Boston condo offers
Boston Condos for Sale in 2023
Boston condo offers
Even with a cash offer there are closing costs. Those costs are much lower than the closing costs on a home loan. When a home is being financed sometimes buyers will ask for cash back from the sellers to cover closing costs.
Before making a cash offer find out what the closing costs will be and adjust your offer as needed. If you will need more cash than you have for a full-priced offer and closing costs, offer less than the full price. It is really pretty simple. I often ask a title company for help calculating closing costs on a cash sale.
Instead of a pre-approval letter for a loan a cash buyer needs to provide proof of funds, like a bank statement.
Cash offers are more common than they used to be
________________________________________________________________________________________
One question I hear a lot is why didn’t the Boston condo seller accept my offer?
While there is no simple answer, some sellers are just on the edge. It might be because they still owe more on their downtown Boston condo than they can sell them for and the price they will accept depends upon how much money they have to bring to the closing.
A Boston condo buyer will make an offer that is less than the asking price as buyers often do. Buyer and seller will go back and forth and sometimes they don’t reach an agreement because the sellers can not afford to sell for the price that buyers will pay.
Boston Condo Buyers Agent
When my buyers are interested in a home that is slightly over priced and has been on the market for awhile I do a little research. Often what I find is that the home was purchased in the last few years the sellers paid more for the home than it is listed for or after paying broker fess and closing costs the loss would make it prohibitive.
As a sellers agent too I can tell you what a tough situation this is for home owners. They really do want to sell and some will save up money ahead of time to bring to the closing. If buyers do not offer enough these sellers can not sell.
First time home buyers often expect sellers to pay their closing costs but for these underwater sellers that means writing a bug check and they may not have the money. The housing market is strong and home values are on the rise and that is helping but some sellers may be better off waiting another year.
Anther question I hear often is:
“Should we put a deadline on our Boston real estate offer?”
I’ve received this question many times from Boston buyers, so I thought it would be a good idea to cover this in a Boston Real Estate Blog post. Whenever I write up an offer for a Boston condo, there are dozens of questions that come up during the process before we even submit the paperwork to the listing agent. This particular question is one of the last ones to comes up, but a very important one.
My normal response is this: You certainly can and I think should restrict the timing for acceptance by forcing the seller to respond quickly (e.g. “Seller to respond by 5pm, January 30, 2018.”), but don’t limit the time too much, it may come across as pushy, since a typical seller is probably sufficiently motivated to respond within 24 hours regardless, unless they’re traveling or experiencing a crisis of some sort.
With that in mind, give some thought to the message it sends when you opt to place a deadline of less than 24hrs. notice on any Boston condo offer. It might set the wrong tone during negotiations and during the entire process, depending on the personality of the seller and sellers listing agent. It also could come across as a little desperate, or weaken the offer and your leverage. Remember, patience is your friend when it comes to real estate negotiating.
However, there are exceptions to the rule:
1. You’re pretty sure that there’s another offer on its way.
2. You have very limited time to choose a condo, and there’s a solid backup Boston condominium in mind that you don’t want to lose while you wait for a response.
The next question I hear often is,
“When do you think we’ll hear something about the offer?”
I should probably address that here as well. As a guideline, if I send an offer in the morning, it’s possible to hear something the same day, if the agent is able to get in touch and present it quickly. If I present an offer to the listing agent during evening hours, we’ll probably hear back sometime the next day, either with a response or with clarification questions. If it’s a weekend, I typically tell my clients to expect to hear back by Monday.
I hope this helps. Let me know if you’re looking to buy or sell a condo or townhouse anywhere in the Boston metro area.
Updated: Boston condo offer 1st Quarter 2022:
The underlying key to buying a Boston condo is knowing the values in the neighborhoods of choice, and being flexible in what you can live with. Yes, there are many cash sales happening, but most buyers are getting loans. In that case, there’s an element of compromise involved no matter what your budget may be, especially when you’re faced with low inventory and lots of buyer demand, as will be the case in 2018. Your only choice is to eliminate the less obvious Boston condo prospects and avoid crazy multiple-offer situations that will end up beating you down. So if you’re about to submit an offer you may want to refocus your energy and aim for more realistic possibilities as you continue your Boston condo hunt.
For more information please call Ford Realty at 617-595-3712.
Contact me to find to set up an appointment to start your Boston condo buying process.
Updated 2022
Do you want to increase your odds of getting an offer accepted on a Boston condo for Sale?
If you are trying to buy a Boston Beacon Hill condo in a seller’s market, offering the asking price may not be enough. With more competition from buyers, the seller has more options, and you will need to do more to get the house you want.
Getting a Boston condo under contract is challenging, with bidding wars becoming the norm and not the exception. Sellers are in the driver’s seat, and they know it.
Housing markets across the country have been disrupted due to a number of factors including the Covid-19 Pandemic.
To make sure you are the winning home bidder, there are things you can do to improve your chances. Let’s look at how you can increase your odds of being the next winning bidder.
Tips for getting an offer accepted buying a Boston condo.
Make Your Offer as Straightforward as You Can
If you want to give yourself a better chance of having your offer accepted, making it as clean and straightforward as possible will appeal to the seller. Any proposal full of contingencies or seller concessions isn’t going to look as good.
An offer contingent on you selling your condominium could easily lead to delays and isn’t be something that the seller will want to agree to if they have other options.
Removing the appraisal contingency is another option, though you need to be sure you can cover any appraisal gap.
Offering an appraisal gap guarantee does ease a seller’s mind when you’re not making a cash offer. It’s something you really should consider to make your offer stronger.
Make a Strong Boston Condo Bid
When you have a lot of competition from Boston condo buyers to get to the under agreement stage with a seller, there isn’t much chance of success with a lowball offer.
In a seller’s market, you are more likely to need to bid above the asking price to be successful.
In order to be the winning home bidder, you might only need to offer quite a bit over the asking price. Consulting with your real estate agent on what has been typical will be crucial. Are homes selling $10,000 over asking or $50,000?
All real estate is local, so it will be essential to know what is happening with the local market. When you understand the market well, you can craft a powerful offer that the seller will find attractive.
Ask your buyer’s agent to put together a comparative market analysis for the home. Look carefully at any market statistics on recent appreciation rates.
When you make a very strong offer, the seller will realize how badly you want the property.
Offer a Larger Earnest Money Deposit on the Condo
Your earnest money is a way of showing the seller that you are a serious buyer. This deposit will be placed in an escrow account, and if things go successfully, it can later be used as part of your down payment or to cover closing costs.
Typically, the earnest money is 1% to 5% of the purchase price. But if you offer to put down a larger deposit, it can indicate to sellers that you are more likely to complete your purchase. A larger deposit is much harder to walk away from.
However, this money is at risk should something go wrong, with this money going to the seller. There is more considerable risk if you don’t have many contingencies that would otherwise return the deposit to you if you walk away from the purchase.
Make sure you’re confident there will be no problems that could cause you to back out.
Increasing Your Down Payment on the Boston Condo
Another way of showing the Boston condo seller that you were a serious contender is with a larger down payment. While your home loan might only require a small down payment, the more money you can commit to this, the more attractive you will look as a buyer.
As a bonus, it will also reduce your home loan costs, giving you lower interest rates and saving you thousands of dollars. In the strong seller’s market, we are experiencing higher down payments is much more preferable due to the chance of the home not appraising.
A higher down payment makes it less likely a lender will have an issue. Some lenders may even decide to waive the appraisal if you’re putting down more than twenty percent.
Don’t Ask the Condo Seller to Include Excluded Items
Even if you like an item of furniture or a feature in the condominium that has been excluded from the sale, don’t push for it. Asking for something that the seller doesn’t want to include will only make your offer look worse and make your chances of an under-contract agreement less likely.
You could be seen as a problematic buyer to deal with if you push too hard for something.
Cash is King for Boston Condos for Sale
A cash offer will be more appealing to a Boston condo seller, promising fewer problems and speeding things up. Being a cash buyer means no finance or appraisal contingencies and will look better than lender-financed bids.
Many people can’t pay cash. The next best thing would be waiving your financing contingency, so you look like a cash buyer. Just know you’ll need to be confident of getting the mortgage, or you risk your deposit monies.
Using an Escalation Clause
An escalation clause is a way of outbidding other Boston condo buyers up to a specific price. Your bid will automatically be raised should another buyer offer more.
You will need to have your real estate agent write this into the contract, setting the maximum price you are willing to pay.
Offering the Seller One Month Rent Free
It could be attractive to the seller to remain in the home for a little longer. Offering free occupancy could be a way to make your bid stand out, though you need to have the terms clearly stated in the agreement.
Without a written agreement about occupancy, you could find yourself with an unwanted tenant – the former owner – in your new home. A more extended closing is also another option that may be attractive to the seller.
Make Sure Your Offer Beats the Competition
When you’re buying a property in a seller’s market, you’ll need to move quickly to secure the home you want. You also need to ensure that your offer is more attractive by doing more than other buyers. If you get this right, it will increase the chances of having your offer accepted.
Lean on your buyer’s agent for counseling and advice. They should know the market well enough to give you sound real estate advice.
SEARCH BOSTON CONDOS FOR SALE
For more information please contact one of our on-call agents at 617-595-3712.
Boston Condos for Sale in 2022
