Boston Luxury Real Estate Sellers Are Less NegotiableJuly 28, 2012
Given the shortage of property sales inventory and the rental market being on fire, sellers have become more reluctant to reduce their asking price. If they don’t receive an offer close to asking, they turn around and rent their property. Buyers should be aware that they can’t lowball sellers anymore, especially in some of the best Boston neighborhoods.
Brokers get calls several times a day asking if specific properties for sale could be rented and at any price. Multiple rental applications on any given property is the norm these days. Back Bay and Cambridge are among the most desirable Boston neighborhoods to live now – and the price to live there reflects that.
Buyers are still in the mode of price slashing and tying to shop for a bargain. What they don’t realize is that Boston luxury real estate has generally retained its value. Sellers are not desperate and can get handsome rent for a year or two if a reasonable offer isn’t submitted. They are willing to put their property back on the market after renting it and plan to sell it for much more.
Bottom Line for Buyers: Do Your Homework
You don’t have to overpay for a property, but don’t assume that you can slash the price down to a level that you can afford. If the price of a property is too high for you, then you may have to look in a different Boston neighborhood or change your search criteria. Don’t outsmart yourself and don’t expect to look at a $1M property and hope to buy it for 600K. It’s not happening in the current Boston luxury real estate market. Look at your budget and adjust your property search accordingly.