Let's start with a story about a family that made an offer in Lexington. They found a home they loved. The school district was great, and the commute was reasonable. They felt that if they included an inspection period, they might lose out to other offers. Ultimately, they submitted an offer without conditions. After closing, a roof leak was discovered. The repair costs were higher than expected.

The Lexington housing market is indeed competitive. According to Zillow, as of May 31, 2026, the average home value in Lexington is $1,581,167. Listings typically go pending within an average of 15 days. The sale-to-list price ratio is 1.017, indicating that homes often sell for more than the listing price. As of June 30, there are 158 active listings, with only 4.4 months of inventory available. This signals a seller's market.

In such a market, skipping inspections is not uncommon. The NAR's survey of first-time homebuyers shows that many forgo inspection contingencies due to competition in the seller's market. The issue is that structural problems like roof, plumbing, and electrical issues do not disappear just because one condition is removed from the contract. Instead, it may be worth considering a shorter inspection period or adjusting conditions for an informational inspection.

The speed of 15 days to pending is also noteworthy. If you start viewing listings without pre-approval, it can be hard to keep up with this pace. By the time you find a home you like, it may already be too late. It's essential to compare rates from at least three lenders and get pre-approved before starting to view properties.

While the purchase price itself is a burden, property taxes should not be overlooked. The average effective tax rate in Massachusetts is around 1.11%. For a home priced at $1.58 million, annual taxes could exceed $17,000. If you only calculate the mortgage principal and interest and forget this number in your budget, you may be surprised when you receive your first tax bill after moving in. You should budget for total living costs, including insurance and maintenance.

Closing costs are similar. Typically, they range from 2% to 5% of the purchase price, which can mean $30,000 to $70,000 or more in this price range. If you focus on meeting the down payment and check closing costs too late, your entire financial plan could be disrupted.

It's safer to postpone significant expenditures until the contract is finalized. Making large purchases like a car or significant credit card payments during the contract period can affect your debt-to-income ratio and may change loan terms at the last minute. It's also better to finish comparing lenders at this stage.

Sometimes, buyers pour all their savings into the down payment. If issues arise with the boiler or plumbing right after moving in, you could find yourself without funds to address them. It's wise to keep a few months' worth of living expenses separate from the down payment.

For families who have experienced real estate transactions in Korea and are settling in the U.S., the structure of sellers choosing from multiple offers may feel unfamiliar. While some do use personal stories in their offer letters to appeal to sellers, this does not mean that you should entirely forgo inspection or financing conditions. Deciding how far to compromise on conditions should be based on your budget and risk assessment.

Even within the Boston commuting area, Lexington is a place where homes sell for a premium based solely on the school district. This makes resale relatively easier, but if you plan to live there for a short time or may move to another area in the future, it's better to assess whether you can afford this price range in advance. The first question that comes to mind is, 'Is it right to buy now at this price, or should I wait a bit longer?' Given that inventory is still tight at 4.4 months, it's hard to say that waiting will significantly reduce competition.

Lexington is a region where many families move in for the school district. School district boundaries change frequently, so be sure to check the assigned school for the address before purchasing. By addressing inspections, pre-approval, taxes, and closing costs in advance, you can make informed choices even in a competitive market. This article is not investment or legal advice, and it is advisable to consult a real estate professional before finalizing any contracts.