New to MA, where to buy? (Boston, Billerica: bank owned, short sales, real estate market)

[JohnCastle]

Hi everyone,

I have been living in boston area for about 9 months now. Since it is very likely that I will be here for at least the next few years and most people say that the real estate prices are very low right now I decided to buy a house (if possible) instead of renting(currently I am paying more then 1200$ for rent).

My budget is limited around 200K so I decided to look at the single family homes away from Boston center. I will pay in cash and think of no mortgage.

My first criteria is safety. Second is traveling time to boston center(I can tolerate around 40 minutes of driving, I know it is hard to park but I will need to come 3 times a week and try to find a solution to parking). Also I want to be able to sell the peoperty in 5 years time with some profit if possible.

So far I am considering Billerica, Willmington, Burlington, Reading and Chelmsford.

I am not experienced in real estate. I would really like to have a small house and big lot (like 14K sqft or more), however this is not possible in good locations(locations closer to boston).

For example, I came across very nice properties on zillow aroung chelmsford or willmington having very large (20K sqft or more) lots and small hauses(But they went quick). Also I saw houses having small lot in Reading but they are much closer to Boston then the others.

It is a little bit confusing right now.


I would really appreciate any help...

[shiver]

I would suggest talking to some experienced real estate agents in the areas that you're looking at. Especially agents who understand short sales and foreclosure sales. Since you're paying cash, you may be able to find a good deal on a foreclosure or short sale.

Unfortunately, no one knows what will happen with the real estate market in 5 years so it is difficult to guarantee a profit. Keep in mind as a seller, you will be responsible for the real estate agent fee which is typically around 5% of the purchase price (2.5% to you agent and 2.5% to the buyer's agent). If you sell the house for 250,000 - 5% is $12,500. While it's possible for you to sell your home without an agent, it's much more difficult especially if you're not familiar with real estate. Also, most buyers have an agent so you'd still have to pay the 2.5% to that person.

If home values do not increase much in the next 5 years, you may actually lose money when you sell. This is why a bank owned (foreclosure) sale may be a good idea to explore since you're buying with cash. Typically, cash buyers have more room for price negotiation because you can close quickly because you're not involving a 3rd party mortgage lender. You may be able to buy a home for less than market value because a bank is desperate to sell and in five years be able to make a profit. But, maybe, maybe not.

[RedSoxFan13]

I don't think you will find much in Reading or Burlington for 200k. Your best bet is Billerica or further north.

[Charliekeet]

If you need to buy something now, but move within 5 years, I agree you should shop for rock-bottom priced or bank-owned sales and hope to get a deal, because prices are not low now- they're just not so insanely high.

[Billericares]

A great website for comparing cities in Massachusetts is massstats.com It has everything from schools to taxes to crime to population density and the info is pretty current.