A Northern Virginia license does not stop Google from selling you Silver Spring clicks
Geography is the first setting to fix, because a radius drawn around a yard in this metro crosses two state lines before it stops being useful.
Set a radius around Alexandria and you will be bidding in the District and in Prince George's County within a few miles. Set one around Bethesda and you are buying clicks in Virginia. The metro is compact and the jurisdictions interlock.
Target by named locality rather than by radius. Build your geography from the list of places where you are licensed and where you will actually send a crew, and exclude the rest outright rather than leaving them at a reduced bid.
Also check the location setting itself. Presence rather than presence-or-interest keeps you from paying for someone in Denver researching a property they own in Dupont Circle. Some dealers do want those buyers, in which case run them as a deliberate, separate campaign, not as budget leakage.
Review the geographic report every month. Neighborhoods you never intended to serve show up quickly, and they show up as clicks before they show up as inquiries.