How to make a good Offer on a Boston condo for sale
Purchasing a Boston condo for sale can pose various challenges and differs substantially from the purchase of single-family homes.
As with any other purchase, composing an offer for a condo requires some preparation, especially the thorough studying of the condo association rules and other documentation relevant to the condo, as well average prices of condos in the area.
First of all, you must thoroughly study all the documents related to the condo and the rules, decisions, and directives of the condo association. You should also check how long the property has been on the market.
The level of interest for purchases of similar properties in the area, how pressed the seller is to achieve a quick sale, as well as potential experiences of existing condo owners will all give you a better understanding of what your offer should be. Some of this information may not be readily available. However, relying on experienced agents and realtors with specialized knowledge of the market is your safest bet to securing a good deal.
Once you feel confident that the condo meets your requirements, prepare your offer and submit it. It is a known fact that the sellers always start with a higher asking price. If you have well researched the current average prices in the area, you should be able to come up with a reasonable offer. The standard practice is to go between 5 and 7% below the asking price and start negotiations. If you are serious about buying the condo, do not try to lowball and come up with a price that will be unacceptable to the seller. Leave enough room for negotiation.
Your offer, especially if you are assisted by a realtor, should be an informed one. It should explain why you are offering a lower price than listed, and if possible, with some comparisons of similar properties in the area. The offer is treated as official when dated and signed by both parties.
Your realtor should help you draft the offer containing all the relevant elements, such as the main terms of the sales and purchase agreement, eventual deposits, preconditions for closing and closing dates, representations, and warranties.
The seller might come up with their own counteroffer or agree to start negotiations. It’s not very common for the first offer to be accepted, and negotiations are practically an omnipresent element of any real estate purchase. The seller’s counter-offer may be a good indication of how much they are willing to go down with the selling price. Consult with your agent and analyze this counter-offer and, if you think there is room for talks, try to come up with a new offer.
In case there is another interested party, you should be careful and ready to enter a bidding war. Obviously, this is a scenario that suits the seller, who may try to get the potential buyers to bid against each other and raise the price. The presence of more than one potential buyer is not a bad thing in itself, but it does call for caution. Don’t allow yourself to get carried away in the bidding process. Remain within the boundaries of the price you have decided upon before submitting the offer. Otherwise, you might eventually win but then regret the fact that you have overpaid the property.