8 Mistakes to Avoid as a First-Time Buyer in Boston

Buying your first home in Boston is an exhilarating experience that you will remember forever as an important milestone in your life. You are buying your piece of one of the most historic cities in America and joining the ranks of American homeowners.

Before you get wrapped up in all of the excitement and responsibility of homeownership though, make sure you do your research. To make things easier, below we’ve compiled the top mistakes to avoid as a first-time buyer in Boston.

Mistake #1: Waiting to get a pre-approval

The key to buying a home is being prepared. Whether you want to show a seller you are serious or win a bidding war, it is important to have a pre-approval from your mortgage lender ready to go when you start your Boston home search.

Not only does a mortgage pre-approval letter display you are a serious buyer, it also gives you self-awareness of what your true budget is. You will save yourself a lot of time if you aren’t looking at homes priced above your means. Conversely, you may realize you can afford more than you previously thought.

Mistake #2: Forgetting about real estate closing costs 

First-time homebuyers in the city of Boston are so eager to save up for their down payment that many forget that they will also need additional funds for closing costs.

While buyer closing costs in Boston are lower as a percentage of purchase price compared to other cities and states in the Northeast, they are an important cost to budget for when buying a home.

To learn more about real estate closing costs for buyers in Boston, read our blog post titled "Buyer Closing Costs in Boston - What You Need to Know".

Mistake #3: Not hiring a buyer’s agent  

Buying a home or apartment is in many cases the largest transaction of people’s lives. While seller’s agents may seem very polite and helpful, you should be aware that they represent the seller’s interests, not yours. 

Some buyers make the mistake of not having their own dedicated advocate during the homebuying process. To avoid any issues or conflicts of interest, interview and hire your own agent to represent you as a buyer. 

An expert buyer’s agent in Boston will help you from your early search all the way through closing, giving you advice every step of the way. 

Mistake #4: Not asking about commission rebates 

One of the biggest mistakes homebuyers can make is not asking their buyer’s broker about how they can save with commission rebates in Boston. The structure of a commission rebate is simple - your buyer’s broker gives you a portion of the commission they receive for representing you as a buyer.

In higher price point cities like Boston, commission rebates can equal tens of thousands of dollars in savings to you, the buyer. Commission rebates are legal in Massachusetts and 39 other US states, and they are a way for buyers to save significantly on the cost of their Boston home purchase. 

Prevu, a tech-enabled brokerage in Boston, rebates up to 1% of a buyer’s purchase price with the firm’s Smart Buyer Rebate - the largest commission rebate in the Greater Boston area. For example, if you bought a $1,000,000 home with a 3% buyer’s agent commission, you would receive $10,000 in the form of a rebate from Prevu.

Keep more money in your pocket, ask for a commission rebate. 

Mistake #5: Focusing on minor cosmetic details

Too often, homebuyers scrutinize smaller items in a real estate transaction, and end up missing a great opportunity that’s right in front of them. 

The best example of this occurs when buyers focus on minor cosmetic details that are not very costly to change after purchase. For example, the paint colors in a home or the curb appeal of landscaping can be unnecessary deal breakers for particular buyers.

There’s the old phrase that a home has "good bones," meaning it has good structural integrity, architectural aesthetics, and a desirable location. When buying a home in Boston, the best advice is to focus on the big picture aspects of the home and not the minor details. The smaller items you can fix with a few trips to Home Depot or hiring a painter. 

Mistake #6: Ignoring re-sale value 

Many homebuyers enter into a real estate transaction with an unbridled optimism that a property will be their forever home. While they may be in love with a property today, buyers should always take into consideration the fact that they may sell the home in the future.

The layout, location, and features of a Boston home may work for your personal situation today. However, life can change quickly and you might find yourself looking for the exit sign. 

To avoid issues down the road, be sure to ask your buyer’s agent for an objective opinion about the positives and negatives of a property. This way you can purchase a wonderful home to live in that will also be marketable later.

Mistake #7: Passing on a home inspection  

Any good real estate agent will tell you it is never a good idea to forego a home inspection. As a best practice, homebuyers in Boston should have an inspection completed. 

A licensed home inspector will check that all appliances are in order, building systems are functioning, and the roof is in good condition. A thorough inspection is a small price to pay for peace of mind, and could end up saving you thousands from unforeseen costs missed by an untrained eye.

When in doubt, get an inspection.

Mistake #8: Applying for other credit during the buying process 

Once you’ve secured a pre-approval in advance of a home purchase, don’t make any sudden changes to your credit until after closing. New credit applications can affect your credit score, potentially disrupting your mortgage underwriting process and affecting your interest rate. 

While you may be moving to the suburbs and will need a car, or are itching to order furniture for your new home, it is best practice to avoid applying for any new credit until your mortgage is approved and your closing is complete.

Interested in buying a home in Boston? The Prevu Team is always here to help, email us at team@prevu.com to connect with one of our local real estate experts.