2023 Real Estate Observations (Needham: selling a home, file, opportunities)

[fabfan84]

Originally Posted by newenglandgal123

Let's face it, it's mostly about luck. If they're in the right market at the right time, have the right connections all they have to do is open the door for these high net worth individuals. Yes, they have to have some negotiating skill but these estates sell themselves. What's not to like about a gorgeous waterfront property? Just need someone w/the wallet and obviously Nantucket is a mecca for folks w/FU money.

Do you think the connections just happen by accident?

[massnative71]

Originally Posted by matrix5k

Be gone troll.

No...I'm going to discuss real estate.

[matrix5k]

Originally Posted by robr2

As I noted above, the agent on this sale works full time brokering these high dollar sales.

Here in Burlington, there are a few realtors whose names pop up all the time. They are typically doing 3-5 sales a month in the high six/low seven figure transaction price. They work full-time. Back in 2022, one I know was closing almost 10/month.

Wow, are they really pulling in that much? Say the average sale price is 800k. 3% of that is 24k. They keep half so 12k. 3 sales per month is 36k, or 432k per year? There you have it, that's how some people can afford million dollar homes here!

[newenglandgal123]

Originally Posted by robr2

The agents that have these high price listings have been in that business for years. They have a client list and network with high price agents around the world. They don't hang an "open house" sign on Sunday for the lookie loos to check it out. Contacts are worked, open houses are by invitation and catered with a few thousand dollars budgeted. Private showings are based on when the client can come in and out in their Gulfstream.

This ain't Suzy Homemaker working a part-time job.

So you're basically repeating what I said in a round about way. Open houses aren't open houses if they are by invitation and catered....those are called private showings (the agent opens the door and schmoozes these high net worth individuals).

[newenglandgal123]

Originally Posted by fabfan84

Do you think the connections just happen by accident?

They could....you never know who you might bump into in a grocery store or out and about somewhere.

[massnative71]

Originally Posted by matrix5k

Wow, are they really pulling in that much? Say the average sale price is 800k. 3% of that is 24k. They keep half so 12k. 3 sales per month is 36k, or 432k per year? There you have it, that's how some people can afford million dollar homes here!

They also have business expenses, and all the associated self employment costs. The majority of realtors do not do that kind of sales, especially with such low inventory going on. We are talking about an elite few.

[robr2]

Originally Posted by massnative71

They also have business expenses, and all the associated self employment costs. The majority of realtors do not do that kind of sales, especially with such low inventory going on. We are talking about an elite few.

Right now the number of sales may be lower but the value is probably more. Yep - expenses such as state and federal taxes, 12.4% SS tax, desk fee, mailings, websites, business insurance, etc. all take a chunk.

One of these elite agents has a storage unit full of furniture to stage new homes and to help occupied homes look a little more up to date. That's a cost many don't have but it helps her sell houses really quickly.

[GeoffD]

Originally Posted by robr2

They were always a big deal difference being you had $100K homes in normal towns versus $300K homes in those towns,

I bought in a "W" town in the 1990s after prices corrected downwards from the S&L meltdown. You couldn't buy much of a house in Winchester for $300k. I remember looking at a small-ish Victorian on a small lot for $375k that needed a lot of work. Prices were higher in the late-1980s. It's been a long time since you could buy a $300k house in a W town.

[msRB311]

Seems like today it's 800/900k in regular towns vs 1.5m in the 'better' towns.

[MikePRU]

Originally Posted by msRB311

Seems like today it's 800/900k in regular towns vs 1.5m in the 'better' towns.

It seems like just yesterday starter houses in Needham were $500K. Now they're more like $1.3M-$1.5M. I've lived in my house for 10 years and I'd likely have to pay capital gains taxes if I sold right now because of all the appreciation.