An educated buyer is an empowered buyer! The thing with real estate, is you never know when opportunity will strike. Being prepared both with the market knowledge and financially having your ducks in a row are two ways a buyer can be ready for the opportunity! Here are 3 tips buyers can utilize to find a deal:

1. Learn the market! Go out and see everything at your price point. There is a huge value to having seen recent sales in person, than reviewing sale comparables just online.

2. Avoid the competition and pursue properties sitting on the market! Far too often, great properties sit on the market because they are either poorly marketed, over-priced, or both. They are likely to later sell at a drastic discount as a result of being stigmatized from days on the market. Viewing homes with high days on the market gives the buyer stronger negotiation power against the seller, and is an opportunity to bid non-compete and lowball!

3. Do the work! Why pay a premium for someone else's renovation? The great thing about real estate is that it is tangible. A buyer can walk in, and see exactly how they can add value. The buyer can review recent sales of similar properties that are fully renovated and estimate the resale value of any potential property that needs renovation. This by far is the best way to make money in real estate.

About the Author | Ryan J. Glass

Ryan J. Glass is a top-producing Boston luxury real estate agent with Gibson Sotheby's International Realty, specializing in the South End, Back Bay, and Beacon Hill neighborhoods. An experienced listing agent and buyer representative, Ryan specializes in luxury condominiums, historic brownstones, and high-end residential properties throughout Boston. Recognized among the top 1.5% of real estate professionals nationwide by RealTrends and named to the National Association of REALTORS® 30 Under 30, Ryan brings extensive expertise in property valuation, strategic pricing, luxury real estate marketing, and negotiations. His market insights help Boston homeowners, buyers, and sellers make informed real estate decisions.

Learn more about Ryan J. Glass and his Boston real estate experience

The rise in interest rates has been a challenge for many buyers during their home search. There are a few solutions that buyers can utilize to keep their payments affordable.

First, consider using a local bank. Local banks often have more competitive rates because they do not always sell your loan after closing.

Another potential solution is negotiating that the seller pays your loan points. Loan points are a way of buying down the interest rate, which in turn, lowers your monthly payment. Rather than negotiate a reduction in sales price, which when spread over a 30-year mortgage has little impact on the payment itself, negotiate seller-paid loan points instead.

Last, consider an adjustable-rate mortgage. City buyers especially tend to sell within 3-5 years of purchase. Ask yourself how long you will actually own the property. If it is less than 10 years, explore adjustable rate mortgage options that provide a 5-year, 7-year, or 10-year fixed rate at a lower price than a 30-year fixed mortgage. 

About the Author | Ryan J. Glass

Ryan J. Glass is a top-producing Boston luxury real estate agent with Gibson Sotheby's International Realty, specializing in the South End, Back Bay, and Beacon Hill neighborhoods. An experienced listing agent and buyer representative, Ryan specializes in luxury condominiums, historic brownstones, and high-end residential properties throughout Boston. Recognized among the top 1.5% of real estate professionals nationwide by RealTrends and named to the National Association of REALTORS® 30 Under 30, Ryan brings extensive expertise in property valuation, strategic pricing, luxury real estate marketing, and negotiations. His market insights help Boston homeowners, buyers, and sellers make informed real estate decisions.

Learn more about Ryan J. Glass and his Boston real estate experience

Boston is a global city and attracts people worldwide for its opportunities in education, healthcare, pharmaceuticals, technology, and finance.  This diverse economy keeps the demand for housing high. Watch “Boston by the Numbers” to learn about Boston’s past performance during times of turmoil.  Buyers should be taking advantage of their opportunity to search in a softer market. The increase in inventory, the reduced pressure to purchase, and the stronger negotiation power makes now an ideal time to buy!

1. More Inventory

The rise in interest rates has caused a decrease in demand and a slight increase in inventory. This has created an opportunity for buyers to actually have choice in their housing search. The bidding wars have declined, and buyers have the chance to bid on properties non-compete.

2. Less Pressure

Even more luxurious, buyers currently have the ability to take their time. This is different from the typical scenarios of the previous market where buyers were viewing the property at the open house and then having to bid by the Monday or Tuesday offer deadline.

3. Less Competitive

Having fewer buyers in the market has reduced the competition buyers typically face from international buyers, cash investors, and buyers relocating to Boston for work. This decrease in demand has allowed buyers to have much stronger leverage against the seller in negotiations. 

About the Author | Ryan J. Glass

Ryan J. Glass is a top-producing Boston luxury real estate agent with Gibson Sotheby's International Realty, specializing in the South End, Back Bay, and Beacon Hill neighborhoods. An experienced listing agent and buyer representative, Ryan specializes in luxury condominiums, historic brownstones, and high-end residential properties throughout Boston. Recognized among the top 1.5% of real estate professionals nationwide by RealTrends and named to the National Association of REALTORS® 30 Under 30, Ryan brings extensive expertise in property valuation, strategic pricing, luxury real estate marketing, and negotiations. His market insights help Boston homeowners, buyers, and sellers make informed real estate decisions.

Learn more about Ryan J. Glass and his Boston real estate experience

1. Lending Has Been Strict Since 2008

Talk to anyone who has purchased a home since 2008, they will share with you how difficult it is to be approved for a loan. The lending process is stringent, and the majority of buyers who have purchased since the housing crisis were extremely well qualified. These stricter lending requirements have drastically reduced the probability of foreclosures or short sales.

2. Higher Down Payments

Due to stricter lending, many buyers over the past decade have had higher down payments. The 2008 housing crisis was a direct result of predatory lending. Many buyers had low down payments if any downpayment at all. In 2008, many owners walked away from their properties easily because they had no financial investment in the property itself. This created an oversupply of foreclosures and distressed properties on the market. Property owners who invested greater funds at the time of purchase are more likely to "fight" to keep their home, even during times of financial difficulty.

3. High Equity

The majority of owners today have high equity in their homes. In the past 5 years, the median sales price for a condo in Boston has increased 20.83%. In the past 10 years, it has increased 76.82%. (Source: MLS Total Sold Market Statistics) This high equity is greater protection for sellers and provides sellers with more financial options during times of distress. Unlike in 2008, when many sellers owed more on their mortgage than the home's actual value.

4. Record Low Interest Rates

The majority of homeowners are locked in at record-low interest rates, as low as 2-3%. These low rates have made payments very affordable for most homeowners. Many homeowners are choosing not to sell due to how low their monthly payment is. This is keeping housing inventory levels lower while keeping housing demand high. Even in this current market which is slower than typical, we still have an inventory shortage. The bidding wars may have slowed down, providing buyers more options than they've had, but there is still an inventory shortage.

5. High Rent

Rent in Boston is extremely high. Owners today have much stronger leverage than they did in 2008. With high equity in their properties, and with low monthly payments from historically low interest rates, property owners can easily wait out market conditions by renting out their property, rather than selling below market value. Essentially, the majority of property owners in the city have great cash-flowing investment properties.

About the Author | Ryan J. Glass

Ryan J. Glass is a top-producing Boston luxury real estate agent with Gibson Sotheby's International Realty, specializing in the South End, Back Bay, and Beacon Hill neighborhoods. An experienced listing agent and buyer representative, Ryan specializes in luxury condominiums, historic brownstones, and high-end residential properties throughout Boston. Recognized among the top 1.5% of real estate professionals nationwide by RealTrends and named to the National Association of REALTORS® 30 Under 30, Ryan brings extensive expertise in property valuation, strategic pricing, luxury real estate marketing, and negotiations. His market insights help Boston homeowners, buyers, and sellers make informed real estate decisions.

Learn more about Ryan J. Glass and his Boston real estate experience