisdiction where the property is located;
Single Agent Buy & Sell Transaction: This is different than Dual Agency, where the agent represents both the buyer and seller of the same property. In this model, sellers of a home purchasing their next home also hire their listing agent as their buyer agent;
Designated Agent: Two agents affiliated with the same brokerage represent the property owner and the buyer of the property. Each agent is designated by the brokerage as the representative of one party only;
Dual Agency: Single agent representing both the property owner and the buyer of the same property.

Key Components

Jurisdiction
Type of agreement
Length of agreement
Listing price
Compensation
Private Exclusive, public MLS or hybrid
Keys, lockboxes & signage
Inclusions/Exclusions
Property condition statement
Property disclosure of material facts
Lead paint disclosures
Pest Inspection terms
Encumbrances/Liens/Title
Authority to disclose existing offers

Clear Cooperation And Office Exclusive Listings

“Clear Cooperation” refers to a real estate industry policy that mandates listing a property on the Multiple Listing Service (MLS) within one business day of publicly marketing it.

“Office Exclusive Listing” is an exception where a seller allows a brokerage to market a property within their own brokerage. It is not listed on the MLS for wider access, but must still be entered into the MLS system. Bright MLS, the DVM’s area multiple listing service, provides that the following forms must be completed for Office Exclusive Listings:

Bright MLS Office Exclusive Entry Form: This form is required for all Office Exclusive listings.
Bright MLS Client Disclosure Form: This form is required for all clients starting August 14, 2024

The listing must be submitted to Bright within two calendar days of the executed listing agreement.

The listing broker or agent can still cooperate with other brokers who present a buyer.

The core requirement of the MLS Clear Cooperation Policy has not been eliminated, despite ongoing industry debate and legal challenges.

Public Marketing Definition

Public marketing still includes yard signs, public websites, flyers, digital email blasts, and multi-brokerage sharing networks.

Delayed Marketing Options

NAR introduced the Multiple Listing Options for Sellers policy, which allows local MLS platforms to offer a “delayed marketing exempt” category, and Bright MLS honors it. This permits withholding a listing from third-party syndication and IDX during a localized delay window, but the listing must still be filed with the MLS.

Office Exclusives

True office exclusives, where a listing is promoted strictly within a single brokerage without public exposure, remain exempt from immediate MLS submission, though multi-brokerage communication triggers Clear Cooperation.

Key Topics To Discuss

In addition to reviewing each section of the Agreement with your agent, you’ll want to discuss terms of the agreement. These are some of the points you might consider:

Broker Compensation Fees

How is listing broker compensation negotiated?
Are sellers required to offer buyer broker compensation?
If sellers choose to compensate buyer brokers, in what amount and form does compensation take?
How is cooperative compensation negotiated?
Will any cooperative compensation be built into the list price?
How is cooperative compensation legally communicated to buyers?
When and how are brokerages and their agents paid?
What services are included?
Are there any additional fees, such as a brokerage “additional commission” fee?
What types of listing agreements are offered by the agent’s afilliated brokerage?
Discuss listing termination/expiration and whether or not an early termination fee will be included

Marketing And Presentation Costs

Who pays costs of photography, floor plans and virtual tours? What’s included?
Who pays costs for staging?
Who pays costs of marketing?

Determining Listing Price

What factors contribute to the listing price of a home?
What type of price flux can be expected in the current market?
Revview the comps | CMA for the property

Showing Restrictions

Are there days and times the property will be unavailable?
Will showings be ‘go and show’ or require an appointment?

Managing Offers

How and when will offers be submitted?
If multiple offers are received, how will the review process be structured?

Condos And Cooperatives

Discuss condo association documents, fees & turnaround time. There are three separate sets of documents involved in a condominium resale; the Condominium Questionnaire (lenders), the Condominium Closing statement (supplied to title. Some are free, some associations charge the seller up to $150. Many title companies include this fee in the Seller’s closing cost escrow, but some title attorneys and title companies may require it to be paid upfront), and the Resale Certificate Package (commonly known as “condo documents,” this package may be generated electronically or printed. The fee to Sellers commonly ranges from $250.-$400. depending on the association and management company).
Discuss condo listing rules: Are there rules regarding open houses, signage, elevator use for staging and renovation materials/crew, etc.? It is up to the seller to divulge these to the agent at the time the listing is taken.

Exchanges

Who will act as the Intermediary?
What type of exchange will be used?
Has a replacement property been identified?

Leases

If all or a portion of your property is leased, or the property is multifamily, discuss lease expiration date(s) and other terms
Provide lease copies
Discuss required tenancy documentation and contract addendums, TOPA.

Listing Status Options

Understanding the types of real estate agency for DC home sellers and basic provisions of the listing agreement.

ON MLS

Coming Soon

Entered for purposes of cooperation
No showings during a current, specified time-period
No agreement of sale in effect
Listing will be on-market soon
If the lister receives an offer while property is in this status, it must be presented to the Seller

Active

Showings allowed
The listing on-market, no written offer accepted
DOM starts at “1”
CDOM count based on previous activity

Active Under Contract

Listing has an accepted contract
Seller is allowing showings and accepting backup offers
DOM/CDOM does not accumulate.

Pending

Listing has an accepted contract
Seller not accepting additional showings or backup offers
DOM/CDOM does not accumulate

Closed

Settlement has concluded
DOM/CDOM has stopped and reset

Tempoff

Seller temporarily suspended showings
Listing contract between broker and Seller remains in effect
DOM/CDOM is paused and will not reset on or after the 61st day.

Withdrawn

Marketing ceased, Listing Agreement still in effect
DOM/CDOM will reset when a new listing is added after the previous listing has been in Withdrawn status for at least 61 days and no other listing for the same property has been created.

Canceled

Seller and listing broker have terminated the Listing Agreement prior to its expiration date.
DOM/CDOM has stopped and will reset on or after the 61st day.

Expired

The expiration date on the Listing Agreement has passed and an extension has not been secured
DOM/CDOM has stopped and will reset when re-listed on or after the 61st day.

Off-MLS | Compass Coming Soon

A “Compass Coming Soon” listing is a property about to hit the market and being advertised on Compass with limited details to generate early interest. This is the pre-cursor to “Compass Private Exclusive.”

Compass Private Exclusive (PX)

Compass Private Exclusives are properties that are accessible to 34,000+ Compass agents and their buyer networks.

Private Exclusive listings are the first stage of the Compass 3-Phased Marketing Strategy designed to maximize demand and fine-tune positioning for the best possible sale outcomes.

Top 5 Off-Market Listing Questions Answered

In addition to reviewing each section of the Agreement with your agent, you’ll want to discuss terms of the agreement. These are some of the points you might consider:

WHAT’S THE DIFFERENCE BETWEEN MLS COMING SOON AND COMPASS COMING SOON?

The Bright MLS rule does not allow showings under this status, while showings are encouraged on Compass Coming Soon.

HOW LONG SHOULD A LISTING BE ON OFF-MARKET CHANNELS BEFORE LISTING ON MLS?

This is determined on a cas-by-case basis. Reasons for listing off-market vary. Discuss this topic in relation to your circumstances with your agent. The minimum term recommended for office exclusive status is 7 days.

WHO CAN VIEW MY PX LISTING?

Compass agents
Buyers and sellers on the Compass network

WHAT ADVANTAGES ARE THERE TO LISTING OFF-MARKET?

Privacy
Pre-marketing builds interest in listings pre-MLS, before they are ready to be fully marketed publicly
Price Testing without published adjustment history
No Days On Market accumulation to penalize a listing
No restrictions on if, when, and how often, the listing can be shown
Exclusivity often translates to higher sales prices

WHAT DISADVANTAGES ARE THERE IN LISTING OFF-MARKET?

Off-market listings are not visible to the gerneral public and do not populate to third-party listing aggregators such as Zillow and Redfin. Limited exposure results in fewer viewings, which may affect traffic levels and interest in the listing.

Buyer Agency Agreements And Terms

What Is Buyer Agency?

Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.

It is a real estate agency relationship between a a buyer principal and real estate brokerage, designating a licensed real estate agent to perform specified duties for the buyer.

The buyer agency agreement (BAA), is a contractual agreement between the buyer and brokerage designating the buyer’s chosen agent, dictating the provisions, terms and conditions of their working relationship and the agreement for broker compensation and fees.

Buyer Agency protects buyers and ensures that their agent works in their best interests, not the seller’s, providing the duties of loyalty, care, confidentiality and other fiduciary duties. Agents who are not acting as buyer agents are effectively subagents of the seller.

A written agreement between the buyer and brokerage must be signed prior to an agent performing work on behalf of a buyer, including touring of properties. Agents may require an agreement sooner, prior to performing any substantive work. An agency agreement converts a ‘customer’ to a ‘client’ and triggers duties and obligations by both the brokerage/agent and the buyer/seller.

Recent Changes

Along with changes to how broker compensation is offered and paid, the NAR settlement forced changes to the way buyers search hones and prioritize agreements with buyer agents.

NAR / MLS Mandates

Buyers must now choose an agent and agree upon representation and compensation terms in writing before any work can be performed for the buyer, including showing homes

The buyer agreement must include four components concerning compensation:

A specific and conspicuous disclosure of the amount or rate of compensation the agent will receive or how this amount will be determined
Compensation that is specific, not open-ended
A term that prohibits agents from receiving additional compensation for brokerage services from any source that exceeds the amount or rate agreed to in the buyer agency agreement (such as bonuses)
A conspicuous statement that agent fees and commissions are fully negotiable and not set by law.

Written agreements apply to both in-person and live virtual home tours.

Agreements

Understanding real estate agency for DC home buyers and basic provisions of the buyer agency agreement.

Single Agency: An agent from brokerage A represents the seller and another agent from brokerage B represents the buyer in a transaction
Single Agent Buy & Sell Transaction: The same brokerage and agent are hired to represent a party who is buying and selling property
Multiple Agents: As a buyer, you can choose to have one agent or multiple agents representing you in one jurisdiction, or more. For example, a buyer might hire one agent for representation in Virginia, another for representation in DC, and a third for representation in Maryland. Agents are licensed in different jurisdictions and not all agents are expert in all markets within the DCMA. A buyer could also hire multiple brokerages for representation within the same market. This arrangement can become a complex situation requiring extensive communication, coordination and disclosure. Overlapping neighborhood boundaries can become an issue, and scheduling showings/tours can become a logistical problem, especially if agents are affiliated with different brokerages. This can lead to disputes, ‘procuring cause’ claims, and violations of agreements that may result in agents taking action against one another and/or the buyer
Transaction Agents: These agents do not owe a fiduciary duty to either the buyer or the seller and do not represent either side. Instead, they facilitate a transaction by providing the paperwork for one or both sides and managing the transaction in the most basic manner, with duties specified in the agreement
DualAgency: ”Dual Representation” occurs when Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with the same licensee. When the parties agree to dual representation, the ability of the licensee and the brokerage firm to represent either party fully and exclusively is limited. The confidentiality of all clients must be maintained. Prior to entering into a contract in which the buyer and seller are represented by Dual Agency, this relationship must be disclosed/confirmed in writing.
Designated Agent: Agent who is designated by the broker to represent either the buyer or the seller in a dual agency transaction. “Designated Representation” occurs when the Seller or Landlord has entered into a listing agreement with a licensee and the Buyer or Tenant has entered into a buyer brokerage agreement with a different licensee affiliated with the same firm. Each of the licensees, known as Designated Representatives, represents fully the interest of his/her individual clients. The Supervising Broker is a Dual Representative of both the Buyer and Seller, and must not disclose information obtained in confidence to other parties in the transaction.

Notes on Designation:

If the Seller or Landlord does not consent to Designated Representation, the property may not be shown by any licensees affiliated with the brokerage firm that have entered into a representation agreement with a prospective Buyer or Tenant.
If the Buyer does not consent to Designated Agency, the Buyer may not be shown any properties listed by other licensees affiliated with the brokerage firm. Prior to entering into a contract in which the buyer and seller are represented by Designated Representatives, the relationship of both Designated Agents must be disclosed/confirmed in writing.

Key Provisions

In addition to reviewing each section of the Agreement with your agent, you’ll want to discuss terms of the agreement. These are some of the points you might consider:

What are the terms of the buyer broker agreement?
Explain the contractual obligation for exclusive representation by the broker and designated agent
What is a ‘protection period’?
How and when is broker compensation paid?
What is additional broker compensation?
How do I determine if a seller is offering cooperative compensation?
What if cooperative compensation is not sufficient to cover the percentage outlined in the buyer agency agreement?
Discuss types of representation, the pros and cons of each type
Define the length (term) of your agreement
Discuss locations of interest. Agents do not necessarily hold licenses throughout the DCMA. Know where agents are licensed and determine if this meets your needs
Discuss fees like brokerage “admin” and “technology” fees. Ask your agent to explain these provisions and their implications for your transaction.

Attending Open Houses and Virtual Tours

Buyers are welcome to attend open houses. Hosting agents (who represent the seller) may provide basic information about the property but not give advice or perform work without an agency agreement
Virtual tours fall under the category of ‘showings’ and a written agency agreement is required

Touring Agreements

Some third-party listing aggregators are promoting ‘touring agreements’ in lieu of agency agreements. There is debate as to whether ornot this violates the intent of the NAR settlement provisions. Read our on touring homes.

Off-Market Listing Access

When you work with a Compass agent, you will be provided access to the Compass ‘Private Exclusive ‘ and ‘Coming Soon’ network. Your Compass Collections will automatically receive off-market listings in that network.

DC Sewer Lines And Homeowners

Susan Isaacs — Mon, 31 Aug 2026 00:28:52 GMT

DC Sewer Lines And Homeowners

We tend to ignore sewer lines until something goes dreadfully wrong. Because they’re buried underground and notoriously difficult to inspection prior to a property sale, this expensive component of Washington DC homes doesn’t get the attention it requires until damage is done.

Get An Inspection

When you become a DC home owner, it’s good practice to have your sewer lines inspected. As the homeowner, you’ll be able to provide a qualified plumber with the access needed to send a camera scope down the line to inspect for bellies, clogs and breaks.

Whose problem is it if issues are found? That depends on where the problem lies.

Where The Line Is Drawn

In the District of Columbia, DC WASA is responsible for sewer lines at/past the city connection, at the boundary of your property line. The District’s code states:

§ 9–203.05 Area between property line and building restriction line
Any area between the property line and the building restriction line shall be considered as private property set aside and treated as public space under the care and maintenance of the property owner.
The use of this area shall be controlled by the District of Columbia police regulations with respect to the use of public space and the projection of buildings beyond the building line. The District shall have a right-of-way through this area for sewers and water mains free of charge.
The Mayor may build sidewalks on this area if in the judgment of the Mayor the space between the street lines is not sufficient to permit the construction of sidewalks within the street lines.
Find your lot lines & setback
Determine whose break it is
Periodically scope your sewer lines

Where Are My DC Property Lines?

Property lines, restriction lines, easements… What if you’re not sure if the break is on their side or yours, or where your side begins and ends?

Determining the front property line location, including easements, is key. Start with the survey you may have received from the title company when you purchased your home, then use these resources to narrow it down:FRONT SETBACKS AND BUILD-TO LINES

Front setback and build-to regulations control the relationship of buildings to street lot lines and regulate the distance between a building and a front lot line. A lot may have more than one street lot line, and therefore more than one front setback.

When a zone has a front setback requirement, all buildings and structures located within it must be set back from the entire length of all street lot lines, except as specified in Subtitle B § 317.

Front setbacks are regulated by:

A single setback distance measurement cited for a zone and applicable to all buildings and structures in that zone;
A setback range cited for a zone, requiring all buildings and structures in the zone must be set back from a street lot line; or
An “existing range of blockfront cited for a zone; requiring all buildings and structures in that zone to be set back from the street lot line by at least as much as the existing building on the blockfront closest to the street, and no more than the existing building on the blockfront furthest from the street.

Now take into account these additional factors:

Rules Of Measurement

Proposed building façades or structures facing a street lot line must be located a distance:

No closer to the street than the point of the building façade closest to the street, based on all the buildings located along the blockface; and
No further back from the same street than the building façade furthest from the street, based on all the buildings located along the blockface; and
The building façade of an interior lot attached building must not be further forward or further back than the building façade of one of the immediately adjoining buildings.

A building façade is the façade of a building exclusive of the projections permitted through Subtitle B § 333.

If a lot has more than one street lot line, its owner may choose the street lot line that determines the application of any front setback requirement.

Front Build-To Lines

When a zone has a front build-to requirement, the front façade of all buildings and structures must directly abut the build-to line.

Front Setbacks and Build-to Lines – Subtitle B § 313
Front Setbacks – Subtitle B § 314
rules of Measurement for Front Setbacks for R Zones – Subtitle B § 315
Front Build-to Lines – Subtitle B § 316
Building Lines on Streets Less Than 90 Feet Wide. Subtitle § 6–401

When The Break Is On The DC Side

If you have a sewer line break on the city’s side, the solution is fairly simple. Call DC WASA and provide the exact location of the break, with the measured distance from your home. Once WASA confirms the break is their responsibility, they’ll repair or replace the problematic portion of the sewer line.

When You’re Unsure Where The Break Is

If you can’t determine the location of your property line, or aren’t sure where the break is, call a certified plumber in DC. They’ll use electronic meters and scoping equipment to find the break and document its location. If it’s on your side, they can use routing equipment to try to unclog the line, or give you an estimate for repair or replacement if the line is ruptured. If the break turns out to be on the city’s side, the plumber can notify WASA and give them the coordinates.

DC Real Estate Values

Susan Isaacs — Sun, 30 Aug 2026 22:21:46 GMT

DC Real Estate Market Values

In its larger scope, it’s about making smarter financial decisions and ensuring a seamless transaction in Washington, DC’s unique and competitive real estate market.

Calculating DC Real Estate Values

Data Sets

Determining Washington DC home values requires information from multiple datasets:

1. Market Data

Comparable Sales (’Comps’) are recent sales of similar homes in the area, adjusted for differences;
Current Listings & Pending Sales: This set includes active listings and listings under contract. This metric provides insight into current market demand;
Days on Market (DOM): Average time properties take to sell, indicating market conditions;
Price Trends: Median and average prices for a particular time frame;
Absorption Rate: The rate at which homes were sold;

2. Property-Specific Data

Home type (e.g., single family detached or attached, condo, co-op, condop, multifamily type (ex. legal basement rental vs ‘in-law suite);
Square Footage And Lot Size: Home size and lot size typically factor into values;
Home Features: Number of bedrooms, bathrooms, updates and renovations, energy efficiency, smart home features and home type-specific ‘must-haves’ (e.g., elevators, parking, in-unit washer/dryer, floor level and views for multifamily buildings);
Age & Condition: New construction, remodeled or renovated, and well-maintained homes are often valued higher;
Zoning & Land Use: Consider development potential and expansion potential and restrictions;

3. Location-Based Data

Neighborhood Comparisons: Pricing variations within micro-markets can vary even by which side of a street the property is sited on;
School District Ratings: Home values tend to be higher in highly-ranked school districts;
Proximity to Public Transportation: Proximity to Metro lines and bus stops is a key factor in DC real estate values. Residential neighborhoods with easy access to grocery stores, restaurants and ships are highly desirable;
Crime Rates & Safety Data: Affects desirability and pricing;

4. Economic & Financial Data

National Economic Trends: CPI, PCE, PPI, OER, GDP growth, jobs and consumer data impact overall demand;
Mortgage Interest Rates: Lower mortgage rates increase affordability, but put upward pressure on home prices over time if sustained demand is high;
Job Market & Income Levels: Higher incomes support higher property values. In the District of Columbia, employment tied to the federal government and city government is high, so economic conditions, both local and national, government hiring and layoffs, along with policy and other factors impact the Washington DC real estate market to a greater degree than is experienced in other areas of the country;

5. Regulatory & Tax Data

Property Taxes: Higher taxes and cost of property tax stamps can deter buyers and affect affordability.

Why Market Values Matter

When you’re purchasing one of, if not the most expensive assets in your lifetime, it’s good to know that the price you’re paying is justified. The same is true of selling that asset.

For Home Buyers

Knowing how a home is valued helps buyers determine if a listing price is based on fair market value. If a home seems overpriced, a firm grasp of market valuation principles can help buyers and agents negotiate a lower offer or request seller concessions.

Since lenders base mortgages on appraised value, understanding valuation can prevent appraisal issues once the home is under contract.

Valuation data can help buyers assess future appreciation and investment potential.

For Home Sellers

Home sellers are able to set a fair market listing price using valuation data. Overpricing leads to longer days on market and price reductions, while underpricing may leave money on the table. So understanding what the fair market value of a home is, saves sellers time and money.

Sellers can also use valuation data such as sold price to original list price ratio to determine how much leeway they might have in pricing their homes.

Sellers can also use valuation data to help determine which value-add updates to undertake before listing their homes.

Using The Right Data

Internet and LLM search results often conflate data for the Washington DC Metro Area (DCMA, or “Greater DC Area) with that of the District of Columbia, though they are two distinctly different markets. So be sure to differentiate between markets when evaluating data.

Common Data Sets Used In Real Estate

Inventory And Absorption Rates

Inventory and absorption rate (supply & demand) are important measures in determining DC real estate values. Current ‘Active’ inventory divided by sold properties (typically within 30 days), shows how many months it would take to clear all the current inventory from the market at that point in time. Generally, a healthy, balanced real estate market is considered to have an inventory and absorption rate of six months. A rate greater than six months indicates a buyer’s market, and a rate under four months is a seller’s market. To target specific trends, the same analysis can be conducted by price, home type and/or by neighborhood.

Listing Price Trends

Are listing prices in your DC neighborhood flat, decreasing or increasing? These numbers provide insight on pricing trends that can be beneficial in structuring your offer. Remember to drill sold data down to the specific micro-neighborhood in which the listing is located. Washington DC real estate values can vary within just a few blocks, even less. Use comparable sales and pricing trends within a 1 mile radius of the subject property, then narrow your research to the specific block you want to target for results.

Cooperative Compensation Changes

This represents a new wrinkle in determining the market value of a DC home.

Historically, the cost of brokerage compensation has been folded into real estate listing prices. To what degree it is realized comes down to a per property variable, but typically, at least some portion is baked into overall market value.

With the new system of eliminating offers of cooperative compensation from MLS comes less transparency, more concession activity and the need for a separate valuation history.

On Aug. 14 2024, Bright MLS removed offers of buyer broker compensation, but its record of concessions will remain. This record will become a marker for valuation, albeit an incomplete one. Offers of buyer broker compensation may still be made by sellers off-MLS. So there will be a blind spot where data used to be for a large number of DC real estate transactions.

It will be important to compare pricing trends on the new timeline against historical data.

Median And Average Data Sets

Median and Average values are another component used in determining DC real estate values. Median Sales Price is the half of all purchases falling below the target sales price, and the half above purchase price during a specified period of time. Median Sales Price is considered an indicator of market strength. Median Sales Price is considered a stronger indicator than Average Sales Price, which is the sum of all sales prices divided by the total number of sales. One low or high sale can skew this indicator, making less reliable.

Number Of Homes Sold

Compiled on a monthly basis, sold volume in any particular neighborhood in Washington DC provides a measure of demand. You can evaluate month-to-month trends, or look at a month, quarter or year relative to the same time period one year ago on our DC Market Data . This data adds perspective to your analysis, since certain months are often considered more or less active than others, and economic or other events affect the market.

Average Sold To List Price Ratio

The Average Sales Price to Listing Price Ratio in any particular neighborhood can help provide some understanding of your local real estate market. Unfortunately, listing prices are not a true measure of a home’s worth and some may be unrealistically high or low. Averages can be altered by just one sale, so this is not the most important factor in determining DC real estate values.

Price Per Square Foot

The price-per-square-foot metric can vary by neighborhood, street or condominium building. These values can also be affected by market conditions, time of year and location, among other factors. Building codes could affect this metric as they relate to livable square footage. Learn the values for your target property and if the data is supportive of your negotiating position, factor this in, though don’t over-emphasize it. All square footage is not equal, and ppsf is not a primary factor in pricing residential real estate in DC.

Additional Factors

Property value can be summed up as an equation of assessed value, appraised value and market variables (value and availability of the home and its features against others in the immediate neighborhood or similar neighborhoods and demand for the home), the property’s location within a neighborhood and general neighborhood desirability, along with list price, days on market, market conditions and time of year. Here are other key elements to determining DC real estate market value:

Relative Property Condition

This metric is the value of a home’s location, condition, features, finishes and other attributes relative to similar properties currently on the market at that particular time.

Relative Property Condition is one of the most difficult values to compute because it is somewhat subjective. We can all discern difference between a derelict property and one in average condition, but what about differentiating between two similar properties with different floor plans, fixtures and finishes? Buyers often do not have the knowledge, experience or objectivity to accurately assess the condition of competing properties as it relates to market value rather than their personal interests.

Relative property condition is a valid tool in structuring your negotiating strategy if you have physically inspected the competing listings and understand the value of their differences. Photos and old listing descriptions are not an accurate measure of this metric, nor is price per square foot. Buyers should seek expert advice when using this metric in formulating offers.

Listed Vs Sold Comps

The list price is the point from which the negotiation begins, but not all list prices are reasonably based on comparables and data.

While it may be tempting to adopt values from listed properties that have not yet sold (and thereby offer demonstrated value), this should be the least-employed value marker in determining a subject property’s price. List prices can begin anywhere, and are not necessarily based on real market value.

Weigh all metrics for Washington DC real estate values against your desire and that of others to secure the property. In the end, the old saying is true; “A property is worth what someone is willing and able to pay for it at any given point in time.”

Unique Attributes | Location

Does the property possess unique factors that make it more desirable than others in its location or of its home type? Special properties often sell well above comp value in the District.

That Thing Everyone Wants

For whatever reason, at any given time, there’s a home type, style or location trending in the DC real estate market that has buyers bidding fiercely against one another.

Sometimes a home just has all the right stuff to prompt target buyers to compete. And competition drives up the price of homes. Sometimes irrationally.

That’s why we encourage our sellers to define their target buyer and tailor their home’s presentation to that buyer’s needs. It translates to top dollar. When you’re pricing “hot homes,” allow for that ‘it factor” and don’t make the mistake of valuing other properties similarly if they don’t have “it.”

Doing The Math

Simple Mathematical Calculations For Real Estate Transactions

Metric

1. Absorption Rate (Market Demand Indicator)

This metric measures how quickly homes are selling. A high absorption rate points to a seller’s market, while a low rate indicates a buyer’s market.

2. Months Supply of Inventory (Supply vs. Demand Indicator)

This metric, also known as MSI, shows how long it would take to sell available inventory at the current sales rate. A low number means high demand and a high number indicates low demand. MSI is calculated by dividing the current month’s inventory by the average of pending sales over the previous 12 months. It can also be calculated using monthly closed sales, or combined with absorption rate analysis to show the sales rate if no new listings were added.

3. Orig List-to-Sold Price Ratio (Pricing Strategy Indicator)

This metric measures the difference between the sold price for homes in a particular location vs their original list price.

*This metric is fallible because original list price may have been aspirational

4. Home Price Appreciation Rate (Market Growth Indicator)

This metric measures how fast home prices are increasing or decreasing over time and helps predict future property value trends.

Calculation

1. Absorption Rate = (Homes Sold in the Last 30 Days

÷ Active Listings) × 100 =

Total:

Above 20% → Seller’s Market (rising home prices)

Below 15% → Buyer’s Market (potential negotiation)

2. Months of Inventory = (Active Listings

÷ Homes Sold Per Month) × 100 =

For District of Columbia:

Below 4 months → Seller’s market

4-5 months → Balanced market

6+ months → Buyer’s market (rare)

3. Orig List To Sold Price Ratio = (Final Sold Price

÷ Original List Price) × 100 =

Total:

98% or above → Competitive seller’s market

95-99% → Neutral market.

Below 95% → Buyer’s market (room for negotiation)

4. Appreciation Rate = (Current Home Price - Previous Home Price ÷ Previous Home Price) × 100 =

Total:

3-5% per year → Average growth

Above 5% → Strong market growth

Below 3% or negative → Declining market

Disclaimer: These posts are offered for informational purposes only and should not be construed as financial or legal advice, design or construction advice. Home buyers and sellers must always perform their won due diligence and seek counsel from licensed professionals such as CPAs and attorneys when making choices relating to a real estate transaction. We do not endorse individual service providers and citations should not be considered endorsements.

DC Recordation And Transfer Tax

Susan Isaacs — Sat, 29 Aug 2026 17:53:22 GMT

DC Recordation And Transfer Tax

Learn who pays which tax in a Washington DC real estate transaction, how much tax stamps cost, and reductions or exemptions for Washington DC home buyers and sellers.

What are Recordation & Transfer Taxes?

Tax Stamps In the District of Columbia

As part of the sale or transfer of property in Washington DC, the DC Office of Tax & Revenue and Recorder of Deeds impose taxes when transferring property and recording the deed.

Washington DC recordation and transfer tax fees are among the highest individual closing cost line items associated with your real estate transaction, and are among the highest rates in the country.

In most states, transfer taxes across jurisdictions are levied at less than 1% of property value. In some states, rates are adjusted for lower-priced homes, and for luxury homes, as they are in Washington DC.

How Much Is It?

District of Columbia taxes are based on the value of consideration given (purchase price) for the property. Where there is no consideration or where the consideration is nominal, the tax is imposed on the basis of the fair market value of the property. Your settlement agent will use Form FP 7/C to calculate the taxes, it is signed by buyer and seller, notarized at settlement and recorded by the recorder of deeds along with the deed and deed of trust.

District of Columbia Deed Recordation Tax

The 2026 rate is 1.1 % of consideration or fair market value for residential property transfers less than $400,000 and 1.45% of consideration or fair market value on the entire amount, if transfer is greater than $400,000.

Applies to all deeds to residential real estate. The tax is based on the value of consideration given for the property. Where there is no consideration or where the consideration is nominal, the tax is imposed on the basis of the fair market value of the property.

In Washington DC, Deed Transfer Tax

Based on the consideration paid for the transfer. Where there is no consideration or where the amount is nominal, transfer tax is the fair market value of the property being conveyed.

DC Commercial Recordation & Transfer Tax

Beginning on September 30 2023, the DC recordation and transfer tax rates for the sale of commercial/mixed-use properties was reduced to a combined rate of 2.9%, replacing the prior rate of 5.0%, or 2.50% per side, set in late 2019. This change reverts each rate to the pre-2019 levels of 1.45% per side.

Who Pays What?

The seller typically pays the transfer tax and recordation tax is the responsibility of the buyer, however this can be negotiated.

In the 2026 GCAAR sales contract, the arrangement described above is the default case “unless an alternate arrangement is agreed to by the parties as part of the written agreement.”

Cooperatives Economic Interest Deed recordation tax is divided between the transaction Parties.

New construction contract terms for recordation and transfer tax payment can vary by developer and project. Often, the developer will bind payment of the transfer tax to the buyer’s use of the developer’s title company and lender. It’s important to read contract provisions relating to DC recordation and transfer tax carefully before signing any contract.

First Time Buyers

To exercise the option for the First Time Homebuyer Recordation Tax Reduction, ensure that your GCAAR Sales Contract includes the provision as a selected option on the Jurisdictional Addendum form, 2, Section 2D.

Cooperatives

According to the GCAAR Sales Contract, Jurisdictional Addendum, 2, Section 2B; “Cooperatives; Economic Interest Deed Recordation Tax will be split equally between Buyer and Seller. There is no Transfer Tax for cooperatives.”

Fee Simple And Condos

Payment responsibility for DC recordation and transfer tax is outlined in the GCAAR Sales Contract Jurisdictional Addendum, 2, Section 2A, which states: “Real Property; Recordation Tax will be paid by Buyer and Transfer Tax will be paid by Seller.”

Reductions And Exemptions

DC First Time Home Buyer Reduction

Recordation tax reduction for first-time homebuyers in DC:

The District of Columbia offers a reduced Recordation Tax rate for qualifying first-time homebuyers.

For houses and condominium units, the recordation tax rate is 0.725%;
For transfers of economic interests in a housing cooperative unit, the recordation tax rate is reduced from 2.2% to 1.825% for units under $400,000, and from 2.9% to 2.175% for units $400,000 or greater.

Transfer tax paid by sellers is unaffected by this program.

Provisions

Residency: The program applies to those who are, or intend to immediately become, a DC resident and “first-time District homebuyer”. This is defined as the applicant never having owned a house, condominium unit, or economic interest in a cooperative unit that qualified for the District’s homestead deduction as the applicant’s principal place of residence.

Income: To be eligible, the buyer must have a qualifying income at or under the program’s 2024 limits. For instance, a single occupant household income can not exceed $189,900. A two-person household can not exceed $217,080., and a three person household can not exceed $244,260.

Purchase Price: The purchase price of the property or cooperative shares can not exceed $730,000.

Homestead Deduction: Only properties and purchasers qualifying for the DC Homestead Deduction will receive the tax reduction.

For additional information on eligibility, see OTR Tax Notice 2017-7.

How To Apply

An application for the reduced rate must be made at the time the deed is offered for recordation. The reduced rate cannot be applied for after the deed is recorded. Only one application form is required per deed. The applicant for the reduced tax rate must use the version of application Form ROD 11 available on the Recorder of Deeds website.

To claim the reduced recordation tax rate, applicants must: (1) complete the current version of the application form (Form ROD 11); and (2) submit documentary evidence.

Applications are subject to audit after the deed is recorded. If additional tax is due as a result of the audit, the grantee(s) of the deed will be responsible for payment of all tax, interest and penalties owed. A. Form ROD 11- Reduced Recordation Tax Rate for First-Time District Homebuyers.

Purchase Money Deeds

Code § 42-1102(5) exempts from the recordation tax: A purchase money mortgage or purchase money deed of trust that is recorded simultaneously with the deed conveying the real property for which the purchase money mortgage or purchase money deed of trust was obtained.

Reference

Code of the District of Columbia

Chapter 11. Recordation Tax on Deeds

§ 42–1101. Definitions.
§ 42–1102. Deeds exempt from tax.
§ 42–1102.01. Sales or assignments of instruments on secondary market exempt from tax.
§ 42–1102.02. Transfer of economic interest defined.
§ 42–1103. Imposition of tax; rate; return; contents; liability for tax; extension of period for filing, and waiver of, return.
§ 42–1104. Computation of tax where absence of or no consideration; when fair market value to be shown on return; consideration on deeds of trust or mortgages.
§ 42–1107. Burden on taxpayer to prove deed exempt from tax.
§ 42–1108.01. Enforcement.

Disclaimer

These posts are offered for informational purposes only and should not be construed as financial or legal advice, design or construction advice. Home buyers and sellers must always perform their won due diligence and seek counsel from licensed professionals such as CPAs and attorneys when making choices relating to a real estate transaction. We do not endorse individual service providers and citations should not be considered endorsements.