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Buyer Agents' Field Report- October 2007

Email|Link|Comments (4) Posted by Rona Fischman October 1, 2007 05:06 PM

This month, I heard from agents north of Boston:

Essex County has experienced a marked increase in sales (August 20 to September 20), compared with the rest of the summer. However, this is not unusual, since summers are typically slower. As buyer’s agents, we need to remind our clients that some properties will sell fast, even in this somewhat slower market.
There is an increase in short sales, but my buyer-agent-eye expected more than he saw.

Northern Middlesex has an abundance of properties for sale, but many are still overpriced for the market. There are many people who have their homes "on the market" that don't really need to sell them. This is atypical. Lower pricing sets those who need to sell people apart from the people who are looking to get their price.

Based on these reports, here’s my October advice:

1. Buy only if it is your time in life to buy. This is still not an auspicious moment for speculators.
2. Keep an eye on value. There is still overpricing out there. The well-priced properties may go quickly, so be prepared to buy if the place and price are right.
3. These are financially unstable times; don’t overspend. This is not a good time to borrow using adjustable rate mortgages or other variable loan products to stretch your buying power.

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4 comments so far...

What is the typical percentage off of asking that most accepted offers are coming in at?

Posted by john p October 2, 07 02:37 PM

Dear John P,

There is no average because asking prices are a fiction created by the sellers and their agents. And, they are moving targets. I have seen asking prices go down $150K before something sells. So, if I negotiated $30K off that original price, I would not have helped my buyer much.

My colleagues north of Boston are seeing lots of overpriced listings. So am I near Boston. Buyer’s brokers do this everyday, and we stay as objective as possible, we can tell our buyers about how much something should sell for in the current market. From there, you have a chance to negotiate well.

Posted by Rona October 2, 07 06:40 PM

Hi, We have been looking in Arlington for a few months now. The prices are at record levels and yet the market isn't exactly brisk. Many of the same houses are on the market from the begining of the summer. At what point does the so called "law" of supply and demand. Or does it apply to homes. Thanks

Posted by Don Bogett October 3, 07 08:06 PM

Dear Don,

Arlington is an area where I work regularly. It has a strange dynamic right now. My buyer-clients and clients in my office have bought in competition in Arlington for certain types of property, yet there are other properties that have been on the market for a very long time. It seems to depend on where the property is, its condition, and whether it is priced competitively. Two clients in my office lost multiple properties to competing buyers this spring and into the summer in Arlington. They eventually succeeded to buy.

I know you are reading that it is a buyer’s market, that prices should be going down and choices going up. However, different towns have different market conditions. Demand is high in Arlington, but only for certain homes.

Posted by Rona October 4, 07 01:54 PM