An interesting topic came up with a recent buyer of mine purchasing on the Waterfront. She asked me, “Why are the prices always dropping on the Waterfront when I am getting out bid over asking price in the South End and Back Bay?”
A very interesting and compelling statement from an educated, high end and sophisticated Buyer. As a stock broker she is very analytical and has been watching the neighborhood markets in Boston very closely. What she determined based on the “Market History” information in our MLS system when tracking the data, she felt that she had more negotiating power on the Waterfront because of what she perceived as a “Soft Market” because of the large percentage difference between an original listing price and ultimate selling price. Added to the number of “price reductions” over the days on market, looks like the Waterfront is lagging behind other competing neighborhoods in Boston.
A very interesting perception from the Buyer as I am trying to convince her that she is wrong! Her reply, “The data is the data and that’s why I am offering much less than your seller is asking.” End result, she bought the place for what she (The Buyer) felt was the fair market value (Less than asking price).
Chris Tuite is a partner at Gibson Sotheby’s International Realty and blogs at BostonRealEstateMA.blogspot.com.