Real estate prices are cyclical. Prices rise, they fall, and then they rise again in many markets in and around Boston. There is no perfect way to perfectly anticipate the real estate market. But, by following these tips, you can increase your odds of buying real estate at a price you can afford.

1. Determine Your Bid Price and Your Maximum Price

Buying real estate is a negotiation. It is a series of offers and counteroffers. Strategically place a bid that is not too farfetched so the property owner can take you seriously, but not too high so the counteroffer does not exceed your budget. Know what your maximum price is and stay below it.

2. The Trend is Your Friend

The real estate market responds to micro- and macro-economical forces. Know whether real estate prices are trending up or down. Odds are real estate prices will continue to follow their current pattern in the short term. Ask an agent if you’re unsure what the recent trends have been in your area. You can also download our free market report to give you a snapshot of prices in many Boston communities. 

3. Ask About ‘Hidden Fees’

A lot of potential homeowners only pay attention to their mortgage. While this is certainly important, remember there may also be property taxes, utility bills, transfer costs, and homeowner-association dues to think about. Ask your realtor about these and any other fees to get a comprehensive, all-in-one cost. You can also use resources like an FHA mortgage calculator to make sure you are getting the right estimates.

4. Remember Easter and Christmas

While every housing market is subject to regional factors, many realtors believe the early spring often corresponds with lower prices. This is a response to a general influx of houses becoming listed at the end of winter. Many realtors also recommend house shopping around Christmas. A lack of market activity—even if it is only for a short period—can lower the price. Plus, with the Christmas spirit in the air a seller may be in a generous mood!

5. Watch Rent Prices

If monthly rental payments in your area are going up, buying a home just became more attractive. If you can make lower payments toward owning a home outright than you would renting, why not work toward ownership? Learn more about rental prices in your area with our neighborhood market report.

6. Track Interest Rates

If interest rates are low, it may be wise to buy sooner rather than later. Remember that compound interest differs from annual interest. Lower interest rates today can have a savings ripple effect in the years to come.

The best time to buy a home is when you have found the right property and you can afford it. Follow these tips to better determine when it is the ideal time for you to become a homeowner. Ready to start? Check out our upcoming home buyer event next week!