How to Make an Offer in Boston - 2025 Buyer's Guide
By Sean Creamer on January 01, 2025
You have spent years saving up to buy your home in Boston and are finally ready to start your search.
As you begin to scour through listings online, attend open houses, and narrow down your interest list, you want to make sure you are ready and know how to make an offer when you find the one!
In order to help you prepare, below the team from Prevu highlights a simple step-by-step guide on making an offer on a home in Boston. Our trusted team also assists homeowners in quickly and effortlessly selling their properties, as we buy houses in any condition with a no-pressure approach.
Get pre-approved for the home buying process
The most important step in kicking off your home search is to get a pre-approval. First and foremost, the mortgage pre-approval process helps you understand your financial situation and allows you to determine how much house you can afford.
Your lender will evaluate your income, assets, existing liabilities, debt-to-income ratio, credit score, and more in order to determine your creditworthiness and the size of loan you qualify for. Understanding interest rates is crucial here, as it helps you make informed decisions about your mortgage options, including the distinction between fixed and adjustable-rate mortgages.
Getting a pre-approval in Boston will give you the confidence that your lender will actually lend you the necessary funds to purchase a home. In addition, you will be ready to show Boston home sellers that you are a serious buyer, and well equipped to purchase quickly (pre-approval letter in hand).
Select a buyer’s agent in Boston
Buying real estate is a large financial transaction. Whether you are purchasing your first condo in Downtown Boston or a home in one of Boston’s premier suburbs, you will definitely want to hire a buyer’s agent to guide you through the process.
There are various reasons to have your own representation as a Boston home buyer.
First, a buyer’s agent acts as your dedicated advocate during the home buying process. Listing agents represent the interests of the sellers, therefore making an offer without representation may put you at a disadvantage.
Second, a buyer’s agent provides you with local knowledge and transaction expertise. Even if you are accustomed to business dealings and negotiations in your career, real estate transactions have additional nuances that you may not be aware of. A buyer’s agent deals with residential real estate transactions regularly and will be able to offer additional insights.
Finally, some buyer’s agents can save you thousands of dollars on your purchase. When deciding to hire a buyer’s agent to represent you on your purchase, ask if they offer a commission rebate.
PREVU SMART TIP
Did you know you can receive a commission rebate from your broker? Buying with Prevu you’ll pocket a portion of the commission paid to your buyer’s broker at closing. On a $1 million home in Boston, you’d receive up to $10,000 cash back.
Learn how to save when you buy!Refine your search with data & showings
As you visit properties and familiarize yourself with trends in your favorite Boston neighborhoods or towns, your opinions of each property and local price data will help you narrow down your search. Be sure to evaluate your needs in a home within the context of your budget in order to find the best candidate.
Evaluate comparable sales with your agent
Once you have identified your dream home and are ready to make an offer to purchase, you want to rely on the data. Your buyer’s agent will compile a comparable market analysis, commonly referred to as a CMA or comp report. This analysis includes data on recent sales, pending sales, and active listings on the market that most resemble your desired property.
The goal of evaluating comparable sales is to determine fair value for the property. Note, this is not an appraisal, that comes larter. This will allow you to make an educated decision to ensure you are making a smart investment and not an emotional investment.
Write a personalized offer letter
An easy way to make your offer stand out is to submit a letter to the seller along with your offer. A well-crafted and heartfelt letter gives you the opportunity to share your story as well as create a personal connection with the Boston property owner.
Maybe this is your first home purchase, or maybe you are looking to start a family, or maybe you are moving back to your hometown and have roots to the community. No matter what your story is, sharing your narrative may pull at the owners’ heart strings and swing them to choose your offer over someone else’s.
Prepare offer & negotiation strategy
As your buyer’s agent begins to write up an offer, you will have an in-depth conversation about your goals on price. In addition to deciding on an initial offer price, you will have a discussion about setting a negotiation strategy to smoothly achieve the best deal possible. Having a plan will save you time and remove the potential emotions that arise during a negotiation.
There’s more to discuss than just purchase price and down payment when buying a home in Boston. Before signing the necessary paperwork to submit an offer, your buyer’s agent will review the specific terms of your offer including any contingencies you may want to protect yourself.
Once an offer is finalized, buyers sign the offer and your buyer’s agent submits the offer to the listing agent along with a $1,000 check as a binding deposit.
What is included to make an offer in Boston?
- Address and legal description of property
- Sales price
- Duration of offer
- Terms
- Pre-approval letter for mortgages
- Proof of funds for all cash offers
- Lead paint / inspection disclosure
- Addendums / mortgage contingency
- Estimated closing date
- Binding deposit amount
- Inspection form
- Agency disclosure form
- Personal offer letter
Accepted offer
After a back and forth negotiation, you have agreed to terms on a great property and hopefully an even better purchase price. While an accepted offer is an exciting moment to savor, there are still several steps to work through to ensure you secure the deal.
Home inspection
You should always get a home inspection. Whether you are buying your first condo in Downtown Boston or purchasing a home in the Greater Boston suburbs, ask for a home inspection contingency. You will want a licensed home inspector to review the property for you.
A home inspection includes a thorough check of the major systems of the house (plumbing, electric, heating, cooling, roof, etc), appliances, and overall condition of the home. While it may save you money to skip an inspection, you should get an inspection for peace of mind.
Purchase and sale agreement
Once you have achieved an accepted offer, a purchase and sale agreement (sometimes referred to as a P&S) will be drafted and thoroughly reviewed by the real estate attorneys of both the buyer and the seller.
In addition to the legalese and terms of the document itself, Boston home buyers will typically be required to place a contract deposit for 5% of the purchase price less the $1,000 binding deposit amount that accompanied the purchase offer. The contract deposit is held in escrow by either the listing agent or the seller’s attorney.
After all the i’s are dotted and t’s are crossed, both the buyer and seller will sign the purchase and sale agreement.
Appraisal and loan commitment
If you are obtaining a mortgage to buy a home in Boston, you will submit a copy of your purchase and sale agreement to your mortgage lender in order to begin the loan underwriting process.
Even if you were already pre-approved, the bank will perform another thorough review of your finances as a borrower as well as perform due diligence on the property you are planning to purchase. That due diligence will include a formal appraisal to ensure the value of the home is consistent with the sale price.
After the mortgage lender completes their review of both you and the property, it will issue a mortgage commitment letter. This letter will allow the transaction to proceed and trigger the real estate attorneys to schedule a closing.
Final walkthrough
While you are likely eager to get the keys to your new home, there is one last step before going to the closing table (or remote closing nowadays). A final walkthrough is a visit to the home to ensure everything is in order, no major damage occurred during the seller’s move out, and that all appliances and negotiated items are still in place.
Closing & post-closing
The final step in your home buying journey is a real estate closing, and it can take a couple of hours. Be sure to bring a comfortable pen with you as you will sign a lot of papers with your attorney, especially if you are getting a mortgage.
After all of the papers are signed and the bank gives final funding approval, the transaction is closed, recorded, and you get the keys.
Congrats! You are a homeowner in Boston.
You will need to contact utility companies post closing to create accounts and transfer service to your name - including electric, water, and gas if applicable.
