Venturing into the real estate market in Virginia? Before making this important purchase, take time to figure out what you can afford, the ideal neighborhood, and what features you need or want in a home. Also be aware of state-specific legal rules and issues, such as what goes into a Virginia purchase and sale agreement.
With proper preparation, careful choice of a real estate agent, and prudent use of other professionals, buying a home in Virginia can be a great experience.
Are You Ready to Buy a Home in Virginia?
You wouldn't be the first person to want to put down roots in a state that offers a strong economy, normally mild weather, and a rich mix of nature, history, quality educational institutions, and culture.
That's why, despite ups and downs in the national housing market, the Virginia market has remained strong, with prices rising in late 2024. The median price statewide was $415,000 in late 2024. Unfortunately, these rising prices can make purchasing a home a challenge financially and otherwise, especially with the ongoing low inventory of available homes.
To deal with the stiff competition among homebuyers, you'll want to carefully research your local market (as you're starting to do here), visit homes to get a sense of what's available in your price range (allowing for possible bidding wars that take the selling price way over the list price), and get your finances in order.
Have You Saved Up for a Down Payment?
Traditionally, home buyers put down up to 20% of the purchase price on a home. Lenders like to see that much (and are delighted to see more), because it reduces their risk if you stop making your monthly payments or otherwise default and they then have to foreclose.
You've probably been setting money aside for a down payment already, but now is the time to ratchet that process up, and to avoid making any major new purchases (particularly on credit). After all, 20% of a home priced at the median in Virginia is a daunting $83,000.
Virginia also offers programs to assist with down payments or first-time home purchases.
Will You Need a Home Loan for the Purchase?
Assuming you'll need to take out a home loan (a mortgage), be sure to look into the full array of options, including government-backed options. Also check on your credit report, which will be one of the first things a bank or other institutional lender looks at, to see whether you're a major risk. You can view your report for free through annualcreditreport.com). The next important step is to correct any mistakes you find there.
Next, consider consulting with a mortgage broker to see what price range of houses you'll qualify to borrow money for. The broker can also help you obtain mortgage preapproval, which can be crucial if and when you're competing with other would-be buyers. You'll probably need to pay the mortgage broker a commission, in the 1% to 2% range, depending on the loan amount and other factors.
Particularly if money is tight, deciding that you want to keep renting for now can be a rational and wise choice. Another factor is how settled your life is. As a broad rule, the upfront costs make buying a house financially risky unless you plan to stay in it at least five years. If you're a natural nomad, possibly interested in attending an out-of-state school or program, in a promising online relationship with someone who lives far away, or looking for a new (non-remote) job, now might not be the time.
If you are ready to buy, though, you'll likely want to check in with prospective real estate agents, as described further below.
Where in Virginia Do You Want to Buy?
Perhaps you already have a city, town, or even neighborhood in mind. If not, a number of resources will allow you to narrow your search, ranging from simple online searches such as "Is X a good place to live?" to sites such as bestplaces.
Before getting overwhelmed with all the data, it's worth creating a list of factors most important to you personally, such as:
- quality schools and universities
- gourmet or ethnic restaurants or groceries
- proximity to nature and culture
- excellent medical care
- coastal or inland location
- low crime levels, and
- thriving arts or crafts scene.
Many of these factors will increase your house's long-term value, too, thus making it a sound investment.
Working With a Real Estate Agent in Virginia
Before buying a house, condo, townhouse, or other home in Virginia, it's wise to contact a real estate agent. A good agent can help you at every step, from drafting your written offer and negotiating with the seller on price and other key terms to coordinating the escrow process and house closing. Your real estate agent should also help you locate other professionals to assist you in the homebuying process, including mortgage brokers and home inspectors.
Fortunately, working with a real estate agent normally won’t cost you anything. Traditionally, the seller usually pays the entire real estate commission, around 5% to 6% of the house sale price. That amount is then split between the seller’s agent and buyer's. Although recent lawsuits and settlements have given rise to speculation that this model might change, it hasn't so far.
Personal referrals from other home buyers are usually the best way to select a real estate agent. Check to make sure the agent you're considering is licensed, at the Virginia Department of Professional and Occupational Regulation License Search. Also check online for customer reviews.
Seller Disclosure Requirements in Virginia
Virginia seller disclosure requirements are more limited than in other states, many of which require sellers to provide details on defects in the property. Virginia’s main disclosure statute (Code of Virginia Section 55.1-700 and following) mostly requires sellers to alert buyers that it's their responsibility to check out the condition of the property for sale, and recommends they get a home inspection done.
The Virginia Real Estate Board provides a standard form for this.
However, there are a few specific disclosures sellers must, by law, make:
- if the property is in “any locality in which a military air installation is located” (Code of VA § 55.1-704)
- if there are pending building code or zoning ordinance violations (Code of VA § 55.1-706)
- if the property was once the site of a meth lab and has not been cleaned up according to state guidelines (Code of VA § 55.1-708)
- the long-term maintenance and inspection requirements for any privately owned stormwater management facility on the property (Code of VA § 55.1-708.1), or
- if the property has a septic system (Code of VA 32.1-164.1:1).
Certain types of sales (such as newly built homes) are largely exempt from state disclosure rules.
In addition to state-required disclosures, sellers of houses built before 1978 must comply with federal Title X disclosures regarding lead-based paint and hazards. See the lead disclosure section of the EPA’s website for details.
Getting a Home Inspection in Virginia
Given the limits of seller-required disclosures in Virginia, many buyers arrange for an independent home inspection, and make their offers contingent upon being satisfied with what's revealed in the inspection report.
The inspector's report should identify problems such as:
- presence of termites and other pests
- structural issues, for example with windows, roof, and foundation
- condition of electrical, plumbing, heating, sewer, and other home systems
- soil settlement or drainage issues, and
- noise, mold, toxins or hazards, or odors.
Few buyers cancel a sale over repair needs. More often, the response is to negotiate with the seller for repairs to be made before the closing or for the seller to credit money in escrow so that the buyer can later make the repairs; or else to agree on a price reduction.
If you're in such a tight market that you're tempted to waive (go without) the inspection contingency so as to make your offer stand out, do what you can to protect your interests in other ways. For example, you might bring a contractor or friend with relevant knowledge and skills to your house visits, so you'll have some idea of what you're getting yourself into. Some home sellers also commission their own inspection report before putting the house on the market. However, since they might not have chosen the most nitpicky inspector out there, you'll need to research that inspector's reputation before staking your future on the results.
Real Estate Purchase Agreements in Virginia
A purchase agreement is a legal document containing the main terms and conditions of your real estate transaction. It must be in writing and signed by the parties (buyers and sellers) in order to form a contract. At a minimum, it will include an offer to sell or purchase, an acceptance of the offer, the sale price, and an adequate description of the property.
Your real estate agent will have a standard form you can use.
Title Issues in Virginia
Assuming you're taking out a loan, your mortgage companies will likely require you to purchase a title insurance policy. This protects your title to the property against adverse claims by third parties or "clouds" on the title missed by the preliminary title search (done in advance of issuing the policy).
The title company searches public records and other sources for any liens, easements (such as the utility company’s right to access part of the property), or other encumbrances or title restrictions that might affect your ownership or rights to use the property. If the title search locates problems, insist that the seller correct these as a condition to closing.
Working With a Lawyer in Virginia
Unlike some states, Virginia does not require that buyers involve a lawyer in the house-buying transaction. Even if it’s not required, you might decide to engage a lawyer at some point in the process—for example, if you are buying property in a planned unit development with extensive CC&Rs that need reviewing, or you are purchasing a house jointly with others and need help structuring your co-buyer agreement. Or, you might want a lawyer’s help if problems show up during escrow or the house closing.