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Case Study #1: What makes prices go up?

Home Facade

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.