Buying a Home in New Hampshire vs. Massachusetts: What Buyers Need to Know

Buying in Massachusetts and New Hampshire may seem pretty similar, especially when you’re looking at towns that are only a few miles apart. But the process is actually quite different in a number of ways. From offers and inspections to deposits, septic systems and closing costs, there are some important things to understand before buying in either state.

The Offer and Purchase and Sale Process

One of the first differences buyers notice is how the contract process works.

In New Hampshire, there is a single process. Rather than starting with a separate offer form, buyers go directly to the Purchase and Sale Agreement. That agreement can then be revised using an addendum after the inspection if the buyer and seller agree to changes.

In Massachusetts, the process generally has two steps. First, the buyer submits an offer. Once that is accepted, the inspection period takes place and an attorney drafts the more detailed Purchase and Sale Agreement.

If you have only bought in one state before, this is one of the first differences you’ll notice.

Transfer Tax and Buyer Closing Costs

New Hampshire buyers should also be prepared for a closing cost they would not normally pay in Massachusetts.

In New Hampshire, the buyer and seller each pay a transfer tax equal to 0.75% of the sale price, for a combined total of 1.5%. For example, on an $800,000 purchase, the buyer’s portion would be $6,000.

In Massachusetts, the seller pays the transfer tax at closing, currently calculated at $4.56 per $1,000 of the sale price.

So if you are moving from Massachusetts to New Hampshire, this is one expense you definitely want to account for when estimating your closing costs.

Smoke and Carbon Monoxide Requirements

Massachusetts requires a smoke and carbon monoxide inspection before the sale closes. The seller must provide proof that the required detectors are properly installed and functioning.

New Hampshire does not have the same required pre-sale smoke inspection. Buyers should make sure the home has properly installed and functioning smoke and carbon monoxide detectors after closing.

Who Handles the Closing?

In Massachusetts, attorneys handle residential real estate closings. Title companies are not permitted to conduct the closing.

In New Hampshire, the closing may be handled by either a title company or an attorney.

The process gets you to the same place, but the people involved and the way the transaction is handled can feel a little different.

Homestead Protection

Both states provide automatic homestead protection, but the amounts are different.

In New Hampshire, there is automatic homestead protection of $400,000 for individuals and $550,000 if married, with no filing required.

In Massachusetts, automatic homestead protection is $125,000, and protection can be increased to $1,000,000 by filing for homestead protection.

Deposits Work Differently

In New Hampshire, an initial deposit accompanies the Purchase and Sale Agreement. A second deposit is optional, and the amount of the deposit varies depending on the transaction.

In Massachusetts, the initial deposit submitted with the offer is typically at least $1,000, with the balance of approximately 5% of the purchase price usually due when the Purchase and Sale Agreement is signed.

Deposit amounts can also be part of the overall offer strategy, especially in a competitive situation.

Septic Systems Are Handled Very Differently

This is an important one if you are looking at homes with private septic systems.

In New Hampshire, there is no Title V requirement. The buyer is responsible for the septic inspection at the buyer’s expense. Necessary repairs or replacement are generally still the seller’s responsibility.

In Massachusetts, a septic inspection under Title V is required. The property owner or operator is responsible for arranging the inspection unless the buyer and seller agree otherwise in writing. Title V does not specify who must pay for repairs or upgrades.

Inspection Language Is Different Too

New Hampshire buyers may indicate in the offer that they intend to waive the home inspection.

Massachusetts now handles this differently. A seller may not accept an offer indicating that the buyer intends to waive the inspection. After entering into the contract, the buyer may choose not to conduct one.

That means inspection strategy and offer language can look very different depending on which side of the border you are buying on.

A Few Other Things I Recommend Buyers Pay Attention To

Beyond the formal differences in the buying process, there are a few other things I like buyers to pay close attention to, especially in Southern New Hampshire.

Private Wells

Private wells are common in many Southern New Hampshire communities, so I usually recommend looking into:

• when the water was last tested
• whether there is an existing treatment system
• what that system is designed to treat
• whether additional water testing makes sense during the inspection period

Private Roads and Road Maintenance

Some New Hampshire and Massachusetts homes are located on private roads. It is important to understand:

• who owns the road
• who maintains it
• who handles snow removal
• whether there is a written road maintenance agreement
• whether there are annual or shared costs

This can also matter to a lender, so it is something I like to look into early.

Septic Design and Bedroom Count

If a home has a septic system, I also like to confirm how many bedrooms the system was designed to support. The bedroom count in the listing or public record does not always match the approved septic design.

Permits and Improvements

For homes with finished basements, additions, decks, garages or other major improvements, I recommend reviewing available permit records and confirming that the work was completed properly and that any required permits were opened and closed.

Massachusetts or New Hampshire?

There really is no one-size-fits-all answer.

Some buyers prefer Massachusetts because of location, commute or the towns they are targeting. Others find that Southern New Hampshire gives them more land, a different style of home or a better fit for their budget.

The most important thing is understanding that buying in New Hampshire is not simply the Massachusetts process with a different address. The contracts are different, the deposits can be different, the inspection rules are different, and the closing costs can be different too.

I work with buyers throughout the Merrimack Valley, North of Boston and Southern New Hampshire, so if you are looking in both states, I can help you understand the differences and know what questions to ask before you make an offer.