Case Study #1: What makes prices go up?
Welcome to 2018! It’s been a sellers’ market in the western suburbs of Boston since 2013. The 2018 spring market has brought us to new heights. Here’s a case study on price appreciation.
This home is a conventional 4 BR, 1.5 BA, Colonial built in the 1920’s in pretty good shape, bathrooms and kitchen are about 20 years old. Excellent Newton location. I listed it a couple month ago for around $1.1M. I got 9 offers the first weekend. One right at asking price. Seven were about 5-10% above asking price. One was about 20% above asking price. The sellers smiled a big smile and signed the offer.
Did it sell “above market.”? Did the buyer get shafted? Will the house appraise for the mortgage? The answers are: Yes, No, Yes.
This is one way prices go up: One slightly nutty buyer goes way above what seems to be “market value.” When future buyers see the exorbitant price , everything else adjusts upward. That’s what a seller’s market is all about. It’s called “High Demand.”
If you own property in Newton, consider yourself very fortunate. If you’re a buyer, you’ll have to be very persistent!!
Good luck to all. Call me if you want to discuss selling your property.