How to Buy a House in Washington, D.C.

If you’ve decided to call the nation’s capital your new home, you’ll probably have many questions about how to buy a house here.

There’s a wealth of neighborhoods to choose from, various home styles to consider, and plenty of transactional steps that can make a seasoned homebuyer’s head spin.

It may be a lot to take in at first, but buying a house in the District of Columbia is much easier with careful planning. You may be ready to tackle the basics, such as saving for a down payment and preparing to secure a mortgage, but there are nuanced steps you may overlook.

Below, the team from Prevu breaks down the most important steps when buying a house in DC, from narrowing down home choices to finding ways to save money.

Buying a House in Washington, D.C.

• Choose a location
• Get a mortgage pre-approval
• Hire a buyer’s agent
• Use commission rebates to save when you buy 
• Do your due diligence
• The final stretch

Choose a location

To determine where you should buy your dream home in D.C., consider making a list of priorities.

Some buyers need a short commute, while others require a patch of green space outside their door. Therefore, your first step should be highlighting your needs and exploring DC. You may not want to rush this part, as choosing the right neighborhood isn’t only about everyday conveniences. 

With its mix of Beaux-Arts and historic buildings, rowhouses, and embassies along 16th Street NW, Columbia Heights brings a mix of creatives, professionals and, thanks to its leafy parks, bikers and picnickers. It’s one of DC’s most densely populated neighborhoods with a swath of diverse restaurants and bars. 

Or, if you want to be close to the water, spend some time in Georgetown and enjoy some of its electric nightlife. 

Home prices also vary greatly depending on the neighborhood, and you want to make sure you’re satisfied with your financial commitment as much as you are with what your chosen locale will offer.

Get a mortgage pre-approval

Sellers in DC may not even consider offers that don’t come with a mortgage pre-approval.

A pre-approval letter shows sellers that you’re a serious buyer who is financially capable of buying a home. It can also help speed up the homebuying process, as there is no need to take time mid-offer to search for mortgage loan options. 

As you explore DC’s neighborhoods and homes, start putting together your bank and financial statements, W-2s, and pay stubs. Organizing all your paperwork can make the loan application process much smoother. 

Don’t forget to explore multiple options when you shop for a mortgage. It can seem daunting at first, but hunting for the best interest rate will make a massive difference in your monthly payments. It can also pay to improve your credit score as much as possible, which can also help you get a favorable rate.

Hire a buyer’s agent

Having a buyer’s agent by your side can give you invaluable insight into every step of the DC home buying process. They can help you choose the right neighborhood, and they can help you craft a convincing offer, and some can even save you money when you buy. 

Interview multiple real estate agents before deciding on working with one. Many first-time buyers choose to work with the first agent they interview, but it’s crucial to consider various options. 

Each brokerage works differently; some follow a traditional approach, while others heavily invest in online tools. Regardless of which style of service you prefer, there are specific things you should look out for.

Ask about an agent’s local knowledge and how many deals they’ve recently closed. An ideal agent should know every corner of DC and your price range. Plus, you’ll want to find out how they communicate with you, and how often, to ensure it is a good fit from the start.

You should also ask if they offer a commission rebate, a vital tool to saving you thousands of dollars when you buy a home in DC.

Use commission rebates to save when you buy

Affordability is always challenging in a housing market as famous as Washington, D.C.

Home buyers have to contend with high mortgage rates, steep home prices, and expensive closing costs, so finding ways to save has become paramount to making homeownership a reality.

Online brokerages like Prevu leverage modern real estate technology to unlock these potential savings for buyers via a commission rebate. Currently, Prevu offers the largest rebate in Washington, D.C., allowing buyers to receive a buyer rebate of up to 1% of the home purchase price. 

The process of securing one is transparent from start to finish. First, your dedicated Prevu agent can help you browse homes for sale in Washington, D.C., each listing showing your estimated buyer rebate. Then, once you close on the home, the savings are passed on to you.

Commission rebates are so effective because they not only replenish your hard-earned savings but can actively increase your purchasing power. 

For example, making an offer on a home in the District knowing you will receive a sizable check at closing can give you confidence going into negotiations. A rebate can also be an excellent way to offset hefty closing costs or help you furnish your new home when you move in. 

Do your due diligence

If there is ever a time to pay attention to every detail, it’s when you’re getting ready to buy a house. 

Doing due diligence is a crucial part of the homebuying transaction. This is where it counts to leverage your agent’s knowledge as well as their contacts. Your buyer agent should be able to recommend trusted professionals to perform necessary inspections, such as a general inspection or roof and sewer system inspection.

Though they are not legally required in the District of Columbia, home inspections are a buyer’s safety net to ensure there are no hidden surprises after moving in. We recommend scheduling inspections for all the major home areas, such as the foundation, roof, plumbing, and HVAC. 

These parts of the home can cost a fortune to repair and replace, so be as diligent as possible when working with an inspector. Your agent can also help you pay attention to specific areas within the home to avoid things like mold, pipe leaks, and outdated appliances.

The final stretch

Once the inspection checks out, you’ll enter the final stretch of your DC home buying journey.

If you secure a mortgage pre-approval, your lender will send a professional to appraise the property and make sure it justifies the price. If the lender is satisfied with the appraisal, they will release the funds, allowing you to move toward closing.

You’ll want to do a final walkthrough with your agent as well. This will be the last opportunity to ensure no damage occurred between the home inspection and your walkthrough. If the seller agreed to any fixes or renovations, this would be the moment to double-check that everything was done correctly.

After the walkthrough, you’ll likely schedule a time to sign the closing paperwork. There may be some confusing forms to look over, so be sure to ask your agent any questions you may have throughout the process. 

Interested in buying a home in Washington DC? Browse listings and see how much you can save with Prevu’s commission rebate.

Houses for sale in Washington, DC