Most of you are familiar with the basic economic principle of supply and demand. When the demand for a particular item is greater than the supply of that item, the price will surely rise.
This principle couldn’t be more true in the current Boston real estate market. The demand to buy a home is strong and getting stronger while the supply of inventory is well below historic norms.
Buyers are facing a very competitive market in which they are competing with multiple buyers for their dream homes. That is if they are even able to find a home they wish to purchase. With such a shortage of new and active listings, homes that are on the market are being snatched up quickly at top dollar!
In this market, a seller may hold a major negotiating advantage when it comes to price and other aspects of the real estate transaction. Listing your house for sale now will allow you to capitalize on the shortage of homes for sale, which will translate into a better pricing situation.
Bottom Line: You as a potential seller, have a leg up! Consider listing your home.
Take the first step towards becoming a serious home buyer
Early in the home buying process (before you look at homes) it is important to consult a lender to evaluate your credit profile, get a sense for your true budget, and talk about loan options.
A mortgage pre-approval is proof that a lender is willing to make you a loan. With a pre-approval letter, real estate agents and sellers know you are a serious home buyer.
How to get pre-approved:
1. Before seeking pre-approval, you must first obtain your credit score and credit history report to spot any errors or potential issues. Your credit score affects your ability to qualify for different types of loans and receive favorable interest rates. Lenders will often work with borrowers with a low or moderately low credit score and suggest ways to improve or correct credit problems before applying for a mortgage.
2. Once you have pulled your credit score and have made any necessary improvements, you will then complete a mortgage application by supplying your lender with documentation that demonstrates your financial history and reliability, employment and personal information.
3. Typically the pre-approval process can take two to four weeks. From the data you provided, your lender will not only confirm your ability to qualify for a mortgage, but approve a specific loan amount and give you a better idea of the interest rate you will be charged on the loan. They will also give you a realistic understanding of the costs associated with buying a home so there are no surprises or disappointments. (Determine the maximum and minimum amount you can qualify for so you have the flexibility if you find your dream).
4. You will then receive a written conditional commitment for an exact loan amount, allowing you to begin looking for homes at or below that price level.
Bottom Line: A mortgage pre-approval letter proves that you already have backing and the ability to go through with the sale, which makes you a much more attractive buyer to sellers.
Here’s January 2017’s Monthly Indicators report from the Greater Boston Association of Realtors® showing Boston real estate market trends.
January 2017 Greater Boston Real Estate Market Trends
The Greater Boston housing market saw steady sales and healthy price appreciation along with a continued shortage of supply of homes for sale in January 2017. The condo market sales increased a modest 1 percent last month from 604 condos sold in January 2016 to 610 sold last month. This is the second consecutive month that condo sales have softened slightly, however this total was comfortably above the monthly average of 530 sold condos.The detached single-family home market saw a slight decline in sales in January as 828 homes were sold last month compared to January monthly record-high of 843 last year. This is a 1.8 percent drop; however the 828 homes sold is the second highest total for the month on record. It is the second consecutive month that sales have dropped slightly on a monthly basis.
- January condo sales UP +1.0%
- Median prices UP +12.8% ($500,000)
- Active Listings DOWN -29.1% to 1,218
- Listings added to the market UP +1.8% over last year (829 from 814 in 2016)
- January single-family home sales DOWN -1.5%
- Median prices UP +6.1% ($520,000)
- Active Listings DOWN -36.9% to 1,749
- Listings added to the market DOWN -2.0% over last year (909 from 928 in 2016)
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