Recently, there was a case where a family trying to contract a condo in Cambridge faced difficulties due to choosing the wrong agent. The agent was only skilled in single-family home transactions and failed to properly address the characteristics of Cambridge's unique condo conversion buildings, which are old single-family homes divided into multiple units. Since the structure shares common roofs and plumbing among several units, it is essential to check the condo association's financial status, but this aspect was overlooked, and the contract proceeded.

Even within Cambridge, the situation varies depending on the neighborhood. Areas closer to Harvard or MIT have many old condo conversion buildings, while the outskirts have a higher proportion of single-family homes. In some cases I observed, there were instances where the same criteria were applied without distinguishing between the two types, leading to unexpected special assessment notices from the condo side.

Looking at the market, the median sale price in Cambridge is around $1,309,000, with condos averaging $855,000 and single-family homes reaching an average of $3,190,000. Properties typically sell in an average of just 19 days, and the selling price is about 101.4% of the asking price. This indicates that it is still a competitive market where offers need to be made quickly.

In such a fast-paced environment, it is becoming more common to skip inspections or waive conditions when signing contracts. Over nearly 20 years of observation, this pattern has repeated every time the market heats up. For condos, it is safer to receive inspection reports along with the association's financial documents. For single-family homes, it is crucial to check the condition of the roof and foundation.

The average effective property tax rate in Massachusetts is reported to be around 1.23%, but Cambridge often has a higher proportion of commercial tax sources, leading to residential tax rates that differ from other suburban towns. It is advisable to verify the exact tax rate directly with the Cambridge Assessor's Office before signing a contract.

Viewing properties without pre-approval is also risky in this market. Since it is common for offers to exceed the asking price, if loan documents are not prepared, it is easy to miss out on desirable properties. It is wise to compare estimates from at least three different lenders rather than just one, and to prepare for closing costs, which typically range from 2% to 5% of the sale price. In the previously mentioned condo contract case, the family eventually switched to another agent with more condo transaction experience when looking for a second property, starting by gathering the association's financial documents first.

If you are looking into school districts preferred by Korean families, it is important to consider how the lifestyle differs based on whether it is a condo or a single-family home, along with the school district ratings. School district boundaries change frequently, so it is advisable to verify the assigned school for the specific address before signing a contract. The school assignment process in Cambridge operates slightly differently than in other areas, so it is more accurate to inquire directly with the school district rather than relying on real estate agents.

For investors looking for rental income, the risk of vacancies is low due to the proximity to universities, but there may be rental restrictions or minimum lease periods set by condo associations, so it is essential to check these before signing a contract. Since the market cannot be assumed to always rise, it is safer to review recent rental trends and vacancy rates before making a decision. Based on nearly 20 years of experience observing this market, Cambridge has seen fluctuations in cycles, but the unique rental demand from the university area has never disappeared.

If you are newly immigrating from Korea and preparing for your first settlement, you may be at a disadvantage in loan conditions due to a short credit history, so it is better to focus on building your credit score rather than rushing into a contract. It is also advisable to avoid making large expenditures just before signing a contract, as fluctuations in debt-to-income ratios during the loan approval process can change the terms. Remember not to exhaust all your reserves for the down payment. This article does not constitute investment or legal advice, and it is recommended to consult with a professional before entering into any contracts.