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Originally Posted by RLCMA
I just read somewhere that builders are paying closing costs because there is so much inventory in DC currently. Is this really the case? I was under the impression there are bidding wars going on in DC. Maybe just certain areas? I'm interested in possibly buying over the next few months since blowing almost $3,000/month doesn't make any sense to me anymore. Are people really seeing good deals in DC?
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There is not really an excess of inventory in DC west of the river. Outside of DC that may be the case, especially outside the beltway.
Inside DC look at places where big developments are planned in the next few years, Brightwood, Takoma (Walter Reed Redevelopment for both), etc. If a developer is willing to throw $1 billion+ on an area, it is likely going to do well in the future. If you are spending $3000 a month you are paying too much and you are in the territory where you should buy if you plan on sticking around. My partner and I were nearing that, we eventually bought. If you owned, and knew where to look you would be spending less than $2500 a month on a mortgage for a house.
Also realize there is not much inventory within DC, as it's mostly older houses, but outside of the beltway it is a different story, and you will hit newer housing. Just inside DC, this is from experience, it is mostly older houses that are refurbished, or just old. Many of the newer houses are mostly in areas which are not metro accessible (ie by the Costco), even then they are pretty rare. The exception is Brookland, but those houses cost close to $1 million. Not bad for west of the park, but generally overpriced for northeast DC. My advice get the best priced house, townhouse, or rowhouse you can with reserved parking within a half mile from the metro give or take west of the river. Budget between $400,000-$600,000 if you are looking more for a deal on an older house, and research the neighborhood. In fact looking at real estate listings I know that is there is stuff still out in this range close to the metro in decent neighborhoods, but the pool is shrinking. It was Brookland, Petworth, Takoma, Shepherd Park, Trinidad, Manor Park, etc. a year ago, now I am not sure where the places to buy are, since I am not looking. I would look at those places, you may be able to luck out with a house in one of those neighborhoods. Personally I liked Brookland, Takoma, and Shepherd Park when we were looking.
So in terms of the builders covering closing costs thing, well for one, there is not many new homes being built inside DC. There is not many "builders", more people redeveloping older houses. Even condo development is slow, it has been mostly apartments. With that being said if your goal is buying a condo I am not sure what advice I can offer.
The burbs may be a different story, most of the builders, are in the exurbs. There is an excess of supply out there, but not so much inside the district itself.
Again this depends if you were looking for a house or a Condo, if you were looking for a Condo, the advice would change somewhat.
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