The current Boston luxury condo market is still rolling along with multiple offers and overbidding on a majority of luxury condos in Boston. And many buyers are asking: How many offers does it take to buy a condo?
I’ve heard some agents talk about having to write 10+ offers before their clients had one accepted. But all I can offer is my own experience and track record, which I thought I would share.
In general, my rule of thumb is that if you’ve written five or more offers and haven’t yet had an offer accepted, you may want to pause and reconsider your strategy.
It usually takes one or two submitted and rejected offers to encourage you to evaluate your strategy. Much will depend on your financial resources and risk tolerance, as well as how prepared you are and how flexible you can be in your Boston luxury condo choices. For example, if you have more of a condo budget and are trying to purchase a town-house, it’s likely you won’t be successful. Know your average sale prices, and don’t just give it a shot because the list price seems to be within range. What’s key is the ultimate selling price, which will be significantly higher if others are interested.
And if you’re going in with a standard 20% down, 21-day loan approval/30-day close and inspection period, know that in a situation where there are disclosures distributed in the double digits, it will be unlikely that you’ll have your offer considered as is unless you’re offering an extremely competitive price.
The underlying key to all this home-buying stuff is knowing the values in your neighborhoods of choice, and being flexible in what you can live with. Yes, there are many cash sales happening, but most buyers are getting loans. In that case, there’s an element of compromise involved no matter what your budget may be, especially when you’re faced with low inventory and lots of buyer demand. Your only choice is to suss out the less obvious housing prospects and avoid crazy multiple-offer situations that will end up beating you down. So if you’re about to submit offer #10, you may want to refocus your energy and aim for more realistic possibilities as you continue your house hunt.