Home Buying in Back Bay>Question Details

Maria, Home Buyer in

Do condos at 201 Newbury appreciate 10% in less than 1 year?

Asked by Maria, Tue Jun 14, 2011

Units 307 and 309 were bought in Sep-Oct last year and are now listed at ~10% higher. Unit 307 keeps reducing price. Do people still flip condos in BB or they are crazy?

Help the community by answering this question:

Answers

4
Hi Maria, they are sort of crazy.... The market in the BB lacks inventory which is inflating the prices. Sellers know this and are jacking the prices up. This will not last for ever so be patient if you can. Good luck !

http://www.hotbostonproperties.com/backbayrealestate
1 vote Thank Flag Link Mon Nov 12, 2012
Some people do flip condos in the Back Bay but it is unusual. What usually happens is people hang on to the property and rent it out. Buyer may have an inside track on a pre foreclosure or get lucky on a short sale. They may have put some money into improving it which could account for the price change.

Another thing I see a fair amount of is someone buys a property as a slight discount, rents it, but puts it on the sales market as well to try and see if anyone will bite at the higher price.

I can't say this strategy works particularly well but I do see it happen.

Bobby Woofter
717-917-8842
bobby@mybostoncondo.com
Web Reference: http://mybostoncondo.com
1 vote Thank Flag Link Fri Dec 9, 2011
Unit 307 finally sold in August for 635,000, $35,000 more than the seller bought it for. I think this answers your question that yes people still flip properties in Back Bay. I think the real question is whether they flip properties profitably and that is not so clear. If you look specifically at Unit 307 you will see that the seller ended up with a net loss after commissions. I suspect the seller was not a developer looking for a "flip" but simply someone who had a life change, a new job, etc.. and was forced to sell the condo shortly after they bought it.

All that said their are successful flips that still occur. Buyers who are able to negotiate a below market deal thanks to a foreclosure or a seller in distress or developers who identify profitable ways to improve units like carving out a second bedroom or developing existing roof rights can flip at a profit.

Unit 309 was pulled off the market in October. Expect that it was either rented or will show up for sale again just in time for the spring market next year.

There is one bank owned listing in Back Bay right now (see link below). Worth a look if you are thinking about a flip.
0 votes Thank Flag Link Thu Dec 15, 2011
Crazy... I think they put a little money back into it to make it more presentable and sell it. I.e fix the bathroom.. sell it for $50K more, minus the commission ... minus the bargin price.. and hopefully they make some money. I know they can't live there... it's too expensive to live there with condo fees...
0 votes Thank Flag Link Thu Dec 1, 2011
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2014 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer