While a Buyer’s Agent is prominent in driving a real estate transaction to close on behalf of their Buyer, any Buyer’s Agent worth their weight will set expectations with their client that a real estate transaction has its ups and downs – times of excitement, anticipation, surprise, and perhaps even some relief with closing.  A Buyer’s Agent assists in quarterbacking the overall flow of a transaction, and a key expectation that needs to be set up front with Buyers is that no condo is perfect.

One of the “ups” of a transaction for a Buyer is immediately following the signing of an Offer to Purchase.  Maybe there was a hard fought, but fair, negotiation that got the Buyer truly vested into the property, or perhaps it was an all cash transaction with little back and forth between Buyer and Seller.  Regardless, following the excitement of having a signed contract, a Buyer needs to mentally prepare for the various steps in the transaction process that are soon to follow, one of those being a property inspection.

Accompanying almost all Offers to Purchase real estate in Boston is a contingency that allows the Buyer to, at their own expense, conduct a property inspection.  A property inspection is one of several items of Buyer due diligence that is conducted between signing the Offer to Purchase, and execution of a Purchase and Sale Agreement.

A home inspection is typically performed by a Home Inspector that is licensed in the state of Massachusetts (see the Home Inspector Fact Sheet for more information about Home Inspectors in Massachusetts). It is beneficial for the Buyer to attend the home inspection in person, as this gives the Buyer the  opportunity to be in the property for an extended period of time, and get a true feel for the ins and outs of the unit, and the common amenities of the building. While the Buyer is still riding that “high” of having a signed Offer on the unit and moving forward in the real estate transaction, the property inspection has the potential to put a damper on the situation.

The Property Inspector will more than likely generate a “punch list” of items (be that small or large) that need attention in the unit. Seeing a list of items that are “wrong” with a condo can oftentimes intimidate a Buyer, and can move the transaction into one of the “downs” that we talked about earlier.  However, if expectations are set up front with a Buyer that no condo is perfect, seeing a list of items that need to be fixed may not be all that shocking.  As well, there are multiple ways to respond to such a situation.

At this point in the transaction, all parties should be moving forward in good faith, so unless there are “deal breaker” items on the list, it’s in the best interest of everyone to try and work things out.  Following the inspection, essentially, there is another round of negotiations that take place whereby the Buyer and Seller agree on a means to appropriately address and/or correct the punch list items – be that with immediate repair, or a credit at closing for instance.

A Buyer should feel comfortable giving the Seller an opportunity to respond to items that arise from a property inspection. Bear in mind, the Seller has taken the unit off the market, and all marketing activity for the property has been significantly dialed back.  That said, the Seller, if faced with reasonable requests, will want to come to an amenable solution to the situation in order to see the transaction continue, rather than putting the unit back on the market after having lost viable “selling time”.

Armed with this information, and realistic expectations that no condo is perfect, a Buyer can more easily traverse some of the ups and downs that are an inevitable part of a real estate transaction.

We oftentimes work with clients who need to purchase and physically move into a condo almost immediately.  With those circumstances in mind, the typical one to three month real estate transaction life cycle is simply too lengthy, and alternative options need to be considered to expedite the closing process.  For the majority of Boston condos, there is an individual Seller associated with each unit, and oftentimes, when the Seller’s timeline is taken into account along with the Buyer’s desired (expedited) timeline, there’s simply a mismatch.  Situations like this can be specifically addressed by what we call move-in ready condos.

Move-in ready condos (in the sense that a Buyer can move in immediately versus simply being in good physical condition) are typically only found in new condo developments that have completed construction (a certificate of occupancy has been issued), and there are available units in the building still owned by the developer.  In situations like this, the only thing between you and sitting down in your new home is a Purchase & Sale Agreement, and financing if it will be a part of the transaction – essentially, any roadblocks and/or delays that would be due in part to (traditionally) dealing with an individual unit owner are removed, and the Buyer is the only party that is truly throttling the speed of the transaction.

There are over 100 either new, or relatively new, condo developments in downtown Boston, however, the list of truly move-in ready developments (as described above) is significantly shorter.  We’ve assembled the below list of the top move-in ready Boston condo developments.  Contact us using the link at the top of this page for more information about available inventory in each building.  Click on any of the developments below to get more details (including a google map) of the property.

• Lofts at 36 A (South Boston)
• 285 Columbus Lofts (Back Bay)
• Meads of Commonwealth (Back Bay)
• Broadluxe (Financial District)
• Macallen Building (South Boston)
• 700 Harrison (South End)
• The 1850 (South End)
• Penny Savings Bank (South End)
• D4 Police Station (South End)
• Claflin Building (Beacon Hill)
• Intercontinental Residences (Waterfront)
• FP3 Boston (Seaport District)
• Allele (South Boston)

If you have taken the opportunity to sign up for email property updates from the Boston MLS (giving you access to address information, taxes, and other pertinent property details not readily available in generic MLS access levels), you have probably seen the various three letter codes that are used to designate the status of a listing in the Multiple Listing Service (MLS) system – ACT, PCG, etc.

We’ve received several inquiries lately as to what each code stands for, and wanted to provide a quick punch list with this information for your reference.

ACT: Active
NEW: New*
PCG: Price Change*
BOM: Back on Market*
EXT: Extended*
RAC: Re-activated*
WDN: Withdrawn (temporarily)
BUP: Offer to Purchase Accepted, back-up offers welcomed

* reverts to Active status after 3 days

UAG: Under Agreement
SLD: Sold
EXP: Expired
CAN: Canceled

To gain access to listings that match your search criteria (neighborhood, price, square footage), sign up for Boston MLS updates.

Although a home buyer signs and initials many documents en route to buying a home, the purchase and sale agreement, also known as the “P&S”, is the primary document that sets out the terms and conditions of the agreement between a buyer and seller.

The pre-printed document is titled “Standard Form Purchase and Sale Agreement,” but there isn’t anything “standard” about this document that a buyer most commonly signs first, followed by the seller.

Frankly, the standard P&S is written primarily to benefit the seller, and home buyers are wise to retain an attorney to make modifications to the P&S that will protect their interests. The following are just four things home buyers should be aware of concerning a P&S.

1. Under common law, the buyer bears the risk of loss, if the property is destroyed/damaged by natural disaster or fire between the signing of the P&S and closing. An attorney can add language that transfers the risk of loss back to the seller, who should have a home owner’s insurance policy that covers the property.
2. The standard P&S has a provision that gives the seller 30 days beyond the scheduled closing date to correct a title issue that may arise before closing. Without additional language added to the P&S agreement limiting the seller’s ability to extend the closing date, the seller could extend the closing date past the buyer’s interest rate lock date, which could result in the buyer paying a higher interest rate or no longer qualifying for the loan and risking the loss of his or her deposit.
3. Many times, through no fault of the buyer, lenders fail to provide the necessary financing in time for the scheduled closing date. Although the closing may happen only a day or two later, technically the buyer is in default and the buyer’s earnest money deposit is in jeopardy. A seller could decide to take the buyer’s deposit and put the home back on the market or decide not to sell. A simple provision providing the buyer with an additional two or three business days to close, if the buyer’s lender is not able to close by the closing deadline, could protect the buyer’s deposit.
4. The buyer should include a provision that the seller is representing that there is no unresolved litigation or regulatory hearings involving the property or any knowledge of complaints or notices of violations of local, state or federal by-laws, ordinances or laws concerning the property. Such a provision is important because a seller could fail to disclose such an issue, which could cloud the title, and then, if the seller could not resolve the issue, he or she could use their right to extend the date of delivery of the deed (closing date).

This guest blog post is courtesy of Rich Rosa, a Massachusetts lawyer and real estate broker, and Partner in the law firm, Rosa & Kres, LLP. For more information about Rich Rosa, read his About page on the real estate law and brokerage blog that he maintains.

Interested in buying a condo in a new Boston condo development? Have you considered working with a Buyer’s Agent, or do you want to buy directly from the development’s sales center staff (i.e. the seller)? You should think twice before moving forward without a Buyer’s Agent representing you exclusively.

If you’re a real estate agent yourself, or a professional real estate investor, it might very well make sense to “go it alone” when buying into a new condo development, but for the majority of the buying public, it’s wise to leverage a Buyer’s Agent not associated with the development’s sales center.

Why would you want to do this? Let’s look at some of the reasons why using an exclusive Buyer’s Agent is something that you should seriously consider.

• The price you pay is the same if you are buying a condo with Buyer’s Agent representation or through the sales center. It is oftentimes misunderstood that you will get a better price buying directly from the sales center without a Buyer’s Agent present – this is almost never the case since developers want to create a win-win relationship with the thousands of Buyer’s Agents and their clients across the city.

• Having an independent Buyer’s Agent (not directly affiliated with the condo development like someone from the sales center staff) protects you from being pressured into any one particular condominium project. Remember, the sales center staff are employed by the project developer and are compensated for selling only units from their development. An independent Buyer’s Agent, on the other hand, gets paid (not by you, but by the Seller) regardless of which development you buy, thus, advice and analysis of the entire market, including other developments, will be more objective.

• A Buyer’s Agent can assist in a lot of the legwork before you make your decision. Buyer’s Agents answer questions like what’s a fair price per square foot for this area and comparable quality, what do comparable condos now on the market look like, what new listings are on the horizon, is this a building all the agents are talking about as an investment for themselves, how would this specific unit and layout appeal to future buyers, etc.

• A Buyer’s Agent is also a project manager. Buyer’s Agents work on your behalf, representing your best interests exclusively, throughout the entire buying process.

All this sounds too good to be true, right? What’s the catch for the Buyer, how is the Buyer’s Agent getting paid for their work? The answer to this is simple; the Seller/Developer pays the Buyer’s Agent. When a Listing Agent (the party responsible for representing the Seller/Developer in marketing the condo development) takes the listing, the Listing Agent and the Seller agree upon an overall transaction commission, which includes payment for the Listing Agent’s services, as well as those of the Buyer’s Agent. That’s right, a Buyer does not pay any out of pocket expenses to have an expert exclusively represent them.

This all makes sense you say, so who do you work with? Boston Condo Guy is looked at and respected in the Boston real estate market as one of the top information sources for downtown condos and condo developments. Boston Condo Guy is recognized by not only Buyers and Sellers as a great information source, but Agents, Brokers, and Developers come to Boston Condo Guy to find out the latest information about the Boston condo market – this speaks volumes. Boston Condo Guy is a leader in online technology, and provides professional representation throughout the entire buying process. Learn more about Boston Condo Guy.

A client recently inquired about how Boston property taxes are calculated, which is an excellent question. The City of Boston has an Assessing Department that is responsible for accurately determining the value of all real and personal property located within the City for the purpose of taxation. The City takes the assessed value of a condo for instance, and applies a residential tax rate to it to determine the total gross tax bill.

The City of Boston publishes a residential tax rate table to assist in estimating your taxes based on your home’s assessed value. For 2009, for every $1,000 of assessed value in your condo, you are taxed$10.63. The trend over the past several years is that the tax rate is falling:

• 2009 Boston Property Tax Rate: $10.63
• 2008 Boston Property Tax Rate: $10.97
• 2007 Boston Property Tax Rate: $10.99
• 2006 Boston Property Tax Rate: $11.12

Let’s look at an example. Say you had a condo that was assessed at a value of $515,000, what would your tax bill look like?

• First, determine how many thousands are in your assessed value: $515,000 / $1,000 = 515
• Second, multiply every thousand by the tax rate of $10.63. 515 * $10.63 = $5,474.45

On a Boston condo that is assessed at $515,000, your gross tax bill is estimated to be $5,474.45.

Bear in mind that the City of Boston offers what is called a Residential Tax Exemption for those who occupy their condo as a primary residence. The tax exemption will decrease your yearly tax bill on the order of $1,375.36. Be cognizant that you do need to apply for the exemption on a yearly basis, it will not automatically be given to you.

With the Residential Tax Exemption, what would the tax bill be on your $515,000 condo? $5,474.45 – $1,375.36 = $4,099.09.

Use this information as a rough guide when calculating Boston property taxes – for more information, please contact the City of Boston Assessing Department.

If you have been looking for an intuitive way to search new Boston Condominium Developments, Boston Condo Guy provides users with a Google Maps based solution that is easy on the eye, and easy to use.

Boston Condo Guy offers listings of the most recent condo developments in Boston proper, with general listing information, as well as photos and floor plans. Your search for Boston Condo Developments just got easier!

A great way to keep up with the changes in the Boston real estate market is to receive daily property updates in your email directly from the Boston MLS system. This gives you the ability to keep up with what is happening with homes that are of interest to you (based on price, square footage, amenities, etc.), and if it is free, you cannot top that! Free Boston property updates via email are a convenient feature provided by Boston Condo Guy to help you keep your finger on the pulse of the Boston condo market.

Before you buy a condo, contact the condominium’s board with the following questions. By getting these questions answered, you will find out a lot about your potential neighbors, and the building that you are buying into – a valuable step in preparing to buy a Boston condo.

1. What percentage of units is owner-occupied? What percentage is tenant-occupied? Generally, the higher the percentage of owner-occupied units, the more marketable the units will be at resale.

2. What covenants, bylaws, and restrictions govern the property? What grandfather clauses are in place? You may find, for instance, that those who buy a property after a certain date cannot rent out their units, but buyers who bought earlier can. Ask for a copy of the bylaws to determine if you can live within them. And have your real estate attorney review property docs, including the master deed, for you.

3. How much does the association keep in reserve? How is that money being invested?

4. Are association assessments keeping pace with the annual rate of inflation? Smart boards raise, as appropriate, assessments a certain percentage each year to build reserves to fund future repairs. To determine if the assessment is reasonable, compare the rate to others in the area.

5. What does (and does not) the monthly Homeowner’s Association (HOA) fee cover? Typical items that one finds included in their HOA fee include, but are not limited to, common area maintenance, trash collection, master insurance, exterior landscaping, snow removal, recreational facilities, water, and sewer. Depending on what type of development you live in, such things as valet parking, concierge, a pool, and security, could increase your HOA fee.

6. What special assessments have been mandated in the past five years? How much was each owner responsible for? Some special assessments are unavoidable. But repeated, expensive assessments could be a red flag about the condition of the building or the board’s fiscal policy.

7. How much turnover occurs in the building?

8. Is the project in litigation? If the builders or homeowners are involved in a lawsuit, reserves can be depleted quickly.

9. Is the developer reputable? Find out what other projects the developer has built and visit one if you can. Ask residents about their perceptions. Request an engineer’s report for developments that have been reconverted from other uses to determine what shape the building is in. If the roof, windows, and bricks are not in good repair, they become your problem once you buy.

10. Are multiple associations involved in the property? In very large developments, umbrella associations, as well as the smaller association into which you are buying, may require separate assessments.

Should you ever find yourself in a situation where, during the purchase of a home, the home appraisal comes in low, what do you do? Educate yourself with tips on disputing an appraisal on your home. To have a low appraisal come back from your Lender’s Appraiser is somewhat of a rare happening, but it does occur on occasion, so prepare yourself for dealing with a low appraisal.