Dos and Don'ts Of Buying A Home in NoVA: Local Realtor Shares Mistakes To Avoid

NORTHERN VIRGINIA — Are you looking to upgrade to a bigger home or considering buying your first home in Northern Virginia?

According to real estate experts, more homes will be hitting the Northern Virginia market this spring than at the same time in 2022. There were more active listings of homes available for sale in January — an increase of 41.5 percent — compared to January 2022, according to the Northern Virginia Association of Realtors.

This suggests buyers may have more housing choices, but historically low inventory of homes is expected to continue to be an issue this year, even with more homes expected on the market.

Unfortunately for homebuyers, when it comes to home prices, there doesn’t appear to be much relief in sight. According to the National Association of Realtors, about nine out of 10 metro markets in the U.S. registered home price gains in the fourth quarter of 2022 despite mortgage rates eclipsing 7 percent.

READ ALSO: NoVA Homes Getting Multiple Offers In 2023 With Mortgage Rate Retreat

Northern Virginia followed this trend to start 2023, as the median sold price continued to grow. The January median sold price rose 6 percent from January 2022, topping $610,000.

Even with a slight uptick in the inventory of homes for sale, homebuyers in the region often have to make quick decisions on what could be the biggest investment of their lives, or lose out on the home of their dreams.

Rob Traister, a Realtor and Associate Broker with RE/MAX 100, offered Patch rules for homebuyers to keep in mind and mistakes to avoid.

Don’t try to make an offer without a buyer agent

Buyers mistakenly think that an offer made without a buyer agent has a better chance of being accepted because the sellers will pay less in commission. The reality is that the amount of commission the seller pays is usually the same, but the listing agent gets to keep all of it instead of splitting it with a buyer agent. Furthermore, the listing agent has no responsibility to the buyer, so all negotiation will favor the seller. A home is one of the most important purchases most people make. Having a dedicated buyer agent is critical to having their interests protected in a transaction.

Don’t make lowball offers

Buyers make this mistake all the time. Let’s say a house is priced at $600,000. They offer $500,000, thinking that the seller will counter, and they’ll meet in the middle. The truth is most sellers are insulted by lowball offers, and they don’t bother countering because they assume the buyer doesn’t have an understanding of the market, and they don’t want to waste their time. Making a realistic offer that you think reflects the value of the home is the best starting point for an honest negotiation.

Be smart about contingencies

Regardless of the market, the offer with the fewest contingencies and best price usually wins the day. The 2023 spring market once again sees buyers waiving contingencies and making above-full-price offers. While I don’t recommend waiving all contingencies, limiting them will help your offer stand out from the rest. When possible, do a pre-offer home inspection — do the home inspection before you make the offer. Yes, you’re out of pocket for the cost of the home inspection, but that’s one less contingency, and it might make the difference between getting the home and not getting it.

Use an experienced agent who knows your market

So you have a relative or friend who is a part-time real estate agent? Don’t use them for your transaction. Experience matters, and inexperienced agents won't know what to do if negotiations get tough or if something unexpected happens before settlement. Buyers should look online to see reviews of their agent, and should also check the Virginia Department of Professional and Occupational Regulation (DPOR) site to see how long their agent has been licensed, if there are any disciplinary actions against them, and if they have completed all of their continuing education. You probably wouldn’t hire a part-time lawyer, who is fresh out of law school to represent you in a lawsuit. When you’re spending hundreds of thousands of dollars, you need an experienced agent in your corner.

Get pre-approved by a lender before you start looking

Buyers sometimes go look at houses without having first talked to a lender to find out what they can afford. In this market, they may find something they love, only to discover they can’t afford it — or they may lose it to another buyer because they didn’t have a lender pre-approval letter. Without a lender’s pre-approval letter, you can’t make an offer unless you’re making it all cash offer.

Contact Rob Traister at RE/MAX 100 to learn more about the local real estate market.