Posts Tagged 'Short Sales'

Short Sales at Artificial Prices Hurt the East Boston Market

Two recent property sales in East Boston exemplify how short sales can contribute to a neighborhood’s plummeting property values. Recently, two of East Boston’s largest and finest triple-deckers were put up for sale and sold for about $100,000 less than market value in less than a week, without giving potential buyers an opportunity to bid or pay true market value for these properties. In both cases, the real estate agents listed and sold the properties quickly to their own buyers and then proceeded to negotiate with their sellers’ banks in order to have sale prices accepted and the sellers relieved of mortgage debt.

61 Homer Street is a large three-family with four parking spaces. It was listed on May 14 for $400,000; an offer was accepted on May 15. It sold on September 21 for $315,000. The City of Boston’s assessed value was $412,600. It could have sold on the open market for about $425,000. Similarly, 127 Princeton Street, a large three-family, was listed on August 21 for $499,000. It had an accepted offer on August 24. It sold on September 14 for $258,000. The City of Boston’s assessed value was $346,400. It could have sold on the open market for about $350,000.

By accepting artificially low sales prices of $315,000 and $258,000, lenders on these properties allowed sellers to walk away from debts and allowed real estate agents to limit sales to their own buyers and earn larger commissions than they otherwise would have. Meanwhile, neighborhood values were hurt. If lenders had required these properties to stay on the market for at least one to two weeks at somewhere near their market or assessed values, these properties could have sold for more money, creating documented sales at higher prices. It would then be easier for other buyers to obtain fair appraisals of properties purchased from “regular sellers” and easier for homeowners who are looking to refinance, the opportunity to obtain decent and fair appraisals on their properties. The sale of two of the neighborhood’s largest and finest triple-deckers at artificially low prices will have a lasting negative impact on homeowners throughout East Boston. While two homeowners might have been relieved of their debts, the neighborhood is paying the price.

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 Showing Shortage of Available Single-Family Homes

According to June MLS data, East Boston is showing a sudden shortage of single-family properties on the market. Currently, there are 12 available single-families in East Boston. Only one of those properties is bank owned—a slanted, 1,248 square foot colonial with parking at 210 Havre Street for $83,900. Another is a short sale.

The remaining properties, offered by regular sellers, range from an adorable 937 square foot fixer-upper at 19 Haynes Street for $159,000 to a 2,802 square foot Eagle Hill Victorian built by shipbuilder Donald McKay at 56 Putnam Street. Its price is $374,900. There are currently 7 single-family homes for sale between $200,000 and $300,000 in East Boston, ranging from Orient Heights to Eagle Hill.

June was a busy month, with offers accepted on single-family homes on Saratoga, Eutaw, Bennington, Horace, and Wordworth Streets. Another was accepted on Murray Court. Varying in condition, these properties were all priced right, with 3 of them priced over $200,000, and four of them priced under $200,000. There currently seem to be more qualified buyers than available properties in the single-family market.

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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Regular Sales Fetch Higher Prices than Bank Owned Sales or Short Sales

In the last three months, 16 triple-deckers have sold in East Boston, ranging in price from $135,000 for a rundown, bank-owned, gut-rehab at 204 Princeton Street to $350,000 for a completely renovated and smaller property located at 67 Webster Street. Of the 16 properties, 4 were bank owned, 7 were short sales, and 5 were regular sellers. A “regular seller” is an individual, not a bank, who owns a property and who usually sells for more than what is owed on a mortgage.

Two of the bank owned properties were in decent condition, not requiring a gut rehab. 51 Wordsworth Street was sold in one day. The asking price was $190,900. The sale price was $230,000. A very large bank owned property at 316 Saratoga Street was listed for $325,000 and sold in six days at asking price. It is not uncommon for well-priced bank owned properties to sell at or above list price.

It is interesting to note that four of the five most expensive three-families to sell, all between $290,000 and $350,000 were not bank owned. These properties—67 Webster at $350,000, 26 Bremen Street at $335,000, 358 Meridian Street at $320,000, and 499 Sumner Street at $290,000—were all in very good or excellent condition and sold for prices higher than most bank owned or short sale properties.

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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Large Non Short Sale Three-Families Sell Quickly in East Boston

In East Boston, there is an increased demand for larger three-family homes in decent condition that are not short sales.  Most sales taking place recently have been short sales (in a short sale, a seller attempts to sell a property at market value, which is less than what is owed on a mortgage, and asks the bank to forgive the difference between the amount owed to the bank and the amount a buyer is willing to pay).  Short sales are sometimes not approved, and approvals can take three to six months.  There are many buyers unwilling to attempt a short sale purchase, but who instead want to buy a “non short sale property” from a “regular seller” so that a sale can take place in the normal 45-day time frame.

Recently, some larger three families in East Boston, which have not been short sales, have sold for higher prices than many short sales.  A large 4,128 square foot three-family with a driveway at 641 Bennington Street near Orient Heights recently sold for $350,000.  Another large 3,553 square foot three-family at 222 East Eagle Street sold in January for $320,000.  A large 4,764 square foot home at 358 Meridian Street was recently listed at $325,000 and went under agreement in just 24 days.  Similarly, a large 4,632 square foot three-family at 316 Saratoga Street was listed at $325,000 and went under agreement in just 6 days. (The last two properties have not yet sold; most properties that go under agreement within 30 days sell within 90% to 100% of asking price.)

East Boston has a shortage of large three-family properties on the market and in good condition that are not short sales.  Regular sellers will find that even in these tough economic times, there is a strong demand for large three-families in good condition in the $300,000 to $350,000 price range.  They tend to sell quickly.

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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Walking Away from Your Home Loan

 

See this March 13, 2009 New York Times article regarding short sales, deeds in lieu, and foreclosures:  Thoughts on Walking Away From Your Home Loan.

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East Boston Sale Prices Significantly Drop

During the month of November, many of East Boston’s property sales have been bank owned sales or short sales.  A short sale is when a property is sold for less than what a seller owes on a mortgage, and the bank forgives the seller the difference between the amount owed and the amount for which the property is sold. 

The prices of some bank owned and short sales sold in November clearly show how East Boston selling prices have significantly dropped in the last few years, especially for older properties needing repairs.  A four level single-family townhouse at 143 Saratoga Street on the edge of Eagle Hill recently sold as a short sale for $215,000.  That same property sold in March 2005 for $329,000.  A few blocks away, on 137 Brooks Street, a bank owned three-level two-family recently sold for $122,300.  This same property sold in May 2005 for $358,000.  At 27 Wordsworth Street, near Dom Savio, a standard two-family recently sold for $210,000.  That property previously sold in December 2003 for $355,000.  And in one of the worst examples of property devaluation, a bank owned three-family at 263 Paris Street just sold for $240,000.  This same property sold in March 2007 for $495,000. 

Many older East Boston properties have plummeted in value between 30% to as much as 50% in the past year.

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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Bank Owned and Short Sales Predominate East Boston Two-Family Market

During the last two months, ten two-family properties were sold in East Boston. Of these ten, three were bank owned properties. Another four were short sales. Only three of these properties were “regular sales.”

The average two-family house sold for $237,243. This ranged from $175,000 for a 2,800 square foot bank-owned two-family house on Princeton Street in Eagle Hill to $306,000 for a large 3,900 square foot two-family house on Falcon Street with parking, also located in Eagle Hill. A large traditional style 2,800 square foot two-family with a garage on Bennington Street in Orient Heights also sold for $300,000 on a short sale.

Bank owned properties and short sales usually lead the way in setting new market value prices. They are not necessarily cheaper than “regular sales,” but if a “regular seller,” whose property is not bank owned or an attempted short sale, wants to sell a property, it usually must be priced to compete with a bank owned property or an attempted short sale.

Of the ten two families that sold, only three were “regular sales.” They were a 2,100 square foot two-family on Saratoga Street near Central Square for $180,000, a renovated 2,400 square foot two-family on Marion Street for $250,928, and a beautiful 2,300 square foot two-family on Bennington Street near Dom Savio for $240,000.

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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