In the world of real estate, 2023 has been earmarked with uncertainty. But it’s not all doom and gloom! With looming threats of a recession, a potential default without a debt ceiling hike, and fears of a real estate downturn, understanding the market’s nuances has never been more important. Amidst this backdrop, prospective homebuyers might wonder, when is the right time to buy? How can one win in any real estate market?
The Washington D.C. Metro area, with its unique market dynamics, presents its own set of challenges and opportunities. Known for its resiliency, the DC Metro market may seem like a labyrinth to the uninitiated. However, navigating this market successfully in 2023 is not an insurmountable task if armed with the right knowledge and guidance.
In this article we will explore tips to navigate the homebuying process in 2023 with Blake Hering, a seasoned real estate professional who has honed his expertise in the DC Metro market including Maryland and Northern Virginia. Blake is an agent with The ONE Street Company with a keen understanding of this market’s intricacies.
In this interview, Blake demystifies the current real estate scenario and shares 12 essential homebuyer tips for 2023. Drawing from his rich experience and deep knowledge, Blake offers his insights into navigating these uncertain times, providing a beacon for homebuyers in the DC Metro area.
Meet the Expert: Blake Hering
For Blake Hering, real estate is more than just a career—it’s a lifestyle. Over his eight years doing real estate, he has honed his people skills, understanding his clients’ needs, and ensuring they achieve their goals when finding their ideal home. This relentless pursuit of client satisfaction has earned him admiration and respect in the industry.
Blake’s wife works in the real estate business as well, which adds a unique dynamic to his work. “She understands the pains of the business, so we can relate to each other,” says Blake. Their combined expertise allows them to overcome challenges and consistently stay a step ahead in the dynamic DC real estate market.
Blake, a lifelong resident of the DC metropolitan area, and a graduate of the University of Maryland, continues to be a reliable resource to his clients long after the deal is done. “I always try to make connections for clients where possible,” explains Blake. This personal touch is always a huge plus when looking for an agent.
12 Key Tips to Navigating the DC Area Market in 2023
Understand Interest Rates and Refinancing
A common concern among prospective homebuyers is the fluctuation of interest rates, especially in a year like 2023 where rates have been higher than usual. However, Blake encourages buyers not to let this deter them. “Interest rates will likely not climb any higher,” he says, providing a measure of reassurance.
Blake further explains that if rates were to decrease in the future, homeowners always have the option to refinance their mortgage. This means you could potentially benefit from lower interest rates down the line without having to put off buying a home right now. His advice is to focus on finding the right property instead of waiting around for interest rates to drop.
Develop Thick Skin to win
One thing Blake emphasizes when it comes to the current DC real estate market is the necessity of developing thick skin. In an environment as competitive as this, where there are numerous bidders for good properties and a low inventory, having the ability to withstand rejection and disappointments is essential.
Blake puts it succinctly: “You have to have thick skin.” He suggests that homebuyers enter the market prepared for challenges. “Recently I had a client bid $120,000 over the asking price and still lose,” explains Blake. But that didn’t stop them from moving forward and eventually getting a house that was a great fit.
Not every offer will be accepted, and not every house will be the perfect fit. But with a resilient mindset, the determination to keep trying and the right support from a dedicated real estate agent, it’s possible to navigate the market successfully. Remember that every ‘no’ gets you closer to that ultimate ‘yes’ – your dream home.
Waiting to Buy may not be Best
A common question in today’s real estate climate is whether to wait out the high interest rates by renting, in hopes that rates will drop. While it’s a strategy that might seem sound on the surface, it’s important to consider the bigger picture. According to Blake, “There’s a thousand other people like you just waiting to do the same thing.”
What this means is that the moment interest rates drop, there will likely be a rush of eager buyers entering the DC area market all at once, making it even more competitive. It’s crucial to weigh the potential savings of a lower interest rate against the possibility of facing increased competition, higher property prices, or missing out on a great home while you’re waiting.
Be Realistic About Rates
While it’s true that current interest rates are higher than we’ve seen in recent years, it’s important to have some perspective. Blake offers a grounded outlook on this matter, stating, “We will probably never see rates as low as 3% again.” While this might initially seem like a negative prediction, it’s also a reminder that waiting for “perfect” conditions may not be the most pragmatic approach.
Instead of waiting for a dip that may never come, it could be more beneficial to make the most of the current circumstances. With the right strategy, guidance, and understanding of the market, buying a home can still be a viable and rewarding decision, even in times of higher interest rates.
Investing in DC Real Estate is a Secure Choice
Despite the ebbs and flows of interest rates and market dynamics, one aspect remains consistent: investing in DC area real estate is a sound decision. This is largely due to the robustness of the region, which hosts major universities such as George Washington and George Mason, attracting a steady stream of students and academics.
The presence of major company headquarters that have set up shop to be near the seat of government ensures a constant demand for housing. The DC area is not just a political hub–it’s also a commercial and educational powerhouse.
Additionally, the area boasts some of the best school systems in the country, making it an attractive location for families. These factors all combine to bolster the resiliency of the DC real estate market including Maryland and Northern Virginia, making it a wise investment choice for those looking to buy a home, regardless of the current market situation.
There’s No Perfect Time to Buy
In the realm of real estate, timing the market can prove to be quite a challenge. It’s a common belief that holding off for the ‘perfect’ moment, such as lower interest rates or a market change, is the best strategy. However, this approach can often lead to missed opportunities.
The complexity of the real estate market makes it almost impossible to predict with complete accuracy. Rather than focusing solely on broader market trends, it’s crucial to consider personal factors. Financial readiness and finding a property that fits your lifestyle and needs should be at the forefront of your decision-making process.
Beware of Overzealous Agents
Blake cautions homebuyers about the potential pitfalls of working with overly aggressive agents. “Some agents just say yes to everything just to get the deal done,” he warns. While it’s understandable that agents are eager to close deals, this approach can sometimes lead to homebuyers being rushed into decisions that aren’t in their best interest.
It’s important to remember that buying a home is a significant commitment and it’s worth taking the time to ensure you’re making the right choice. Choose an agent who prioritizes your needs and doesn’t pressure you into making hasty decisions.
Choose the Right Agent for you
The selection of a real estate agent is a crucial decision in the home buying process, and Blake emphasizes the importance of doing your due diligence. “If you’re going to get back surgery are you going to talk to one doctor?”.
Similarly, when looking for a real estate agent, it’s advisable to interview multiple candidates to compare their skills, experience, and approach. The right agent will understand your needs, provide valuable advice, and guide you seamlessly through the home buying process. Be sure to invest time in finding a real estate professional who is a good fit for you.
Work With a Proactive Agent
Another crucial piece of advice from Blake is the importance of working with an agent who is always a step ahead. A proactive agent is one who doesn’t wait for the client to reach out but is always on the move, looking for the next house and keeping the homebuyer updated.
As Blake puts it, “I try to be a step ahead of the client so they’re not always calling me.” This proactive approach of being the one to call first ensures the homebuyer is always informed and up-to-date, which can significantly alleviate the stress of the homebuying process. As Blake says, “Let me handle the stress.”
Look For Hot Spots in the DC Area
The DC Metro area is bustling with neighborhoods that present exciting opportunities for homebuyers. Logan Circle and Adams Morgan offer vibrant city life, while the West End and Georgetown are known for their luxury and historic charm.
On the other hand, Montgomery County and Bethesda are attracting families and individuals seeking a more suburban experience while still being close to the city. Check out our moving to Bethesda guide to learn why. Investing in these areas could lead to significant appreciation in value, but it’s crucial to align your choice with personal needs and market research.
Get the Real Feel of a Neighborhood
To truly understand the ambiance of a potential area, Blake recommends exploring it during the weekend when people are home and the neighborhood is alive. A drive-through on a Tuesday at 10 am might give you a sense of the infrastructure and amenities, but it won’t show you the community’s vibe.
On weekends, you can observe local activities, the neighborhood dynamic, and even engage in casual conversations with locals. This approach gives you a more accurate picture of what living there would feel like. Especially in a market like this one where winning offers are often over asking price, it’s important to find great deals by knowing everything you can about the neighborhood.
Understand Your Potential Commute
One crucial aspect of selecting a home is often overlooked until it’s too late–the commute. Blake suggests that homebuyers should simulate their daily commute before making a decision. Choose a morning to drive to the potential area and then proceed to your workplace from there.
This exercise will give you a practical sense of the commute duration, traffic conditions, and potential roadblocks. A beautiful home can lose its appeal if the daily commute becomes a source of constant stress.
Final Thoughts for Homebuyers in the DC area for 2023
Navigating the DC real estate market in 2023 is a journey best undertaken with an experienced and knowledgeable guide. With the market experiencing shifts, having an agent who understands the nuances of different neighborhoods, can advise on the optimal timing for purchase, and navigate competitive bidding environments is crucial.
Blake’s insights into areas poised for appreciation, the need for hands-on exploration of potential neighborhoods, and the importance of testing out commute times highlight the value of a well-rounded real estate expert. His words underscore the need for patience and resilience, as well as the necessity of working with a trustworthy and diligent agent.
He also underlines the importance of understanding the broader market trends such as interest rates and the benefits of investing in a home in the DC area. “I can tell you everything about every school,” Blake mentions, something that is so key to homebuyers.
In conclusion, buying a home in the DC area is not just about finding a house—it’s about finding a home that fits your lifestyle, and for that, a good agent is indispensable. Even if you’ve heard bad things on the news about the housing market, or other negativity, there’s always opportunities for those who have the right knowledge in any market.