In Boston, homes typically receive an average of three offers and contracts are finalized within 20 days. This number simply means that there is little time to hesitate when you find a property you like. In fact, I have seen cases where, after losing out on two offers, buyers submitted a third offer without inspection contingencies and at a higher price. The contract was successful, but they ended up bearing the full cost of repairs, and they regretted not having time to review the details of the contract.

The median sale price as of June is $840,000, which is a 5.1% increase from the previous year. This means that the burden of closing costs is also increasing. Typically, closing costs range from 2% to 5% of the sale price, so for a home in the $840,000 range, buyers should prepare an additional $16,000 to $42,000. If all funds are allocated to the down payment, it is common to find a shortfall at the time of closing. Just looking at this number highlights how important it is to calculate down payment and closing costs separately from the beginning.

The effective property tax rate in Massachusetts is around 1.1%. This is somewhat higher than the national average, but it is moderate compared to high-tax states like Illinois and New Jersey. However, condos in downtown Boston often have separate HOA fees, so if property taxes and HOA fees are not calculated together, monthly expenses can be underestimated. Please verify the exact tax rate and management fees based on the specific unit. Given the city's many condos, when comparing properties, it is essential to consider not only the sale price but also the monthly HOA fees to accurately assess the actual burden.

In a market where an average of three offers are made, looking at properties without mortgage pre-approval can lead to wasted time. By obtaining pre-approval in advance and comparing rates from multiple lenders, you can be ready to make a competitive offer when the right property comes along.

In such a fast-paced market, rather than completely giving up on inspections, it may be worth considering a compromise by reducing the conditions. Keeping some reserves instead of exhausting all funds on the down payment can help address unexpected expenses after moving in.

Since the city has distinct differences in school districts and commuting conditions, it is often more stable to consider long-term living plans and resale potential rather than focusing solely on one property available right now.

It is easy to overlook that managing credit scores and debt ratios should continue even after obtaining pre-approval. Significant expenditures in the weeks leading up to closing can affect loan conditions, so it is safer to postpone expenses like opening new credit cards or purchasing vehicles until the contract is finalized. Instead of deciding based on the terms offered by just one lender, comparing at least three or four can show that even a 0.1 percentage point difference in interest rates can significantly change monthly payments for a home priced at $840,000.

Not pouring all reserves into the down payment is also an important habit. In a market with three offers, it is often necessary to leave room to increase the price, and if that extra money is already included in the down payment, it can weaken your negotiating power. By first organizing commuting conditions, school districts, and long-term living plans, budget allocation becomes much easier. In Boston, property prices can vary significantly even within the same commuting time frame based on subway accessibility, so comparing areas with public transportation routes can be practically helpful.

For school districts preferred by Korean families, please refer to GreatSchools ratings, but be sure to verify the assigned school for the specific address before purchasing. This is not investment or legal advice, and it is recommended to consult with professionals before finalizing any contracts.