Forget The Boston Real Estate Market, Buy The Boston Home You Can Live With

I was amazed how many similar articles I read after I wrote my post "Boston Condo Sales Triple In The First 75 Days of 2010" . They all said pretty much the same thing and they all must have gotten the idea at the same time but it would not have been "remarkable" if the numbers were not so convincing.  Such good news for the real estate market!  Get ready for a deluge of media attention to the recovering Boston real estate market.

Does that mean you should buy? Absolutely not.

Boston real estate agents focus on metrics and are constantly writing articles like the one I wrote. I usually avoid those kind of articles. They start to sound like a lot of blah blah blah. Sure its encouraging for the real estate agents who are of course starved for good news, but I promised you in my first blog that I will not produce fluff articles just to get better search engine rankings. This blog is for my reader's education, not a "Buy a Boston Home" promotion.

Sure the numbers are looking better all around. That doesn't mean you should buy a Boston Condo. Look at your own situation and decide if you want to participate. Don't let the artificial urgency that is sure to be inspired by the tax credit and the sold unit numbers get you swept up.  Apparently if you didn't buy in 2009, you missed the bottom, that might have been a mistake, don't compound it by buying for the wrong reasons.

Here are some questions you should ask yourself before making the
buying instead of renting decision.

Make Sure You Are Ready

My advice is to look at your situation objectively, your income, job security, as well as how YOU feel about the market. Although renting is much more expensive than buying, it might be the best thing for you for a period of time. Buying is a ton of stress. I've seen people buy a house and not get a good nights sleep for years after the purchase because they were so fearful about the commitment.
Wait until the Autumn?

Its usually best to buy in the autumn and early winter because you get to play the annual cyclicality of Boston real estate prices. The lowest prices per sq. ft. are achieved every year in November and December.  2010 might be the perfect year for avoiding the buying panic in the spring and watching as the prices go back down later in the year. The market bottoms out every year at that time.  Unfortunately the inventory does also so the challenge can be finding the layout you can live with.

Think in terms of five years or more.

If you buy a condo or single family, think long term and decide you will be OK if the property value slides back down. Most market bottoms form a "W". 2010 could be right in the middle of the W and the precursor to the second part of the W bottom. This second leg down is usually shallower than the first (hopefully) but might scare the heck out of you. Be OK with the property anyway, real estate is a long term investment.

Find a Buyers Agent/Buyers Advocate to help you.
Buyers Advocacy is the essence of Buyers Agency

You might need to speak with a few Buyers Agents to find one you like. Find one who uses "Buyers Agency" and "Buyers Advocacy" in the same conversation. I use the term Buyers Advocacy because essentially that is what Buyers Agency really is. Detachment from the outcome (selling some real estate) is the key to impeccably representing a buyer. Make sure your Buyers Agent doesn't just mimic the Sellers Agent's non-stop monologue of positive features. Make sure also that he NEVER represents sellers and is an "Exclusive" Buyers Agent. See My article "5 Clues That Your Boston Real Estate Buyers Agent is a Sellers Agent in a Brilliant Disguise" for more on how to spot duplicity.