Here are four aspects of the Boston condo buying process to ensure a better overall investment.
If you have questions about your personal financial situation, ask your lender and/or a financial advisor what buying a new Boston condo could mean for you.
The last thing that you want to do as a new condominum buyer is to find yourself priced out of a particular neighborhood. In some parts of the Boston, prices can shoot up rapidly in a very short period of time. Nationwide, the average price of homes increased by 6 percent from May 2017 to June 2017. That may not seem like a lot, until you realize that 6 percent on a $500,000 conod is $30,000.
In some cities, double-digit growth over a period of a few years means that homes may be hundreds of thousands of dollars more than they were in 2011 or 2012.
In some cases, dramatic asking prices for new condos might signal an opportunity to wait and see what happens – if only for a few months. If the housing bubble taught America anything, it is that housing prices rising unchecked may eventually plateau, or possibly even decrease. Boston, one of the fastest-growing markets in the country, had huge increases in year-to-year time frames.
In addition to price, the health of the local real estate market is also a matter of time. The longer it takes to sell the average condo in the area, the more likely it is that prices are not dramatically increasing in that area. As a Boston condo buyer, you have the ability to choose whether you want to buy in a neighborhood that has dramatically increasing home prices with condos on the market for a very short time – or possibly get a better deal on a home in an area where prices are not increasing as much and condominiums stay on the market longer.
If you are looking for more negotiation room on the asking price, watch for homes that have been on the market for some time. Sellers may be more willing to accommodate your offer if their home has been on the market for some time.
Mortgage interest rates have been at or fairly near historic lows since 2012. While mortgage interest rates are likely to increase in the near future, it is typically a good idea to keep an eye on the interest rate you might expect to pay once you apply for mortgage pre-approval. Often your mortgage professional or mortgage company may be able to lock-in a low interest rate for a limited amount of time while you wait for your home to close.
Buying a Boston condo takes knowledge and the observation of local real estate markets and mortgage interest rates. By continually gathering all relevant information and using the services of a real estate professional, you can time your Boston condo purchase more effectively.
Contact me to find to set up an appointment to start your Boston condo buying process.
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