Multiple offers on residential real estate in the Greater Boston area may yet again be the norm. According to Redfin Real Estate, more than half of the real estate contracts written by the company’s agents last month wound up in some sort of a bidding war. For homes that were attractive to buyers, the prices rose steadily in March.
Right now, the Greater Boston area’s residential real estate market offers buyers essentially two groups of homes. The first includes older homes that could use some TLC and updating. Often, such houses are priced high. They also tend to remain on the market for longer periods of time. The second group includes recently renovated houses that are priced to sell. It is this market that has seen an increasing number of multiple offer scenarios in recent months. For example, a Redfin agent recently delivered a bid of $16,000 over the asking price on a home in Jamaica Plain during an open house. Three other buyers also submitted bids on the home.
The upswing in Greater Boston residential real estate prices is wonderful news for sellers. Quickly climbing prices can also can create headaches for both parties to a real estate transaction. In order to receive financing, a home with a high selling price must also receive a corresponding appraisal. This can be difficult when prices are rising quickly following a period of depressed market conditions. Because the Boston area generally has a longer closing cycle than many other parts of the nation, appraisers may have more difficulty tracking market conditions. This is due in part to the fact that any comparable home sales the appraiser may be reviewing are already at least two months old. Unfortunately, if a home doesn’t appraise for the agreed upon purchase price following a bidding war, a buyer is often left scrambling to come up with the difference in cash. If the buyer cannot make the deal happen, the seller knows another buyer who offered a similar price likely will.
Each Massachusetts property purchase is unique. There is a lot at stake both financially and emotionally for everyone involved in a residential real estate transaction. If you are considering selling your home, contact an experienced Massachusetts residential real estate attorney early on in the process. AMassachusetts real estate lawyer can help you protect your financial interests and avoid costly mistakes.
Contact the attorneys at Pulgini & Norton, LLP today if you are considering selling property in Massachusetts. Our knowledgeable Boston residential real estate lawyers can help you successfully negotiate the selling process and handle any unforeseen issues that may arise during your property transaction. Our law firm represents clients throughout Massachusetts including Bristol, Norfolk, Suffolk, Middlesex, and Worcester Counties. To speak with a skilled real estate attorney today, call Pulgini & Norton at (888) 344-2046. You may also contact our hardworking lawyers through our website.
Massachusetts Attorney General Calls for More Loan Modifications for Distressed Homeowners, Massachusetts Real Estate Lawyer Blog, April 19, 2012
Office Space on Boston’s Waterfront is in High Demand, Massachusetts Real Estate Lawyer Blog, April 13, 2012
Bidding wars the norm now?, by Scott Van Voorhis, Boston Globe
Bidding Wars Boost Boston Sellers’ Confidence, Incidence of Low Appraisals, Redfin Boston Sweet Digs dated April 20, 2012