The pace of sales slows in the summer months of June and July and August. That said, there is still activity in the market in these months. Indeed, a pool of new buyers who will be at MIT or Harvard often enter the market at this time, with the idea of being settled before the new school year in September.

The fall market runs from just after Labor Day until mid November. With summer vacations finished and folks back in the saddle for the new school year, the fall market is a time of increased activity for those buyers still looking to close before the end of the calendar year.

The winter market is the slowest time – November and December and January. The holidays and darkness early in the evening generally mean fewer properties for sale and fewer buyers looking to buy. Now and then, a buyer can get a bargain in the winter market.

The new year brings the early advent of the spring market. Late January into February is a transitional moment in the market. Depending on the weather, the winter market can drag on or the spring market can get an early start. This is an interesting time for a buyer to be lookiing, as there is generally a bit less pressure.

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1. Determine how much to spend.
Discover a clear sense of your financial self or selves
- Where is your cash and what is required to tap it for a downypayment for a home purchase?
- Most buyers will need to secure a loan (a mortgage) to purchase. Get a loan preapproval letter from a bank or mortgage lender or mortgage broker.
- Determine your price range. Essential first step. Look to buy
A) what you can afford
B) and are willing to spend

What are the costs of ownership?
Loan – monthly payment x 12. PLEASE NOTE THAT THERE ARE ALSO COSTS ASSOCIATED WITH OBTAINING A LOAN. REVIEW WITH YOUR LENDER. If you are making a downpayment of less than 20%, be sure to review with your lender the additional cost of private mortgage insurance (PMI).

Title insurance (optional but usually purchased. Title insurance is a one-time premium paid at closing and is calculated based on the purchase price of your home. Richard Vetstein reports, “The cost today is for s standard coverage policy $3.65 per $1,000 in home value. Enhanced coverage policies run about $4.00/thousand, and provide better coverages (i.e., for boundary disputes) and inflationary protection. Thus, a $500,000 home would cost a one time premium (standard) of $1,825.”

Property taxes – In Cambridge in 2013 annual tax rate is $8.66 per $1,000 of assessed value and the full residential exemption reduces a homeowner’s taxes by $1,755.37 and the CPA by $52.66. The total reduction in 2013 is $1,808.03.

Insurance – Homeowner’s insurance. Typically, an annual premium.

Condo fee – monthly payment x 12. If note a condo, no condo fee!

Maintenance – utilities, upkeep, etc.

2. Decide when to move.
Lease agreement in place? Give proper notice to your landlord.

If you buy something today (that is, put a property under accepted offer), typical closing date – the date you take ownership – is usually six weeks out. Four weeks is fast. Eight weeks is slow.

Allow yourself time to search.

Remember, too, that the market is seasonal:
1. Spring market is January to June, with March and April and May being the peak months.
2. Fall market is after Labor Day (early September) through mid-November.
3. Summer market is June through August.
4. Winter market is mid-November through early January.

3. Decide where to live.
Get the focus on one or more areas and prioritize the list.
Establish a relationship with a real estate agent in your primary search area to be your buyer’s agent.
Your real estate agent in your primary search area will refer you to a good agent or agents in secondary location(s).
Real estate is a referral-based business. Have your primary real estate agent connect you with other agents.

Your real estate agent in your primary search area is the most important person in your real estate search.
Your real estate agent is like the coach and you are like the quarterback.

You benefit by having a real estate agent:
- Free (Buyer’s agent paid through transaction by listing agent or seller)
- Experienced (Buyer’s agent will have seen thousands of properties)
- Knowledgeable (Buyer’s agent learns something new in every transaction)

The average buyer goes through four to five experiences of buying and selling in their lives. A top agent goes through four to five experiences of buying and selling every month or two.

4. Search for home sweet home.
So, now you know how much you want to spend.
If you will be needing a loan, you have a preapproval letter for a loan.
You have determined the area you wish to live and established a relationship with a real estate agent as your buyer’s agent.
Meet with your agent to focus your search and discuss specific requirements and wish list.

Sign up on your agent’s website for daily updates on properties in your price range.
Communicate on a regular basis with your agent regarding properties of interest.

Seek to see properties
1)     online
2)     on Sunday open house circuit
3)     on a tour
4)     by appointment

Learn from what you see – refine your search with your real estate agent.
Consider resale value.
Pay attention to you real estate agent and what he has to say.
If a property comes into focus as a contender, your real estate agent can complete a market analysis of value. Is the price low? On the mark? High?

5. Make an offer and proceed to closing.
When you are ready to make an offer, your agent will guide you through this process.

If your offer is accepted, you will
a) have a home inspection. Your real estate agent can recommend inspectors. Typical cost is around $500.
b) retain a real estate attorney. Your real estate agent can recommend attorneys. Typical cost is around $600 to $1,000. Your real estate attorney will review title insurance with you.

If the deal is still on after the home inspection, the buyer’s attorney gets busy in concert with seller’s attorney in working out the purchase and sale agreement  – the p & s - which takes the place of the signed, accepted offer.

Typically, at the time the P&S is executed the buyer has decided which lender to work with and completes all the forms for the loan.

Typically, a month after the purchase and sale is signed, the mortgage commitment from the lender is due.

Finally, the closing! You own it!

For more information on the home-buying process, please contact me at ccherney@hammondre.com or 617-733-8937. I am a Harvard graduate, Cambridge resident and a top broker in the city since 1999. I would be delighted to be of assistance to you.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as as new visitor at Cambridge Real Estate.

Learn more about Cambridge, Massachusetts and Cambridge real estate on my blog at www.CambridgeTumblr.com.

Cambridge and Somerville Real Estate Blog.

If you are interested in buying or selling residential real estate in Cambridge or Somerville, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, an Inman Square resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as a new visitor at Cambridge and Somerville Real Estate.

Take the pulse of Cambridge and Somerville right now on Twitter.

Cambridge and Somerville Real Estate Blog.

For fiscal year 2013, the residential tax rate in Cambridge, MA is $8.66 per $1,000 of assessed value.

For fiscal year 2013, the residential exemption is $202,699. The full residential exemption reduces a homeowner’s taxes by $1,755.37 and the CPA by $52.66. The total reduction is $1,808.03.

If you are interested in buying or selling residential real estate in Cambridge or Somerville, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, an Inman Square resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as a new visitor at Cambridge and Somerville Real Estate.

Take the pulse of Cambridge and Somerville right now on Twitter.

The Cambridge and Somerville Real Estate Blog.

If you are interested in buying or selling residential real estate in Cambridge or Somerville, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, an Inman Square resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as a new visitor at Cambridge and Somerville Real Estate.

Take the pulse of Cambridge and Somerville right now on Twitter.

Cambridge and Somerville Real Estate Blog.

4. Get connected if possible with your real estate broker online. Log in as a new visitor on your agent’s website for daily updates and to search properties at any time which are currently active, now under accepted offer and recently sold. I frequently communicate via email with buyer clients during the course of a search. I am, of course, available by phone and in person as appropriate. That being said, a great deal can be and is accomplished via email during the course of a search.

3. Pay close and careful attention to all the properties you see. Even if the house is a bomb, a light may go off in the kitchen on your tour that you want an island. It may come to you on the dark and dreary back deck that you really want a deck – all properties send messages. Let them speak to you so that you can refine your search parameters and learn what is important to you.

2. Have your real estate agent complete a market analysis for a property you feel inclined to make an offer on. When you think you are ready to do something, your real estate agent ought to carefully consider the subject property with you, weighing pluses and minuses. Also, your agent ought to crunch the numbers and review relevant properties now for sale, under accepted offer, and recently sold. Is it a deal? Priced right? Overpriced?

1. Maintain a positive attitude. Things can and do happen in a real estate search: you might lose out in a multiple offer situation; it might be discovered during a home inspection that your dream home has a serious structural defect; the place you are certain is perfect for you comes on the market when you are out of town. HANG IN THERE! Keep a positive attitude. Remember, this is real estate – expect the unexpected.

Generally speaking for most buyers who practice these five precepts, the result is a successful search.

If you are considering buying or selling in Cambridge, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, a Cambridge resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as as new visitor at Cambridge Real Estate.

Take the pulse of the Cambridge right now on Twitter.

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Retain a hard-working buyer’s agent who is value-added to your search.

A buyer’s agent who
- tracks the market and alerts you to listings of notecomes to truly understand your search and over time develops a refined sense of what is suitable and what is not
- is capable of completing a meaningful market analysis when a property of interest comes into focus
- is a good negotiator and a well-spoken advocate for your interests
- knows the market and can help you weigh and consider the offerings in a meaningful way
- is a dependable source of information and insights about the market, your search, and the home-buying process.

Carefully consider the resale value of the property you wish to buy.
Size. Price. Location. Condition. Upside. Many factors – consider them all.

Learn from yourself in your search what you are really searching for.
A tour of six properties on a Tuesday afternoon may not turn up your dream home. However, pay attention at each address and learn from yourself what you are really searching for – climbing to the top floor and being short of breath may remind you that you want to be on the first floor. Responding very positively to a new kitchen may bring home the importance of finding a cook’s kitchen. Looking out the window at the neighbor’s picture-perfect yard may tell you that for your new  home you really want a super outdoor space – or maybe just a nice view. PAY ATTENTION to what you are thinking and feeling in the course of your search and learn from yourself as your search opens up and advances forward.

Be realistic.
It’s not about lowering your standards -rather, it’s about understanding what is achievable in your price range.

Be positive.
You are much more likely to succeed in your search with a positive mindset. You do not have to find ten properties – you need to find one. Specifically, one which meets your needs and is a good choice for you now and looking forward. For sure, there’s more to the process than a positive mindset. However, being positive goes a long way towards allowing for a successful outcome in your search.

If you are considering buying (or selling) in Cambridge, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, a Cambridge resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as as new visitor at Cambridge Real Estate.

Take the pulse of the Cambridge right now on Twitter.

Cambridge and Somerville Real Estate Blog.

Search is undertaken with assistance of myself as buyer’s agent. Team effort to find a suitable property.

An offer is made. A check for $1,000 (“The binder”) is presented with the offer. Generally speaking, the check is made out to the listing broker office for the property. Appropriate loan preapproval letter is attached to the offer. Letter of introduction may also be attached to the offer.

Within 5 business days:
If the offer is accepted, next step is a home inspection. A buyer may also have a pest inspection or other inspections done at this time. (By law, the buyer has 10 days to have a lead paint inspection completed.)

If the home inspection is acceptable, a buyer will usually secure a real estate attorney at this juncture to begin communicating with the seller’s attorney. If the property is a condominium, there is a review of the condo documents & budget. In due course the attorneys prepare the purchase and sale agreement.

Within 7 to 10 business days:
If the deal is still on track, next step is the execution of the purchase and sale agreement (“The P&S”), which replaces the signed, accepted offer as the document binding Buyer and Seller. A second check, usually for 5 to 10% of the purchase price, is written by the Buyer at this stage. It joins the binder check in the escrow account established for the transaction.

Generally speaking, 3 to 4+ Weeks after signing of the purchase and sale, the mortgage commitment is issued.

Closing – the date arrives for the transfer of real estate. Generally speaking, the closing is 4-6 weeks after the offer is accepted.

If you are considering buying or selling in Cambridge or Somerville, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937. I am a Harvard graduate, a Cambridge resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge and Somerville, MA log in as as new visitor at Cambridge Real Estate.

Stay current with what is happening in Cambridge real estate by following Charles Cherney on Twitter.

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In the Cambridge and  Somerville marketplace, the binder is usually a check for $1,000. Generally speaking, the check is made out to the listing broker office for the property, as the listing broker office generally serves as the escrow agent in the transaction – which is to say that they hold the money until closing.

If the offer presented is not accepted, the binder check is returned or destroyed.

If the offer presented is accepted but the buyer later exits the transacation based on one of the contingencies in the offer, the binder check amount in escrow is, as a rule, returned to the buyer. Buyer and Seller typically sign an escrow deposit release form to allow for this to happen.

A buyer who gets cold feet and simply decides not to continue in the transaction may not necessarily receive the binder amount back. Instead, it may end up in the hands of the seller.

In certain instances, the binder check may be for more than $1,000. For example, some buyers make the binder check out for $5,000. This can make one’s offer stand out, especially in a multiple offer situation. It signals the seller that the buyer is serious about his or her intent to purchase the property.

On several occasions over the last ten years, I have received the binder in cash from buyers without a check on hand. I once had a buyer who wished to purchase the entire property on his American Express Card (No limit!). As a rule, checks are always best in a real estate transaction, even in so-called cash deals.

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Every buyer is different. Some need to have seen many places, often more than once, to know their mind and feel comfortable about proceeding with an offer. Others are ready to go if lightning strikes and they find the perfect place manifests itself on the first day of their search.

There is no “right way” or “wrong way” to be as a buyer. I often say to buyers, take as much time as you need to make a decision for yourself. However, once you have made a decision, act swiftly.

As a buyer’s agent, I complete a market analysis for a buyer, so that the buyer understands the market value of the property they are interested in making an offer on. A property is ultimately worth what a buyer in the marketplace is prepared to pay for it. That being said, it is useful for a buyer to know what the market value is, so that they understand if the property is a) a bargain b) priced at market value c) “overpriced.”

For a buyer ready to go, it is helpful to have an experienced buyer’s agent such as myself on board in the decision-making process. Having seen the vast majority of properties listed for sale in Cambridge in the past ten years, I can help the buyer understand an opportunity in terms of other relevant properties now for sale, currently under accepted offer, or recently sold. I can do this because I am familiar with these other properties and can compare and contrast them with the property of potential interest to the buyer client. I can also carefully review with a buyer client the various terms of their offer and help the buyer make informed decisions about all aspects of the offer they are making. As a buyer’s agent, I can also recommend home inspectors and real estate attorneys, among others.

If you are considering buying (or selling) in Cambridge, I am here to help. I can be reached at ccherney@hammondre.com or 617-733-8937.  I am a Harvard graduate, a Cambridge resident and a top broker in the city since 1999.

To gain instant access to photos and descriptions of all MLS properties now for sale in Cambridge, MA log in as as new visitor at Cambridge Real Estate.

Take the pulse of the Cambridge right now on Twitter.

Cambridge and Somerville Real Estate Blog.