Buying a Home in Washington DC

“My real estate agent didn’t tell me that!” I have heard this no less than a couple dozen times. When people find out I sell real estate, they share their stories no matter where they live and where they bought property. Of course, some things may depend on what the local process is in your area as it does differ in different states. 

If you’re new here, I’m Melissa Terzis, DC Real Estate Mama, and I’m a Realtor in metro Washington DC to include Maryland and Virginia. I talk everything about moving to, living in and buying homes in DC. If you hit like and subscribe it helps the channel grow. Let’s dive in.

The Entire Buying Process – Step by Step

I spent a decade sitting on a committee that hears grievances against Real Estate Agents and then determines a course of action if a violation is found. I saw a lot of crap. But a few cases stuck out over the years. One case was a young couple who bought their first home. I can’t even go through everything that happened to them. Their complaint was against the listing agent who was also the owner of the home.

But what came out was that their agent – the buyer’s agent – was terrible, and they didn’t even see it. They thought it was normal for them to get a combo code and tour a house by themselves. They thought it was normal to that the home inspection happened without them being present and they used who their agent recommended. They thought it was normal that they were given the combo code to walk through the house on their own prior to closing. They didn’t know what to even check for – which is how they closed on a home that had no heat – in the middle of a deep winter freeze.

If your agent doesn’t sit down and explain the buying process for you, if your agent doesn’t hold your hand through each step of the buying process as you navigate it, if your agent isn’t on your side and in the trenches with you, something’s wrong. If all they do is take down what you’re looking for and set up an MLS search – run.

We Can’t Talk About Crime – Unless You Know What Questions to Ask

Have you ever asked a Real Estate Agent if a neighborhood is safe, and they clam up and awkwardly stammer, “We’re not allowed to discuss crime.”  It is true – Real Estate Agents are expressly forbidden from telling you a neighborhood is safe, or from telling you that a neighborhood is going to hell. We have to direct you to verified sources like police crime stats or other sites. Most agents handle this all wrong though when someone asks if a neighborhood is “safe.” There’s no need to for agents to be completely stupid here. There are ways to help the buyer through this. But many get scared and they don’t.

So, you are going to have to research the crime yourself.

You can find crime stats for various jurisdictions. But they don’t always tell the whole story. In a neighborhood that most people would consider safe, almost all crime is reported. Stolen package? Someone ran over your planter box? Speeding through your community? You’re going to hear about it. If a car were to be broken into, you can bet multiple people will call the police.

This flies in stark contrast to what happens in the “less safe” neighborhoods. People may not report every car break-in or mugging. It may feel like “life as usual” to them, or they may be afraid of retaliation.

Crimes happen where are three things present: means, motive and opportunity. You cannot prevent someone from having means and motive. But you can observe for opportunities. Deep dive into neighborhoods. Ask questions. Walk around at night and on weekends. See how it feels. 

If that isn’t enough and you want to know the real truth? Ask me if I let my kids run around my neighborhood in DC. (I do.) Then ask me if I would let them run around in “this” neighborhood. I’m allowed to tell you that. Ask me if I walk my dog late at night in my neighborhood. Ask me if I would do that in “this” neighborhood. You see where I’m going with this? And of course, if your agent isn’t me, you need to ask this question in person and watch their face. You’ll see it.

You Can Always Negotiate

Another case I heard when I was on the infamous committee was filed by the seller of a home against his agent. He felt that his agent didn’t try hard enough to get the most money for his home. After reading through case documents for this case I thought it sounded like he was just bummed he didn’t get multiple offers. But then something interesting happened during the hearing.

He described the process of deciding on a listing price for the home, and then how he learned a neighbor was interested in the home. The neighbor submitted an offer. He didn’t think his agent fought hard enough for him to get more money. I said, “Why didn’t you just counter?” He said, “What?” I said, “I’m confused why you just accepted what was offered and didn’t counter.” He said, “I didn’t know that was an option.” He started to tear up.

For whatever reason, his agent was not clear with him that this was not a take-it-or-leave-it offer. He could have countered it. If you don’t know, ask. But negotiations aren’t over until they are over.

Some States Handle the Legalities Differently

I wanted to buy a house once in New Jersey. I learned that Jersey is an “attorney state.” This means your agent helps you find the home. Once you want to proceed to an offer, you have to engage an attorney. Each side has their own. Here in DC, Maryland and Virginia, that’s not the case. We select an attorney to handle the closing. They operate as a neutral third party representing the contract, interpretating language when there’s a question, running title and conducting the closing. Which leads me to my next item.

NEVER Let the Seller or Either Brokerage Hold the Earnest Money Deposit

With your contract, you will be required to post a deposit. There were times where one of the brokerages would hold that deposit. Never agree to this. While there are laws that govern escrow accounts (where your money will be held,) you want this money held by the title company, in THEIR escrow account. Because as stated above, they are the neutral third party.

I own properties in multiple states. Every contract has treated the deposit differently. In Florida, your deposit is forfeited after a certain period. It’s not that black and white here in the DC Area. Making sure the deposit is held by a neutral third party is critical.

Don’t Fixate on School Scores

There are a few things to know. First, it’s very international here, and if English isn’t the first language, the standardized tests that translate to test scores and then to school scores are tough to navigate. Second, people say they want their kid in the “#1” school but the 1-10 schools are all basically #1. And sometimes #2 is actually better. I always say this about the draw to Whitman High School in Bethesda. People will outbid their mother on a home just to get their kid in Whitman. But Whitman has not fared as well the past few years compared to the other Bethesda High Schools when it comes to college acceptances. Keep that in mind.

You May Not Be Able to Get Homeowner’s Insurance

You probably have no idea what I’m talking about if you’re one of those like me who would just call an insurance company and secure a policy. Homeowner’s insurance companies nowadays will do anything possible to not pay out a claim. I recently encountered a situation where the sellers of a home my clients were buying had filed FIVE SEPARATE INSURANCE CLAIMS IN FOUR YEARS OF HOMEOWNERSHIP. For stupid crap too.

Your homeowner’s insurance Company shouldn’t be on speed dial. They are not an ATM machine. They are there in the event you really need them, not when there’s a $1000 defect in the venting of your HVAC. I’ve seen some people and some homes just not able to obtain insurance because any claim you file goes on your permanent record! This isn’t a good place to be to find yourself uninsurable. One day you may need them. But trust me, until then, they don’t want to hear from you.