Buying a Home: How Do You Know If You Are Ready?

If you have been searching for rentals in Boston in the last couple years, you may have noticed that it is tough. Inventory is limited and prices keep rising. There are three things renters can do. One: pay the rising rates. Two: look farther outside the city than originally planned. Three: stop renting and purchase. Many people today feel that investing in real estate is safer than investing in stocks and with good reason. Real estate in Boston has not been hurt as much as the rest of the country and rentals in the city are consistently in high demand. If you are on the fence on buying real estate, here are a couple signs you may be ready.

Buying real estate in Boston may be a better option than rentingOne: you know what you want. If you have a realistic idea of the size you need and the location where you want to live for the next few years and you  haven’t found it on the rental market, take a look at what is on the sales market. The rental market in Boston favors landlords. The inventory is limited and owners can get not only their asking price but also first month’s rent, last month’s rent, and security deposit (each equal to one month) and not have to pay a broker’s fee.

Two: you have the finances. The upfront costs of renting an apartment in Boston are higher than most cities around the nation. Many people looking for quality rentals in Boston  are surprised how little they get for the money. With many banks loosening restrictions on who can get mortgages, it is worth your time to speak with a mortgage broker about types of loans and available rates.

If you are weary of buying because you do not want to be locked into a mortgage on the chance your career moves you to another city, keep in mind that you could hold onto your home as an investment property. With a tenant paying rent, you can build equity while someone pays your mortgage for you.

Contact the Realtors of Matthew and Alisa Group Real Estate if you are interested in learning more about purchasing a home.

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A First-Time Home Buyer’s Emotions

Buying a home is one of the most stressful experiencesA dear friend of mine recently put in an offer on her first home. This could be the most emotional I have ever seen her and I was at her wedding. She was nervous, excited, and on edge waiting for the phone to ring with news from her real estate agent. She was buying her first home on the South Shore of Boston, an area beyond my expertise, so  my role was that of a friend, a friend who happens to be a Realtor.

The friend in me wanted to say something to help her feel better but the Realtor in me knew her situation was not traditional and somewhat intimidating for a first home purchase. The listing went on the market not long before she and her husband saw it. Because they were not pre-approved, the another offer was accepted before they could get their finances in order. Fortunately for them the offer fell through and they were able to put in their offer right away but so did another couple.

The house was listed using the uncommon method of value price range, meaning the owner would entertain offers between x and y. After they put in their offer, they learned the owner would not provoke a bidding war; he would look at each parties’ best and final offer before choosing the one he liked most. Talk about nerve racking! Of course the listing agent could not disclose what the other offer was so they had to blindly decide what the other couple’s best offer could be and make theirs a little better.

All I could say, as her hand was glued to her phone, was, “Worst case scenario, you don’t get the house. Best case scenario, you bought your first home. But either way, once you know, you will know what to do next.”

Buying a home can be stressful, emotional, and overwhelming whether it’s your first home or your fifth home. One source of comfort through this experience should be your Realtor. This was my friend’s first home buying experience and she was grateful to have an agent that she was completely comfortable with, felt confident in, and knew was in their corner.

We at Matthew and Alisa Group Real Estate understand the emotions that can go into buying a home. We are available to discuss the process of buying property and specialize in assisting first-time homebuyers.

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