bostonbubble.com

flamengo · Guest

We are looking into putting an offer on a condo in Boston. Based on all the info available on how high prices are and that no one is selling, is an intial offer of 25% under price a good one or should I go lower/higher? It is for a condo in a new building where no units have been sold yet

Any suggestions?

GTKeeper · Guest

It really depends on the location and price.

If you are looking in the somerville / cambridge area then 25% off is unrealistic. Thats like giving 300k for a 400k listing. I don't think that will happen. The last 4 listings I tried to buy sold at or above asking price.

Brian C · Guest

john p · Joined: 10 Mar 2006 Posts: 1820

I totally agree with the last two people's posts. Comps, perks, days on market, etc. If they sell a unit to you too cheaply, the rest of the units will go the same or cheaper, so in order for them to reach their financial goals they have to hit certain targets.

The person selling it to you most likely is limited to a certain amount and anything above that could give him/her a better commission. I would try to find out what the floor is by obscenely lowballing and see if they call you back. If more units are available, what's the rush? Also, try to make deals like Brian C suggested so that they can avoid setting a precedent.

I'd do some research about what would happen if the place didn't sell out and people that have been in that situation, meaning, would you have to foot more of the bill for maintenance if it wasn't at full capacity, or what if the developer sells the place and you get new condo fee terms with a new owner or something.... I don't know, but I'd ask around about possible scenarios.

Last, and best advice: KEEP LOOKING and don't fall in love with anything. If you waste energy falling in love with a place before you buy it, you won't be plowing it into your search. Your search might not be as fruitful, but it underscores your decision regardless....

stillRenting · Guest

I would like to second john p's last comment about not falling in love with the place before you buy it. If the seller is not willing to meet your price then walk. There a many choices out there and even if you do end up falling in love with it, chances are the condo's asking price will drop 25% in the next 5 to 6 months. They will probably come looking for you then.

JCK · Joined: 15 Feb 2007 Posts: 559

I think all of the posts here are good advice. I disagree that prices will fall 25% in the next 6 months (has that ever happened?), but it's a buyer's market out there and you should take advantage.

I think it's a good idea on getting the price down by negotiating having your condo fees paid for for a year or two. That would allow you to get into a place less expensively, but allow the developer/agent to record a higher sale price on the deed.

guest · Guest

It is funny since 2003-2004 I have been looking for some sort of correction in the boston market so that I could buy a house. I, like many others, have that nearly irrational attachment to the concept of owning a home. But as prices have increased I have continued to worry about how I would ever be able to afford a "decent home" in the boston area.

Now, finally, we are starting to see a correction, and it is funny that after waiting 4 years now I am worried I will miss the boat. Really it is insane, because I read these same real estate cheerleaders i have for the past 4 years and now begin to think they may be right.

This bubble built up over 7-8 years and now with only 7-9 months of "correction" buyers are starting to believe the NAR related bulls that have never seen trouble in this market.

The Housing bubble and subsequent credit crisis are only a few of the issues facing the current economy... if this perfect storm continues we will see a much harder hit housing market.

In general I am seeing listing of homes, not in foreclosure, at close to 2005 prices. The average seller is still in denial. Until these sellers(declining MA population, retiring baby boomers, Poor jobs creation) are forced to accept market realities

One thing about bubbles is that they tend to overcorrect-- I do not think we are in for a soft landing.

steverino · Guest

JeffG · Guest

Just FYI, new homes are under much greater pressure than existing homes. A new luxury condo complex in concord is holding an auction for many unsold condos. Condo that were selling for $799,000 will be auctioned at $550,000. I really feel sorry for those who paid full price.