Buying Your Home

Buying a home—whether it’s your first, a fixer-upper, or your forever home—is an exciting milestone. But it can also be time-consuming, stressful, and overwhelming.

Having a great realtor by your side makes all the difference. From setting a realistic budget to navigating the market and negotiating offers, an experienced agent can guide you through every step and help make the process as smooth and successful as possible.

First Time Buyers

Considering the Washington, DC housing market, right now might be the best of all times to buy your first home. Property prices are somewhat lower than they’ve been, and mortgage rates continue to dwell near historic lows. The key is to do your homework, move carefully, and get the best representation possible.

Beginning the Buying Process

First, make sure buying is for you. If rents in your desired neighborhood are relatively inexpensive and homes are costly, it might be a better bet to simply rent. If you may be changing jobs, or don’t feel that you’ll be staying in your current location, then again, perhaps consider renting. In our area, you’re most likely to find that rent is on the high side; so buying might make sense for you.

Before you start the home-buying process, make sure you are ready to buy a home where you will live for three to five years or longer. Most likely it will take that long to build equity in a home and recoup your investment costs. Feel free to imagine your dream home and your dream neighborhood, but recognize that you may need to sift through these dreams to find a community and a home that you can comfortably afford.

Making an Offer

Once you’ve decided to make an offer, almost all real estate professionals advise that home inspection is a must. A qualified home inspection is key to understanding the true condition of a property. You may also gain valuable information for negotiating with the buyer, as well.

A good realtor certainly can help with the process. All buyers should have a realtor to represent your interests during negotiations and to help you recognize the value in different homes and neighborhoods. Be sure your realtor is experienced and knowledgeable and familiar with where you want to live. The goal is to find that place of your own that provides not only a great place to live, but also solid returns on your investment.

Financing Your Home

Before you start shopping for a home, check your credit score and understand the importance of having cash for a down payment and closing costs. Getting pre-approved by a lender can speed up the buying process, which often takes several weeks. While a 20% down payment is standard to build equity and lower monthly payments, government-backed loans like FHA and VA options may require as little as 0–3.5% down, though they can add costs like private mortgage insurance.

Beyond the mortgage, be prepared for other expenses like insurance, maintenance, and property taxes. The good news: mortgage interest is often tax-deductible, helping offset some of the costs of homeownership.

Buying a Fixer Upper

Buying an old house, which needs some work, can be a challenging but rewarding way to add some “instant equity” to your home purchase. Whether you are buying a home and hoping to get more house for your money, or hoping to make a profit as an investor, the right fixer-upper can be just the property for you.

Before You Begin

There are several obvious things you should consider before buying a fixer upper: cost of the needed repairs, potential market value of the renovated home, anticipated use (whether home or investment), and the required time for the fix-up effort. Buying fixer-uppers can get you more house than you would normally be able to afford at a reasonable price. They can be pleasantly inexpensive. But they can also be money pits, once you get past the charming wood floors and “good bones.”

Surviving the Fixer Upper Process

First, get a qualified home inspection. Only an impartial professional can let you know the true condition of the property.

Next, decide that you can handle living in a house under construction. You will have areas of the house that don’t function, tools everywhere, and lots of dust. Perhaps you can consider living elsewhere while you do the work. Or live in one part of the house while working on another part.

Finally, decide what work you want to do. Instead of asking what issues to avoid, decide which issues to accept. Anything else that a good inspector finds is either something to hire out, or a reason to reject the sale.

Naming Your Price

Once you’ve decided to make an offer, almost all real estate professionals advise that home inspection is a must. A qualified home inspection is key to understanding the true condition of a property. You may also gain valuable information for negotiating with the buyer, as well.

A good realtor certainly can help with the process. All buyers should have a realtor to represent your interests during negotiations and to help you recognize the value in different homes and neighborhoods. Be sure your realtor is experienced and knowledgeable and familiar with where you want to live. The goal is to find that place of your own that provides not only a great place to live, but also solid returns on your investment.

Your Dream Home

While it’s fun to dream and fantasize, when the time comes to really get down to a successful search for that perfect home, it’s more important than ever to follow a common sense plan.

Making a List

Before you do anything, sit down and create a list of all your wants and needs. Include everything that comes to mind. Prioritize your list, because unless you have unlimited financial resources, you will probably have to make some compromises.

Next, establish a price range. Figure out how much you have available each month for your housing expenses. For most of us who will require a mortgage, talk to your bank or lender to see what you might qualify for. When considering a mortgage, get pre-approved before you start looking for homes.

Pre-qualification by a lender isn’t enough to put in an offer. It’s a pre-approval that will win the day with sellers.

House Hunting

Now that you’ve made your wish list, become pre-approved for a mortgage, established a comfortable price range, found a good realtor and studied the real-estate market, it’s time to start looking at homes. Ask your realtor to provide you with a list of homes that match your needs, price range and are within your favorite areas. Drive by these homes or have your realtor arrange appointments for a private showing. Having your agent along is always a good idea. They’re trained to notice issues and solutions which might otherwise break the deal.

In the end, patience is a virtue. In today’s market, just about everything listed is selling very fast. Ask your realtor to put you on notification program to send you listings as soon as they hit the market. Eventually, you will find your dream home.

Secure Professional Representation

Everyone recommends finding an expert to work with. You may even want to consider an entire team of skilled individuals who can you help you work through your own process. The good news is, as a buyer, you do need to compensate a realtor for their services. The seller pays them, so it makes sense to get the most expert assistance available.

Even when you’re working with professional representation, you need to learn the market in your area. Start with a list of homes or condos that have sold recently within you price range. A skilled real estate agent can guide you to alternatives that you might not have thought possible, such as a different location or different type of property.