MA Real Estate is CRAZY (Boston, Belmont: contractor, closing, floors)

[BostonMike7]

Originally Posted by timberline742

I haven't known anyone to buy with less than 20% in the past 10 years in the Boston market. So many people have that or more I can' see why a seller would want to deal with accepting an offer with less.

I agree with you, however when I sold my condo 3 years ago, a few of the multiple offers were 5% down offers. I accepted an offer with 50% down, for the reasons you state. But I do know of several homeowners who have been recently trying to ditch their PMI, so I imagine it does happen in not so hot markets.

. That's why I wonder if there is actual data on this or maybe if some of the local realtors can offer some first hand expierenve of what down payments they see for certain local markets

[timberline742]

Originally Posted by BostonMike7

I agree with you, however when I sold my condo 3 years ago, a few of the multiple offers were 5% down offers. I accepted an offer with 50% down, for the reasons you state. But I do know of several homeowners who have been recently trying to ditch their PMI, so I imagine it does happen in not so hot markets.

. That's why I wonder if there is actual data on this or maybe if some of the local realtors can offer some first hand expierenve of what down payments they see for certain local markets

I'm sure it happens in not so hot markets, but I thought we were discussing Boston metro area, which is hot hot hot. Maybe Chelsea? But even that is pretty desirable in many ways.

[BostonMike7]

Originally Posted by timberline742

I'm sure it happens in not so hot markets, but I thought we were discussing Boston metro area, which is hot hot hot. Maybe Chelsea? But even that is pretty desirable in many ways.

I guess I amend my question. Is 20%+ down pretty much assumed in the hot markets?

[TAM88]

Originally Posted by BostonMike7

I guess I amend my question. Is 20%+ down pretty much assumed in the hot markets?

Why would it be assumed? I am going to guess plenty of people re buying houses while putting less than 20% down. I have a few friends who have done this recently.

[wolfgang239]

Yeah I have several friends as well. First time homebuyer program helps this. Granted it wasn't today, still a very hot market though, but in 2014 I only put down 10% in Somerville

[bugelrex]

From this article, its getting 'less' CRAZY in former hot markets... however those were 'true' CRAZY markets!

https://www.bloomberg.com/news/artic...g-out-of-steam

[BostonMike7]

Originally Posted by TAM88

Why would it be assumed? I am going to guess plenty of people re buying houses while putting less than 20% down. I have a few friends who have done this recently.

That's what I'm asking. What sort of down payments are typical even in hot markets?

[mdovell]

Just as long as we don't have another casey serin.

https://en.wikipedia.org/wiki/Casey_Serin

Buying and selling houses is a completely legal and ethical practice. But if we start seeing flippers trying to sell in the same quarter or month then the risks are there.

[Shrewsburried]

Originally Posted by BostonMike7

That's what I'm asking. What sort of down payments are typical even in hot markets?

Small sample size, but I have a close friend who has been outbid on 4 properties this spring/summer in Chelmsford, Littleton, and Stow. Selling realtors have indicated the winning offers have ranged from 28%-60% down. His excellent debt-to-income has no leverage in this market.

Ancient history now, but when inventory was extremely tight in '14/'15 I was buying west of 495 (Dunstable, Groton, Harvard, Lancaster, Bolton, Sterling). I was outbid on 6 properties despite highly competitive offers, zero debts, 785 FICO, ~13-16% down, and a target purchase price which was only ~2.2X gross income. It was infuriating. I ended up 'hail marrying' on a two lender short sale with a steep driveway simply because I knew there would be no competitive bids and I might ... just might ... get some instant equity on a flawed property.

If you're at the low end of the market, it can be a very treacherous place.

[New Englander]

I would say that anything less than 10% down is shaky from both a buyer and seller perspective. Let me elaborate on the perspectives:

Seller: As a seller, the more money being committed by the buyer indicates 1. Stronger financial footing as they have significant capital invested in the deal 2. They are likely to have a comparatively easier time obtaining conventional financing.

Buyer: Having put down 10%+ reduces the PITI payments, if they are putting 20%+ down then they are able to avoid PMI, and most of all, it shows a commitment to the transaction to the seller/lender.

Ideally 20% down is the way to go, however if you are looking to purchase $500K+ property then we're talking well over 100K in Downpayment + Closing Costs -- that's a steep hill to climb for many people.