It can be daunting to shop for a Boston downtown condo in a seller’s market, but this doesn’t mean that buyers need to jump the gun and overbid. Investing when the Downtown Boston real estate market is hot still requires careful planning, diligent research and a knowledgeable and experienced guide. Following are four mistakes that buyers make in challenging market conditions along with tips for avoiding these common pitfalls.
1. Failing to Have a Comprehensive and Accurate Budget
The sense of urgency that a seller’s market incites can lead to rash decisions. It is important for buyers to carefully calculate the full costs of property ownership and determine how much outside funding they can get early on. A solid budget is the foundation of every good purchasing plan. If the market is hot, you could be asked to increase your offers and expand your budget. When in doubt, consult with your financial planner or tax adviser to avoid getting in over your head.
Bidding wars are common in a seller’s market, and they often lead to people paying quite a bit more than a place is actually worth. Take some time to study the sales data from comparable properties in the targeted neighborhood in order to establish a reasonable offer price. It is also a good idea to appeal to buyers beyond submitting a financial offer. Consider writing a letter detailing why you want a particular property as part of your appeal. Some sellers are still emotionally attached to their properties and are much less reticent to sell when they know that buyers have a genuine appreciation for their space.
3. Waiting Too Long to Submit an Offer
Hesitation can and often does result in missed opportunities. If you’ve found Boston Midtown high rise condo that you love, honor and acknowledge your sense of urgency and take action. It is also important to note that waiting too long to move forward with the purchasing process could cause your loan approval to expire. This makes it vital to stay abreast of any changes in your approval status, especially if you’ve been house hunting for some time.
4. Failing to Pay Attention to Market Conditions
While you don’t want to get caught up in the panic of a hot market, you do want to remain cognizant of market conditions and their impact on your prospects. Talk to your agent about the different neighborhoods you’re targeting and find out which units are moving the fastest in this area, how long listings are staying active, how much extra you’re likely to pay for a condo, loft, or penthouse you really want, and whether you’ll be dealing with lots of competition in your price range. Knowing these things in advance will allow you to adapt your purchasing plan and maybe even the timing of your purchase to better suit your spending goals.
Still shopping for a condo, loft, or Downtown Boston penthouse for sale? Don’t go at it alone. Competition in Downtown is often fierce, and an experienced agent can help you decide when to pounce and when to be patient. Reach out to us today and schedule an appointment!
Over the course of 20 years in the Boston downtown real estate market, John represented and sold numerous, condominiums, investment and development properties in Greater Boston and in the surrounding suburbs
In addition to representing Boston condo buyers and sellers, John is currently one of the most recognized Boston condo blog writers regarding Boston condominiums and residential real estate markets. John's insights and observations about the Boston condo market have been seen in a wide variety of the most established local & national media outlets including; Banker and Tradesman, Boston Magazine The Boston Globe, The Boston Herald and NewsWeek and Fortune magazine, among others.
For over 24 years, John Ford, of Ford Realty Inc., has been actively involved in the real estate industry. He started his career in commercial real estate with a national firm Spaulding & Slye and quickly realized that he had a passion for residential properties. In 1999, John entered the residential real estate market, and in 2000 John Started his own firm Ford Realty Inc. As a broker, his clients have come to love his fun, vivacious, and friendly attitude. He prides himself on bringing honesty and integrity to the entire home buying and selling process. In addition to helping buyers and sellers, he also works with rental clients. Whether you’re looking to purchase a new Boston condo or rent an apartment, you’ll quickly learn why John has a 97% closing rate.
Charles River Park
Surrounding Communities of Boston
John Ford and his staff can be reached at 617-595-3712 or 617-720-5454. Please feel free to stop by John's Boston Beacon Hill office located at 137 Charles Street.
Ford Realty Inc
137 Charles Street
Boston, Ma 02114