Savvy Buyers Determine Market Value Before Placing Offers

Even in an economic downturn and housing slump, there are still buyers and sellers in the Boston real estate market. Oftentimes, buyers wonder if they should make offers at less than asking price or always expect a sale price to be much less than an initial asking price. This is not always the case, especially for properties that are listed at market value or recently reduced in price.

Buyers should determine, often with the help of a buyer’s agent, what they think is the current market value for a property as they proceed with their housing search. For example, current market value for a 1,000 square foot condominium might be $230,000 or the current value for a small triple-decker in very good condition might be $265,000. When a buyer has knowledge of what other properties are selling in today’s real estate market, it will help them know whether or not they should offer close to asking when a new property comes on the market.

For example, if a wonderful 1,000 square foot condominium comes on the market for $249,000, maybe an offer of $225,000 would not be unreasonable with the hope of acquiring the property for $230,000. But if the same unit is listed at $230,000, there is nothing wrong with paying full price if it is a unit the buyer has always wanted. Similarly, a buyer might offer less than asking for a small triple-decker priced at $279,000, but if it is priced at $235,000, and it is exactly what a buyer has been looking for, it might be wise to offer full price or even above asking if that means being able to acquire the property.

Please check back as we continue to update you on East Boston real estate happenings. To see all our listings, or to search MLS properties, head to the Tony’s Realty Website.

Email Tony with your questions or comments.

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