In today’s Boston Back Bay real estate market, buyers shouldn’t shop for a home with the expectation they’ll be able to negotiate a lower sales price. In a typical housing market, buyers try to determine how much less than the asking price they can offer and still get the home. From there, the buyer and seller typically negotiate and agree on a revised price somewhere in the middle.
Today’s housing market is anything but normal. According to the National Association of Realtors (NAR), homes today are:
- Receiving an average of 3.8 offers
- Selling in just 17 days
Homes selling quickly and receiving multiple offers highlights how competitive the housing market is right now. This is due, in large part, to the low supply of homes for sale. Low supply and high demand mean homes often sell for more than the asking price. In some cases, they sell for a lot more. Selma Hepp, Deputy Chief Economist at CoreLogic, explains how these stats can impact buyers:
“The imbalance between robust demand and dismal availability of for-sale homes has led to a continual bidding over asking prices, which reached record levels in recent months. Now, almost 6 in 10 homes listed are selling over the asking price.”
What does that mean for you? If you’ve found your dream home, you need to be realistic about today’s housing market and how that impacts the offer you’ll make. Offering below or even at a home’s asking price may not cut it. In today’s market, the highest bidder often wins the home, much like at an auction.
Currently, the asking price is often the floor of the negotiation rather than the ceiling. If you really love a home, it may ultimately sell for more than the sellers are asking. That’s important to keep in mind as you work with your agent to craft an offer.
Because of today’s home price appreciation and the auction-like atmosphere in the selling process, appraisal gaps – the gap between the price of your contract and the appraisal for the house – are more frequent.
According to data from CoreLogic:
“Beginning in January 2020, nationally, 7% of purchase transactions had a contract price above the appraisal, but by May 2021, the frequency had increased to 19% of purchase transactions.”
When this happens, your lender won’t loan you more than the home’s appraised value, and the seller may ask you to make up the difference out of pocket. Buyers in today’s market need to be prepared for this possibility. Know your budget, know what you can afford, and work with a trusted advisor who can offer expert advice along the way.
Back Bay Condos and the Bottom Line
Bidding wars and today’s auction-like atmosphere mean buyers need to rethink how they look at the asking price of a home. Let’s connect so you have a trusted real estate professional who can advise you on the current market and help determine what the market value is on your dream home.
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The selling pattern in the Back Bay continues to be list low, sell for more. However, it doesn’t always work out that way for some sellers. In December 2017 a few Boston condo buyers veered from the typical pattern, in the Back Bay neighborhood where it absolutely is the norm to overbid. Congrats to these buyers and sellers who wrapped it up before the end of the year:
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Ford Realty – Boston Real Estate Google Reviews 2019, 2020, 2021
11 Back Bay condos that sold in the last 30 days:
Back Bay condos that sold at asking price:
- 362 Commonwealth Ave – sold at asking price.
Back Bay condos that sold above asking price:
- 41 Commonwealth Ave
- 293 Commonwealth Ave.
- 345 Commonwealth Ave
- 230 Beacon Street.
Back Bay condos that sold under asking price:
- 452 Beacon Street.
- 352 Beacon Street.
- 65 Commonwealth Ave.
- 160 Commonwealth Ave.
- 295-295 Commonwealth Ave.
- 226 Marlborough Street.
To learn more about the Boston pet friendly real estate market please feel free to call our office at 617-720-5454. You can also stop by our Beacon Hill office at 137 Charles Street, Boston MA.
View Back Bay condos for sale:
For more information on how to be a Boston condo owner please contact John Ford at 617-720-5454. You can also email at email@example.com
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SEARCH FOR CONDOS FOR SALE AND RENTALS
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