Lost bidding war in Melrose - Where should I be looking? (Boston: apartment, to rent)

[BayToBoston]

My family is moving from the San Fransisco Bay area to Boston on July 1st and we put an offer down on a house in Melrose that I thought would be competitive enough to be accepted. We offered 75 above asking with 20% down, pre-approval from a highly respected local lender, and we even waived inspection (which I realize was crazy in retrospect). That wasn't enough to get the house, and now I'm at a loss for where we should be looking and what we should expect.

We have two young daughters, and my husband's new job is in Cambridge, so we are looking for somewhere with a reasonable commute and good schools. Our combined income will be around $175K, but we have a significant down payment from a family trust and intend to stay in the house we buy indefinitely. I recognize how privileged we are to be in this position, and am not complaining; I'm just hoping for some advice on where we might consider looking for houses. We are also going to have to rent ahead of time, as we are moving in less than 2 weeks, but hope to rent in the area we will eventually buy in the hopes that our older daughter won't have to move schools (thought that seems unlikely). We currently rent a 2 bedroom apartment for more than a mortgage and taxes on an $800K house in the Boston area would be, so while the prices are very high, coming from San Fransisco, the housing prices don't seem as daunting.

Any advice on the areas around Boston we should be considering would be amazing, and if it seems crazy to try to buy right now, I'll take that advice too. Thanks

[Ne999]

Newton, Brookline, Wellesley, needham, natick, Lexington, Westwood, Sharon are some areas I’d look as well all good schools

[Brave Stranger]

Sorry to hear that you lost this bidding war. 75k over asking is a lot to throw out there. Keep trying in Melrose if that is the town you guys have invested your time looking into. Why just leave town after one lost offer? I suspect you are working with a local agent who knows the town & can help you structure your next offer competitively.

Arlington would be a good fit if you start looking around. Better schools than Melrose, though it will cost you more. Good luck

[MikePRU]

I guess the big question is . . . how close did you come to getting the house? Did anyone give you a sense of how much better the other offer was than yours? What made it better? Was it the terms or the offer price or both?

It's a tough market out there. I've had a couple of clients who have made some really great offers on houses and have nearly missed on each one. One of them finally got a house under contract this weekend. You just have to keep plugging along if you're coming close. If you're way off the mark, then you need to adjust your strategy.

Originally Posted by Ne999

Newton, Brookline, Wellesley, needham, natick, Lexington, Westwood, Sharon are some areas I’d look as well all good schools

If the OP is frustrated with their home search in Melrose, why would you direct them to more expensive towns?? It's not going to get any better for them when they lose out in multiple offer situations just because the house is smaller and in a more sought after location.

[jks1985]

My advice is just to rent for the first year you are here. Slowly find the neighborhood you want. Melrose has a good Windsor complex that's within walking distance to the Oak Grove T stop. I think they have 3BR's there.

[chicagoliz]

Originally Posted by Ne999

Newton, Brookline, Wellesley, needham, natick, Lexington, Westwood, Sharon are some areas I’d look as well all good schools

Sharon and Westwood for a commute to Cambridge???

I'd keep looking in Melrose, and also see what might be available in Arlington. (Although Arlington might be tougher than Melrose.)

While Newton and Brookline would be great, they are much more expensive than Melrose.

I agree you should discuss with your realtor why you missed out.

[darkone]

I would look in Malden and perhaps Revere. Both offer T service - orange and blue lines. And Revere has beach and ocean access.

[BosYuppie]

First off, do not skip an inspection. You don’t want to end up with a cracked foundation or termites or something.

Second.. 800 grand budget, yeah I’d probably continue to focus on Melrose, but also look at Arlington, or one of the 28 corridor suburbs (Stoneham, Wakefield, Reading, North Reading), and further on up.

You might sneak into Newton for 800 if your standards aren’t too too high.

[LLCNYC]

Originally Posted by darkone

I would look in Malden and perhaps Revere. Both offer T service - orange and blue lines. And Revere has beach and ocean access.

Just Nooooooooooooooo.

[sarahmccoy]

It’s a tough market for buyers. A little bit further north, but Wakefield and Reading might work. Agree with PP about Arlington also.