10 Prince St Salem, MA 01970
New listing video just posted:
http://video.circlepix.com/PGUKQS/619/2263
Description: RARE. Brick three family residence. Move in condition. Extensive restoration now ready for new owner(s) looking for the urban city vibe in historic Salem which is one of the hottest markets on the North Shore of Boston. Own with rental income or investors looking for positive cash flow wont miss this property with an attractive $54,000.00 gross operating income! Separated utilities. Lead certificates of compliance. Coin operated laundry in basement. One off street parking space. All appointments require updated pre qualification letter from local lender. Shown by appointment only. Showings begin June 9th.
Home Information:
Beds: 9
Baths: 3.00
Sqft: 3537
Price: $375000
MLS #: 71692339
Showing posts with label multi-family. Show all posts
Showing posts with label multi-family. Show all posts
Thursday, June 12, 2014
Sunday, January 01, 2012
But MY House is Worth Much More Than That!
This weekend, on New Years eve, I place an offer on behalf of one of my buyer clients on a property in Lynn. This home is a 3 family in a nice area and has a good size double lot. It also has new heating systems, a newer (7 years old) roof and a garage. The kitchens and baths are outdated, however, and there is quite a bit of cosmetic work that needs to be done in all three units. The 2nd and 3rd floor units also share a heating system and a hot water heater.
This home is listed in the low $300,000's. I looked up what sold within the last 6 months in Lynn for 3 family homes. There were only 3 sales in Lynn that went just above $300,000 - and those were properties that were completely rehabbed with new kitchens & baths. The average 3 family sold for just over $220,000. Now there are many factors that go into determining the market value of a home, so you can't just take the average price and think that this is what the property is worth. After looking at similar properties, I determined that $280,000 was a fair price to offer to the seller. In fact, there had been only 5 three family homes in Lynn that had sold for more. I submitted my buyers' offer along with an explanation to the seller of how we derived at that price, and a list of all three family homes that had sold showing that his asking price was too high.
The seller rejected the offer without even giving us a counter-offer. The listing agent said the the seller wanted to get a offer very close to his asking price. He didn't care what the reality of the market was, and that he had put a lot of work in the house and it was worth much more than what the statistics showed. Needless to say my buyers were put off by this, and didn't want to submit another offer.
Before this property was listed, the seller's agent showed him all the comparable properties, the market stats, and the properties that were currently listed that would be competing for the same buyers. He chose to ignore all that information and the advice of the professional that he hired, and came up with his own list price.
It will be interesting for me to watch this listing, because if it is follows the usual pattern of overpriced listings this property will have its list price drop until it reaches a point where it is in line with (or below) the market. The multifamily market is hot right now, and if a property is priced right it sells in a matter of days. If it is not priced right, it will just sit on the market for months. This particular property had just come on the market last week, and had it been priced right it would have had several showings. My buyers were the only ones to look at it, and that was because the property suited what they were looking for, even if it was overpriced.
I will probably receive a call from the listing agent in the near future asking me if my buyers are still interested in home because they hadn't received any other offers. Unfortunately for the seller, my buyers will probably have already purchased another home.
- Jim Armstrong
Here is a good article on overpricing a home:
http://www.forbes.com/2002/11/22/cx_bs_1122home.html
This home is listed in the low $300,000's. I looked up what sold within the last 6 months in Lynn for 3 family homes. There were only 3 sales in Lynn that went just above $300,000 - and those were properties that were completely rehabbed with new kitchens & baths. The average 3 family sold for just over $220,000. Now there are many factors that go into determining the market value of a home, so you can't just take the average price and think that this is what the property is worth. After looking at similar properties, I determined that $280,000 was a fair price to offer to the seller. In fact, there had been only 5 three family homes in Lynn that had sold for more. I submitted my buyers' offer along with an explanation to the seller of how we derived at that price, and a list of all three family homes that had sold showing that his asking price was too high.
The seller rejected the offer without even giving us a counter-offer. The listing agent said the the seller wanted to get a offer very close to his asking price. He didn't care what the reality of the market was, and that he had put a lot of work in the house and it was worth much more than what the statistics showed. Needless to say my buyers were put off by this, and didn't want to submit another offer.
Before this property was listed, the seller's agent showed him all the comparable properties, the market stats, and the properties that were currently listed that would be competing for the same buyers. He chose to ignore all that information and the advice of the professional that he hired, and came up with his own list price.It will be interesting for me to watch this listing, because if it is follows the usual pattern of overpriced listings this property will have its list price drop until it reaches a point where it is in line with (or below) the market. The multifamily market is hot right now, and if a property is priced right it sells in a matter of days. If it is not priced right, it will just sit on the market for months. This particular property had just come on the market last week, and had it been priced right it would have had several showings. My buyers were the only ones to look at it, and that was because the property suited what they were looking for, even if it was overpriced.
I will probably receive a call from the listing agent in the near future asking me if my buyers are still interested in home because they hadn't received any other offers. Unfortunately for the seller, my buyers will probably have already purchased another home.- Jim Armstrong
Here is a good article on overpricing a home:
http://www.forbes.com/2002/11/22/cx_bs_1122home.html
Friday, March 27, 2009
Hurry up and Buy - Home supply going down.
SUPPLY OF HOMES ON THE MARKET GOING DOWN ON THE NORTH SHORE OF MASSACHUSETTS
North Shore, MA - The inventory of homes has been steadily dropping on the north shore since the begiining of the year. Typically as we get closer to spring we see the supply increase, but that is not occurring this year. It seems that savvy homebuyers and investors are snapping up properties left and right with the mind set that we are at the bottom of the market and it doesn't make sense to wait. Add to that the very low mortgage interest rates (below 5%) and the $8,000 tax credit for first time home buyers, and the result is a frenzy of people trying to get the best real estate deals.
According to MLS, the number of homes (condos, single family and multies) currently on the market on the north shore of massachusetts is 3,877. Last year on this same date (March 27th) there were 4,988 homes on the market. That's a drop of 22% over 2008!Although inventory dropped for all types of homes, multifamily homes dropped the most. In 2008 there were 658 multies on the market, today there is 350! That is almost a 50% drop in the number of 2, 3 and 4 family homes available to choose from over last year. I'm not supprised by this because the list price of multies has dropped over 35% since 2005. You can actually buy a 2 family home as an investment and have positive cash flow from it - something you haven't been able to do in several years.
Here is a link to a video from WBZ TV in Boston about the current market:
Jim Armstrong
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