Newton, Top Realtors
Yes, yes this market is crazy, houses selling for 300K over asking, a line to get into an open house, 8 offers, 15 offers, 26 offers! Insanity…That is NOT the whole story though. The insanity in this market is happening in homes priced below 1.5 million and even more insanity below 1 milion. There are currently 104 house on the market, a definite uptick from the 57 houses we had in the early part of the year. We still have about 50% FEWER homes for sale than in a “normal” market. We had closer to 400 homes for sale during the debacle. Currently, there are 57 houses for sale priced above 1.5 millon dollars or 52% of the market share is OVER 1.5 million dollars. There are a total of 96 homes under agreement but only 22 are priced over 1.5 million or 23% of the market. That spells a depreciating market in the over 1.5 category. Let’s take a closer look at those numbers — There are 11 homes under agreement over 2 million of which 8 are either new or like new. In the 1.5 to 2 million range 12 homes are under agreement and 6 of those are new or like new.
Buyers, what are you thinking? WHY would you spend 1.4 million dollars on a home that can NEVER get any better? The lot can’t get bigger, the location can’t change, you have already paid a HUGE PREMIUM for renovated kitchen and bathrooms. Why oh why would you not look at a more substantial house in a better neighborhood that needs some work? I’m not talking a demo here, just some paint and floor sanding to get you in. So maybe the kitchen isn’t your dream kitchen and the bathrooms are a BIT outdated, but you can change that! You can do a room at a time. You can make the house your own. You can build some equity.
I say this to clients all the time…unless you are buying a 3-5 million dollar custom home with exceptional and timeless finishes; in 10 years you have a 10-year-old house. Your house is no longer new or old, it doesn’t have the charm of a home built between 1890 and 1930 and it’s no longer brand new.
PLEASE do yourself a favor, do not get caught up in this buying panic, do not over pay for an average house — there will always be another house. Do not ever give up your inspection contingency, do not give up your mortgage contingency if you don’t have either cash to pay for the house, or a lot more money to put down on a house if your appraisal comes in low. Do not put your finances in jeopardy over a specific house, you will find a better house.
Get a Realtor who doesn’t mind working and can calculate a few numbers. Get a Realtor who works for you. DO NOT use the sellers agent because you think you get a better deal. You don’t but the agent does! The agent gets both sides of the transaction, the agent represents the seller and has a responsibility to get the highest and best price for the home. You? you get nothing — except an over priced home.