The Boston condo market conditions have been favoring sellers for most of 2018. What this means for prospective Boston condos buyers, particularly those interested in acquiring high rise condominium units, is that negotiating is even more crucial before sitting down at the closing table. Due to high demand of Boston condominium properties in the downtown Boston districts, prospective buyers are looking at a considerable financial investment not just in terms of purchase price but also condo fees. Here are five tips to keep in mind when negotiating with condo sellers.
1. Set Financial Goals
Even buyers with unlimited financial resources should set clear financial goals prior to bidding on a Boston Beacon Hill condo. In a sellers’ market, it is easy to get caught up in bidding wars that may end up with high price commitments that do not make solid financial sense. There needs to be an absolute maximum that buyers will agree to pay monthly. Investors who are looking to profit within a few months will have more complex financial goals since they need to assume the costs of becoming sellers.
2. Retain Professional Assistance
A Boston condo professional who is aware of his or her clients’ financial goals will work toward achieving them. Venturing into a sellers’ market without adequate representation is too risky. When condo sellers list their properties in a “For Sale by Owner” fashion, the need for an agent assisting the buyer is even more pressing. The ideal scenario for negotiation will always be when both parties have their own agents. In this case, the chances of a deal that meets the expectations of all parties will be higher.
3. Put an Offer in Writing
Presenting a letter that outlines the proposed purchase price lets sellers know the prospective buyer is not only interested but also serious. However, the statements conveyed in the letter must be qualified with facts. The offer letter should be prepared by a real estate professional who has researched the market and the property, and it should not be submitted without evidence of comparable listings, sales history, and market conditions. Whenever sellers hold the upper hand due to the dynamics of supply and demand, offer letters should be devoid of pressure tactics.
4. Obtain a Mortgage Preapproval
Prospective buyers who wish to have their bids taken seriously by sellers should be able to prove they have the means to acquire the condo unit. The best evidence to show in this regard would be a document from a mortgage broker or lender that indicates a preapproval status based on affordability factors as well as debt-to-income ratio. Buyers with these documents will have an advantage during a multiple bidding situation.
5. Offer to Compromise
Doing business with a reliable home inspector while shopping for Boston high rise condo is highly recommended. Unless the unit is brand new, the condition of the property is a factor that could put the negotiating ball on the buyer’s court, and it can be used to formulate an offer in compromise whereby the seller either agrees to a lower price or to make home improvements before closing.
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