In the last 4 years, we’ve seen an undeniable shift in the workplace from the strict requirement to make it into the office on time every day to the more relaxed, hybrid and remote work conditions now offered by 66% of companies. As millions of people begin to embrace the flexibility of working from home, their priorities are shifting, and so is their idea of their “perfect home.” Here are five ways the shift to remote work is influencing home buying decisions, shaping everything from location preferences to design aesthetics.

1. Emphasis on Space and Comfort: With the shift from corporate offices to home offices, the need for a dedicated office space at home has become essential. Remote workers are seeking homes that provide plenty of room for both work and leisure. This need has sparked a renewed interest in functional design, with features that enhance comfort, productivity, and well-being becoming a priority for buyers. With that in mind, smaller and older homes are getting less attention from the average homebuyer, which typically means less competition and more room for negotiation. If you are not looking for anything too spacious, you may have a better chance making a more affordable offer on a smaller home that is amassing less interest.

2. Rural Revival: Remote work is eliminating the need for daily commuting, and the appeal of expensive and busy city living is diminishing for many, especially due to population density. Buyers are now looking for neighborhoods that offer more space a slower pace of life without sacrificing convenience. Suburban and rural areas are becoming more popular as space, affordability, and access to nature take precedence over urban living. This up and coming trend could potentially cause homes and neighborhoods immediately outside of the city to go up in price.

3. Focus on Functionality and Flow: As this new remote work era is keeping many people in their homes longer, the layout and design aspects of a home are more important than ever. Buyers are paying closer attention to the flow of their homes, looking for properties that integrate living, working, and relaxation spaces seamlessly. Open floor plans, flexible layouts, and smart storage solutions are in high demand. We are seeing more cases where little things can influence whether or not someone will make an offer on a home, like how convenient or inconvenient the trip from the car to the kitchen with groceries is.

4. Proximity to Nature: The freedom to choose where to live is a significant benefit of remote work, and many are leaning towards locations closer to nature. Access to parks, hiking trails, and green spaces has become a priority for many homebuyers. We are noticing an increase of buyers that are searching for homes that offer easy access to natural beauty, moving away from artificial green spaces in the city and closer to luscious natural greenery a bit further out. A big factor that is contributing to this shift is the growing number of aspiring home owners that happen to be pet parents.

5. Rise of Master-Planned Communities: Master-planned communities are becoming more popular in response to changing demographics and lifestyle preferences. These well-designed neighborhoods offer a wide range of amenities and create a self-contained environment that fosters community and belonging and are typically located outside of the city. They can include a wide variety of different amenities depending on the community and location. Some amenities include swimming pools, fitness centers, community spaces, sporting courts, and more, keeping sought-after niceties within close proximity and reducing the need to go too far into the city for what you need. New communities coming up in the area like Cambridge Crossing and Arsenal Yards offer a variety of different shops and tasty restaurants as well as serene parks and green space. In September of 2023, a new community master plan, Dorchester Bay City, was approved, offering 21 buildings which would include a mix of office, research and development, residential, retail, restaurant, commercial, community, cultural and other uses, as well as the creation of an extensive new street system to accommodate pedestrians, bicycles, and motor vehicles, more than 11 acres of public realm improvements, and the creation of more than eight acres of new open space. As the line between work and leisure becomes increasingly blurred, master-planned communities are becoming ideal for those seeking a balanced lifestyle outside of the city.

The universal shift to remote work is noticeably reshaping home buying decisions and directly making changes in the real estate landscape. What began as a response to unprecedented global challenges has evolved into a profound reevaluation of what constitutes the ideal home.

Looking into the future, it's clear that the remote work revolution is far from over. With technology continuing to evolve and companies embracing flexible work arrangements, the way we live and work will only continue to evolve. And as it does, we'll continue to adapt, seeking out homes that not only meet our practical needs but also nurture our souls.

In the end, the shift to remote work isn't just about where we work—it's about how we live. And as we navigate this new world of home buying, we can expect a wave of new buyers in the market for homes in suburbs just outside and around the city, opening doors for new development and potentially more affordable housing.

Investing in real estate can offer an exhilarating and lucrative opportunity, especially in the dynamic Boston market. Many are drawn to the realm of multi-family property ownership by the allure of a steady stream of passive rental income. However, before diving in, it's crucial to grasp the intricacies of this venture and what to anticipate. In this blog post, drawing from my personal experience managing two multi-family investment properties, I'll shed light on the key insights I wish I had known before embarking on this journey.

A Brief Introduction

Currently, I own and manage two three-unit properties in Everett, MA, just a mere 15-minute drive from Downtown Boston. One of these properties was acquired in 2004 as an owner-occupied investment, while the other was purchased in 2019, just before the onset of the pandemic and the subsequent surge in property prices. The timing couldn't have been better.

Identifying Everett as a hub for growth, given its proximity to Boston and various ongoing city developments like the Encore Casino and mixed-use buildings, fueled my decision. Such developments typically indicate an increase in demand, making it an opportune time to invest. As the adage goes, real estate is a long-term investment, and with careful research and calculations, it can yield substantial returns. However, like any investment, it's essential to mitigate risks and safeguard your interests.

Key Insights Before Your First Multi-Family Investment

1. Buy the Home under an LLC Owning a home under an LLC offers legal protection, tax advantages, privacy, and flexibility, making it a prudent choice for real estate investors looking to mitigate risks and protect their assets. Originally, I did not purchase my property under an LLC, but later converted it to LLC ownership to separate my personal and business liabilities. Keep in mind there are annual paperwork and fees to keep the LLC active.

2. Consider Hiring a Property Management Company

Managing rental properties requires time, effort, and expertise. If you're not up for the task, consider hiring a property management company to handle tenant screenings, maintenance, and rent collection. This could save you lots of headaches but comes at a fee. A typical property management fee ranges from 8-15% of the rent but can be higher for additional services.

3. Screen Tenants

Finding good tenants who will take care of your investment while they live there is crucial. You can use tools like Facebook Marketplace or Zillow to post your rental for free and attract renters. But you will still have to do the screening, including background checks, employment status, and eligibility to determine if they are a good fit for your home.

4. Prioritize Plumbing Repairs

Depending on the age of the home, plumbing is a common point of failure, so ensure to check all the pipes for potential breakage. Look for things like corroded cast iron piping, leaky faucets, or older toilets that may need replacement.

A cast iron failure in one of my properties caused an unpleasant weekend for all my tenants across all three floors and the basement. It resulted in tearing down walls in all my units and replacing the piping. This setback cost me around $4K, but costs can vary significantly.

5. Install Preventative Measures (aka tenant proofing)

Installing a basement sump pump and garbage disposal can prevent flooding and clogged pipes, which can lead to very expensive repairs and poor tenant experience.

Pro Tip: Heavy rain can cause basements to flood, so be sure to elevate anything valuable from the ground in the basement and install a sump pump that automatically turns on when water is detected. Additionally, garbage disposals can lead to items getting stuck and causing disposal issues, so ensure that tenants are properly trained in their use.

6. Establish a Maintenance Schedule

Wear, tear, and failures will happen over time. It’s important to have a proactive maintenance schedule where you check all the units, grounds, structural integrity, fire alarms, boilers, water heaters, roof, etc., and make repairs or updates as needed. Being proactive helps avoid phone calls from tenants complaining that something isn't working.

7. Save for Unexpected Expenses

From repairs and maintenance to property taxes and insurance premiums, owning an investment property comes with a host of expenses that can eat into your profits. Dealing with tenant turnover can disrupt your cash flow and result in vacancies. It's essential to budget accordingly and set aside funds for emergencies.

8. Set the Right Expectations with Tenants Upfront

Expect conflicts between tenants and be proactive in setting clear expectations and rules. Instances requiring eviction are rare but can entail a lengthy and costly process. Proper tenant screening can help mitigate this risk, but know that it can happen. Maybe create an addendum to the lease which outlines expectations on things like rent due, how to remove trash, how pests are dealt with, cleanliness expectations, etc — this is what I do.

Hopefully, the recommendations above do not deter you from buying a multi-family property, but instead provided you with valuable insights on what to consider to be better prepared. Owning and operating a multi-family property is not for everyone, so carefully assess if it aligns with your lifestyle and management capabilities. Many have succeeded in this endeavor, and so can you.

Dear Home Buyers,

Big changes are coming to the world of home buying, and they're about to impact you directly. Let's talk about what these changes mean for you and how they'll affect your journey to owning a home.

What is changing in the real estate industry

First off, let's address the elephant in the room: commissions. Did you know that in the U.S., the majority of home sellers pay hefty commissions, often totaling thousands of dollars, regardless of the level of service provided? It's true. In fact, on a $750,000 sale, sellers can expect to fork over around $38,000 (5%) in commissions alone. That's a staggering amount of money, especially when you consider that this commission structure doesn't exist anywhere outside of North America.

But change is on the horizon. Recently, the National Association of REALTORS®, which defends the brokerage community, reached a proposed settlement for $418 million in damages and agreed to eliminate several rules on brokerage commissions. What does this rule change mean for you? Well, it means that the days of sellers footing the bill for buyer broker services may soon be over. Instead, if you want guidance in your home search and purchase process, you'll have to pay for it out of your own pocket.

So, how does this impact you directly? Let's break it down:

For Home Sellers

Sellers will only be responsible for paying the seller's agent fee. This shift could potentially save them 2.5-3% on the home sale. That's money back in their pocket that they can put towards their next home.

For Home Buyers

You now have the power to decide and pay for the guidance you need directly with a buyer's agent. This puts you in control of your home buying journey, allowing you to invest in the services that matter most to you.

As buyers, you'll now have to decide with your wallets whether you want buyer representation at a fee. This will be an additional cost to an already expensive purchase, something new to factor into your budget.

This change will not only force competition but also compel innovation within the real estate industry. And that's where Nuhom comes in.

For years, Nuhom has been ahead of the curve, offering buyer agent commission fees of nearly 1% (compared to the traditional agent’s 2-2.5% fee) while providing top-notch services. As the industry shifts, we're ready to lead the way, combining AI technology with human touch to give you a personalized and empowering home buying experience that is more affordable.

Our model will always prioritize delivering the best possible experience to home buyers. That's why we will continue to offer up to a 1% rebate to home buyers if a cooperative commission is provided on the deal. If the seller does not offer a cooperative commission, Nuhom would charge you, the buyer 1% of the transaction purchase price.

This 1% fee, compared to the traditional agent fee, is significantly lower than industry standards. While offering you choice, guidance, and the confidence you need to buy your home, nothing changes in how we operate today. We still provide on-demand tours, pricing guidance as needed, and the ability to start offers when you’re ready.

So, as the industry hits the reset button, know that Nuhom is ready to help you on your home buying journey with a stress free digital experience with the help of agents as needed. As a company we are continuing to innovate and improve the experience we give you. If you'd like, please follow us here for more on that!

If you have any questions, please connect with me here.

Happy home hunting!

Thank you!

Rishi Palriwala

Nuhom CEO

As the center of Boston becomes increasingly expensive and dense, we are seeing a lot more buyers active in the neighborhoods just outside the city. Because of this population shift, these neighborhoods are undergoing dynamic transformations. For potential homebuyers seeking proximity to the city without the hefty price tag, these evolving areas offer promising opportunities. Our team conducted research on the most areas just outside the city center that are experiencing the most growth, and it came down to these five neighborhoods on the rise, each with its own blend of urban development and suburban charm.

Allston: A Center for Innovation and Community

Just west of downtown Boston, Allston has become a hub for innovation and community growth. Thanks to Harvard University's strategic land acquisitions, projects like Allston Square and Allston Yards are reshaping the landscape. With new rental units, condos, and office spaces, coupled with vibrant retail areas, the neighborhood buzzes with vitality. Allston's unique fusion of academia and urban living makes it a compelling destination for those seeking progress and opportunity.

Condo price range: $525K-$1.25M

Average home price: $692,167

What we love about the neighborhood: Allston is home to a diverse community and offers great places to eat Korean BBQ and HotPot!

What we don’t love about the neighborhood: Due to the large number of student residents greek-life housing, parts of the residential scene comes to life at night.

Our favorite coffee shop: Pavement Coffee House http://pavementcoffeehouse.com/

Our favorite restaurant: Moon Flower House moonflowerhouseallston.com

East Boston: The Revival of an Industrial Legacy

Once dominated by industrial zones, East Boston has been experiencing a revitalization driven by ambitious redevelopment efforts. Projects around Suffolk Downs promise thousands of new homes and commercial spaces. What sets East Boston apart is its affordability, attracting young professionals and families seeking convenience and community. The proximity to the airport and the city provides a dynamic set of scenery. An incredible view of the Boston city skyline can be seen from LoPresti Park, and the very best spot to watch planes take-off and land can be enjoyed at Orient Heights beach. As green spaces flourish and infrastructure improves, the neighborhood's transformation is palpable and promising.

Condo price range: $359K-$1.39M

Average home price: $702,164

What we love about the neighborhood: East Boston is home to some of the best views of the city of Boston.

What we don’t love about the neighborhood: Access to the T is limited in most of East Boston with the Blue Line being having the greatest presence in this area.

Our favorite coffee shop: Cafe Iterum https://cafeiterum.com/east-boston-cafe-iterum-food-menu

Our favorite restaurant: Angela’s Cafe https://www.angelascafeboston.com/

Dorchester: Diversity and Affordability

As Boston's largest neighborhood, Dorchester epitomizes diversity and affordability. Amid ongoing development, efforts focus on creating accessible housing options and fostering community vibrancy. From single-family homes to apartments, Dorchester offers diverse housing choices. We are seeing newly constructed housing options being developed in this area constantly. Its blooming culinary and retail scene, along with improved amenities, make it an attractive destination for those seeking an authentic Boston experience without breaking the bank.

Condo price range: $374K-$1.16M

Average home price: $734,142

What we love about the neighborhood: Dorchester has a diverse culinary offering with tons of hidden gems.

What we don’t love about the neighborhood: Like many urban areas, Dorchester has experienced gentrification in some parts, leading to rising property values and potential displacement of long-time residents. This can contribute to concerns about affordability and community cohesion.

Our favorite coffee shop: Coco Leaf - AKoKo Cafe http://akokocafe.com/

Our favorite restaurant: 224 Boston Street Neighborhood Restaurant https://www.224boston.com/

Seaport District: A Modern Urban Oasis

The Seaport District's evolution from plain old port to urban oasis is remarkable. Luxury condos, upscale retail, and trendy eateries now dot its waterfront. Emphasizing walkability and pedestrian-friendly design, the neighborhood offers sweeping harbor views and easy access to transportation. From what used to be a hub for fisherman, The Seaport District has come a long way and beckons urbanites seeking a sophisticated yet relaxed lifestyle.

Condo price range: $599K-$9.17M

Average home price: $2,685,995

What we love about the neighborhood: The Seaport District offers a plethora of different activities such as pop-up markets, live music dinner settings, the Boston Tea Party Museum, Institute of Contemporary Art and so much more!

What we don’t love about the neighborhood: The closest T station to this area is Broadway on the Red Line which is still a bit of a walk, making it a bit more challenging to get to without a vehicle.

Our favorite coffee shop: Phin Coffee House https://www.phincoffeehouse.com/

Our favorite restaurant: Moo https://mooorestaurant.com/mooo-seaport/

South End: Where History Meets Modernity

In Boston's heart lies the South End, blending historic charm with contemporary living. Victorian brownstones mingle with modern complexes, reflecting the neighborhood's architectural diversity, making it arguably one of the most aesthetic neighborhoods in the city. Thriving businesses and a flourishing arts scene infuse the area with cultural vibrancy. Its walkable streets and culinary delights foster exploration and community engagement.

Condo price range: $475K-$6.29M

Average home price: $2,057,780

What we love about the neighborhood: The South End is known for its architecture, especially its residential streets of beautiful brownstones, and is also declared as Boston’s best food neighborhood according to Boston Magazine.

What we don’t love about the neighborhood: The fact that the South End is one of the most diverse and desirable neighborhoods to live in, and is home to beautifully built residence, home prices tend to be on the high end, making it less affordable to live in.

Our favorite coffee shop: South End Buttery http://southendbuttery.com/

Our favorite restaurant: Toro https://www.toro-restaurant.com/?utm_source=google&utm_medium=profile&utm_campaign=local-toro&utm_content=website

You don’t have to be in the center of the city to enjoy what Boston has to offer. These emerging neighborhoods provide a harmonious blend of urban convenience and suburban tranquility. Whether you’re drawn to Allston's innovation, East Boston's affordability, Dorchester's diversity, the Seaport District's luxury, or the South End's charm, each neighborhood presents its unique narrative of growth and transformation. Let these vibrant communities inspire your journey to finding the perfect place to call home.

By all calculations, 2023 was a year of deadlock. Largely due to rapidly increasing interest rates, most were not buying or selling a property. In fact, in 2023 home sales were the lowest in almost 30 years. Let that sink in! To couple this, as we get into the 2024 spring market, housing supply vs. demand continues to be a struggle. 

Our team got together and decided to make some predictions about how the rest of the year might look for home buyers. Here are some thoughts:

On market home listings in Norfolk, Middlesex, and Suffolk Counties

Condos will provide buyers the most options

While the above shows all available home listings down in 2024 vs. 2023 and especially in condos, our prediction is that buyers will continue to have the most options among condos. Not just because of the absolute number of them, but because you will have the most pricing leverage among them as well. In fact, for 2024 overall we predict condos will have the greatest percentage of increase in supply as we get closer to Spring. 

Multi-family will be most competitive

Not only are multi-family homes with the lowest available supply, but as a buyer you face demand challenges from additional categories of buyers such as all cash buyers, investors, contractors, and anyone shifting dollars from the stock market to the real estate market. In order to win here, you’ll have to fight for it! There are ways to win here, but be ready to throw down. 

Interest rates will dip overall, but not like most predicted in December

A few months ago, the market predicted that in 2024 there would be six rate cuts by the Federal Reserve. Since then, that belief is changing. The Fed is being more cautious and holding to where rates are vs. being aggressive and lowering them. In 2024, our general belief is that rates will continue to hover between 6% and 7% for mortgage borrowers, but averaging near 6.5%. That being said, adjustable rate mortgages will be on the lower end vs. what 30 year fixed mortgage rates may offer. 

Home prices will increase, but at a more realistic rate

Home prices will increase the way they used to before the pandemic, in the 2-3% range. There are two reasons we feel this is true. First, inventory available to buyers overall will increase in 2024 vs. 2023, we suspect that since last year’s deadlock, each year more sellers will want or need to ultimately sell. This can be for liquidity purposes or the desire to buy something new. This helps keep prices lower vs. higher. Second, with rates hovering generally at a stagnant range, more buyers will cautiously jump back into the market. They will realize, this could be the new normal for a bit or simply have the need to purchase due to life changes that cannot be put on hold any longer. This helps keep prices higher vs. lower. These two opposite effects we believe will lead to a more normal price increase this year. 

As we enter the Spring market in 2024, the real estate landscape is gradually shifting. While these cases are merely our personal predictions, we expect challenges from 2023 to ease with condos becoming favorable for home buyers. However, competition rises in multi-family homes, requiring resilience. Anticipated interest rate dips and realistic home price increases suggest a market where cautious optimism and strategic decisions are vital. Our team is here to offer support and insights for your home buying journey in the coming year. Cheers to new opportunities, successful endeavors, and finding your perfect home in 2024!

The team sat down and considered various angles to assist Boston home buyers in saving money on their journey home. This isn’t an exhaustive list, but we believe it is a good starting point and might be a Part 1 on more ways to save as a home buyer. Applying some of these tactics may help you save thousands on your home purchase. So, let's get started.

1. Look for homes with more than 20 days on market

Especially with such little home inventory for sale, if a home hasn’t accepted an offer within 20 days or less there is likely a mismatch between what the seller and prospective buyers want. While sellers may have clout, with time any true seller will decide to negotiate. If you’ve found a home you like, but might be overpriced or have deferred necessary renovations (which you are not afraid of), you should consider making an offer you are comfortable with. You never know until you try and you may be able to take a haircut off the price! 

2. Look to buy a home off-season

Real estate markets can vary throughout the year. Consider purchasing during the off-season or when the market is slower, as sellers may be more willing to negotiate on price. In Boston, the off-season tends to be during the end of Summer in August and from November after Thanksgiving thru early March. When sellers are marketing their home during these off-season months, it can be a sign that it is crucial for them to sell.

3. Make an offer with less contingencies

We talked about this in a recent blog, but making a ‘clean offer’ can sometimes give you leverage in lowering the price of your offer. Less contingencies or stipulations means less risk on the table for the seller. If that’s what they desire most, maybe they are ok with taking a price cut in return for a smooth transaction. It’s a strategy that has worked for us on several occasions!

4. Consider Buying a Multi-family Property

If you're open to the idea, purchasing a multi-family property where you can live in one unit and rent out the others can help offset your mortgage payments. 

5. Buy more square footage

This one might sound backwards, but remember in ECON 101 they would talk about the law of diminishing returns? Well, in a given neighborhood, the cost of a 5,000 sq ft home vs. a 3,000 sq ft home would be more in overall price, but it should be lower in price per square foot. At some point, the value of each additional square foot lowers. In other words, feel free to pack in more square footage if you desire and especially if you have a larger household. 

6. Get an ARM instead of a fixed rate mortgage

Adjustables rate mortgages are lower in interest rate versus 30 year fixed rate mortgages (especially in inflationary cycles) because they have a fixed rate for a shorter period of time such as 5 or 10 years. If on average, homeowners own their home for 7-10 years, perhaps a 30 year fixed rate isn’t really needed? It might feel better to have your interest rate fixed for longer, but you are paying more for it over the long term. 

7. Down Payment Assistance Programs

Investigate if there are any down payment assistance programs available to you such as Mass Housing. These programs can help you cover a portion of your down payment, reducing your upfront costs. The best way to gain access to these programs is through a lender you might be working with. We can also introduce to you many in the Boston area. 

Buying a home is unaffordable for many in Boston. At Nuhom, we continue to think of ways for you to save money on your journey home. Using Nuhom to purchase your home will save you 1% of the home’s purchase price. We’ve averaged $10,000 in refunds back to each and every one of our home buyers. Check us out to learn more!

There are many tools to consider when making an offer and winning on a home that many others are also bidding for. Each tool, of course, comes with risks, pros, and cons and may work differently for each buyer. Here is a top list of tools our buyers have been successful with:

1) Not all cash is created equal!

With all the cash that's been added to our economy in the last few years, the number of home buyers or investors with cash has grown. In fact, 1 out of 4 (and growing) offers in the Greater Boston area are cash offers. So, how do you compete with this if you don’t have an all-cash offer? There are 2 ways:

Don’t include a financing contingency:

• Pro: This is nearly as good as cash because the seller has none of your financing risk on the table to have to worry about. However, you would have to be 100% confident you could get a mortgage if you needed it to make the purchase.

• Con: You would be taking on lots of risk here. If you do need financing or a mortgage to buy your home but, for some reason, you cannot get one by the time of your closing due to a loss of your job, the lender not being able to meet a deadline, or a lender not able to fully underwrite and lend to you, etc., the deposits you’ve put up would be at full risk, and the seller could keep them.

Get a pre-commitment from a lender or bank:

• Pro: Many lenders offer to underwrite you fully upfront. If approved, this removes the risk of them not lending to you when you decide on a home to purchase. This way, you do not need to include a stipulation that you still need to get financing because you already have it in hand. This is much stronger than a pre-approval and far less risky than the option above while still giving you the confidence to waive your financing contingency.

• Con: If you put the time and effort into getting a pre-commitment with a lender, you will only have it with that particular lender. So if your desire is to shop around for rates once you have an offer accepted, you might lose the original value of getting the pre-commitment. While you are not committed to that lender, that particular lender is the only one who would have completed all the underwriting.

2) A clean offer means little to no terms

All sellers will ask for the highest price and a ‘clean offer’. Well, what does a clean offer mean? A clean offer means including little to no terms, also known as contingencies, in your offer. This provides the seller with the least risk and most confidence knowing you will ultimately buy their home.

This ties in well with the topic #1 above. Here are the top 3 contingencies most buyers want to include, but sellers would appreciate not seeing:

• Financing contingency: This gives you time to get a confirmed mortgage. If, for some reason, your chosen lender cannot approve you for a mortgage, you could reverse the whole purchase, and the seller would have lost out on nearly a month of time in the market.

• Appraisal contingency: If you need financing, but the lender appraises the home for less than the agreed purchase price you have with the seller, you would have the opportunity to renegotiate the accepted price. Buyers try to include this when they feel the price they have offered may be above market value and other recent similar sales in the neighborhood.

• Home inspection contingency: This gives you time to inspect the home for potential structural issues, pests, or systems which may not be functioning appropriately. If you find something that, in your opinion, should be addressed now or eventually or may change the value of the home you just got an accepted offer, you would have the option to renegotiate with the seller.

The cleaner the offer means less of the above included. To the extent you can mitigate each risk on your own, you may feel comfortable not including them in your offer, and it will improve your chances of winning vs. other buyers.

3) An escalation clause automatically increases your price vs. others

A competitive home market means multiple offers, and prices may increase well over the asking price. An escalation clause can help you compete against other buyers on price. In this clause, you can include a max price you are willing to go up to triggered by competing prices other buyers submit. You can also set the increments your price can increase by. If the seller uses your escalation clause to accept your offer, they are required to show you the competing offers they have in hand to support the escalation.

• Pro: Using this allows you to take advantage of a maximum price you might have in mind, but without blowing past other buyers. For example, if your base offer price is $500k and your escalation clause shows a maximum price of $525k going up by increments of $2k and you win at $518k, the next best offer in hand would have been $516k. It gives you some comfort in knowing that your price was not far above the rest of the offers but was still the best.

• Con: You are effectively showing the seller your full hand of cards. This should only be used when you know that multiple offers are in hand.

4) A love letter to the seller

Whether you like writing a love letter or not or if you decide to use one as a template for each offer, you may eventually come by a seller who appreciates it. This letter is usually 1-2 short paragraphs and speaks to what you appreciate about the home, the neighborhood, and your strength as a buyer to ultimately purchase it. You want to pull on the emotional heartstrings of the seller.

• Pro: This can help you stand out vs. other buyers.

• Con: You have to write it . This doesn’t work as much with new construction sellers or builders since they are not emotionally attached to the property nor have they lived there.

The above are 4 strong ways to approach a seller in an offer and help you stand out against other buyers. Each one has varying risks, so it's important to assess how much risk you are OK with. At the end of the day, it’s risk to you or the seller, and it depends on how much you are OK with and how much you desire the home you are pursuing. We’ve seen each be used and with a successful outcome. Many also use these tools together in one offer to be that much more competitive.

Hey Homebuyers!

Happy holidays and happy almost New Year!

It’s been a crazy three years in the real estate market. We’ve seen intense price increases and bidding wars and then one of the largest market price swings across the country. As they say, what goes up must come down. Nationally, prices have come down far more than that of Boston, a big part of that is the continued demand we see locally, but also the lack of overall inventory making its way to the market for purchase.

For 2022, median prices for the Greater Boston area settled near where we started in January of this year. They saw their peak in June, but as interest rates scared off demand we saw the reverse by year’s end. The number of price changes continued at a steady pace almost inline with when the Federal Reserve announced increases to the federal funds rate.

Data representing single family, multifamily, and condos in Suffolk, Middlesex, and Norfolk counties from MLS

There was a 46% decline in the number of homes sold in December year over year, driven by lowered demand, but also by the low inventory on market. Typically, we see about 25% more inventory on the market vs. what we have currently.

So, what’s in house for 2023?

Rates

Per some Fed Reserve predictions, we believe interest rates will settle down in 2023. This means we do not expect rates to increase as quickly as they did in 2022, but they will continue to steadily increase until inflation is under control. After 2023, in order to fight a potential upcoming recession it is believed that rates will come down in 2024.

While rates are a part of your home buying journey, it is important to remember that you cannot really control them. What’s better is that you can change them in the future through a refinance (for example). Given this, we stress not to make decisions on rates alone, but to consider the bigger picture of your life’s plan with home ownership. When does buying a home make the most sense for you and your goals? That’s the question to be focused on.

Prices

2023 will not be like 2021 or 2022 as far as price increases go. In general, we’ve seen price spikes come to a halt. We expect home prices to see mild increases through 2023, as homes for sale continue to remain low and rates continue to slowly increase. We expect the Spring market to assist with the low inventory for sale and provide buyers more options come this May.

We’ve seen a reset on prices in the last 6 months and low buyer competition. That’s a pretty good combination for buyers. As a buyer, if you are actively looking to purchase, doing so in the next 6 months may give you good leverage, especially with sellers who are motivated.

Thank you!

We wanted to thank all of our clients from 2022. While you have options to choose from, we appreciate your trusting us with one of life’s most important decisions. We look forward to continuing to be part of that decision and assisting you with your future real estate needs! Here is to a great 2023!

Please reach out with any questions or comments! We would love to hear from you!

The Nuhom Team

Nuhom had the opportunity to present the state of Greater Boston real estate at a lunch and learn at LinkSquares headquarters in Boston this month. We were welcomed by many employees at their beautiful 60 State Street office both in person and on a zoom.

We covered the following topics:

• What happened in real estate?

• What's going on now? And where might things go?

• What might help?

• How Nuhom can help?

You can find the slides below!

Here are the takeaways:

So, what happened in real estate?

• The last decade was the lowest supply of new homes built compared to previous decades

• After the financial crisis, homes were cheaper to buy vs. to build... many homebuilders folded

• Disproportionately less built in Northeast; Less conducive building zoning/code and Nimby-ism

• We had the lowest interest rates in history <3%, which increased demand

• With low interest rates, the most homeowners elected to refinance rather than sell

• Cash offers increased during the pandemic; causing increased buyer competition

• Millennials coming of age; increasing buyer pool

• Remote economy emptied out cities; driving single family craze

What's happening now?

• Inflation has skyrocketed

• The Fed Reserve is trying to cool inflation by increasing interest rates

• Since April, rates doubled to above >6%; but not horrible vs history

• Mortgage applications down 50% since April

• Home listings beginning to grow and remain on market longer

• Median prices back to early 2022 levels for condos, single family, and multi-family

• It is still a seller's market, but with less competition

• Rates could settle next year and come down some in 2024, but will remain >4%

• There continues to be a lack of homes available for purchase; demand > supply

What might help buyers?

• Negotiate on price

• Look at price changes

• Look at days on market

• Look at different rate programs (Date your rate, marry your home, divorce your rent.)

• Take your time

See slides below for more details.

Hey Homebuyers!

We wanted to put out some additional data before our November newsletter. The below chart shows how the supply of homes on the market in Greater Boston have been trending since April. As mortgage rates have increased, the real estate market has begun tilting towards providing buyers with more leverage.

Data representing single family, multifamily, and condos in Suffolk, Middlesex, and Norfolk counties from MLS

Since the Federal Reserve started to increase interest rates in the Spring, across the country, based on mortgage applications, buyer demand has decreased roughly 50%. Competitively speaking, this is great news for home buyers who remain in the buyer pool and not great for those who were pushed out.

In the Boston area, this decrease in demand has driven sellers to drop asking prices marginally by 3.4% while actual sale prices have been down roughly 8% in the same time. That means buyers are having success with negotiating on price. In parallel, in the same time period, the number of homes for sale to choose from are up nearly 45% and the days it’s taken them to sell them have increased as well. All of this means that active buyers should have more options to choose from.

Some folks in the industry believe that interest rates will continue to remain higher through 2023 and level off or come down in 2024.

To take advantage of the situation, we’ve outlined a few strategies that may give you even more edge in this market:

1. Negotiate on price: Sellers who need to sell will bend on price. Those who are not in urgent need to sell will rent their home out and hold through this tumultuous period. Always feel free to fairly negotiate on price, but before doing so understand the comparables that have sold in the recent months.

2. Buy Down Programs: If you intend to use a mortgage to buy your home, convince the seller to buy down your interest rate. For example, a ‘2-1 buy down’ program at Fairway Mortgage allows a buyer to reduce their interest rate by 2% in the first year and then 1% in the second year of holding that mortgage. This can help buyers lower the burden of higher mortgage payments in the initial years. It may also give them enough time for the market to settle and refinance in 2025.

3. Lock in your rate today without an accepted offer: If you fear the continued increase of interest rates, lock in your rate today for an extended period of time. For example, the ‘Lock Shop N Go!’ program at Fairway Mortgage for about .125%-.25% higher than current market rate allows you to lock in your rate for 90 days whether you have an accepted offer or not. If today’s rates are at 7%, but given Federal Reserve news, we know they may go to 8% in the next few months, the Lock Shop N Go! program should be appealing to you.

4. Focus on your ARMs: If the notion is that rates will decrease in years to come, then getting a shorter fixed term product may be best for you. Today, a 5, 7, or 10 year adjustable rate mortgage can be found in the mid 5’s which will be much lower vs. a 30 year fixed rate mortgage likely in the 6-7% range.

5. Take your time: Compared to last year, you now have a lot more options and time to pick your dream home. Keep an eye out and consider using the strategies above.

A perspective to consider, if you’ve struggled with competing offers in the last couple of years or simply do not want to compete, now could be a great time to take action. You will have great leverage when negotiating with a seller and little buyer competition. If rates are what’s holding you back, consider, ‘marrying your home and dating your rate’.

• Should rates fall in the future, the ability to refinance is always on the table and on average costs <$2,000.

• Rates stay the same, no harm done.

• Rates keep rising and you’re glad you are locked in at today’s rate.

If you are at a life stage where buying a home right now would benefit you greatly, hopefully this perspective relieves some pressure and provides an alternate view.

As the market shifts towards more of a buyer’s market, more strategies will be uncovered. All of these strategies play on price, time, and interest rates, but the eventual goal is to come to an agreement that works for both you and the seller of a home.

Please reach out with any questions or comments! We would love to hear from you!

The Nuhom Team

Hey Homebuyers!

Welcome to October! Our beautiful Fall weather is here. While we’ve all transitioned away from the Summer, so has the Boston real estate market. If you’re paying attention to the news or the financial markets you know that interest rates have more than doubled since 2021, that leads to an almost parallel increase in mortgage rates. If mortgage rates increase, the value of homes are expected to lower. Let’s see what’s going on–

Data representing single family, multifamily, and condos in Suffolk, Middlesex, and Norfolk counties from MLS

September Home Sales Slowdown

Transitioning back from the Summer and holiday benders and with homes sitting on the market longer due to increased mortgage rates, some would have expected September to have an increased pace of home sales. In fact, it seems like the reverse, home sales were down 26% versus last year, while homes that came to market were only down 3.5%. Clearly this indicates a strong loss in home sale activity, what it has also led to is a 6% decrease in price over August’s median price. Home sellers are slashing prices as the number of homes stay on the market longer.

Are we in a buyer’s market yet?

The number of homes in demand vs. the supply available for sale in the Greater Boston area has not yet tilted to where there is a buyer’s market. However, ever since mortgage rate increases began, it has been tilting more favorably towards buyers (that’s the whole point of the rate increases!). This allows a buyer to have more flexibility in their buying and offer making process. In 2021, there may have been 10-20 offers on a single family home whereas now there may only be a couple in the first weekend and that’s if the home is priced right and move in ready. Home sellers have also become more open to contingencies or buyer requests such as an inspection or addressing defects in the home. While prices have lowered and dust may be gathering at some homes, pent up demand from those who could not buy in 2021 still exists.

Recommendations if you are a buyer in this market

• Plan to buy and hold your home for at least 5 years. The likelihood of recession in 2023 is nearing and it would be best to not expect having to sell your home in the near future as market conditions may be difficult.

• Price your offers based on home sales from the last 3 months. You will want to factor in current home sales pricing and more recent comparables when deciding what to offer. Prices are generally increasing but at a decreasing rate.

• With the number of homes on market increasing leading to options increasing for buyers, make sure to find a home that’s a good match for you.

• You may want to consider a 10 year adjustable rate mortgage, which will have a lower interest rate vs. fixed rates. If you believe rates may drop again over the next 10 years you could decide to refinance at the lower interest rate. Refinancing will cost about $2000 (avg.), so it would be best to run a simple cost benefit analysis.

October Predictions

It is likely that you will see much of the same in October as you’ve seen in September. The market is headed for a cold winter. For buyers waiting for the right moment, this could be a good time to buy.

Please reach out with any questions or comments! We would love to hear from you!

The Nuhom Team

Hey Homebuyers!

We hope the Summer has been great for you and you were able to take in a relaxing Labor Day weekend! Below is our August update and analysis.

Data representing single family, multifamily, and condos in Suffolk, Middlesex, and Norfolk counties from MLS.

August sales rebound

August sales data is in! It shows that buyer demand has continued to remain strong! While prices have slightly decreased and the days it took to sell a home slightly increased, the number of sales for August was fairly high given the continued low inventory buyers have had to choose from.

Let us explain further

August is usually a slower month for home buying. Homebuyers are generally vacationing, and Summer holidays take precedence. It was further expected that August would be slower than usual because of the continued interest rate increase, but in truth, August homes sold were only 11% lower than pre-pandemic 2019 levels! However, respectively, July was 30% lower.

Two things happened

First off, we believe expected July sales slipped into August. If you recall, there were lots of interest rate increase talks in June and July as inflation was uncontrolled. We believe many homebuyers decided to sit and wait it out to see what this could mean for them. In that time, interest rates did end up increasing roughly ½ a point.

Secondly, the point of interest rate increases is to bring the prices of goods and services down, which also applies to real estate prices. In July and August, we saw that the median average price of homes dropped by 201 and 269, respectively. While they did not drop immensely, we believe buyers decided to take advantage of what they could. This contributed to the upswing in sales in August.

What you should consider and expect in September

With homebuyers transitioning into the Fall, there is often competition in September as people come off the summer months. We expect that the price drops will continue at a similar pace. In parallel, however, we also expect another rate increase from the Federal Reserve based on the latest discussion and news. Homebuyers will want to consider how much exposure they have to interest rate increases vs. how price drops to combat the overall affordability of a home. Buyers can run simple scenarios with this mortgage calculator.

We believe the inventory of homes on sale will remain low overall. This is because many homeowners refinanced to very low interest rates in 2020 and 2021.

Given the uncertainty in the market and unofficial recession, we advise that if you are looking to buy in the current market, expect to hold onto your home for at least 5 years to allow for enough time for the market to play out.

Please reach out with any questions or comments! We would love to hear from you!

The Nuhom Team

Dear Homebuyer,

There are a lot of real estate headlines out there and some of them can sound mixed. When the tide is changing, often that is what you see and hear. Inman news recently reported that demand for mortgages in the US is at its lowest since the year 2000, at the same time they reported that median home prices were at a record high.

There are many reasons why home prices are high; inflation being a big one. But, the fact that mortgage applications have significantly reduced, sends a strong signal that current median for sale prices will not last. This is good news for buyers!

Let’s paint a picture of what’s going on in Greater Boston:

Note: Within Greater Boston this includes single family, condo, and multi-family homes for Suffolk, Norfolk, and Middlesex Counties. This was written as of July 21 and numbers for July were straight-lined prorated for Homes Sold & No. of Price Changes. This data was pulled from MLS.

Looking at the above table,

• What’s important here is that the number of listings coming on the market is consecutively increasing. Spring just completing helps with this, but we aren’t yet at pre-pandemic levels. In June 2018 and June 2019 there were 5,782 and 6,680 respectively.

• Median price increases on homes sold are increasing at a decreasing rate, even beginning to decrease.

• The number of price changes in June was 571, nearly all of these will be price decreases. You will see the results of this in August and September.

• Per the Federal Reserve Bank and general opinions, we will see interest rates continue to climb at least another .75 basis points.

Boston’s housing market is strong, but a correction (at least small) has been in the cards for some time. For buyers, competition has been decreasing, we see less offers per home. Sellers are also realizing it and Summer has certainly set in. If you need to buy today, we suggest you do so with a longer horizon of at least 7 years as the market can head in different directions. If you can wait, you may want to take advantage of at least a minor correction which is coming down the pike.

It’s been some time, we apologize for the quietness. We’ve been focused on improving our platform by listening to buyers, sellers, and agents. We've also been keeping a close eye on what's happening in the real estate market. So, we wanted to update you on our thoughts of the current market.

We understand it’s been a rollercoaster over the last few months. Interest rates have more than doubled, home prices have continued to increase, and many parts of the stock market have been in correction mode. Much of these changes are tied to the infusion of cash by the gov’t due to the pandemic, the lack of home construction that followed the Great Financial Crisis (GFC) and the lowest interest rates we’ve ever seen.

The good news, now? Both home price increases and buyer competition have begun to taper, but just a bit. There is still strong demand out there, especially for move-in ready single family homes, but it’s not as tough or as competitive as it was at the start of 2022. In some cases, you will start to see some sellers be more realistic about their expectations.

A bit about where we are and where we are headed

Interest rate hikes

The Fed’s goal is to slow down inflation and they are using various tools in their artillery to do so. The Fed has signed up for at least two more interest rate hikes in the upcoming Summer. While they are hopeful that they are grasping the depths of inflation, they feel with these rate hikes they should be able to further course control inflation. It is expected that two more rate hikes of 50 basis points each are to come.

Real estate prices

Given the numerous indicators of a recession either already being here or coming soon, many have been asking the question will there be a real estate bubble burst or correction? Unlike the Great Financial Crisis, the consumer wallet today remains strong. Due to continued low supply of homes coming to market and respective demand, today we do not feel that there is a bubble, but as the Fed continues to manage inflation at a minimum there could either be a correction or a strong tempering of price increases.

Housing inventory

We believe the lack of housing inventory has been the strongest reason for the hot real estate market over the last couple of years. There are two reasons for why this has happened– Firstly, post the GFC, the onslaught of foreclosure homes was so strong that new construction builders could not compete with the cheap price of those homes that banks were trying to sell, so they simply did not build. On average, more than 20 million homes were built over a decade in the US prior to the GFC, and in the decade post there were far less.

US Residential Construction

Secondly, the lowest rates we’ve seen during the pandemic allowed many existing homeowners to refinance or cash-out refinance. This provided them with a new mortgage at a low interest rate near 3% and in some cases lower. Fast forward to today, unless they need to move existing homeowners are less incentivized since they just recently got a new loan on their existing home and at a great rate which they cannot get today.

Ycharts.com

What does it mean for you?

At the current moment, in the Boston area prices have not begun to fall, rather price increases have begun to temper. Given some of the recessionary talks and headlines, we see less offers per home, but still most (especially move-in ready homes) continue to go under agreement within a weekend’s time. We will know more as homes close in the following months. We believe until homes for sale increase or a recession hits which impact the jobs of many (and respectively their wallets), there will not be a meaningful decrease in pricing. Also, keep in mind, the Boston area has had a disproportionate lack of housing stock vs. other parts of the country, which continues to prop up pricing. If you are in the market to buy a home, right now there is some additional breathing space (less competition) compared to earlier this year and especially 2021.

What has Nuhom been up to?

You may have seen an email from us yesterday talking about a fresh new look. That’s right, we’ve built out Nuhom to provide buyers more education and a simpler use experience. We will continue to provide more market updates so that you can stay informed and better navigate your home buying journey.

In addition to this, the Nuhom team is working to develop an additional platform that buyers, sellers, and agents can all appreciate and is aimed at improving the overall experience of offer making.

Time is a resource we seem to have less and less of these days, so why not save some of it?

Before heading to an open house or on a private tour, doing your homework on a condominium listing you like from the comfort of your current home, a coffee shop, on-the-go, or wherever you may be is super important!

Here are the top 10 items to look for or to double down on before making the time investment of seeing a home in person– make sure to do them!

10 things to look for on a condo listing

1. Get the full listing with all the documents

Reading about a home listing on Redfin or Zillow is helpful and will very likely be the first place you’ll do this, but the full details are not provided there. You should request the full listing from your agent or home advisor along with any other seller provided home documents for review.

2. Read the home overview

Does the general overview of the home listing state anything helpful about the history of the property? It will often begin with all the best features the condo provides and may end with news about the building or a special assessment which you should understand. Sometimes there are some really helpful facts to understand here so try not to glean over it!

3. Where is it located and what’s nearby?

Check out the address on Google Maps and Street View. How is traffic and parking in the area? Are parks or schools nearby? What type of transit, if any, is available to you at this location? It’s important that the condo building is in a location you like and find accessible.

4. What’s the interior of the condo like?

Is the layout conducive for you? What type of heating or cooling is provided? Can you tell if this unit gets lots of sunlight? Are the bathrooms or kitchen renovated? Is there a washer and dryer hook-up in the unit? Is there a view? Does the condo seem renovated or in need of some fixing up? Getting a quick assessment of this will help you rate if this home is a priority for you or not.

5. What’s the exterior of the condo like?

Does it have any dedicated or shared outdoor space? Is there any dedicated storage? Is there a roof deck or balcony? How many units are in the building, this could dictate if it's a low-rise, mid-rise, or high-rise building. Getting an idea of your surroundings within the building helps situate you.

6. What are the amenities of the building?

Is there an elevator or ramps in the building for accessibility? Is there a place for deliveries to be collected or perhaps a concierge? Does the building provide a pool or fitness area? Is there indoor or outdoor parking? You may not need or want a number of amenities, but know that by owning a condo in the building you will be paying for any upkeep of amenities through your monthly homeowner association dues.

7. What are the dues or fees per month?

What are the dues to the homeowner’s association on a monthly basis? What do they include? How does this impact your monthly cost to own the home? You should expect that some HOA dues will be higher when the building offers more amenities (i.e. heat, elevators, garage parking, a pool, etc). In continuation to #1, if you can, ask to understand if there are any special assessments to know about.

8. Are there any use limitations?

If you decide you want to one day, can you rent out the unit? Are there any rental quotas or general restrictions to understand about the building? Is short-term renting such as Airbnb/VRBO allowed? To get the best information, you may have to ask your agent or home advisor on this one.

9. What floor is it on?

Depending on what floor the condo is on you may have neighbors above you or below you (or perhaps next to you). This may be a consideration especially if you are either a noise maker or if you can’t stand hearing noise. Also, knowing the floor level also helps especially with accessibility– are there only stairs or also an elevator?

10. Documents you can try to request

Every condominium building will have its fair share of documents to review. The ones to review before taking the step to tour a home if possible may be – Rules & Regulations or the Master Deed, the condo budget, and any meeting minutes by the trustees. While they may not all be available on hand for review, if any are, these documents will give you an idea of the health of the association and overall rules of how the association and unit owners are managed.

If you made it to the bottom of this, good job! The above is meant to give you an idea of what filters to put the home listing through and if done right hopefully it will save you time. Depending on the type of condo that interests you, there may be many items above which do not apply. For instance, if you’re looking to buy a condo in a smaller three unit building, you certainly won’t find a pool in it (just some context)!

Dear Home Buyer,

The day has come. You’ve found the home you can’t live without and realize it’s the one for you! What you don’t immediately think about is if someone else is feeling the same about this very home. During the journey of home buying, many folks encounter competitive bidding situations. An escalation clause is a key tool to consider that can help you outbid others without paying way too much (or much more than the second place bidder). Pretty nice balance, right?

Here is a video podcast we made about this!

So, what is an escalation clause?

An escalation is a clause or an addendum that is submitted along with your offer to purchase a home. It works like an automatic price trigger, you may have seen something like this on Ebay if you’ve ever bid.

This allows you to automatically compete against competing offers. You set an incremental amount to go up vs. other offers and a cap to stop at. The other competitive and bonafide buyer offers will be shown to prove the increase in price, well at least their increase in price.

Let’s look at an example:

Below are a set of 3 offers made on a home–

1. Jack submits an offer of $750k, but with an escalation clause up to $775k by increments of $1,000. Varying terms and conditions.

2. Sun submits an offer of $780k with no escalation clause. Varying terms and conditions.

3. Kavita submits an offer of $740k, but with an escalation clause up to $790k by increments of $2,000. Varying terms and conditions.

On price alone, a seller may be inclined to choose Kavita’s offer as her escalation clause would trigger and increase her price to $782k. This would be a winning bid and only a little bit over Sun’s offer who could be in second place. The seller and their agent would have to show Kavita the bona fide offer made by Sun to prove this.

After reviewing the overall terms and prices of all offers, the seller would make a decision. While on paper, once the bona fide offer is revealed to Kavita, if the offer is still valid (not expired) Kavita’s offer could be automatically accepted at the $782k price. But in practice, often the seller’s agent will ask Kavita to update her offer to reflect this price (leaving terms the same) and both parties will then sign. Essentially, it’s more of a two step process, versus one.

When and why is this used?

The escalation clause should only be used in anticipated competitive bid situations. Some signs of one are:

1. A very busy open house

2. Redfin labels it as a “hot home”

3. You suspect at least one other competitive buyer is making an offer

4. A home’s asking price is artificially low

If there were many offers, you could crush the competition and avoid a lot of the back and forth. This is especially important when there may not be more than one round of offers and you hear “best and final” offers are needed. Remember, a seller at any point can decide to accept an offer so putting your best foot forward and sending a strong signal to the seller often goes further than you may think.

Also remember, a competitive bid situation only takes one other buyer. Not all buyers know to use this tool, it could be what gives you a leg up if used correctly!

When and why is it NOT used?

Using an escalation clause may not always work, here is when:

1) This clause wouldn’t work well if there were no competing offers. In fact, you would be showing all your cards to a seller, including your max price if you were the only offer they had in hand.

2) Sometimes a seller or seller agent doesn’t accept an escalation clause. Either they do not know how to interpret them or they want a clean process and an offer which is clear, with no if then situations. In the past, multiple competing offers with escalation clauses have sometimes muddied the process for sellers and can be overwhelming to understand.

3) Terms matter too, not just price. Ultimately, it's the decision of the seller as to which offer to accept. If terms matter more to the seller than price, an escalation clause won’t help you much.

How often have we used it in 2021 and what do we think about it?

Nuhom utilized the escalation clause on 35% of our winning offers in 2021. This was heavily weighted on single-family homes as that is where much of the competition was and has been. Nuhom believes that it's a perfect tool to utilize in the current seller driven market we are in. It’s been discussed as a powerful bidding tool by many. We have also included the escalation clause as an option to utilize in our make an offer submission process.

Example of what an escalation clause document may look like:

Download the free report:

What's in this report?

This report looks at what the trends were in real estate in Greater Boston in 2021 and provides insights to what happened for home buyers and within the real estate industry at a macro level. It also provides an overview of home buyer characteristics and some outlook on what to expect in 2022.

For Boston, the report focuses on three residential property types: Condominiums, Single Family, and Multi-Family within the Suffolk, Norfolk, and Middlesex counties in Massachusetts.

Data

• MLS Data, 2019-2021

• Report: Emerging Trends In Real Estate 2022 Survey, PWC, Urban Land Institute

• Report: 2021 NAR Home Buyer and Seller Generational Trends

• Federal Reserve, Freddie Mac, US Census

• For this report, Boston = Suffolk, Norfolk, and Middlesex Counties

(Image from Zillow.com)

How often do you find yourself on Zillow?

You likely get email alerts, from Zillow, about homes that hit the market. After clicking on the email, you find yourself endlessly scrolling through a list of homes in and around your town. Sometimes, you even find yourself researching home prices in different States. The crazy part is you may not even be in the market to buy a home!

The fact is, many of us lose ourselves on Zillow and its photos of homes we aspire to one day own–

• Zillow is the top ranked real estate website globally based on unique monthly visits.

• 135 million homes are in the Zillow database (source).

• Even Saturday Night Live did a skit that portrays Zillow as a place where you can satisfy your sexiest real estate fantasies: https://youtu.be/yEfsaXDX0UQ.

Whether you're in the market to buy a home or are casually looking, Zillow is a great home finding tool, but what happens next may surprise you.

What happens when you click "Contact Agent"?

When you click on "Contact Agent," you get a popup to enter your contact information:

After submitting, your contact information is captured by Zillow, and soon after they reach out to you. They ask you additional questions to build your buyer profile which they pass on to a local agent.

So, what does Zillow do with your information? - They get paid!

It's good to understand how Zillow makes its money. Zillow is a lead generation website that sells leads to real estate agents, this it’s primary revenue generator. When you submit a form like "Contact Agent" or "Take a tour", a real estate agent is paying Zillow for your information.

You’ve clicked one button, and now Zillow has connected you to a local agent at random who is likely paying top dollar for your information. Then you end up in the agent's marketing funnel. This agent will call, text, and email you regularly (and sometimes too many times) to try and assist with your home buying needs.

Here is the problem with this:

1) You don't get to choose your agent.

When you get matched to an agent through Zillow, you don't get to choose your agent. How do you know they will be a good fit for you?

It's essential to have a real estate agent who has your best interest and helps you navigate everything that may come up in your journey to buy a home. The reality is, not all agents are created equal. In Massachusetts, there are a mind boggling 10,000-20,000 active agents. To become a licensed real estate agent, you only need 40 hours of real estate education before taking an exam. Being licensed doesn't ensure an agent will provide good customer service or give you the attention you deserve as a buyer.

But if you can choose an agent, consider someone who:

• Is local and knows the market you are buying in

• Understands your needs and wants

• Sets the right expectations and gives you an overview of the process

• Is not a salesperson and doesn’t regularly pressure you when you’re not ready

• Communicates effectively and keeps you informed on progress without you asking

• Doesn't make you sign a contract just to work with them

• Is transparent about how they work, what commissions are being paid out, and lets you see what they see about the homes you're interested in

A real estate agent is your quarterback. If they are not a good fit, buying a home can feel like a losing experience.

2) You think you're getting a tour, but you're actually getting a full agent

If you do end up using a Zillow recommended agent to see a property, they become your de facto agent. Giving you a tour leads to them wanting to be your agent for the entire home buying experience. Keep in mind, today agents only get paid if they complete a home purchase with you. The agents are incentivized to assist you until that happens.

Also, here is a scenario to consider: What if you toured a home with an agent and then decided to buy the home with another agent? While it’s possible to work with another agent, there may be what’s known as procuring cause in this case. Meaning the original agent who provided the tour may want a fee for showing you the property or more likely part of the ultimate commission. The tension could create turmoil among the agents involved and could put your home purchase in jeopardy. All this is to underline what could happen by simply clicking a ‘Contact Agent’ button on Zillow. You should know this upfront!

There may be a better option for you

At Nuhom, we are redefining how real estate is bought. We take the guesswork out of choosing an agent, and believe home buyers should be more in control of their home buying journey. So we've streamlined the home buying process, with you, the buyer, at the center of the experience and brought everything online.

When you get connected to us you get all the tools at your fingertips and a dedicated local Home Advisor who works with a team of agents to help you navigate your home buying journey from tour to close. We put you in the driver’s seat, and when you’re ready to take a step, you can do so on our website. We have no contracts for you to work with us, there is zero pressure, we are 100% transparent, and last but not least, we save you money.

So if you found a home on Zillow, don't click on "Contact Agent.” Instead, get started here.

If you are thinking about buying a home today, you're most likely doing a lot of the searching. Not because your real estate agent isn't helping you but because of online search tools like Zillow that make it really easy to find your home.

It is said that 9 out of 10 home buyers start their search online, and nearly 8 out of 10 home buyers find the home they ultimately buy through their own search efforts.

So between sifting online and open houses, you spend a lot of time honing your house hunting skills to find your perfect home and neighborhood.

This begs the question, what is your real estate agent doing for you? The short answer-- the role of the real estate agent has shifted. While you may find the home, your agent will help with the execution, and ultimately give you the guidance you need to buy your home right, negotiate on your behalf with the seller, and coordinate various parties, including seller, lenders, attorneys, and home inspectors to help you close on your home smoothly. More on this down below.

The home buying process I'm talking about is this:

1. Budget and save for a down-payment

2. Create your needs and wants list

3. Get a pre-approval

4. Find your home

5. Tour your home

6. Make an offer

7. Home inspection & diligence

8. Sign the purchase and sales agreement

9. Secure financing

10. Close

11. Move in

Today, steps 1-5 can be completed independently without an agent (with the exception of private tours). But to make an offer on a home you found, the common practice is to work with your agent (often on their schedule). Your agent will fill out some paperwork and submit the offer to the seller. At this point you are waiting to hear back whether your offer was accepted or not.

The truth is, you don't need an agent to submit an offer.

Make an offer anytime, on your terms

At Nuhom we believe with the right tools and guidance, you should be able to submit an offer on a home you found anytime by yourself. In a competitive home buying market, time is of the essence, and you shouldn't need an agent to submit an offer.

The good news is, you can make an offer on a home anytime using Nuhom's make an offer tool.

Easily enter your offer terms, pricing, and % down payment information, and Nuhom will automatically create an offer, submit it to the seller, and negotiate on your behalf to get it accepted. (Now, making an offer does not mean you've bought the home. This is just the first step to show the seller your interest in purchasing their home.)

But, this is just the beginning, Nuhom offers much more...

Meet your on-demand home buying tools

We believe buying a home should be easy, more transparent, a lot more affordable, and more self-served. So we've created on-demand home buying tools to help you take the next step at every stage when you're ready.

• Get pre-approved

  A pre-approval is needed to make an offer. It also tells you what a bank may lend you for a mortgage-don't worry, you can still shop around for rates later. Get a pre-approval

• Find a home

  Fast and easy. Just answer a few questions & we’ll curate listings that fit your lifestyle. Let's get started​

• Get the full home listing

  Already found the one? Congrats! We’ll send you the full listing so you can see everything agents see, for free. See your listing

• Take a tour

  At a time and date that works best for you. Our agents are on-call whenever you’re ready. Schedule one now

• Make an offer

  Send us an offer online at any time, and your dedicated Home Advisor will review it, FAQ it, and submit it to the seller. Make an offer

• Home pricing analysis

  Know what the value of the home is with a custom free home pricing analysis. This includes:

  
  

  -A recommendation on a offer price

  
  

  -A side by side comparison of similar homes

  
  

  -List of comparable homes sold, under agreement, and on the market

  
  

  -Factors impacting the market and price

  
  

Meet your dedicated property expert

Although we believe you should have the tools and information at your fingertips, we also recognize that some home buyers appreciate expert guidance along the way. This is why on day one we pair you with a dedicated property expert, your Nuhom Home Advisor who will guide you through the entire home buying process.

Here is what your Home Advisor will do for you:

• Finding and touring your home

  
  

  -From day one, you get a dedicated Nuhom Home Advisor who will guide you through the entire home buying process.

  
  

  -Behind each Advisor, is a full team (tour agents, lenders, home inspectors, real estate attorneys) to get you from tour to close.

  -Our Advisors conduct home searches and provide curated home recommendations or pull the full home listing of homes you’ve already found, so you can see everything we see as agents.

  -They also help set up tours, give you guided home tours, and take photos/videos for you to reference later.

• Preparing to make an offer

  -We give you a custom pricing report so you can make a strong and competitive offer with the same research we use ourselves.

  
  

  -We give you our recommendation on an offer price and a list of comparable homes sold, under agreement, and on the market.

  
  

  -We highlight real-time factors impacting the market and price so you can make the right offer at the right time.

  
  

• Making the right offer

  -We strategize the best offer with you and give you a digital platform that you can submit it on at any time you want. 24/7/365, holidays and casual Fridays included. Make an offer online

  
  

  -We negotiate on your behalf and follow up with the seller to elevate your offer and get it accepted.

  
  

  -We connect you with the best lenders, real estate attorneys, and home inspectors in the industry to help streamline the process and make it smooth.

• Home diligence

  -We uncover everything the city knows about your home while pulling any permits & violations on file.

  
  

  -We review condo association docs and connect with property management to collect current and past meeting notes and discuss upcoming projects.

  
  

  -We coordinate home inspections, and will re-negotiate with the seller based on findings.

• Closing and moving in

  -We manage all aspects of your closing with all the parties involved (you, your attorney, the lender and the seller), including dates, necessary documents, and home delivery expectations.

  
  

  -We coordinate a final walk-through to ensure your home is delivered exactly as you expect.

  -We answer any late-breaking questions and tackle any last-minute tasks, so your closing can go as smoothly as possible.

  
  

You save money

Oh, and we give you a massive home buyer rebate (1% of the home purchase price) before handing you the keys. After all, teamwork makes the dream work, and you deserve to get paid for helping us find your perfect property.

Imagine this, you see a home you like online and you attempt to go to an open house. It turns out you really like the home and you want to take the next steps but at this point, you usually have to call your agent to do so. But what happens if you can’t get a hold of them?

What if you need a pricing analysis on the home? What if some home diligence was needed? This is especially important as time is of the essence and other competitor buyers can impede.

Your ability to take next steps is contingent on how fast your agent can produce results, findings, and ultimately submit an offer. What if your agent turns out to be on vacation and they are trying to have another agent fill in for them, effectively making them unreachable? What happens if they’re too busy catering to another client and have a delay in follow up? We’ll tell you what happens, you lose out on the home. But Nuhom is here to change that.

Nuhom’s Belief

Home buying is serendipitous, and here’s why:

1. You don’t know when the right home for you lands on the market

2. Life stage events can sneak up on you

3. Home buying is all about timing even when you’re a serious buyer

Having a reliable and on-demand real estate team creates a standard by which every home buyer can expect to receive service in a timely manner, but also in a standardized way. Imagine if you received a pricing analysis or a home diligence report about a home the same way you know what to expect every time you drive through a McDonald’s for a burger? As a client, you know what quality of service to get every time.

The Core Challenge

Today, in order to provide true quality service and not just a good looking suit, the traditional agent is strapped conducting several tasks or responsibilities across multiple disciplines. They are running their own business between marketing, nurturing, providing tours, home diligence, submitting offers, and seeing items through closing.

They are working both on the business and in the business and with multiple clients at a time. They may be really great at particular aspects of what’s needed, but it's atypical to have super star traits in everything they do and have the adequate time. Home buyers need balanced, high quality service at every stage. The reality is that every human and agent has a DISC personality.

Based on their DISC qualities, they are better suited for particular tasks vs. others. For example, you may have an agent who always picks up your phone and tries to get you answers about a home, but they fail to be a tough negotiator in getting your offer accepted. You may find yourself spinning your wheels with this person. The challenge is providing clients timely and multidisciplinary support as needed.

The Solution

If you think about it, each DISC trait feeds well into all of the mini tasks that a real estate agent provides in service to a client (or at least should provide). Now if you sprinkle specialization on top, it could create a home buying dream team! Nuhom has done exactly that.

Based on what they are best at, we’ve paired professional agents to manage key aspects of a home buyer’s journey. With specialization, it allows us to improve each aspect and double down on the service quality while providing a client results in an on-demand way. This approach also reduces cost that allows us to pass on great savings to a client. You can ask the inventors of specialization! Specialization also allows the client to receive standardized services, remember the McDonald’s burger?

The next time you are thinking of buying a home, think about why an on-demand real estate team may be the right fit for you! We believe this is what home buyers deserve and that it will be the future of what home buyers get as service and expect.