6 Mistakes to Avoid as a Homebuyer in Washington, D.C.

When you venture into the D.C. home market as an aspiring buyer, you will find a selection of home styles to fall in love with, enticing neighborhoods, and plenty of U.S. history to remind you how unique Washington D.C. is.

But a nuanced home buying process can be tricky to navigate, and it’s common to make easily avoidable mistakes, whether you’re an experienced or first-time homebuyer.

Below, the team from Prevu Real Estate has compiled the most crucial mistakes you can avoid when purchasing a home in Washington, D.C.

Foregoing a mortgage pre-approval

Sellers want to know you are financially able to purchase a home, and pre-approval is one of the best ways to provide that assurance. 

Mortgage pre-approvals show sellers that you can handle the home purchase and immediately make your offer stand out. They can also make it safer to waive the finance contingency, potentially strengthening your offer.

Your budget will also be more precise once a lender pre-approves your loan. Then, you can start searching based on the approved amount and eliminate any neighborhoods or areas that will push you past your price range.

Take the time to boost your credit scores and arrange financial documents so you can apply quickly and secure a favorable interest rate. The better rate you get, the more manageable your mortgage payment will be. 

Working without a buyer’s agent

Unless you are a seasoned buyer with extensive real estate knowledge, the latter stages of homebuying can get tricky. 

You’ll have to craft an offer, determine if the listing price is fair, and organize all the paperwork. Then you’ll have to negotiate to secure the best deal.

 It’s a good idea to have a buyer’s agent take that responsibility off your shoulders.

 It pays to interview multiple real estate agents in the DC area before settling on the right one. The ideal agent will not only have numerous deals under their belt but extensive experience working in the U.S. Capital. In addition, they’ll be able to access MLS service to examine price history, advise you on the right neighborhood for your needs, and help you craft an offer.

They will also be your best chance to save money when buying a DC home.   

Not asking for a commission rebate

The biggest mistake you can make is not utilizing commission rebates to boost purchasing power and help you save.

Commission rebates are modern real estate tools that DC buyers use to achieve affordability in an expensive market. Essentially, rebates are a portion of your buyer agent’s commission fee returned to you after closing.

Prevu’s investment in salaried agents and an empowering digital buying platform help unlock these savings for buyers without sacrificing expert service. Buyers working with a Prevu agent can receive up to 1% of a home’s final purchase price via the Smart Buyer Rebate. 

So if you buy that condo you wanted in Dupont Circle for $1,600,000, you can receive up to $16,000 back after closing.

You can use that money to offset closing costs or help replenish your savings.

Choosing too quickly 

Choosing the right neighborhood can ensure you’re satisfied with day-to-day life post-purchase instead of dealing with buyer’s remorse. 

If you’re already working with a buyer’s agent, give them an idea of your lifestyle and travel habits. This will help them narrow down neighborhoods that offer the best commute and are close to restaurants with your favorite cuisine.

If you’re in the early stages, go out and explore as much as you can. Visit Georgetown and its waterfront nightlife haunts, explore Capitol Hill and its views of the U.S. Capitol, and peruse historic Victorians in Logan Circle.

You’ll want to be comfortable living in your eventual neighborhood for years, not just a few days, so choose carefully. 

Ignoring property alerts

Most buyers will probably start unsubscribing from these within days, but a strategic property alert can be the key to securing your dream home in DC.

It helps to work with a brokerage that offers online tools so you can curate the alert to the tee. For example, Prevu’s digital platform lets you input exact search criteria, from the number of bathrooms to specific amenities and neighborhoods. 

You get alerted when a property that matches that specific search hits the market. Acting quickly on a new listing might get you in front of the seller first, which can be the difference maker in your homebuying journey.  

Skipping due diligence

Many buyers are exhausted by the time they have to do due diligence, which is understandable after a prolonged search.

By then, you’ll probably have signed papers, researched neighborhoods, and negotiated with the seller. But, as tired as you may be, don’t skimp on due diligence.

Hiring a professional home inspector and ensuring that every major system in the home is in working condition is paramount before committing to the purchase. The last thing you want is to hand over a sizable down payment, commit to a mortgage, and then discover the HVAC and plumbing need replacing. 

Proper due diligence is your safety net against a mountain of unforeseen expenses. 

Homes for sale in Washington, D.C.

Interested in buying a home in the Washington DC area? Browse listings and see how much you can save with Prevu’s Smart Buyer Rebate.