• Recent stories by Daniela Deane • Real Estate section • Real Estate Live transcripts • Home and Garden section • Live Online transcripts • Subscribe to washingtonpost.com e-mail newsletters • mywashingtonpost. com -- customized news, traffic, weather and more

Welcome to Real Estate Live, an online discussion of the Washington area housing market, featuring Post real estate writer Daniela Deane.

In her live online discussions with the audience, Deane discusses the specifics of the market, from condos and investment properties to contracts and mortgages.

Deane has covered Real Estate for The Washington Post since 1999 and has worked as a reporter for more than 20 years.

The transcript follows.

Editor's Note: washingtonpost.com moderators retain editorial control over Live Online discussions and choose the most relevant questions for guests and hosts; guests and hosts can decline to answer questions.

Daniela Deane: Hello everyone...Welcome to Real Estate Live on this glorious Washington day...Not a bad place to live, huh? Especially if you already own your house...As always, please jump in with your comments and experiences (i know you will)...Without further delay, I'll get started!

Wheaton, Md.: Thanks for the chat. This may actually be a question for Carolyn Hax! And I know we will consult a real estate agent, but I wanted to get your view first. My fiance and I each have a home. They are in the same general area, similar size, etc., but one is on relatively flat land and the other on a steep hill. Quite a hike up the drive way and front steps, and the back yard is also on a steep slope. Do most people find a slope less desirable, and thus the flat land house is likely to appreciate more? Are there up-keep benefits or difficulties with steep slopes? Do you think it best that couples each sell their "single" home and buy one together?

Daniela Deane: Hi there, Wheaton...I do think that most buyers would prefer a flat lot with a backyard that is more usable than not. So, basically, I feel that that house would be easier to sell, now and in the long-term...Since your fiance owns one, why not tell me what the benefits and difficulties are with steep slopes? ... I have a steep front yard covered with ivy and for some reason I just can't get the ivy dense enough to kill all the weeds that come up...I do like my position overlooking the street though from on high...But it's also flat in the back. Anyone who's read me knows that I basically believe in keeping real estate, if at all possible. Could you keep one of the houses and rent it out and then use the sale of the other one for the downpayment of your together house? Just something to consider...

Washingont, dc: I would like to follow the real estate market in DC and northern Virginia. Is there a good newspaper or magazine that is dedicated to following trends in this area?

Thanks

Daniela Deane: You're kidding, right?..How about this newspaper for a start?? What do you think I'm doing here? Playing?

Silver Spring, Md.: I have to move out of my apartment the end of May. I've already started looking for another place, but the prices are crazy for a one bedroom. Is it possible to find a one bedroom on 16th Street or downtown Bethesda not over $950? I need help!

Thanks!

Daniela Deane: Rents have gone down and there's a lot more for renters to look at these days....Keep looking, although $950 is cheap for a one-bedroom in those parts...Don't give up, though. Landlords want you in these times..Shoot, I'd even have you..

Alexandria, Va.: Daniela,
You've mentioned that you've bought a few properties in this hot market, and I was wondering if you've run into any unethical real estate agents or sellers yet? This market really seems to be bringing out the worst in people. A couple of times, I've lost bidding wars to people who we later found out were represented by the listing agent (big suprise they had the winning contract), complete with shenanigans like sliding in the winning contract after bids were supposed to be in. Also, I've called about a couple of houses I've seen on the Internet, to be told by two different agents in D.C. on two different properties, that although the house was under contract, if I wanted to use the listing agent as my agent, they could probably make the current contracts go away(!) (I'm assuming through the contingencies). I am astonished when I run up against this kind of behavior, have you had any experience with this?

Daniela Deane: I haven't, but I think agents are generally on their very best behavior around me...Heck,I'll take it...Thanks for sharing. It's despicable, isn't it?

Silver Sping,MD: Isn't Silver Spring great?

Great article in today's post about the grand reopening of the Historic Silver Theatre in Silver Spring, MD. The Silver is one part of a huge redevelopment of silver spring that is steaming along at full speed. S.S. is becoming next Arlington / Bethesda yet still affordable (some SFH less than 300K). Check it out!!

Daniela Deane: It's not quite Bethesda, let's face it..But yes, Silver Spring is still affordable (sort of) and yes, there's a lot going on there.

Derwood, MD: Fortune magazine recently ran an article about the (alleged) impact of dramatically increasing tax assessments and increased tax rates on the real estate market. When house values go up, tax assessments on those houses go up too.

Fortune says that, in many cases, the increased taxes are equivalent to another point or two on a mortgage, which means buyers can't afford to buy houses at the increased property tax rates.

Any thoughts on this? My tax assessment went up ~40% this year (yes, I did appeal it).

Daniela Deane: It depends on how much they've gone up, hasn't it? .. But yes, homeowners are getting squeezed by jurisdictions looking to get a piece of this mighty appreciation we've had. With interest rates dropping though, buyers can afford more house than they did when rates were just a percentage point higher. It's a trade-off, isn't it? I've decided life is just one big trade-off...

washDC: Hi there,

Love the chats!

I bought a condo in December and locked in a 6% interest rate for my mortgage. At the time, I thought that was a great deal, but rates are now even lower! I know it sounds crazy, but should I refinance already to take advantage of the new lower rates?

Daniela Deane: Thanks for the compliment...I presume that rate you got (which is darn good, please don't lose sight of that) is for a 30-year fixed mortgage? .. If so and you're willing to go for an adjustable-rate, then yes, it might be worth it to re-finance. If you want to stay with a 30-year, then, no, probably not. 30-year fixed rates average 5.79 last week, down from 5.91 percent. You'd only save at the most a quarter of a percentage point, which to me, doesn't seem worth it, considering the costs involved. We're all getting so hyped about these rates, trying desperately to get the best rate we can. (me too, don't worry.) But I think we need to keep in mind that 6 percent historically is incredibly low...and they will go up when the economy picks up, the war is resolved, etc. Be happy!

Washington, D.C.: How much should you tip movers?

Daniela Deane: Depends on how good a job they do, I guess...When I moved here 6 years ago, my movers didn't pack 3 flower pots I had well and they broke. And I had given them a decent tip, I thought ($75 for two..is that good? i'm not sure). I was pretty ticked off when I found my broken ceramic pots. What do others think about this? Anyone have any advice here?

Tax Assessments - So What!: My tax assessment in South Arlington went up about 35% this year after a similar increase last year, but no complaints from me. Why?

Because my assessment also means the value of my condo has increased significantly. My taxes in Arlington are paying for good schools, a great library, wonderful parks and recreations facilities and programs, work on revitalizing my neighborhood (Columbia Pike), responsive city services, etc. etc. etc. My community is one of the things that makes my home valuable and therefore I am happy to pay the taxes.

Daniela Deane: Assessments are a hot topic these days...You're a good citizen, sir...or ma'am...

alex & ria: The unethical things that some real estate agents do won't go away, until people make it clear that they won't stand for it and report them. So please do.

Daniela Deane: Good advice. You're right.

Daniela Deane: More on that...start out with the local realtor's association and ask them where to file a complaint...

Gaithersburg, Md.: Hi, I am looking to buy a two bedroom two bath condo in Logan Circle for about $400,000. Will you let me and the rest of us stuck in Gaithersburg know when you think the prices will go down in D.C.? I really hope your answer will not be never.

Daniela Deane: In my opinion, but boy could I be wrong, I don't think prices will go down across the board here at all...All the experts (whoever they are) are predicting that appreciation will slow and follow its historical pattern, that is along the rate of inflation or a bit more. And I'm going to post right now some people who are saying that prices are still rising...that's what agents are telling me to. Look for my story next Saturday the 12th on the state of this year's spring market.

Chevy Chase, md: Bought in 1970 for 30,000 under contract for 900,000. can't beat that on wall street

Daniela Deane: Amazing, huh. Good for you. No wonder I'm always telling people to buy. I had a Fannie Mae economist do a study for me...3 people with $10,000 to invest in 1980...One invested in an S & P fund, another in a Nasdaq index fund and the other in a house they planned to live in. Fast forward to end of 2002. Also because of the tax breaks you get selling a primary residence, the real estate investor came out way ahead...Food for thought....

Cranberry, PA: Gotta tell you Daniela,

We are getting ready to transfer back to the DC area. We left several years ago after being there for about 10 years.

We've researched the market and decided to rent and not to buy. We don't want to get stuck with an overpriced house with a 30 mile commute. We love the area, but because of our diminished dollar value in housing, we plan to rent, only stay a little while, and save our money to live more comfortably in a place where the housing market isn't so inflated.

We hope we're making a good decision.

Daniela Deane: Okay, that's one way to do it...But a lot of us need and want to stay here...

Washington, DC: Hello, my husband and I will be putting our
home on the market in 3 weeks. How will the war impact the sale? We will be asking a reasonable price in the $350,000 range. Thanks.

Daniela Deane: What agents have told me is that when war was declared, the market went quiet basically for just that upcoming weekend. But then picked up. The war doesn't seem to be having any measurable effect on the market here, at least so far...Houses priced at what you're talking about are selling well...Be sure it shows nicely..De-clutter, paint, be sure the landscaping looks as good as possible. And the best of luck! You don't say where your house is, but I'm betting that at that price, you're not going to have too much trouble selling...

Reston,VA: It seems the market is really hot in parts of Fairfax. We found the hard way this weekend by making an offer at 10k more than full price and ended up NOT getting it (someone made an offer 20k above asking). Now we recently moved from California where we are very used to these kinds of bidding wars but didnt quite expect this here (the area is near west ox rd, fairfax). Inventory seems low as well. Should we be expect that as summer rolls along prices to go up as well..
thanks
gary

Daniela Deane: Here's a market snapshot...Properties still fetching more than their asking price...Agents tell me prices are still going up, which is what you've seen too...When rates rise, then the market will start cooling. Historically low interest rates are keeping the real estate market active. Simple as that.

Midwest: Daniela,
I feel your pain about rotten movers. My last three experiences were so terrible that I will just move with friends from now on. One of my movers was stoned the last time. On another occasion I had a mover who did not wash his hands after using my new bathroom. Not good--so unprofessional. I only tipped because I was afraid of them--after all they know where I live.

Daniela Deane: Hmm...that is scary....

Arlington, VA: We're closing on our house next week, and locked in our mortage a couple of weeks ago at 6% (30 year, non-conforming, jumbo) with a float-down. How do I tell if mortage rates have gone down? An response you just gave said that they had. Should I call our broker to see if our rate should be going down?

Thanks!!!

Daniela Deane: Sure, you should...Always check...You've paid for the float-down, so heck, what's it there for??

Fairfax Station VA: What is the usual and customary commission on home sales in N. VA? I know all companies say "it's negotiable" so they don't run into cost-fixing charges, but I seem to recall that in 1998, Long and Foster raised the "usual" to 7 percent, when others stuck at 6 percent.

What's the normal percentage now for a full service broker (not one of those help-u-sell types).

Thanks

Daniela Deane: Long and Foster tried to go to 7 percent in 1999, I believe (but maybe 98), but it didn't fly...So they're back at 6 percent, like all the others...That's the normal commission...Now who thinks that's a lot of cash???

Las Vegas, Nev.: Dear Daniela,

Where is a good place for out of towners to look for a condo in the District? We are interested in McLean Gardens, though hear the walls are really thin and it gets noisy. Any ideas of condos over 1,300 square feet for under $350K? Is that realistic? Here in Vegas that would be a mansion, but I hear thing are different back there.

Thanks,
Soon-to-be-a-district-resident

Daniela Deane: Can I get a mansion in Vegas, please, like Celine Dion?? Depending on the neighborhood, $350,000 for a 1,300 square foot or higher condo is there or low...I just paid $318,500 for a sweet top-floor 1,000 foot condo on U Street...Did I really do that? .. Man, I'm starting to believe my own press, which is really really scary...Actually, it's next door to the one I already own and could make a fabulous big double condo some day...Did you read my story on putting condos together recently, which has become a trend. Problems is there aren't that many spacious condos around....That's why people are putting them together...

Re: Assessments: Our assessment (the Hill) went up about 30% too. That's on top of a significant jump last year. Still, the assessment is about $120,000 BELOW what we paid for the house.

Should we let sleeping dogs lie? I don't like having the assessment go up that much, but at the same time, I'm worried that on appeal they could really stick it to me.
Thanks.

Daniela Deane: Probably...That's a very good point about all these horrible assessments everyone is complaining about (including me) ....Who wants to sell their property for what it's assessed for?? Anybody out there? ... I doubt it...

Bethesda, Md: I saw a sign near the construction site that they sold the last unit in the still-under-construction Edgemoor apartment building in Bethesda. Did someone actually pay more than $2 million bucks for a condo in the suburbs? Yikes.

Daniela Deane: Yep...Scary, huh? Heck, my condo is looking better and better...Keep up the stories!

DC: Would you say Bowie Maryland is the hottest market in this area right now due to affordable prices and it being outside the beltway?

Daniela Deane: No. But it is hot.

washington, dc: Hi! Love your columns!

If a house has been on the market for several months, how much under asking price should you offer for it? What if the asking price is $1 million plus? Thanks!

Daniela Deane: Plenty...All depends on the motivation of the seller, of course..Some people want to sell; others are in no hurry too. What does your agent advice for their hefty commission??? Want to pay it to me instead?

Moving in New York, NY: $75 tip for 2? Are you kidding? That seems awfully cheap. When I moved three years ago, I gave them each $80. I suppose it depends on how many flights of stairs and how many hours the total move was...I'm moving again next month and think it will take 6 hours. One flight down, two flights up. Figured I'll give them each about $75. Am I wrong? Please, please let me know before it's too late!

Daniela Deane: This was in Italy, not New York, okay??..It's cheaper there..And it was 6 years ago. And they broke a bunch of stuff. So, you know what? I'm not apologizing. So there.

DC, Capitol Hill: On real estate taxes going up - investors in residential real estate are feeling the pinch here. Yes, our properties have appreciated, but for me they are long-term investments so I won't see any supposed profits for decades, and suddenly I'm paying DC about $10,000 more per year in tax. I'm certainly not getting $10,000 more in city services. I end up getting penalized in this business way more than if, say, I had opened a hardware store or other service. Where's my $10,000 more in services?

Daniela Deane: I hear you. I'm in the same boat...But what to do?? What's that saying about accepting the things you can't change?...

Alexandria, VA: Daniela,
In this competitive market, what are your thoughts on waiving the home inspection clause in the offer in order to have the cleanest contract possible? Particularly for older homes. Is it just insane or is it possibly worth the risk if you love the place?

Daniela Deane: Sometimes it's the only way to get a property. ... Get a home inspection but don't make it a contingency...is there time for that, though? It's not advisable, but for the past few years, in some cases it's been the only way to get a property. it's risky, though, especially with an older home...sigh. Anybody have a good or bad experience with waiving home inspections on a home? I did it on the condos, but condos have a lot less that can go wrong with them...I may live to regret it nevertheless.

RE: Realtors/commissions: I think 6% is a lot to pay for nothing! In my
experience, realtors get in the way of
buyers and sellers having a civilized
transaction. That's why I'm going to try
FSBO and pass the 6% saving to the
buyer. I'll pay an agent only for MLS
(which has allowed realtors to corner the
market). Wish me luck!

Daniela Deane: Thanks for your opinion and good luck on going the FSBO route...It's not always easy...Anyone else?

Capital Hill, D.C.: With the interest rates so low, I am thinking of buying a summer home. I've been told that Colonial Beach, VA has nice cozy bungalow's for under 100K, on the Potomic river and is 1.5hrs from D.C. But, do you know of any other places that are still cheap, close to D.C. and do not require me to wait in 2hr traffic to cross the Bay Bridge?

Daniela Deane: Okay, I don't want to reward you for posting this question twice (so why am I, pray tell?)...Annapolis? ... I'm not an expert...Anyone else out there with ideas?

Vienna: Hi,

I am thinking of cashing out my home equity, moving to a less expensive area where I could buy a house for the equity in my current house, and then persue a less demanding career. It seems that (in Vienna) at least, reports of a bubble bursting are premature. Recently, in my neighborhood, a small rambler sold for 390K+, and there does not seem to be many houses for sale right now.

Is my guess about the quality of the sellers market accurate? (I know it is not like 2000 or 2001, but it seems to be better than anything in the mid 90's).

Daniela Deane: Congratulations on having the courage to pursue a less demanding career...I'm impressed. What you're seeing is what I'm hearing....

Washington DC: I will be moving from NY to DC in 2 months and expect to rent initially. What kind of rent concessions do you think I can expect to get from the newer apartment buildings located in the Penn Quarter area? One month free for a year lease?

Daniela Deane: Try for as much as you can..Some are even going for two month's free rent...They want you. Soon, we're going to have soooo many rentals downtown, it's unimaginable...

Washington, D.C.: Just read your article from Friday about the D.C. rental glut convincing some developers to convert planned apartments under construction to condo developments. At the end of your article you posed the most important question for a current owner of a downtown condo. Will these additions of condos to the market mean a glut of condos for sale in the District?

You quoted someone from a real estate research firm who really dodged your question. My question for you is, what are you hearing from your sources on this possibility? And did your editor Mary Ann edit out the answers to the question so we could read them in a subsequent column? (Smart thinking Mary Ann!)

Thanks for this timely piece.

Daniela Deane: Gosh, I wish I knew...I'm in the same boat...And no, Maryann never omits important things trying to get people to read other stories..Space is a big consideration with newspapers. Maryann is a wonderful editor, of course! (and most probably reading too...) Lick, lick, lick....Barf, barf, barf.

alexandria: I'm looking to buy my first house in August when my current lease expires. Right now I'm just watching the sales, going to the occasional open house to get a sense of the market. When should I contact a realtor and start earnestly looking for the exact house?

Daniela Deane: when you're ready to buy, i would think....

Washington, DC: I have 250K for a house in DC. What neighborhoods have those prices? Thanks.

Daniela Deane: The eastern part of the city is basically cheaper than the western part, as in Northwest, where I can safely say pretty much forget it, unless you want a real wreck..and even then....What can I say without getting in trouble?

Re: Sooo many rentals?: Then, in the way these things happen, they will be converted to condos for empty-nesters...

Daniela Deane: Many will be converted to condos, as in my story in the Biz section last Friday...But whether empty-nesters with huge amounts of stuff want to live in apartments that started out as rentals, I don't know...Is that you? And do you want to? How much space does an empty-nester need? All the ones I've talked to say 2,000 square feet at the least..Not many of these conversions will be that large...

Summer Homes: Annapolis is probably a little pricey for a summer home but Calvert County, Maryland has some nice bay beaches and waterfront property can still be had for under $300,000.

Daniela Deane: Thanks...I knew you guys would know..And yes of course, Annapolis is pricey...I forgot that part of it completely. Heck, I am not perfect!

tipping movers: I gave each of my movers (3 of them) $20--for a total of $60. They seemed pretty psyched. I moved from a 1 bedroom to a 1 bedroom about 2 miles away. It took all of 2 hours. I think that $75 a piece sounds high, but I guess it depends on how long it takes, etc. If I had a big house I would probably have tipped more.

Daniela Deane: More on tipping...I moved from an apartment in Rome, not a house, and I paid $75 for two..SORRY...MEA CULPA...

Washington, DC: Hi Daniela -
Thanks for all the great information you give us folks trying to buy in this housing market... Question for you: in this market, have you heard much about properties not appraising at the list price? It seems to me that with bidding wars and realtors pushing the "price envelope" this could be happening more frequently.

Daniela Deane: Haven't heard that a lot no...The truth is once you have a buyer willing to pay a certain price, that makes everyone sit up and take notice...

NW DC: OK, here's a market snapshot: We've put four contracts in on houses in NW DC since November. Three of them involved us escalating at least $50K above asking prices, and, obviously, we got none of them (we were the runners up on two of them). One of those three had 22 offers and went $150K above asking price. How insane is that? Doesn't seem like appreciation rates are slowing at all around here -- in fact, seems like they're escalating.

Daniela Deane: Oh dear...So, the bubble hasn't burst, huh??

Washington, DC: Traditional Condo Vs Condo Loft. All other thing being the same, which holds resale value better?

Daniela Deane: Lofts are hot now and everything has become a loft now...Very few are true lofts, though. It's just a buzzword developers have glommed on to...so be careful with that description...But buy what you want and like, I beg you...

Silver Spring, MD: I have elderly parents and I am concerned about their estate should somthing happen to them. The whole probate thing sounds really messy.

Can you go over how a revocable living trust works and why I should suggest it (if I should) to my parents as a method to keep their assets safe?

Daniela Deane: I don't know enough to advise you...So many people are dealing with elderly parents now, including myself. What I can tell you though is that there's a whole new class of lawyer out there dealing with just these issues..they know all about estate issues, tax considerations, medicare/medicaid things, etc. etc., basically everything to do with the elderly...i went to one when my mother had to move to an assisted living place and she was very helpful, although expensive, as lawyers are...go armed with every question you have so that you can get the most out of one...

Woodbridge, Va.: Is the real estate bubble ever going to bust? What's the outlook for realestate in a future? Thanks.

Daniela Deane: Local experts here (whoever they are) say that prices will continue to go up here, although at a lower rate of appreciation than what we've seen...Nationally, some markets have seen declines. Remember, real estate is a long-term hold. The longer you hold it, the more you will make...

Daniela Deane: Gotta go now folks and put my tail between my legs on the miserly $75 I gave those two renegade Italians...Okay, you've made me feel cheap...They could have had a fabulous dinner on that, though!!! See you in two weeks, same time, same place...Y'all come back now, hear?

Alexandria, VA: Didn't realize how cheap I was. I think I gave the movers about $40 for all three of them. Or it might have even been $30. And they did a good job.

How come no one tips me?

Daniela Deane: One more on tipping...COULD NOT RESIST...

   |      |