The housing market for detached homes in the suburbs outside DC this year has been vicious. Hot listings are receiving multiple offers with no contingencies and escalations 10% (or more!) over the asking price. When the market heats up like this, it’s easy for buyers to feel discouraged, especially when they’re not in a position to waive all protections like some buyers are. This story is proof that the right strategy when home shopping can lead to an incredible outcome!
The Goal: More Space, Better Location
Kathleen and Tom came to me with a clear vision. They wanted a home that would give their family more space and a yard to enjoy while also shortening Kathleen’s work commute into the district. Like many buyers in the area, they were balancing lifestyle goals with a tight and competitive market.
On top of that, they were planning to use VA financing, thanks to their service in the Army. VA loans are an incredible benefit; they offer competitive interest rates and eliminate private mortgage insurance (PMI), which can save buyers hundreds of dollars each month.
The Challenge: Competing with Aggressive Offers
However, in a fast-moving seller’s market, VA financing can present challenges. Unlike conventional buyers, VA buyers cannot waive certain key protections, including:
- Financing contingency
- Appraisal contingency
Meanwhile, many competing buyers are waiving these contingencies entirely—and even waiving home inspection contingencies—to make their offers more appealing. To make things even more challenging, many homes in these buyer’s target areas were consistently selling well above list price (one home we previously offered on went for 16% over the asking price!).
The Pivot: A Smarter Approach
Instead of continuing to chase brand-new listings and getting caught in bidding wars, I shifted our strategy.
I began looking for homes that had been sitting on the market for over a week. These listings likely had already missed the initial surge of buyer activity, which means they were less likely to receive multiple offers. Going after a home like this would give us more room to negotiate and structure a deal that protected my clients.
That’s when we found it.
The Opportunity: Hidden in Plain Sight
I came across a beautiful home in a highly sought-after neighborhood less than 15 minutes from Kathleen’s work. It checked all their boxes: space, yard, and location.
The only catch? It was slightly above their target budget.
But because the home had been sitting on the market for a week, we knew we had an opportunity.
The Win: Strong Terms Without Sacrifice
We toured the home and decided to go for it.
Instead of competing aggressively, we leaned into negotiating. We submitted an offer significantly under asking price and included all the contingencies designed to protect the buyers:
- Financing contingency
- Appraisal contingency
- Inspection contingency
After several rounds of counters, we secured the home 3% below asking price—with every contingency intact.
The Result: Equity and Peace of Mind
Because we kept all protections in place, the transaction moved forward smoothly and with confidence.
And the best part?
The appraisal came back over $37k above the purchase price, giving these buyers instant equity in their new home.
The Takeaway
Kathleen and Tom’s success is a perfect reminder that winning in today’s market doesn’t always mean offering the highest price or taking the biggest risks.
Sometimes, it’s about:
- Knowing when to pivot
- Identifying overlooked opportunities
- Negotiating strategically
- Protecting your clients every step of the way
Congratulations to Kathleen and Tom!
If you’re thinking about buying and feeling discouraged by the competition, there may be more options available than you think!