If you’re a potential Boston condo buyer today, there’s some welcome news for the Fall 2022 buying season. Even though it’s still a Boston condo sellers’ market, it’s a more moderate real estate market than last year. And the days of feeling like you may need to waive contingencies or pay drastically over asking price to get your offer considered is coming to a close.
In today’s Boston condo for sale market, you should have less competition and more negotiating power as a buyer. That’s because the intensity for Boston condos for sale demand and bidding wars is easing. Here are two trends that may be just what you need to re-enter the condominiums for sale market.
Over the last two years, Boston condo buyers were willing to skip steps in the home buying process, like the appraisal or inspection, to try to win a bidding war. But now, fewer people are waiving these.
The latest data from the National Association of Realtors (NAR) shows the percentage of buyers waiving their home inspection and appraisal is declining. And a recent survey fromrealtor.com confirms more sellers are accepting offers that include these conditions today. According to their latest study:
- 95% of sellers reported buyers requested a home inspection
- 67% of sellers negotiated with buyers on repairs as a result of the inspection findings.
This goes to show Boston condo buyers are more able to include these conditions in their offers today and negotiate as needed based on the outcome of the inspection.
Generally, closing costs range between 2% and 5% of the purchase price for the home.
Before the pandemic, it was a common negotiation tactic for sellers to cover some of the buyer’s closing costs to sweeten the deal. This didn’t happen as much during the peak buyer frenzy over the past two years.
Today, as the market shifts and demand slows, data from realtor.com suggests this is making a comeback. A recent article shows 32% of sellers paid some or all of their buyer’s closing costs. This may be a negotiation tool you’ll see as you go to purchase a home. Just keep in mind, limits on closing cost credits are set by your lender and can vary by state and loan type. Work closely with your loan advisor to understand how much a seller can contribute to closing costs in downtown Boston.
Regardless of the extremely competitive housing market of the past several years, today’s data suggests negotiations are starting to come back on the table. This is good news if you’re planning to enter the housing market. To find out how the market is shifting in downtown Boston, let’s connect.