How to buy a house in Boston

Boston is a city of prestigious universities, historic architecture and a startup culture adept at technological innovation. Therefore, it’s no surprise the metropolitan area attracts various types of homebuyers, from young professionals to seasoned homeowners.

That said, buying a house in Boston comes with its quirks and intricacies, which are helpful to know when shopping in the local real estate market. Read on below to learn some details about the housing market in the Massachusetts capital as well as some steps first-time homebuyers may want to take when searching for a home in Boston.

What's the average home price in Boston?

Boston's housing market is fairly competitive, with prices steadily rising over the past several years. According to Redfin, as of June 2024, Boston home prices were up 2.2% compared to last year, selling for a median price of $830,000ftn-1. Let's look into some factors that may influence the price of the properties in the area:

Neighborhoods

Property prices in and around Boston may be influenced by the particular neighborhood chosen and what it offers its residents, such as amenities and proximity to restaurants and public transportation. Some of the older historic neighborhoods of the city tend to be among the priciest in Boston. However, finding a reasonably priced home in other areas of the city may be possible without sacrificing safety and quality of life.

Homebuying season

Seasonality may also affect Boston housing prices, as it tends to do in many markets. For example, late spring and summer are typically the busiest times for the housing market, with a larger inventory but also higher prices. Late fall might come with the cooling of the market: There could be less competition for buyers and the prices may decrease slightly, but there may be fewer properties available, as well.

State of the market

Housing prices tend to reflect the overall state of the economy and some regional economic trends. For instance, higher inflation may cause property prices and mortgage rates to rise. Similarly, housing demand and the number of houses available on the market could also lead to real estate price fluctuations.

Boston housing market specifics

Every city's housing market is unique and has its own complexities, which may be worth considering when shopping for a home. Here are some nuances homebuyers may encounter when shopping for a property in the Boston metro area:

• Historic homes: Boston is a place with a long and rich history, which is reflected in its real estate inventory. While numerous new buildings are sprouting up across the city, many in the area are older and may lack amenities, such as air conditioning or elevators. If buyers are looking into getting an older property, it may help to consider the cost of potential upgrades and renovations. Moreover, the upkeep may require significant time and energy — especially if you're a new homeowner.
• Proximity to water: Certain neighborhoods of the city (such as Seaport or East Boston) are close to water, which may make them riskier for potential flood hazards. It may be legally required to obtain flood insurance for a property in a high-risk flood area financed with a government-backed mortgage. Contact an insurance expert for questions or to get more details.
• Transportation and access to MBTA: Boston is one of those few US cities where living without a car can be quite possible. In fact, it’s often on lists of North American cities with the best public transit systems. When choosing a neighborhood in Boston, you may look at the closest stations and assess how convenient access is to the areas you visit most frequently.

6 steps to buying a house in Boston

While everyone's homebuying journey is unique, some stages are typical for most aspiring homeowners in Boston. Here are some main steps the process may encompass:

1. Knowing your budget

A potential homebuyer is likely to start by reviewing their financial situation, how much they could put down and how much of a mortgage loan they could possibly afford. These considerations could also provide some idea about the Boston neighborhoods to focus on — up-and-coming areas and those farther from the financial district are more likely to be moderately priced. Knowing what you want and what you can afford could help you zero in on the home you ultimately want to buy more swiftly.

2. Finding a buyer's agent and an attorney

A buyer might benefit from working with a responsive agent familiar with the areas most desirable to them. The right agent could potentially know the ins and outs of an area, including available inventory, likely homeowner's association (HOA) fees, average market prices and even realistic commuter times. According to HomeLight, Massachusetts is one of the states to require a licensed real estate attorney to conduct real estate closings and analyze closing documentsftn-1. Remember to keep this in mind from the start of your homebuying journey.

3. Getting preapproved

A mortgage preapproval is a thorough review of a borrower's situation and assessing how much they can afford. The preapproval still doesn't fully guarantee homeowners could qualify for a mortgage. However, it offers the most extensive information potential borrowers could get without having a purchase and sale agreement. Preapproval may usually involve a hard credit inquiry and a comprehensive review of the finances. A preapproval letter could be beneficial before submitting an offer for a home, as it may help prove the buyer's creditworthiness and stand out among other applicants.

4. Making an offer

When a buyer finds a place that meets their requirements and expectations, they might make an offer to the property seller. During this step, a homebuyer may submit the suggested sale price, earnest money deposit, contingencies and other essential details. If the seller accepts the offer, the parties will likely sign a purchase and sale agreement, a legally binding contract that documents the final sale price and all purchase terms.

5. Keeping fees and taxes in mind

Buying a property comes with more costs than a down payment and a monthly mortgage payment. Some of the multiple expenses to consider when buying a house in Boston are the charges and taxes paid around the closing. Other typical costs homeowners are likely to encounter include broker and attorney fees, title insurance and appraisal fees. Also, if a buyer plans to finance a purchase with a mortgage, they may face additional expenses, such as origination and underwriting fees.

6. Closing on a home

The last step toward buying a property is likely to be closing. Typically, the homebuyer will conduct a final walkthrough 24 hours before the closing meeting. This is your last chance, as the buyer, to walk through the property to ensure that all agreed-upon repairs have been made. Prior to the closing date, all parties involved review the closing documents including the Closing Disclosure (CD), Bill of Sale and Warranty Deed or Title. The homebuyer then wires the funds or provides a cashier’s cash to cover the down payment and closing costs. After the closing meeting, the signed deed is sent to the county’s recorder’s office to be officially recorded. Finally, go get the keys to your dream home!

In summary

Finding the right property in Boston could be challenging, but potentially attainable for the prepared homebuyer. It may help to learn about the local market and the main steps involved in the process. What's more, talking to a real estate professional might help assess available options and support you on your journey to find a home in Boston.