Limited inventory and a very strong demand for metro Boston housing has created an environment where bidding wars are commonplace.
In the recent past there was no incentive for prospective homebuyers to adjust their offers for 3 reasons:
- High to above average housing inventory levels
- Stable to slightly market-corrected home prices
- Low mortgage interest rates
Under these conditions Boston homebuyers could easily find another home to purchase if they lost out on their first choice.
In today's real estate market things have changed.
- Our housing inventory levels are at a near record low. If prospective homebuyers lose-out on a property, the next next house of interest may be some weeks, or even months out.
- Home prices are edging upward due to buyer demand so the likelihood is that the same house will cost more in the future.
- Mortgage interest rates are projected to move upward in 2013 which will mean the cost of buying the same house later on will be higher.
All this is to say that if you as a would-be homebuyer are truly in love with a property, it's probably OK to raise your offer as opposed to waiting for a similar property to come on the market sometime in the future provided it is well priced today.
Only real estate professionals who are members of NATIONAL ASSOCIATION OF REALTORS® may call themselves REALTORS®. All REALTORS® must subscribe to NAR’s strict code of ethics, which is based on honesty, professionalism and the protection of the public.