I am yet to see a single Boston luxury condo deal that is identical to another. It is amazing how many little things change from deal to deal. Nevertheless, there are certain real estate norms that all parties should be aware of. They are not all followed on every deal but it is good to be aware of them as a starting point for negotiations. Also, please be aware that these real estate norms apply to Boston only. Real estate transactions are very different across the country. Some of this may apply to your location and some of it may not.
Title Policy – The title policy is normally paid for by the seller. Every now and then you will see a deal where a seller will try to have the buyer pay for half of this fee. If you agree to that as a buyer, you should know that you are giving in on a very established norm so you should make sure that the deal is good enough to validate the cost.
Transfer Fees and Taxes – In Massachusetts it is customary that all transfer fees and taxes are paid for by the seller. This includes city and county fees, condo doc prep and transfer fees, and any community enhancement fees or transfer fees. That last item is the one that sees the most contention of any tax or transfer fees. The reason being that they are not seen as often and so people don’t always lump them into this category.
Initial Deposit – The contractual norm is that the initial deposit, also known as the earnest money deposit, be $1,000 presented with the Offer. Within a couple of weeks a second deposit is due with the Purchase & Sales, this amount normally is between 5% – 20% of the sales price minus the $1,000 intitally put down with the Offer.
Contingencies – There are a number of different contingencies with different time frames that are generally used. However, the three most important contingencies are probably loan, appraisal, and buyer home inspection. By default, the Massachusetts purchase agreement sets these time frames at 17 days and that is accepted by the norm. However, you will see times when sellers try to shorten the real estate contingencies set forth in the contract. As a buyer you should be very careful of accepting this if you are not comfortable with the proposed time frames, especially when it comes to your loan contingency. Never accept less time than your lender is telling you that they are going to need.
Other times you will actually see the buyer reduce the amount of time allowed for contingencies. Buyers will do this to help them negotiate a better price because it makes their offer appear strong. If you are buying with cash or your lender is certain they can perform in less time, then it can be a good idea to reduce the amount of days you need for your contingencies as it will probably yield you a better price on the home.
Boston Luxury Condos For Sale
All Boston Luxury Condos for Sale $500,000 – $15,000,000
Back Bay Boston Luxury Condos for Sale $900,000 – $10,000,000
Beacon Hill Boston Luxury Condos for Sale $550,000 – $3,000,000
Charlestown Luxury Condos for Sale $350,000 – $3,000,000
Fenway Luxury Condos for Sale $450,000 – $2,500,000
Financial District Luxury Condos for Sale $850,000 – $12,000,000
Midtown-Downtown High Rise Luxury Condos for Sale $900,000 – $20,000,000
Seaport District High Rise Condos for Sale $1,000,000 and up
South Boston Luxury Condos for Sale $650,000 and up
South End Luxury Condos for Sale $650k and up
West End High Rise Luxury Condos for Sale $650,000 and up