Great career opportunities, appreciating home values, and a cosmopolitan environment make Washington DC a great choice for homebuyers. With 20.6% of listings facing price cuts and 11.9% more homes for sale in Washington DC, it’s the best time to buy a house.
With Houzeo, Washington DC’s best home buying website, managing your home search is simple. You can look through the latest listings, save your favorites, schedule showings, and submit offers, all at your fingertips.
👉 Download the Houzeo mobile app to simplify your Washington DC home search.
At a Glance:
- Get a mortgage pre-approval and set your budget to make competitive offers in Washington DC’s hot housing market.
- Assess long-term livability, schools, and amenities based on past market trends to pick the right neighborhood for you.
- Consider seasonal risks like floods, winter storms, blizzards, and wildfires.
- Conduct a home inspection to look for termite damage, pest infestation, storm-related issues, and other possible defects.
- Account for additional expenses like HOA dues, flood insurance, property taxes in Washington DC, and closing costs in Washington DC.
7 Steps for Buying a Home in Washington DC 🏦
Buying a home in Washington DC doesn’t have to be complicated. Whether you’re just starting your search or are already browsing homes for sale in Anacostia or any other area in the Capital of the World, these 7 simple steps will help you move forward with confidence:
Step 1: Decide Your Homebuying Purpose
Whether you’re looking for a getaway or seeking an investment, knowing why you’re buying real estate in Washington DC is essential. It sets your expectations and helps you make smarter choices. Here’s what you should keep in mind:
- Primary Residence vs. Investment: If you’re buying a home, choose areas that fit your lifestyle, whether it’s an affluent neighborhood or a suburb. For investment, consider homes for sale in Adams Morgan, which is a very popular area among students.
- Short-Term or Long-Term: If you plan to live in the house for only a few years, focus on neighborhoods with strong resale value and upward market trends. You can check out homes for sale in Georgetown, where the housing market continues to grow.
- Space Requirements: If you’re looking for larger lots or big backyards, consider areas like Capitol Hill and Dupont Circle. But if you prefer something easier to manage, condos in places like the Logan Circle can be a smart option.
Calculate the cost of living in Washington DC to get a detailed breakdown of expenses like housing, utilities, transportation, and more. 🏡
Step 2: Explore Financing Options
Before making a purchase, it’s important to understand the financing options available to you so you can make an informed decision. Here’s what you need to do:
1. Prepare Financially
- Check Your Credit Score: Lenders will check your credit score to determine if you’re eligible for a loan. Aim for a score of 500+ for an FHA loan and 620+ for a conventional loan.
- Calculate Your Debt-to-Income (DTI) Ratio: Lenders often use your DTI ratio to assess how much home you can afford. Keep your DTI below 36%, especially if you’re buying in pricier areas such as Georgetown and Kalorama Heights.
- Set Your Budget: Ensure your budget includes property taxes, homeowners’ insurance, and potential flood or storm insurance. This is important, especially in waterfront areas such as Anacostia and Potomac.
👉 Use a Washington DC mortgage calculator to estimate how much property you can afford in the Capital of the World.
2. Explore Loans and Assistance Programs
Down payments in Washington DC usually range between 10% and 20%, but often vary based on the financing option you choose. You can also look for suitable Down Payment Assistance Programs (DPAs) to help you cover part or all of your down payment.
| Program | Description |
| FHA Loans | Require just 3.5% down and are ideal if you’re a first time home buyer in Washington DC. |
| VA & USDA Loans | Offer 0% down with lower interest rates. Perfect for veterans or those purchasing homes in rural areas. |
| Home Purchase Assistance Program (HPAP) | The program offers a deferred, zero-interest loan up to $202,000 for down payment and closing cost assistance. The program is designed for low- to moderate-income first-time homebuyers. |
| Employer-Assisted Housing Program (EAHP) | The program offers an interest-free loan up to $20,000 for down payment and closing costs assistance to eligible DC first-time homebuyers. Additionally, it also offers matching grants up to $5,000. |
| Negotiated Employee Affordable Home Purchase Program (NEAHP) | The NEAHP is a grant that offers $3,000–$26,500 in down payment and closing cost assistance to eligible D.C. employees. The grant can be forgiven after 10 years and can be combined with other programs. |
Step 3: Get Pre-Approved for a Mortgage
The Washington DC housing market is competitive, so get a mortgage pre-approval to show sellers you’re a serious buyer. In fact, 86% of sellers prefer buyers who are pre-approved. It also helps you negotiate better and reduces delays in the transaction.
Shop around to find the best Washington DC mortgage lenders—compare their programs, rates, and terms. Once you’ve narrowed down your options, get pre-approved by submitting documents like proof of income, credit history, bank statements, and your ID.
Step 4: Dive Into the Washington DC Market
Whether you’re looking at houses for sale in Petworth or anywhere else in the Capital of the World, here’s how to buy smart:
- Online Listings: If you’re wondering how to buy a house, starting with online listings is a good first step. Use platforms like Houzeo to search homes for sale by price, zip code, and more. You can also filter for must-haves like a backyard, waterfront view, etc.
- FSBO (For Sale By Owner) Homes: Explore FSBO listings, as they often offer more flexibility in price negotiations. This is because sellers aren’t paying 5% to 6% in agent fees.
Brookland is the nicest and cheapest area to buy a house in Washington DC. The number of homes for sale in Brookland is on the rise, thanks to its safe neighborhoods and diverse job opportunities.
Step 5: Make a Competitive Offer
In Washington DC’s competitive housing market, homes tend to sell fast. Make sure you focus on real estate comps for a more accurate picture. Here’s a checklist to help you craft a strong offer:
- Seller’s Name and Address: Don’t forget the basics—include the seller’s legal name and property address.
- Price and Terms: Offer a price based on Fair Market Value (FMV) and comparable sales. In high-demand areas like Dupont Circle and Georgetown, you might need to offer above the asking price to stand out.
- Down Payment: In Washington DC, down payments usually range from 3% to 20%. In competitive markets like Spring Valley and Kalorama Heights, a larger down payment can strengthen your offer.
- Earnest Money: Boost your earnest money deposit to show you’re serious, especially in hotspots like Capitol Hill and Georgetown, where homes can go fast.
- Contingencies: Include protections like home inspection, insurance, and storm and flood safety. These can safeguard you from damage caused by extreme weather events or structural problems common in homes.
- Concessions: Request the seller to cover some closing costs. In Washington DC, it’s common to negotiate repairs after the inspection, such as roof issues, HVAC problems, or plumbing leaks.
- Deadline for Seller’s Response: Set a 24–72 hour deadline to encourage a prompt reply. This helps prevent delays and keeps you on track for Washington DC’s average 44-day closing timeline.
- Closing Costs: Expect closing costs around 2% to 5% of the home’s price, including title insurance, property taxes, and lender fees.
Step 6: Conduct Inspections and Appraisals
A standard home inspection in Washington DC should cover:
- Exterior: Examine doors, trim, windows, and siding for any damage or wear. Additionally, check the drainage systems, such as gutters, and proper grading to ensure everything works smoothly.
- Plumbing: Check for leaks, corrosion, and water pressure issues, especially in Washington DC homes built before the 1980s. These houses may have outdated pipes that are prone to damage from freezing temperatures during the winter season.
- HVAC System: Make sure the heating and cooling systems are properly checked and can handle Washington DC’s cold winters and hot and humid summers. It is essential for year-round comfort.
- Electrical System: Verify everything is up to code and can withstand storm-related power surges, especially during snowstorms, blizzards, and floods, which are common in this area.
- Roof and Attic Condition: Carefully assess for damage or age-related wear. It’s crucial in this thunderstorm and heavy snow-prone area. Check if the attic has adequate insulation, proper ventilation, and if there are any signs of water damage or leaks.
- Termite or Pest Infestation: Termites, stink bugs, bed bugs, and rodent infestations are common in Washington DC. So it’s important to inspect for them early and address any major pest control needs during final negotiations with the seller.
- Hidden Problems: Careful inspection of mold growth, faulty electrical wiring, and foundation issues is crucial before buying a house. It’s impossible to see behind walls or under floors, but an inspector can spot signs of prior damage like foundation movement.
- Foundation and Structure: Look for cracks, moisture, or settlement issues, particularly in flood-prone or sandy-soil areas.
Additionally, due to a high risk of thunderstorms, a wind mitigation inspection is recommended before buying a house in Washington DC. Also, if you have a condo over 30 years old and higher than two stories, get a Milestone Inspection for structural safety.
Once the inspection is complete, your lender will order a home appraisal to confirm the property’s market value. This step ensures the loan amount aligns with what the home is actually worth. It can impact final loan approval, especially if the appraisal comes in low.
Step 7: Close on Your Washington DC Home
Almost there! Closing usually takes 30–45 days, from signing the contract to getting the keys in your hand. Here’s what you can expect:
- Final Walkthrough: Make sure all repairs have been completed, and the home is in the agreed-upon condition.
- Buyer Closing Costs: Expect to pay 2%–5% of the home price. This includes title fees and lender charges, plus prepaid taxes or insurance.
Once you sign on the dotted line and transfer funds to the escrow account—congratulations, you’re officially a homeowner. Grab those keys and cue your happy dance! 🎉
What Should You Do After Closing?
Welcome home! Now it’s time to handle a few must-dos to protect your investment:
- File for Homestead Exemption: If it’s your primary residence, apply for Washington DC’s Homestead exemption for property tax. You can get up to a $89,850 reduction in the taxable value of your property—especially valuable in high-tax areas like Kent.
- Set Up Utilities: Get water, electric, internet, and trash service connected through the DCPSC and OPC. And don’t forget pest control, due to its natural landscape, rodents, cockroaches, bed bugs, and termites are a persistent issue here.
- Get Insurance: Homeowners insurance is required if you’re financing. Flood and storm insurance may also be needed in FEMA-designated high-risk zones. Insurance rates are higher in the high-risk areas such as Potomac and Anacostia.
- Home Maintenance Plan: Schedule AC tune-ups at least twice a year, clear gutters regularly, and inspect roofs for storm damage or algae buildup. Consider wind mitigation upgrades to reduce insurance costs.
How to Buy a House in Washington DC Without a Realtor?
Start by researching neighborhoods and browsing listings on trusted sites like Houzeo. Then, schedule showings directly with sellers or their agents. You can also hire a real estate attorney to review contracts and handle legal details.
Next, get pre-approved for a mortgage, make an offer, schedule inspections, and negotiate repairs. With the necessary due diligence, you can buy a house without a Realtor.
Should You Buy a House in Washington DC?
Absolutely! Washington DC offers incredible opportunities for homeowners, whether you’re buying for investment, residence, or vacation. Moreover, with more homes being sold below the list price, now’s the best time to buy a house in Washington DC.
Whether you’re drawn to the Golden Triangle’s growing job market or Woodley Park’s natural landscape, Washington DC has it all. There’s a spot to match every lifestyle and budget. So if you’re on the hunt, check out our list of the best places to live in Washington DC!
