How to Make a Real Estate Offer in Washington D.C.

Home buyers flock to the District of Columbia for the great career options, the historical houses, and neighborhoods filled with chic restaurants. 

As such, Washington, D.C. real estate is a hot commodity, and sellers listing their homes for sale commonly deal with multiple offers from locals and newcomers alike. So if you want to purchase a home in D.C., you must woo sellers first with a great offer. 

But not knowing the ins and outs can lead you to lose out on a picture-perfect Federal-style single-family home in Georgetown. That is why the team at Prevu Real Estate put together a how-to guide for folks making offers on homes in Washington, D.C. 

Get pre-approved for a mortgage

When financing a home, you need to meet with a lender who will give you a clear idea of your budget. Sellers all but demand that a buyer is pre-approved, as it shows you are a qualified buyer that can make an offer. 

Make sure to meet with multiple mortgage providers, as some can offer more favorable terms on interest payments than others. 

By examining your W-2s, any debt you have, your list of assets, and checking your credit score, the lender can determine the loan you qualify for. Once you have a pre-approval letter, you can start searching for homes knowing a lender backs your bid. 

Research the market

Researching and understanding the nuances of the D.C. market is crucial when crafting an offer.

You want to know when is the best time to make an offer on D.C. homes so you can secure a deal in your home purchase. That means you have to look at recent sales data, seasonal buying trends, and comparable sales of homes in your desired area. 

But when it comes down to placing offers and negotiating, you want a local real estate agent at your side. A buyer’s agent acts as your liaison, interfacing with a seller’s listing agent. Your buyer’s agent can educate you on the homebuying process and highlight important questions to ask about the property's condition at open houses and point out other issues impacting the sale. 

Plus, buyer’s agents have access to comparable market analysis tools and can access historical data to help you determine a fair offer for a home. 

Obtain a property disclosure form 

When you buy a home in Washington, D.C., sellers must provide you with a form disclosing all the known issues with a property. These issues range from radon seepage in the foundation to an older HVAC system. 

But you do not want to rely solely on a seller's property disclosure, ask your agent if they can connect you to a licensed home inspector to look for hidden problems. 

But you have to act fast, as sellers typically ask that the inspection is done within seven days or less. You do not need to be present for the examination, as most home inspectors will do a video tour with you so that you can see the home from their perspective. 

Prepare your offer and purchase agreement 

After you find your dream home in Capitol Hill, your agent will help prepare your offer. 

By reviewing the necessary terms and conditions, like the purchase price and the closing date, your agent will ensure you are ready and aware of any circumstances affecting the sale. 

You want your offer and purchase agreement to include details about what parties hold deposits or any earnest money involved in the deal. Normally, the funds must be held in an escrow account.

Ensure you are satisfied with the contract and review all contingencies before submitting your offer to the seller. 

Review contingencies 

As you get ready to submit the offer, consider how hot the market is and what contingencies you want to include. The usual ones revolve around home inspections, financing, and home appraisal; these act as a safety net in case issues arise. 

If an inspector discovers any issues during the due diligence process, you may be able to negotiate with the seller to ask for repair credits. 

In a competitive market, some buyers will waive contingencies around home inspections and trust the property disclosure. Sellers love this as it speeds up the transaction, but it hampers you in negotiations as you take the house as is. 

An appraisal contingency protects you if the bank appraiser returns with a home value lower than the property's sale price. Conversely, a financing contingency lets you back out of the deal with your earnest money deposit if you can't obtain a mortgage for whatever reason. 

Prepare for negotiations 

Part of the reason you want an agent helping you is the offer-making and negotiation process. Emotions run high as you and the seller try to find a middle ground for a deal. 

A buyer's agent can act on your behalf at this point, using their knowledge and experience selling real estate in Washington, D.C., to get you a great deal on a home. For instance, if you get a home inspection on a property and find an issue with leaky pipes, you can potentially negotiate with the seller for credit to make repairs. 

That way, you can find a plumber you trust to fix up your new home. Of course, the seller may send back a counteroffer, in which case your agent can help you discern whether it is in your best interests. 

Do due diligence on the title 

As negotiations are happening, you will want to get a title search on the property. The last thing you want to discover is a lien against the property after you bought it. Once you buy the home, you are responsible for the lien.

If the property has a yard, you should get a survey to see any hidden easements or encroachments on the land. While there are no contingencies for surveys, buyers should do this to give themselves peace of mind. 

Closing the deal

As you get ready to close, you will review and sign several documents from the title company and lender. 

These include the deed, disclosure statements, and mortgage notes. You will want to know the property taxes and assessment history, so you will not be surprised by large bills. 

But once the closing costs are covered, and you do your final walkthrough, you will get the keys to your new home in Washington, D.C.

Homes for sale in Washington, DC

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