For first-time homebuyers, purchasing property may be the most important financial decision of their lives so far. In Massachusetts, an attorney must be involved in the closing of a residential real estate transaction, and it may also be helpful to have an attorney's advice on the value of a home, restrictions on property use, negotiations surrounding the purchase and sale agreement, and the mortgage process. At Pulgini & Norton, our Haverhill real estate attorneys can represent you in each step of a property transaction.
Guidance in Real Estate MattersBuyers are often unaware of the full range of options when they are buying a home. They may pay more than they should because a home is priced inappropriately or because they may not understand the effects of the current market. Often, they may not understand the full cost of buying a home because they may not realize that there are thousands of dollars worth of financing and closing costs, such as state recording fees, title charges, reserves, and closing lender fees.
In some cases, a buyer may be unaware that they may ask a seller for contributions called seller concessions. These concessions are agreements by sellers to pay certain costs, such as processing fees or title insurance. Both parties may benefit from a seller concession. In a buyer's market, the home may sell faster with a seller concession, allowing the seller to have funds to buy a new home, so it often is not just the buyer who benefits.
The amount of a seller concession may vary considerably, depending on how much the home is worth, where it is located, how much is borrowed, and other factors. However, you are not likely to get a seller concession if the home is already appropriately priced, and there are many interested buyers. Moreover, the seller may not want to pay closing costs if they are not in a hurry to sell the home.
In some cases, sellers are better off securing a bridge loan, which is temporary financing that allows financing for a new home while waiting for an existing home to sell. Sellers may find a bridge loan beneficial because they allow them to buy property without hurrying the sale of their current home, and since the loan is short-term, it does not need to be submitted to the secondary mortgage market. For the life of the bridge loan, two mortgages are maintained. The loan is supposed to be repaid in a short period of time. When the borrower is required to repay the bridge loan before securing long-term financing, the payments are structured to allow for the bridge loan to be repaid over a limited time period. However, the bridge loan may also be paid off after securing long-term financing with a single full repayment.
Consult a Real Estate Attorney in the Haverhill AreaHaverhill is a city located on the Merrimack River in Essex County. It was known for decades for shoe and hat manufacturing. More recently, many abandoned warehouses there have been converted into living spaces—condominiums and lofts. If you are entering into a residential property transaction in the area, you should consult an experienced Haverhill real estate lawyer. At Pulgini & Norton, we can provide sound legal advice to any of the parties involved. Contact our firm at 781-843-2200 or through our online form to set up a free consultation with a property transaction attorney.