The Real Estate Blog

While the cost of living has seen increases, and many feel priced out of Real Estate, there are still some reasons for cautious optimism. The good news is that the current market is not heading toward a crash. If you remember 2009, then you will understand why that qualifies as good news. What we’re seeing now is the market idling in low-gear due to economic uncertainty and stubbornly high borrowing costs.

However, in the 1980’s, percentage rates were in the mid-to-upper teens, and people still bought homes. There is always going to be measured risk and challenges to homeownership. Yet the homeowners who purchased back in the 1980’s comprise the largest share of real estate holders in the United States.

The other good news is that there are a plethora of borrowing options available, depending on your circumstances.

The first thing to do is find a reputable mortgage counselor, even if you are undecided about whether to remain in the rental market or buy.

If you are a first-time homebuyer, seek out a HUD-certified mortgage counselor.

Some cities and towns offer down payment assistance that require taking a course or two first. Let your mortgage counselor be your guide.

Be old-fashioned in your approach. Put the pros and cons on a notepad. Consider how much you spend on rent, then calculate what your mortgage will be based on your borrow-ability. Below is a generalized list to help get started:

Pros and Cons of a July/August 2026 Purchase

(Pros)

Less Competition: Many active buyers pause their searches for summer vacations, meaning fewer bidding wars. 

Motivated Sellers: Owners who listed in the spring and haven’t sold are growing anxious and are more open to price cuts. 

Predictable Environment: The lack of wild price spikes gives you room to negotiate terms calmly

(Cons)  

High Monthly Payments: The combination of mid-6% interest rates and high base prices keeps monthly payments elevated. 

Strict Loan Qualifications: Banks are highly sensitive to debt-to-income ratios due to current economic uncertainty. (This applies to standard loans. Again, let your mortgage counselor be your guide. They know all the various programs and deals available depending on your unique circumstance).

Hidden Maintenance Costs: High repair material costs mean buying a fixer-upper is riskier than usual.

*Implement an Action Plan if Buying Now

Run a Worst-Case Cash Flow Analysis

1. Do not count on refinancing soon. Assume you will hold a 6.5%+ mortgage rate for at least 2 to 3 years. 
2. Target Stale Summer Listings Instruct your agent to find homes that have been on the market for 21 days or longer. Use the summer slowdown to negotiate seller concessions, such as rate buy-downs or closing cost credits. 
3. Preserve Liquid Cash Reserves  Do not drain your bank account completely for the down payment. Have an emergency fund to cover repair materials and labor, which remain heavily impacted by ongoing shortages. 
4. Explore Adjustable-Rate Mortgages (ARMs)  If you plan to move within 5 to 7 years, compare a 5-year or 7-year ARM against traditional fixed loans. ARMs currently offer slightly lower introductory structures to ease early payment strains.

Massachusetts is a caveat emptor state, meaning buyer beware. This is when a licensed Realtor is your best guide.

A buyer’s agent can save you money by preventing overpayment, negotiating repairs, and avoiding costly legal pitfalls.

While buyers do not typically pay their agent directly—as the commission is usually built into the home’s purchase price—a skilled agent protects your financial interests throughout the transaction.

How a Buyer’s Agent Saves You Money

• Accurate Pricing Analysis: Agents run Comprehensive Market Analyses (CMAs). This prevents you from overpaying for a property.
• Strategic Negotiation: They negotiate purchase prices down using market data.
• Repair Credits: Agents use home inspection reports to secure seller credits. This covers necessary fixes before or after closing.
• Closing Cost Concessions: They can negotiate for the seller to pay your closing fees.
• Contract Safeguards: Agents insert protective contingencies (e.g., financing, appraisal, inspection). This lets you walk away with your earnest money if problems arise.
• Preventing Expensive Mistakes: They review complex disclosures to spot hidden property issues.

The True Cost of “Going Alone”

• Dual Agency Risks: Listing agents represent the seller’s financial interests. Working directly with them means no one is fighting for your lowest price.
• Missed Market Data: Unrepresented buyers often rely on outdated online estimates.
• Uncredited Issues: Without an agent to push back, you may inherit thousands in structural repairs.

Key Factors to Keep in Mind

• Commission Structure: The seller typically pays the listing broker. That broker then shares the commission with the buyer’s agent.
• Recent Legal Changes: Due to recent real estate industry shifts, you must sign a Buyer Broker Agreement before touring homes. This explicitly outlines your agent’s compensation.
• Out-of-Pocket Scenarios: If a seller or For Sale By Owner (FSBO) refuses to pay the buyer’s agent commission, you may need to cover that fee directly, though this can often be negotiated into your offer.

So, should you buy a home now, or wait? Let me know what you decide.