How Does a Buyer Survive Hot RealEstate Market

How does a buyer survive a hot real estate market with  Bidding Wars, offers over asking, waiving home inspection or mortgage contingency are things you might have heard if your a buyer or have friends or family trying to buy a home in Mass and especially in Metro Boston, Cambridge and Somerville. Buyers need to adjust there home buying strategy and maybe it starts with putting offers in on single-family homes vs a Condo. Before we discuss why here are the pros and cons why someone would buy a condo vs a single family in the past. When a potential buyer was thinking about making the jump from renting to homeownership the first move due to the budget were often condos before buying a single-family home. Buying a condo was often cheaper for a first time homebuyer and less risky since you had the responsibility, but weren’t in it alone in taking care of the property.  Condo’s were great for single professional or couple starting out, and once they were starting a family then was the time to move into a single-family home and maybe spend a little bit more money for that larger home.  There was also a higher demand for a single-family home vs. condo, but the demand for both was healthy. Since the recession recovery, the demand for condos has become higher and the demand for single family home has become less. So much less than in some case you can buy a house for a lot less money than a condo or for the same but get more square footage and other amenities. There is also less demand for single-family homes and when there is less demand for something less likely to get into a bidding war.   If your a buyer want to own a home why don’t you walk in the opposite direction of the crowd and buy a home, but instead of a condo buy a single-family home and maybe avoid the bidding wars and keep some money in your pocket?  Here are some options.  

Jamaica Plain 4 Dresden unit 2 You could buy a 2/3 family on a quiet street that offers 2 bed 1 full bath deeded parking and outdoor space offering ample closet space, updated kitchen, high ceilings, private storage and offers 1,407 square feet of living space and is walkable to Centre Street, Jamaica Pond, Arboretum and so much more.  This 2/3 family condo just came on the market for $649,000

 

 

Or you could buy a single-family home at 11 Gay Head Street for 2,264 square feet for roughly the same price where the agent states in the listing Motivated seller which also could mean buyer you don’t have to put an offer in at the asking price so maybe you can avoid the bidding war. The home also offers large bedrooms with walk-in closet space, large living room, dining room and Kitchen. The bedrooms are staggered throughout the three floors and have hardwood floors throughout.  Offers parking and it’s more than one space to park.  Located close to Centre Street, Jamaica Pond and Arboretum.   Yes, the condo unit is pretty much-turned key ready, but your more likely going to pay more for the seller renovation and then you’re also dealing with competing for offers. So that condo priced at $649,000 is more likely to be sold for much higher than asking.  You could find yourself in the same situation when thinking about buying the single-family home, but the single family home has been on market 64 days asking $650,000 and hasn’t sold so if you buy the home in JP that is a single family home you might be able to buy a home for less than you might have paid for that condo, and have some money to put aside for renovations and still save.  

Dorchester Savin hill and Lower Mills  2/3 family at 2145 Dorchester Avenue Unit 3 in lower mills close to Carney Shops, award-winning dining, Bi-level condo offers tons of sunlight, generous foyer, two large bedrooms and full bath, living room and dining room, circular floor plan, Kitchen offers views of lower mills, hardwood floors that sparkle and gleams when the natural light hits them, generous rooms and spacious kitchen that has been redone offering granite counter tops, upgraded appliances, back porch, master bedroom suite that is enormous, Central A/C 2 zone heating, 2 parking spots and basement laundry and storage. The home is about 1900 square feet. This home has been on market for 56 days and is priced at $599,985

Single Family home also in the same area renovated 4 bedrooms 1 half bath and 2 full baths Located at 1051-R Washington Street in lower mills of Dorchester. There is also an additional small office with walk-in closet space. Every bedroom offers ample closet space, large clean basement, laundry room off kitchen space, and new patio with landscaped grounds. Tankless hot water system. There is no parking with the unit and it is slightly smaller 1606 square feet but it’s been on the market 26 days and on market for $569,000.  Both these listings came on the market and have not gone under an agreement which tells me neither home are priced right so a savvy buyer could put in an offer below asking and walk away with a pretty good deal and walk away not having to bid against someone else.  

Brighton like Dorchester is an area that has really changed over the years its gone from being the place college and young professionals call home when they are first starting out to a place where you find all demographics calling Brighton home.   For 710 square feet in Brighton, you could buy in a new development that has opened where 65% has sold out. Located high on the hill along one of Boston most historic streets 1650 Commonwealth Avenue Unit 207 Brighton MA  Common spaces are well maintained and just as inviting as the actual units. Quartz Countertops, high-end Jenn-Air appliances, and Ann Sach tiles. Floor plans that are well throughout allowing living and entertaining to mix perfectly. Hardwood floors throughout along with Central A/C, in-unit laundry, private outdoor space, and fitness center, resident lounge and secure parking along with elevator and roof terrace.  On market for $670,000, This home has been on market for 30 days.

For the same price, you could buy a home that is 1,392 square feet offers 3 bedrooms 2 full baths and 4 deeded parking spot Located at 76 Turner Street in Brighton. This single family home offers a front porch and a rear deck overlooking the yard. Hardwood floors throughout, Living room and kitchen and dining room flow into each other. Three bedrooms work great as bedrooms and fourth room works great as a baby room or office or den. There is even a basement area for storage.  The home does need some work done and has been on market only 4 days asking $670,000, but I would guess that a smart buyer could negotiate the price down leaving them the room they need to update the home to there liking and best of all avoid the bidding war. One could make the argument both the condo home and single family a buyer might both avoid the bidding war if a buyer put in an offer in so maybe you could walk away saving money  

Yes, none of these areas are Charlestown, Back Bay, Beacon Hill, South End but sometimes doing what the opposite of what everyone is doing in the market can save you money or be looking in areas that the majority isn’t looking in can be very beneficial. Everyone right now is buying condos and doesn’t want the single-family home, but the tide will change again where people buy the single-family more than the condo. You might say well we don’t need that much house right now, but chances are later down the road you will, and a person who plans longer down the road will save more.  It should be noted that if you’re determined to buy a condo you can find 2 beds as low as the mid to high 300’s range you don’t have to spend higher if you don’t want to. Single-family you’re looking at a starting point as the high 500 range and up in the areas I mentioned. If your tired of bidding wars entering the single-family buying market might be the answer to be done the bidding and start talking home inspections, mortgages and moving companies.  If you thinking about entertaining the buying market contact me and let’s start figuring out a plan that is opposite to what everyone else is doing.