DC condo sales are down for a combination of reasons that have compounded over the past few years:

• Elevated mortgage rates have priced many first-time buyers out of condo ownership entirely, particularly when condo association fees are factored in.
• Rising condo fees across many DC buildings have made it harder for units to appraise or qualify for conventional financing.
• Remote work has reduced the urgency of urban proximity for many buyers who might otherwise prioritize a DC address.
• Increased inventory in some corridors has given buyers more leverage and less urgency.

The result is a market where condo sellers are waiting longer, reducing prices more, or reconsidering their plans altogether. Understanding your options in that environment with clear eyes is the first step to making a decision you won't regret.

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Option 1: Sell Now at Market Price

The slowdown does not mean the market has stopped. DC condos are still selling — they are simply taking longer and requiring more competitive pricing than they did two or three years ago.

‍What this looks like in practice: Working with your agent to price the unit realistically, making targeted improvements to stand out in a slower buyer pool, and being prepared for a longer days-on-market timeline before receiving strong offers.

‍The settlement side of things: When you do go under contract, your settlement company handles the title search, lien payoffs, condo association estoppel letters, and coordination of the closing. At Smart Settlements, we have deep experience with DC condo closings, including navigating the complexities that arise with condo association documentation and TOPA — the Tenant Opportunity to Purchase Act — which applies in certain DC transactions.

‍Best for: Owners who need liquidity now, have already reduced their price expectations, or want a clean break from the property without taking on landlord responsibilities.

‍Worth knowing: Even in a slow market, a well-prepared, correctly priced condo in the right DC neighborhood can move. Price is almost always the variable most within your control.

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Option 2: Rent the Unit As-Is

With DC rental demand at a ten-year high, many condo owners are finding the rental path more viable than expected — at least as a short-term strategy while the sales market stabilizes.

‍What this looks like in practice: Listing the unit for rent, screening tenants, and managing the property either independently or through a property management company. DC has specific landlord-tenant laws that govern security deposits, lease requirements, habitability standards, and notice periods. Understanding them before a tenant moves in is important.

‍The settlement side of things: If you plan to rent without refinancing, there may not be a closing involved immediately. However, there are loan-level considerations worth discussing with your lender. Many conventional mortgages carry owner-occupancy requirements — meaning the loan was underwritten on the assumption that you would live in the property. Renting a unit covered by an owner-occupancy loan without notifying your lender can create complications. This is not a reason to avoid renting, but it is a reason to have that conversation first.

‍Best for: Owners who have positive — or at least neutral — cash flow after their mortgage payment, condo fees, and any property management costs, and who are willing to take on the responsibilities of being a DC landlord.

‍Worth knowing: DC is one of the strongest renter-protection jurisdictions in the country. If you plan to sell the property eventually, DC's TOPA law may give your tenant certain rights to purchase the unit before you can sell it to a third party. It is worth understanding this before you sign a lease.

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Option 3: Refinance, Then Rent

This is the option that many condo owners overlook — and in the current environment, it is frequently the most financially sound path for those who plan to rent.

A refinance before you place a tenant can accomplish several things at once:

‍Cash-out equity. If you have built meaningful equity in the property, a cash-out refinance allows you to access that equity now — whether to fund a down payment on your next home, cover renovations, or simply build a financial cushion while you wait for the sales market to improve.

‍Restructure your loan for rental math. The loan you took out as a primary residence was underwritten differently than an investment property loan. Refinancing into a loan structured for rental use ensures you are not violating the terms of your original mortgage — and may allow you to adjust the rate, term, or payment structure in ways that make the property cash-flow positive as a rental.

‍Remove co-borrowers or outdated terms. Life circumstances change. If your loan still carries a co-borrower who is no longer part of the picture, or if your original rate or terms no longer reflect your financial situation, a refinance is the cleanest way to reset before tenants move in.

‍The settlement side of things: Every refinance, regardless of the loan type or lender, requires a closing. That means title work, payoff coordination, lien searches, and a settlement agent to manage the process. This is exactly what Smart Settlements handles — and we do so across DC, Maryland, and Virginia, which matters when your property and your next purchase may not be in the same jurisdiction.

‍Best for: Owners who have equity to tap, whose current mortgage does not pencil out as a rental, or whose loan terms are not compatible with converting the property to an investment use.

‍Worth knowing: A refinance typically takes 30 to 45 days from application to closing. Planning ahead — before your current lease ends or before a tenant moves in — gives you the most flexibility.

Option 4: Hold and Wait

If you can carry the property without renting it and without selling, holding may be a legitimate strategy. DC's long-term real estate market has historically rewarded patient owners, and condo inventory in the District remains relatively constrained compared to suburban alternatives.

‍What this looks like in practice: Continuing to pay your mortgage and condo fees while monitoring the market, keeping the unit in good condition, and revisiting your selling strategy when buyer demand strengthens — whether due to rate movement, inventory shifts, or changes in the neighborhood.

‍The settlement side of things: If you are simply holding with no transaction underway, there is no settlement involvement at this stage. But when you do decide to sell or refinance, working with an experienced title and settlement company from the start of that process — rather than late in the transaction — tends to produce smoother outcomes.

‍Best for: Owners with strong cash reserves, no immediate liquidity needs, and confidence in the long-term value of their specific unit and building.

‍Worth knowing: Condo fees do not pause while you wait. Depending on your building and association, carrying costs can be significant. Modeling the true cost of waiting — versus the cost of selling at today's price — is a worthwhile exercise before committing to this path.

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What Every Path Has in Common

Regardless of which option you choose, a few things remain true:

‍Title and settlement work is part of most real estate decisions. Whether you are selling, refinancing, or eventually moving to the next property, there is a closing involved — and the quality of your settlement company affects how smoothly that process goes.

‍DC has specific rules that apply to condo owners. TOPA, owner-occupancy lending requirements, DC landlord-tenant law, and condo association documentation all have real implications for condo owners considering any of these paths. Working with professionals who know this market is not optional — it is the difference between a clean transaction and a costly one.

‍Waiting too long to get informed is its own risk. The owners who navigate slow markets best are the ones who understand their options early and make deliberate decisions rather than reactive ones.

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How Smart Settlements Can Help

Smart Settlements is one of the largest and most respected title and settlement companies in the Washington metropolitan area. We have been serving DC, Maryland, and Virginia for 20 years — through multiple market cycles, regulatory changes, and the full range of transaction types that condo owners face.

Whether you are moving toward a sale, evaluating a refinance, or simply trying to understand what your options look like from a settlement perspective, we are here to walk through it with you — clearly, without pressure, and with the depth of knowledge that comes from closing thousands of transactions across this region.

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We don't just close. We open doors.®

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‍Have questions about your DC condo situation? Contact the Smart Settlements team at info@smartsettlements.com or (202) 753-7400. You can also visit smartsettlements.com to learn more about our services.

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‍Categories: Buyers & Sellers · Investors & Developers · DC Real Estate · Condo Owners · Refinance

‍Related Resources:

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• Closing With Smart Settlements
• DC Condo Conversions
• SMART Lending
• Frequently Asked Questions About TOPA

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