Posts Tagged 'Multi-Families'

East Boston Real Estate Market Heating Up

Recent real estate sales activity in Jeffries Point demonstrates there’s a strong East Boston real estate market with limited inventory and more buyers than sellers.  Many properties are selling over their asking price.  Some have been purchased by investors; others are being purchased by owner occupants.  Here is a glimpse of that activity:

  • In March, 74 Everett Street, a regular size triple-decker needing renovations, was listed at $379,900 and sold for $377,000.
  • In May, 34 Cottage Street, a completely renovated brick three-family, sold for $550,000; asking price was $549,000.
  • This past week, 49 Jeffries Street, a beautifully renovated three-level two-family home with a rooftop deck and harbor views, sold for $430,000; asking price was $424,900.
  • Also this week, 66-68 Cottage Street, an older bank-owned two-family house needing renovations, sold for $331,000; asking price was $274,900.
  • And in April, 474 Sumner Street, an older ten-room single-family home sold for $302,000; asking price was $299,900.

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

If you are curious about the East Boston real estate market or would like to talk about recent trends and activities, please feel free to email Tony.

East Boston Has a Strong Demand for “Buyer Friendly” Multi-Families

March is the beginning of the Spring real estate market in East Boston. And there is a strong and steady demand for two and three-family properties in our neighborhood. What has become most important to a successful sale of late is that properties be in “buyer friendly” condition. Most buyers purchasing East Boston properties are obtaining loans, often FHA (Federal Housing Authority) loans, which require properties be in adequate and properly maintained condition and that they appraise at “current market value.” In other words, not only should properties being sold to buyers with such loans be in “working order,” they should be selling at prices that are comparable to other properties that have recently sold. If a porch, roof, electrical service, or a furnace needs repair, it makes sense to act on these repairs before selling a house. And it is important to be aware which similar properties are selling and to price one’s property accordingly so that there are no financing issues later.

During the past year, unfavorable tenant conditions have deterred many buyers from making offers on properties. Some landlords try to sell properties without delivering a vacant “owner’s unit.” About 90% of purchasers of two and three-family homes intend to live in those homes and need to know there’s an empty apartment in the building they’re purchasing—this allows them to place an offer with peace of mind. Many landlords also have tenants whose rents are far below market value. Before placing a home on the market, it’s a good idea to negotiate a market value rent with a current tenant or at least get an agreement from the tenant to pay market value when a new buyer takes over. The more financially sound a building appears, the more attractive it is to prospective buyers.

In summary, East Boston has a strong demand for two and three-family homes in decent shape with tenants who pay market value rent—and that come with at least one vacancy for a prospective buyer to occupy upon purchase.

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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5 Tips for Selling a Multi-Family Home

Because the holiday season is the least busy time of year for selling a multi-family home, it makes for one of the best times of year a future seller can prepare a two or three-family home for sale.  Here are five simple tips to assist you in selling your multi-family home.

  1. If you have tenants, inform them their home is going up for sale.  Chances are future buyers will want to keep them on as tenants.  Arrange with tenants in advance about access for showing their units.  Some tenants prefer to be home; others would rather go out and leave their keys with a real estate agent.  Inform and discuss with tenants the best methods to having their apartments shown while your property is for sale.
  2. If you have vacancies, or if a tenant is moving, leave at least one apartment empty.  Ninety-five percent of buyers of two and three-family houses want to live in at least one unit.  Providing a vacancy makes it possible for a buyer to qualify for a loan as an owner occupant, and more simply, it gives a buyer a unit to live in.
  3. During the winter months, property owners sometimes fuss over the cost of heating vacant properties.  It is advisable to “keep the heat on” and make sure that vacant units are toasty warm.  When a buyer sees a cold house or a cold vacant apartment, they are less likely to feel comfortable and less likely to buy.  If you budget a few hundred dollars a month for heating an empty unit or house, you will get the money back when selling the house, and your property will be much more attractive than a colder, less presentable, property.
  4. Gather your data.  If you have tenants with leases or signed rental agreements, keep a folder with copies of those contracts.  If you have done recent repairs on your roof or heating system, find the receipts or copies of checks written to pay for repairs.  If you have certificates of lead paint compliance, keep them together with any other important information pertaining to the property.  And if you have a history of bills paid for water, gas or electric, keep them together.  Buyers are more likely to purchase a home from a seller who “has everything” together.
  5. De-clutter the home, hallways, yard, and basement.  If you have unnecessary items in your basement, attic, empty apartments, backyard or rear porches, throw them away or hire a junk removal company.  An emptier property is much easier to view and a buyer can more easily see what repairs need to be made (before hiring a home inspector) or what improvements have been done.  It leads to a smoother sale.  And a seller won’t have to worry about emptying everything out the home at the last minute either. 

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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Recent Sales on Trenton Street Indicate a Market Uptick

Recent sales activity on East Boston’s Trenton Street during the month of November continues to demonstrate that multi-family prices are slightly improving over the average 12 month sale prices in East Boston.  125 Trenton Street, a 1,740 square foot renovated two-family with three garage stalls sold this week for $312,000.  It is the only two-family property outside of Orient Heights to sell for more than $300,000 during the last year in East Boston.  During the last 12 months, 41 two-families sold with an average sale price of $238,695.

Similarly, Tony’s Realty recently sold 146 Trenton Street.  This completely, and exquisitely, renovated 2,728 square foot three-family sold for $375,000.  A similar sized property (2,448 square feet) at 96 Trenton Street also sold this week for $356,000.  Both these sales are indications of an improved market.  During the last twelve months, the average three-family in East Boston sold for only $243,191.  And in all of East Boston, only 6 three-families, during that time frame, have ever sold for more than $350,000.

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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East Boston Attracts a Diverse Range of Buyers

A question buyers and sellers often ask of Tony’s Realty is “who is buying real estate in East Boston?” Based upon observations of Tony’s Realty agents, the answer oftentimes depends upon the type of property being purchased. Most condos in East Boston are purchased by professional first time homebuyers, most of whom have maybe 3% to 10% available for a down payment. Many bank owned condominiums, most of which are in buildings with no associations, are sold to investors who pay cash. These are primarily used as investment properties and rented out. Sometimes, if a condo association is established and a high owner occupancy rate can be achieved in a building, investor purchased bank owned condos can be resold for a profit, again with most buyers being younger professionals.

Larger multi-family properties in East Boston, especially those with apartments having two or three bedrooms, are almost exclusively sold to immigrant families currently living in East Boston as tenants. These usually become owner occupied properties. Smaller, bank owned multifamily properties are usually sold to investors, often paying cash, who use the properties as rental buildings.

Single-family homes attract both younger professionals as well as immigrant families. Occasionally, native East Bostonians or city employees such as firemen or policemen will purchase Orient Heights properties. Unlike condos, which sell almost exclusively to younger professionals or two or three family homes, which sell almost exclusively to immigrant families, single-family homes attract buyers from both of East Boston’s two major pools of buyers.

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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There’s a Strong Demand for East Boston Properties in Excellent Condition

Even though our country is in the worst financial straits since the Great Depression, recent sales during the last two months of certain East Boston properties show there is a strong demand for good properties in excellent condition in our neighborhood, and there are buyers willing to pay for and occupy them.

Recently, a 1,906 square foot 4 bedroom single-family with parking in excellent condition sold at 30 Annavoy Street for $350,000. A two level, 1,757 square foot brand new condo with parking on Lamson Street in Jeffries Point sold for $392,750. At 281 Webster Street, a top floor, 1,036 square foot brand new condo sold for $322,000. Two top floor lofts, each with two garage spaces, sold at Porter 156 for $360,000 and $367,000. A beautiful two-family with four garages at 28 Orient Avenue sold for $370,000. A unique 4,102 square foot two-family consisting of a brick single and an attached townhouse with 2 garages and ample parking at 50-52 Ashley Street sold for $475,000.

There have been buyers in East Boston willing to pay over $300,000 for larger homes in excellent condition with excellent room layouts and sufficient parking (although plenty of properties without private parking sell). Stagnant sales are more prevalent among properties that are in bad condition, have poor room layouts, and are overpriced.

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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East Boston Privately Owned Three-Family Market Might Be Stabilizing

In the last three months, according to MLS, 17 three-family properties sold in East Boston. They ranged from $150,000 to $370,000. Of 11 properties that sold for under $250,000, 5 were bank owned and 6 were short sales. None was a private seller willing to sell at these new “low prices.” This is a good indication that when the supply of bank owned and short sale properties dissipates, private property-owners will be reluctant to sell at lower prices. This will eventually stabilize the East Boston multi-family market.

Since early November, the 6 remaining three-families, all of which are on the larger side, sold for $270k, $280k, $290k, $310k, $330k, and $370k. Three of these properties were short sales, one was bank owned, and two were private sellers without any foreclosure / banking issues. 186 London Street was a “regular sale” for $310,000 and 222 East Eagle Street was a “regular sale” for $330,000.

Of the 17 properties sold, two of the highest prices were among private sellers (not banks) without mortgage issues (i.e., short sales). These higher prices on the open market suggest that some short sales of better properties at lower prices might have been negotiated at “less than market value” in deals between sellers and selected buyers. It also indicates the triple-decker market in East Boston, for larger, well maintained properties might be stabilizing, as we see individual sellers of non bank owned, non short sale properties obtain better selling prices for their three-families than banks or negotiators of short sales.

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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