First-time buyers hoping to take advantage of continued low interest rates and purchase a new home or condominium this spring are starting to take more risks when competing for "hot" properties in and around Boston, according to the Massachusetts Association of Buyer Agents (MABA).

"The sort of risks that these buyers are taking in so-called multiple offer situations [are] alarming," says Sam Schneiderman, president of MABA.  "I’m not sure whether they have agents or attorneys or are going it alone, but they can get themselves into a world of trouble."

According to Schneiderman, MABA agents are seeing willingness among first-time buyers in this market to:

— Waive the Mortgage Contingency

— Waive the Home Inspection

— Make an Offer Before They Know How Much a Property is Worth

With many properties being appraised for under asking and/or offered prices, MABA warns, waiving the mortgage contingency or making an offer without thoroughly examining comparable properties can leave a buyer caught between a rock and a hard place when the lender refuses to extend a mortgage for more than the appraised value. Deals can fall apart, putting the buyer’s deposit money at risk, or buyers will be forced to make up the difference themselves, potentially over-paying for the property.

Similarly, waiving the home inspection leaves buyers on the hook for any problems uncovered.   "Our agents are seeing a lot of this – especially when new construction is involved," said  Schneiderman in a statement.  "The thinking is that if it’s ‘new’ everything will be fine so I can waive the home inspection, but this is often not the case."