How to Buy A Condo in Washington, D.C.

When it comes to finding a place in Washington, D.C. buying a unit in a condominium complex is one of the best options for living it up in the District. Sure, you have to pay monthly or annual fees, but there are perks and benefits to owning a condo.

From gleaming high-rise units to storied single-family homes in historic buildings, there are many styles to choose from. Condos are a hassle-free solution for folks who want a turnkey property where they do not have to manage the upkeep of the building. These are great for people working at Capitol Hill or those who are relocating to Washington, D.C. who want to be in the city's core near happening neighborhoods like Dupont Circle and Adams Morgan. 

Yet buyers who do not know about closing costs or the monthly fees associated with purchasing a condo can lose out on a good deal. To give buyers a roadmap, we've assembled a guide for purchasing a condo in Washington, D.C.

Buying a condo in Washington, D.C.

• What is a condo in D.C.? 
• Pre-approval letters stand out
• Agents help in your offer process
• Offer accepted 
• Last steps of the mortgage process 
• Title work and insurance 
• The final mile to closing

What is a condo in D.C.? 

First up, you should understand what defines a condominium, more commonly referred to as a condo. When you buy a condo, you have ownership of your individual unit. The units can range from a simple open floor plan loft, to an entire floor with a private balcony and entrance. 

But you and the other residents in the larger building have joint ownership of shared common areas, including parking garages, lobbies, and amenities like swimming pools or fitness facilities. 

The daily upkeep of the building is managed by a property management company, which is hired by the Condo Ownership Association (COA). This governing board is comprised of residents in the building, who make decisions on what amenities the building has, what repairs should be done, and who gets to move into the condo. To cover the cost of management and upkeep, condominium owners split the responsibilities of this service through monthly, quarterly, or yearly condo fees. 

Once you understand what goes into a condo, you can decide where to search and what amenities you need.  

Pre-approval letters stand out

Once you are ready to buy a condominium, you should get pre-approved for a mortgage. 

Speak to a few lenders and compare their interest rates. Once you find a good one, they will comb through your W-2s, list of assets and other financial information to figure out how much of a loan you can afford. 

A mortgage pre-approval helps provide you with a clear picture of your budget, so this helps to narrow down your search, giving you a solid number to deal with. Furthermore, a pre-approval letter can streamline the closing process by giving you and your lender an early head start on the necessary documentation and requirements.

With a lender ready to finance your home purchase, it is time to get expert representation. 

Agents help in your offer process 

When a condo unit in a historic rowhouse near K street hits the market, you must submit your best offer to secure the deal. 

Buyer’s agents assist with property viewings, negotiate with sellers, process condo documents, and guide you through the buying process. They have firsthand knowledge of average prices in popular neighborhoods where you can find newer buildings near the waterfront and those nestled near Georgetown University. 

Plus, they can spot red flags like pointing out how a condo with low reserve funds may enact a special assessment down the line to raise funding. 

The agent should be able to guide and educate you through this process, helping you prepare for closing and dealing with a condo’s financial review board. They can also help prepare you for dealing with the board interview, where you are vetted to ensure you are a good fit with the rest of the condo community.

Offer accepted

Once a seller formally accepts your offer, it’s time to focus on the next steps of property due diligence and the mortgage underwriting process.

First, you will need a home inspection to ensure that the condo and building are in good condition and that there are no major issues. Your agent can connect you to a home inspector if you do not have one ready. 

As this happens, you should review the covenants, conditions, and restrictions, otherwise known as the CC&Rs, of the condo building. These let you know the rules of the building, what kind of renovations you can make, and so on. 

Once everything checks out, you will sign a purchase agreement and closing documents, and the sale will be finalized.

Last steps of the mortgage process 

While your inspector is checking out the unit, you should let your lender know you are under contract. 

You will provide them with the purchase agreement so the lender can complete the underwriting process. Part of this includes a property appraisal to determine the value of the condo. While the lender will order an appraisal, you may want one of your own just to make sure the property is valued at the price you are paying. 

If everything clears, the lender sends over the final loan documents for signature and you can start closing the deal. 

Title report and insurance 

Getting a title report is the next step as you go through the mortgage underwriting process. 

The seller chooses the company used for this, and an officer from the company searches titles on the unit, building, and land to produce a clean deed. You will also need title insurance to protect yourself if an issue with the title arises down the line. 

Make sure to keep an eye out for liens, too. If there are any liens out against the property, you will assume them when you purchase the condo. The last thing you want when you make an offer on a unit is to find out the owner owes money to contractors or other debtors. 

The final mile to closing

Once the title insurance is in, buyers need a "clear to close" from their lender. 

At the onset of negotiations, buyers and sellers agree to a closing date. Once you deliver the clear to close to the seller, you will start final checks. The escrow company handles the financials in the closing process, so buyers and sellers do not have to meet. 

Buyers then do their final checks of the unit, ensuring there are no issues before getting the keys to their new Washington, D.C., condo. 

Condos for sale in Washington DC

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