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I take issue with the people essentially saying "these are your options, pick one and pipe down".
This is the most popular thread in the MA forum, and the main reason for that is because a lot of people in MA are having difficulty with the only available options. Let them discuss it.
This one Real Estate agent is trying to sell two units in the same building in the City of Sin... and isn't getting anywhere. DOM for both is 185 days. Not exactly doing a good job, huh.
Bonus: The better unit sold for just 36k in 2010. Although it looks like it was updated at least.
This one Real Estate agent is trying to sell two units in the same building in the City of Sin... and isn't getting anywhere. DOM for both is 185 days. Not exactly doing a good job, huh.
Bonus: The better unit sold for just 36k in 2010. Although it looks like it was updated at least.
Ha! I love the photo of Zimmans! Best thing about Lynn!
Just b/c you can afford a $5M+ dollar home doesn't mean it's a good idea to buy one! You might have trouble if you want to sell it down the road. Case in point, this one that's been on the market 455 days and counting! Doubt it's the home that's the issue b/c it looks like a beautiful property. However, how many folks can cut a check for $15M and want to live in that particular town at that price?! A lot of times it's better to buy something that is within reach to a larger buyer pool even if you can afford more extravagant. https://www.zillow.com/homedetails/1...57515724_zpid/
This to both. A big part of the problem is the increasing number of those treating real estate as an investment vehicle vs. a place to live. We also saw that in the 2000s and it didn't end well, and likewise hurt a lot of people who weren't even direct participants.
Sounds like you don't understand supply and demand, this is econ 101. If 30 people bid on a house then how is someone supposed to buy it without "overpaying"? Are all 30 buyers supposed to offer list price and not a dollar more? What about the cash buyers? Are they irresponsible too? If you're selling a house and someone offers you 100k over list, are you supposed to tell them "sorry that's irresponsible, I'm only going to sell for list price". Of course you would take the offer.
What's happening now is completely different from what happened in the 2000s. People actually have a lot of money now.
Just b/c you can afford a $5M+ dollar home doesn't mean it's a good idea to buy one! You might have trouble if you want to sell it down the road. Case in point, this one that's been on the market 455 days and counting! Doubt it's the home that's the issue b/c it looks like a beautiful property. However, how many folks can cut a check for $15M and want to live in that particular town at that price?! A lot of times it's better to buy something that is within reach to a larger buyer pool even if you can afford more extravagant. https://www.zillow.com/homedetails/1...57515724_zpid/
Just b/c you can afford a $5M+ dollar home doesn't mean it's a good idea to buy one! You might have trouble if you want to sell it down the road. Case in point, this one that's been on the market 455 days and counting! Doubt it's the home that's the issue b/c it looks like a beautiful property. However, how many folks can cut a check for $15M and want to live in that particular town at that price?! A lot of times it's better to buy something that is within reach to a larger buyer pool even if you can afford more extravagant. https://www.zillow.com/homedetails/1...57515724_zpid/
Well . . . I'd agree with you to a point.
Yes. Absolutely, it's going to be much harder to sell a $5M+ house than it would be a $1M house. Why? Simply because there's a very limited percentage of the population of the population that can afford a house at the $5M+ price point and then there's only going to be a small percentage of that population looking to buy a house at any given time. So, the buyer pool is quite small for a $5M+ house and market times are often long for these houses because of that.
From a strictly financial perspective, when a house sits empty it's like a black hole that eats money between upkeep and RE taxes and insurance alone on a house this size that can be a lot of money when it sits for a year. This being said . . . if you're living in a $5M+ house you can likely afford to eat a few thousand a month without it putting you in the poor house. Does it seem silly to throw away money like this? To me it does. If you can afford it does it likely seem as silly? Probably not. In dealing with a lot of very high net worth individuals I've found "it's all relative." Throwing away $1K to some people is like throwing away $1 to me. Some people can just afford to be more wasteful because those dollars mean a lot less to them. It's like an ant being shocked when a human throws away a piece of bread. To that ant, the lone slice of bread is a ton of food. To the person, it's a minimal loss.
Anyway, to address your specific example. Yes, I think there are smarter ways to invest $15M than to buy in Westwood. It's a lovely town but it's not a $15M town. Neither is Needham or Newton or Wellesley just to be fair. There are only a handful of places I'd sink $15M into a house if I was thinking about this as an investment. Brookline is definitely one of them. Parts of downtown Boston is another place. Beyond that, most other places are a maybe. Even in a place like Weston $15M is a lot. I laugh every time I see the $20M+ listing of the Yankee Candle guy's house. That's going to take FOREVER to sell and I'm sure they'll get a lot less than $20M at the end of the day because of the location. Point being, if you buy at a price point appropriate for the town then that will minimize that amount of time you're on the market. A $15M house in Westwood is going to sit for a long time (I think this house is overpriced too BTW) but recently I saw a $9M+ house in Wellesley get multiple offers and sell for $10M+.
Quote:
Originally Posted by matrix5k
Sounds like you don't understand supply and demand, this is econ 101. If 30 people bid on a house then how is someone supposed to buy it without "overpaying"? Are all 30 buyers supposed to offer list price and not a dollar more? What about the cash buyers? Are they irresponsible too? If you're selling a house and someone offers you 100k over list, are you supposed to tell them "sorry that's irresponsible, I'm only going to sell for list price". Of course you would take the offer.
What's happening now is completely different from what happened in the 2000s. People actually have a lot of money now.
They're not "overpaying." They're just paying market value in a market where prices are rapidly increasing at a speed where comparable sales which naturally lag months behind the market are not a valid indicator of market value due to the speed at which prices are increasing.
Some people just get SO locked on to what the list price is. C'mon guys! Agents are intentionally putting them below the price they think the house will sell at. Don't get so concerned about the list price.
Yes. Absolutely, it's going to be much harder to sell a $5M+ house than it would be a $1M house. Why? Simply because there's a very limited percentage of the population of the population that can afford a house at the $5M+ price point and then there's only going to be a small percentage of that population looking to buy a house at any given time. So, the buyer pool is quite small for a $5M+ house and market times are often long for these houses because of that.
From a strictly financial perspective, when a house sits empty it's like a black hole that eats money between upkeep and RE taxes and insurance alone on a house this size that can be a lot of money when it sits for a year. This being said . . . if you're living in a $5M+ house you can likely afford to eat a few thousand a month without it putting you in the poor house. Does it seem silly to throw away money like this? To me it does. If you can afford it does it likely seem as silly? Probably not. In dealing with a lot of very high net worth individuals I've found "it's all relative." Throwing away $1K to some people is like throwing away $1 to me. Some people can just afford to be more wasteful because those dollars mean a lot less to them. It's like an ant being shocked when a human throws away a piece of bread. To that ant, the lone slice of bread is a ton of food. To the person, it's a minimal loss.
Anyway, to address your specific example. Yes, I think there are smarter ways to invest $15M than to buy in Westwood. It's a lovely town but it's not a $15M town. Neither is Needham or Newton or Wellesley just to be fair. There are only a handful of places I'd sink $15M into a house if I was thinking about this as an investment. Brookline is definitely one of them. Parts of downtown Boston is another place. Beyond that, most other places are a maybe. Even in a place like Weston $15M is a lot. I laugh every time I see the $20M+ listing of the Yankee Candle guy's house. That's going to take FOREVER to sell and I'm sure they'll get a lot less than $20M at the end of the day because of the location. Point being, if you buy at a price point appropriate for the town then that will minimize that amount of time you're on the market. A $15M house in Westwood is going to sit for a long time (I think this house is overpriced too BTW) but recently I saw a $9M+ house in Wellesley get multiple offers and sell for $10M+.
They're not "overpaying." They're just paying market value in a market where prices are rapidly increasing at a speed where comparable sales which naturally lag months behind the market are not a valid indicator of market value due to the speed at which prices are increasing.
Some people just get SO locked on to what the list price is. C'mon guys! Agents are intentionally putting them below the price they think the house will sell at. Don't get so concerned about the list price.
So a list price for a tiny 600k east Boston condo is below market value ? A home that hasn't been updated in norwell in decades that is 4 bedrooms is worth more than its 1M list price ? You come on
Anyway, to address your specific example. Yes, I think there are smarter ways to invest $15M than to buy in Westwood. It's a lovely town but it's not a $15M town. Neither is Needham or Newton or Wellesley just to be fair. There are only a handful of places I'd sink $15M into a house if I was thinking about this as an investment. Brookline is definitely one of them. Parts of downtown Boston is another place. Beyond that, most other places are a maybe. Even in a place like Weston $15M is a lot. I laugh every time I see the $20M+ listing of the Yankee Candle guy's house. That's going to take FOREVER to sell and I'm sure they'll get a lot less than $20M at the end of the day because of the location. Point being, if you buy at a price point appropriate for the town then that will minimize that amount of time you're on the market. A $15M house in Westwood is going to sit for a long time (I think this house is overpriced too BTW) but recently I saw a $9M+ house in Wellesley get multiple offers and sell for $10M+.
I was going to reply with the old "location, location, location" bit, but I think this covers it for me.
Yes. Absolutely, it's going to be much harder to sell a $5M+ house than it would be a $1M house. Why? Simply because there's a very limited percentage of the population of the population that can afford a house at the $5M+ price point and then there's only going to be a small percentage of that population looking to buy a house at any given time. So, the buyer pool is quite small for a $5M+ house and market times are often long for these houses because of that.
From a strictly financial perspective, when a house sits empty it's like a black hole that eats money between upkeep and RE taxes and insurance alone on a house this size that can be a lot of money when it sits for a year. This being said . . . if you're living in a $5M+ house you can likely afford to eat a few thousand a month without it putting you in the poor house. Does it seem silly to throw away money like this? To me it does. If you can afford it does it likely seem as silly? Probably not. In dealing with a lot of very high net worth individuals I've found "it's all relative." Throwing away $1K to some people is like throwing away $1 to me. Some people can just afford to be more wasteful because those dollars mean a lot less to them. It's like an ant being shocked when a human throws away a piece of bread. To that ant, the lone slice of bread is a ton of food. To the person, it's a minimal loss.
Anyway, to address your specific example. Yes, I think there are smarter ways to invest $15M than to buy in Westwood. It's a lovely town but it's not a $15M town. Neither is Needham or Newton or Wellesley just to be fair. There are only a handful of places I'd sink $15M into a house if I was thinking about this as an investment. Brookline is definitely one of them. Parts of downtown Boston is another place. Beyond that, most other places are a maybe. Even in a place like Weston $15M is a lot. I laugh every time I see the $20M+ listing of the Yankee Candle guy's house. That's going to take FOREVER to sell and I'm sure they'll get a lot less than $20M at the end of the day because of the location. Point being, if you buy at a price point appropriate for the town then that will minimize that amount of time you're on the market. A $15M house in Westwood is going to sit for a long time (I think this house is overpriced too BTW) but recently I saw a $9M+ house in Wellesley get multiple offers and sell for $10M+.
They're not "overpaying." They're just paying market value in a market where prices are rapidly increasing at a speed where comparable sales which naturally lag months behind the market are not a valid indicator of market value due to the speed at which prices are increasing.
Some people just get SO locked on to what the list price is. C'mon guys! Agents are intentionally putting them below the price they think the house will sell at. Don't get so concerned about the list price.
Thank you! I'm glad someone here gets it LoL.
The list prices are intentionally lower than market value to garner interest and obtain as many bids as possible. Also when it sells it looks good for the listing agent. People go "wow this agent sold this house for 100k over list, I must hire them!".
Michael Jordan's 15mil house in Chicago has been on the market for over a decade. It was originally listed for twice that amount. It is pocket change for him. He just sold his share of the Charlotte Hornets for 3 billion.
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