bostonbubble.com

guest · Guest

I Keep reading about all the information and stats on prices dropping, however I am yet to see it. Condos in many towns around Boston ( South Boston, Brookline, Watertown,....) are selling within 5% of asking price, sometimes even at asking price. With that in mind, many brokers say that things are moving pretty good, and that you should offer closer to asking price then low offers. Who is right? How low should I be settling for? Please help!

admin · Posted: Fri May 02, 2008 5:35 pm GMT Post subject:

The reports of price declines generally compare recent sales with past sales - asking price doesn't enter the picture at all. Perhaps those properties which are selling now are those which are priced most attractively. I'd suggest ignoring the asking price initially and coming to your own conclusion of what a place is worth.

If you were looking for a single family home, one good way to do this would be to look up the previous sales of the home at the registry of deeds or Zillow and then plug the data into this calculator, which tells you what the home would have sold for recently assuming that it appreciated at the same rate as most properties in Boston: http://www.papereconomy.com/Calculator.aspx The calculator uses the S&P/Case-Shiller Index, so you could even take it one step further and see where the futures market predicts appreciation/depreciation will be over the next five years. Unfortunately, the S&P/Case-Shiller Index doesn't cover condos, so bear in mind that the results are only indirectly applicable to your situation, if that's what you're shopping for.

- admin

Paperboy · Guest

Realtors don't want you lowballing, they want to make as much as possible on every deal. Lowballing is the pandoras box for realtors and they know it.

People are now pricing homes more realistically so it appears that the homes are selling for asking price.

Yet, How many times have you seen a home priced at $500K pulled off the market for two days and re-listed for $470K. They sell for $450K and it looks like its within 5%. But its really 10% off the original listing price.

Hard Rain · Guest

"Condos in many towns around Boston ( South Boston, Brookline, Watertown,....) are selling within 5% of asking price, sometimes even at asking price"

Uh Huh, and who told you this? a realtor? I'm finding folks are not getting anywhere near asking price..

samz · Joined: 19 Feb 2008 Posts: 102 Location: Medford, MA

JCK · Joined: 15 Feb 2007 Posts: 559

Two things to keep in mind. First, realtors represent the sellers, not the buyers (unless you have an ethical buyer's agent). So of course someone representing the seller is not going to (and probably should not) tell buyers to low-ball.

Second, samz brings up a good point. Realtors don't make any money by telling their clients to price above what the property will bring.

spork · Joined: 23 Oct 2007 Posts: 25

john p · Joined: 10 Mar 2006 Posts: 1820

Check out the 2nd to last paragraph.

http://www.boston.com/realestate/news/articles/2008/05/02/condo_sales_in_boston_drop_off/

Sam Chady · Guest

"So of course someone representing the seller is not going to (and probably should not) tell buyers to low-ball. "

You wanna hear something funny - many of the condos I have looked at where the sellers agent was present, whispered to me, "Low ball, they'll take it!" I even went to one where the asking price was $300K, and they guy said, "You might even get it for $200K!"

The realtors are very frustrated with their buyers, and I really think they want any commission, not just a high one. So, even the sellers can't trust their own agents.

My realtor (who is a very good friend) tells me that nothing is moving and he is tired of open houses. He's also tired of sellers firing him and then letting the next realtor finally lower the price when he's told them to do that all along.

samz · Joined: 19 Feb 2008 Posts: 102 Location: Medford, MA

john p · Joined: 10 Mar 2006 Posts: 1820

Do you know what a complete sleazebag a realtor is for communicating to you "lowball, they'll take it" is? I mean even a lawyer, which often times is in the sleaze zone, knows when they act as an "agent" they are to represent the interests of their client. Think of how friggin bad that is, they are taking someone's hard earned money and f-ing them. They ought to catch someone doing that and take their license.

JCK · Joined: 15 Feb 2007 Posts: 559

Paperboy · Guest

I went to an open house last spring before deciding to rent another year and the realtor told me that the owners were divorcing and that we should make an offer, any offer and they might take it.

Someone did get that house for $75K lower than the asking price. It was listed at $500K and went for $425K.

Talk about showing everyone your clients hand. But the house did sell.

Some very good points about realtors and lowballing in the previous posts.

Guest · Posted: Sun May 04, 2008 2:58 am GMT Post subject:

I don't see anything wrong with agents telling buyers to make a lowball offer. It is the seller who will make the final decision on whether accepting the offer or not. If the highest or the only offer the seller gets is the lowball offer, then that is how much the house worth. Isn't selling the house the seller's interest? Sure, agents could say "Hey, only make an offer close to the asking price". But is it really the seller's interest? Would you rather have an offer than no offer at all no matter how low that offer appears to be?

I bet that agent who said "make a lowball offer" didn't receive any offers and the house had been on the market for months. So doing that actually helped the seller sell the house.

john p · Joined: 10 Mar 2006 Posts: 1820

That is totally wrong. If they believe that the place is overpriced, it is a conversation the realtor has with the seller. If the realtor is uncomfortable representing the seller they need to end the contract. As long as they are under contract realtors are to represent the seller's interest. If their interest is to sell at a certain price, that is the interest the realtor is to represent. It is against the law for a realtor to not present any offer, so a buyer can put in any offer anyway and it will make it's way to the seller. For the selling agent to communicate that the seller is desperate and will take anything is unprofessional and most likely illegal. The realtor's job is to provide comperable sales information to the seller and do a great job marketing.

Do you know I see these listings with "million dollar views", and no views in the list of photographs. Even with a tight market we have an abundance of moronic realtors. Dishonest realtors should not be tolerated.