Are you relocating to the Washington DC area? If so, this guide is for you!
A few years ago, buyers moving to DC expected the same competitive market they left behind. However, while the national real estate market has cooled over the past 18 months, the DC area has shown a unique response based on various price points.
Current Market Overview
In the sub-$700,000 market—often targeted by first- and second-time homebuyers—sales have softened. A year ago, many homes would have sold within a weekend, often receiving multiple offers. In contrast, the market for homes priced above $1 million remains competitive, though the number of offers has decreased. Where there were once ten offers, now there might be three.
Every potential buyer who reaches out says, “You’re straightforward, and that’s what we need.” So, let’s get real about the current market landscape. Here are five essential things you need to know before moving to the DC area:
1. Consultation is Key
Schedule a consultation with me. I’ll listen to your preferences and provide tailored advice. As we view homes together, my recommendations may evolve based on what resonates with you. Knowing the local areas, schools, and investment returns is crucial, making this consultation invaluable. If you contact another agent and they don’t offer you this comprehensive guidance, you may not be in the best hands. Remember, I’m here to find you the right home, not just any house.
2. Heed My Advice
Trust my expertise. I highlight potential issues in properties because I genuinely want to protect your investment. Recently, while showing homes, a teenager asked, “Isn’t she supposed to be selling us a house? She keeps pointing out the problems.” My role is to ensure you don’t end up with a property that could lead to costly repairs down the line. Transaction fees and transfer taxes make it hard to recover from poor purchasing decisions, so it’s best to walk away from structural issues.
3. Understand Your Competition
Knowledge of your competition is vital. In the DC area, one in five buyers is using cash, making the competition stiff. Many ex-pats return to the U.S. with substantial savings ready to invest. Moreover, don’t underestimate younger buyers; many millennials are financially equipped and can be formidable competitors.
4. Prepare for the Unusual
The DC area has its unique competitive behaviors. For example, “pre-inspections” have become a trend where buyers conduct inspections before making an offer to waive contingencies later. It’s common to see multiple inspections happening simultaneously on desirable homes. Additionally, offers using conventional financing may be favored over VA loans, even if they are lower, due to perceived reliability.
5. Rate Homes on a Scale of 1-10
When visiting homes, I often ask clients to rate each one from 1 to 10, excluding price from their considerations. If a home scores an eight or higher, we should seriously discuss making an offer. The perfect home is rare in this competitive market, so be prepared to make some compromises.
I understand if you’re skeptical about my perspective. However, I firmly believe that now is a good time to buy, even with interest rates nearing 8%. I recently purchased a home for myself with the intention of refinancing when rates drop. Yes, it may be a challenging period, but real estate often rewards those who take calculated risks.
Next spring, you could find yourself in line for yet another open house, or you could be enjoying your new home while watching others wait in line for a property across the street. The choice is yours.
Related Topic:
Starwood European Real Estate Faces 50% Loan Impairment on Irish Office Portfolio
UK Home Sales Surge Nearly 30% Amid High Inventory and Market Uncertainty
UK Property Prices Rise Less Than Anticipated Ahead of Upcoming Budget
