According to data released by Redfin earlier this month, Boston is now the fifth most competitive real estate market in the country, ranking higher than Washington D.C. and New York City.
This is good news if you’re a home seller, especially since 69 percent of real estate offers in the Greater Boston area last month faced competition (up from 46 percent of offers that faced competition in May 2012.)
What does this mean for Boston home buyers? Be prepared to pay full asking price or well over asking. As in six figures over asking. Some Boston area homes have received offers $100,000 to $300,000 over asking price. Curbed Boston recently featured a West Cambridge home that sold for a whopping $1.3 million over ask. Yes, $1.3 MILLION over ask.
Redfin data confirms what Boston realtors are seeing on a regular basis: that more than half of all winning offers in the Greater Boston area last month, 56.5 percent to be exact, are over asking price.
And while summer just officially started, it seems as if the city summer heat has gone to some homebuyers’ heads.
In this competitive Boston real estate market, buyers are making potentially costly concessions. Redfin reported that more than 10 percent of recent Greater Boston buyers waived crucial contingencies, such as an inspection.
Waiving an inspection contingency is a risky move at best, given the number of older homes in Boston.
It also highlights the need to work with a good realtor. An experienced Realtor, like the ones at BostonPads, have the most current databases with thousands of real estate listings throughout the Greater Boston area. They can help you find the home right for YOU —even in a competitive market.
They’ll also help guide you through the entire home-buying process, so you make smart decisions not just in selecting the right Boston home, but for your financial well being as well.