2023 Real Estate Observations (Boston, Worcester, Cambridge: condo, neighborhoods, buyer)

[chicagoliz]

Originally Posted by MikePRU

I think every real estate agent has missed when pricing a house once. Missing by $3M is pretty bad though. It's possible the price might need to go even lower. You don't really know 100% until you start getting offers.



At least. It's crazy because some of the rooms are absolutely stunning but other spaces in the house don't look like they've been touched in 40 years. I can appreciate the beauty of this house but even if I have $3M+ to spend on a house I think I'd pass on this one.

Over 1 1/4 acre in Belmont. And even though some of it looks outdated, it looks basically beautiful. The kitchen might not need as much work as appears -- you could probably keep the footprint. If you changed the floor and cabinets/counters, that wouldn't be $500K.

It's probably worth that 3+million price. But yes, when you are spending that amount of money, every house you see is going to be beautiful. Most places probably won't have a kitchen that needs some updating (and maybe bathrooms, too.). But over an acre in Belmont seems uncommon.

[yesmaybe]

https://www.redfin.com/MA/Spencer/57.../home/16608054

Here's one all the way out in the boonies of Spencer. Bought last year for 420k and was put back on the market in June. Originally it was 520k and now down to 399k. That's a pretty solid cut.

Bonus: I looked up the public records and the mortgage mentions he was attempting to rent it out (in Spencer???) AND there's a rider about a prepayment penalty. That's totally legal for a fixed rate but what kind of crummy bank does that?

[matrix5k]

You guys sure like to stalk people's mortgages.

[newenglandgal123]

I've noticed quite a few $1.2M+ sales and just out of curiosity wanted to see what type of buyer is purchasing million plus homes with the mortgage rates where they are. Surprisingly not all cash buyers like I was expecting. Many are folks taking out $1M plus mortgages and putting $100-200K down. Ouch...wouldn't want that monthly payment or overhead debt. I guess taking on some extra debt to have the grand Mcmansion is more important to some than putting the $100-200K down on a more modest, but still very nice $700-800K home.

[pennyone]

Originally Posted by newenglandgal123

I've noticed quite a few $1.2M+ sales and just out of curiosity wanted to see what type of buyer is purchasing million plus homes with the mortgage rates where they are. Surprisingly not all cash buyers like I was expecting. Many are folks taking out $1M plus mortgages and putting $100-200K down. Ouch...wouldn't want that monthly payment or overhead debt. I guess taking on some extra debt to have the grand Mcmansion is more important to some than putting the $100-200K down on a more modest, but still very nice $700-800K home.

Well, people are often very "not smart" and they don't learn from history, or even know or care about history. This is what keeps collection agencies, mortgage sharks and lots of lawyers employed.

[GeoffD]

Originally Posted by matrix5k

You guys sure like to stalk people's mortgages.

I looked up my house at the registry of deeds portal before I bought it. It’s useful to know what mortgages and liens are on the property. My house was unoccupied and that information tells you how motivated the seller might be.

[matrix5k]

Originally Posted by GeoffD

I looked up my house at the registry of deeds portal before I bought it. It’s useful to know what mortgages and liens are on the property. My house was unoccupied and that information tells you how motivated the seller might be.

That's different than everyone here looking up how much down payment and how large of a mortgage strangers took out.

[newenglandgal123]

Originally Posted by matrix5k

That's different than everyone here looking up how much down payment and how large of a mortgage strangers took out.

Gives you insight into what's really going on in the market. Not everything is as good as it appears. Yeah there are many folks closing on million plus homes but apparently they are putting very little down and taking out large mortgages to do so. Let's hope none of them work for Microsoft or another tech that is laying off!

[simplexsimon]

Originally Posted by newenglandgal123

Gives you insight into what's really going on in the market. Not everything is as good as it appears. Yeah there are many folks closing on million plus homes but apparently they are putting very little down and taking out large mortgages to do so. Let's hope none of them work for Microsoft or another tech that is laying off!

Don't worry, they'll get another job quickly.

https://www.wsj.com/articles/laid-of...bs-11672097730

[chicagoliz]

Originally Posted by newenglandgal123

I've noticed quite a few $1.2M+ sales and just out of curiosity wanted to see what type of buyer is purchasing million plus homes with the mortgage rates where they are. Surprisingly not all cash buyers like I was expecting. Many are folks taking out $1M plus mortgages and putting $100-200K down. Ouch...wouldn't want that monthly payment or overhead debt. I guess taking on some extra debt to have the grand Mcmansion is more important to some than putting the $100-200K down on a more modest, but still very nice $700-800K home.

They're not all McMansions. In certain towns, 1.2 million gets you a small, old house. Sometimes there are very valid, practical reasons for wanting or needing to be in a specific town.

Yes, there are certain risks involved, but sometimes those risks are manageable and are worth taking -- it's not always because someone wants a big fancy house to show off.