As we wind into the final months of the summer real estate season, we wanted to take a look at what happened over the past month specific to sales to list price ratio (i.e. the sales price represents what percentage of the list price). If the value is equal to 100%, a Buyer offered full asking price, if the percentage is less than 100%, than the Buyer got an accepted Offer by offering less than the full asking price.
- 286 properties sold between July 31, 2008 and August 31, 2008 (according to the Boston MLS)
- The sales to list price ratio was 97% (96.67%)
- 241 sales were below list prices (84% of all sales)
- 17 sales were at full asking prices(6% of all sales)
- 28 sales were above list prices(10% of all sales)
- Neighborhoods included: Back Bay, Beacon Hill, Financial District, Leather District, Midtown, North End, Seaport District, South Boston, South End, The Fenway, Theatre District, Waterfront, West End
The two condos that garnered the highest sales price related to its list prices were 10 Hanover Avenue Unit 3 in the North End, which as a short sale, was listed at $274,900, but sold at $365,000 ($529 per square foot). And 67 Rutland Street Unit 1 in the South End, a 2 bedroom 2.5 bathroom condo that was listed at $649,000 and sold at $715,000.
On the other end of the scale, 40 Battery Street Unit 305 was listed at $2,300,000 and sold for 1,950,000 on August 1, 2008 in the North End Waterfront. And 215 Commonwealth Avenue Unit 3 in the Back Bay was listed at $2,100,000 and sold for $1,795,000.
When making an Offer on a condo, some might say “how strong of an Offer do you want to make?” with the assumption that being closer to 100% of list price is strong, obviously, this needs to be taken in context.
Several takeaways may include:
- Short sales typically represent the “bargain” that some are looking for in a list price, at least on paper, but given that they are few and far between in the core of downtown Boston, the eventual sales price, despite all the extra hoops, may not translate into an actual bargain
- There is a decent percentage of the market that is being accurately priced at the time of listing, and Buyers are recognizing this, and willing to compete for a property by offering full asking price or above. A comprehensive comparable market analysis (as well as other factors) is needed to feel confident in offering above list price.
- Of the 26 high end condos ($1 million +) that sold in the period, 5 of them sold for above asking price (Wilkes Passage and 249 Beacon Street for example) , while 21 sold for below (Burroughs Wharf, The Prince, and One Charles for example). Perhaps there is more room to negotiate at the high end if the comparables warrant it.
Keith Munsell 
