for 99% of Asking Price
It seems quite often in todays real estate market in Boston
for properties to not only sell at asking price, but frequently
above such said price. In his most recent post known as Bates By
the Numbers on Curbed Boston, Gibson Sothebys International Realtys
own David Bates provides
some very insightful information about the status quo of the
industry as it particularly pertains to the Greater Boston
Area.
A humorous story from David regarding Steve Carell thereafter
ensued as the actor was recently at a pawn shop and wished to
purchase a World War II divers knife. Upon hearing the price for
the item was $2,500, the comedian took it upon himself to respond
with; You know what, it seems a little low. I will give you $4,000.
As incredible as this moment was, it is actually occurring at the
local level here in Boston but for far more steep price offers for
the purchase of real estate.
This trend, however, is a fairly new phenomenon for the Hub. In
fact, back in the beginning of 2011, Boston condominiums were
trading for 96% of their asking price, which was 92% of their
original asking price. This indeed is impressive and encouraging
for sellers to say the least, although in todays marketplace
activity has lessened the list vs. sale differential. During the
early months of 2012 when the market was beginning to positively
turnaround, sellers were accepting offers that were 97% of the
final asking price, which was 94% of the price when the properties
were first put on the market. Thus far in 2013, this accelerating
business has only become more dramatic. Sold properties are now
closing at 99% of the asking price which is still 98% of the
original asking price.
This undoubtedly is leaving little to zero wiggle room for those
individuals looking to negotiate and purchase property on their own
terms. Sellers simply are not as desperate as they were from years
past, and with the peak demand to buy Boston property amongst the
populace, sellers can literally pick and choose at multiple offers
with pleasure. Subsequently, buyers agents have been forced to urge
clients to put in an offer of at least the asking price, if not
more, and this is happening more frequently.
Looking to some recent statistics in specific areas so far for
2013, Brookline has shown
that over 50% of their sold condominiums for this year have been
for more than the asking price. 40% of these sales were for at
least $10,000 more than the asking price, while 30% were for at
least $15,000 over the ask, and other transactions were recorded
for even more of a leap. In Somerville, properties in 2013 have
traded hands at $30,000, even $36,000 more than the asking price.
In Cambridge, closings
for up to $100,000 or more are happening, while in the South End one
condominium sold for an astonishing $126,000 over the original
price! Evidently, bidding wars are rampant in Boston. In order to
even attempt to avoid this fate, individuals are putting their best
offer forward straight from the get-go. With Boston real estate as prized
as it is rare and hard to find, this strategy is only expected to
continue in the future as prices are now beginning to rise once
again.
More Information: Curbed Boston