The Boston housing market continues to be heavily watched nationwide, with a surge in home-buying activity and a shortage of available homes for sale. Despite some expecting reduced prices due to economic uncertainty, the market has experienced a shortage of available homes, resulting in increased competition among buyers. This has led to a phenomenon known as "bidding wars,” where multiple buyers compete to purchase the same property, often driving up the final sale price.
But who is winning in these bidding wars? It depends on the specific property and the buyers involved. In many cases, cash buyers or those with pre-approved mortgages have an advantage over those who need to secure financing. Additionally, buyers who can make quick decisions and move fast are more likely to be successful in their pursuit of a home.
The competition in the Boston housing market is expected to persist due to a need for more listings. To improve your chances of getting the best possible price for your home, we have gathered expert advice from the Ricardo Rodriguez & Associates team. These tips can help ensure your home investment pays off when it comes time to sell, especially through the year's first half.
Sellers also see the benefits of a hot market, with many homes selling quickly and for above the asking price. But this trend is wider than sellers of single-family homes and condos, even rental properties are seeing increasing demands.
What homeowners need to know
This can be a great opportunity for homeowners looking to sell their property. Still, they need to be prepared for the unique challenges and considerations of this type of market.
Set a realistic price point
One of the biggest benefits of a hot seller's market is that homes are selling quickly and for high prices. With more buyers than available homes, sellers can often receive multiple offers and sell their property above the asking price. However, it's important to be realistic about pricing and to work with a knowledgeable real estate agent to help determine the right listing price.
Due to the low inventory, buyers are often willing to pay a premium on the price, especially if the property is in great condition and well-presented. By setting a competitive, realistic price point as a home seller, you are more likely to receive multiple offers over asking and get the most out of the property.
Competition still exists
Even though Boston is experiencing a hot market, there is still competition among sellers, meaning homeowners will need to put in extra effort to make their property stand out. This may include staging the home, making any necessary repairs, and highlighting unique features or amenities. Additionally, sellers may need to be prepared to move quickly once an offer is made, as buyers will often have tight deadlines for closing a deal.
Consider the offers
Selling a home in a hot market can be both exciting and overwhelming, especially when you receive multiple offers from interested buyers. However, with the right approach, sellers can navigate the process and make the best decision for themselves and their families.
Here are a few key things to consider when evaluating multiple offers for your home:
- Cash offers come first: A cash offer from a buyer is one of the most attractive options for sellers. It eliminates the potential for issues with lender approval, which can be a common cause of delays and even fall-throughs. A cash offer also allows you to close the sale faster and with fewer contingencies.
- Buyer's overall financial strength: An offer price may look great on paper, but if the buyer doesn't have the financial resources to back it up, it may not be the best option. Consider factors like the buyer's credit score, the size of their down payment, and their overall financial stability. This can help you determine the likelihood of the deal closing successfully.
- Review "extras": In addition to the offer price, look for other factors that can help improve the deal for you. Some buyers may include contingencies in their offer, such as a home inspection contingency or a mortgage contingency. While these contingencies can benefit the buyer, they can also be restrictive for the seller. Look for offers with the fewest contingencies and ones with escalation clauses, as they can make the transaction faster and more efficient.
What does this mean for homeowners in the Boston area?
Yes, it's a good time to sell, as the high demand for homes will likely result in a good sales price. However, for those looking to buy, it's important to be prepared for competition and to work with a real estate agent who can help navigate the market and find properties that may be less competitive.
Overall, the current bidding war in the Boston housing market is a sign of a strong and robust market, with the winners being those who are able to navigate the challenges and find opportunities. It will be interesting to see how the market develops in the coming months and how the ongoing effects of the pandemic on the economy will continue to shape the market.
It's important to stay informed about how these factors may affect the buying and selling process and to work with a real estate agent who has experience in navigating the current market conditions. Working us at Ricardo Rodriguez & Associates, you'll be able to take advantage of the current market conditions and make the best decisions for you and your family. With years of experience and a deep understanding of the Boston market, our team has the expertise to help you navigate the complex and ever-changing landscape of the Boston housing market.