johncah2000, Home Buyer in Boston, MA

I am looking at a 2 bedroomed apartment in West Somerville ? If the advertised price is $450,000, what should my opening offer be ?

Asked by johncah2000, Boston, MA Mon Oct 8, 2012

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Territory.com’s answer
There is no straight answer without doing a property CMA on the unit. Depends on many factors: condition, days on market, sales in the building and surrounding streets, etc. Understand that a property can be listed for $450K and be over priced significantly or be priced under value but the only way to determine that is through a good valuation using sold data.

Here are some general stat's for all Somerville condo's that have sold in the last 6 months:
Condominium Listings: 305
Avg. Liv.Area SqFt: 1,179.35
Avg. List$: $412,079
Avg. List$/SqFt: $362
Avg. DOM: 59.67
Avg. Sale$: $408,473
Avg. Sale$/SqFt: $359

Get yourself an exclusive buyers agent (NOT the agent who is listing the property) and they will guide you through the entire process including value.

More stat's where the above came from:
Territory.com
Massachusetts Premier Buyer Brokerage
HomeValue@Territory.com

Everything for sale in Somerville:
http://www.territory.com/search?search_string=somerville&…
Web Reference: http://territory.com/
0 votes Thank Flag Link Tue Oct 9, 2012
In the past year every condo in this price range went for 99% of asking...base your offer on that
0 votes Thank Flag Link Mon Oct 8, 2012
Hi John,

I don't actually see any active listings for $450k in Somerville in MLS -- is this a for-sale-by-owner?

Hard to advise on price without knowing which property you're referencing, but in general, I can tell you that inventory is very low right now, and demand is high, so most condos are selling close to, at, or even over the asking price. Here's a link to a blog posting I wrote on this trend:

http://cambridgeville.wordpress.com/2012/07/18/somerville-co…

A good buyer's agent will be able to help you determine what offer price and terms make sense. If you don't have a buyer's agent and would like some help with this, feel free to get in touch -- lara.gordon@nemoves.com.

Thanks,
Lara
0 votes Thank Flag Link Mon Oct 8, 2012
I know you are going to hate my answer, but the right answer is, "it depends." Asking prices are a fiction created by the seller or the seller's agent. If the condo is worth $400,000, a seller can advertise $450,000. If the condo is worth $460,000, the seller could advertise $450,000 and start a bidding war hoping that the buyers will jump all over one another and drive the price past $460,000. The thing to do is to get a Comparative Market Analysis to valuate the property based on recent sales in the area. (Assessed values and automated estimate programs are not as accurate.) If you can do this yourself, always do it before you make an offer. It will help guide your negotiations.
0 votes Thank Flag Link Mon Oct 8, 2012
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