The Batterymarch Insider
In this issue:
South End bidding wars
771 Harrison Ave - Developer offers big sales incentives, buyer beware
33 Mt Vernon St., unit 1 - Price cut, attractive valuation
112 West Concord St., unit 1 - No winners in a bidding war - Well Sold
484 Beacon Street, PH - Needs updating, but good value - Well Bought
What’s Catching Our Eye
Inventories remained stable this week with Back Bay condominium supply ticking down a bit to just over 9.5 months. With all eyes on the election results, there wasn't much action in the high end of the Boston real estate market.
On the positive side of the ledger, this week saw a few bidding wars in the South End. This lends hope that the reports of the death of urban real estate will prove to be untrue. It’s our view that there are no winners in bidding wars (except, of course, for the seller and the seller’s listing agent). Nonetheless this is a sign of health for the market.
Keep an eye out for our upcoming deep dive into “Days On Market,” where you’ll learn the good, the bad, the ugly, and what buyers and sellers need to know.
What’s Going On at the Cosmopolitan?
Two weeks ago we highlighted deep price cuts on a handful of units in the new development located at 771 Harrison Avenue, some by as much as 30%. This week we received notice from the Cosmopolitan sales team offering a 4% co-broke fee (the fee paid to the buyer's sales agent) for units that go under contract by year-end (in the Boston market the co-broke fee is typically 2.5%).
This sales incentive translates into nearly a $50,000 bonus on the highest price unit for the agent. What’s driving this aggressive sales campaign is anyone’s guess, but what is clear is that they are looking to make deals at the Cosmo!
We’d be interested in your thoughts on these kind of sales tactics. What obligations should a sales agent have to disclose incentives to clients? Leave your comments below.
33 Mount Vernon Street, unit 1 – Price Cut
Last week we pointed out the big price cut at the parlor/garden level unit at 41 Mt Vernon. Moving a few doors down to 33 Mt. Vernon, the 1,803 sf parlor/garden level unit price was cut by 3.64% to $2,650,000 this week.
33 Mt. Vernon is a new, fully renovated (emphasis on fully) three unit condominium building at the top of Beacon Hill. A lot of thought went into this two bedroom, two and a half bath unit. Top notch materials and well executed finishes. Readers of our work know that we’re not huge fans of below grade living (the trade off here is nice outdoor space) and living at the top of the Hill isn’t for everyone, but new construction on the Hill for under $1,500/sf is worth a look.
112 West Concord Street, unit 1 – Well Sold
Unit 1 at 112 West Concord Street in the South End, a 1,851 sf, 3 bedroom lower level duplex sold this week for $1,755,888. Listed at $1,680,000 this unit attracted multiple offers in three quick days. High ceilings, tons of natural light, private outdoor space, parking, and a reasonable asking price did the trick here.
We tip our hat to sellers of relatively cookie cutter condominium units who resist the temptation to treat pricing like a fishing expedition. The market rewarded these sellers with the gift of liquidity and a good price. As with almost all bidding wars, this one is - Well Sold.
484 Beacon Street, penthouse – Well Bought
After 70 days on the market, the penthouse at 484 Beacon Street found a buyer at $3.8 million, an 8% discount to the original asking price. This 2,320 sf 3 bedroom, 3.5 bath duplex has two private outdoor spaces, an elevator, and three deeded parking spaces.
There’s noting exciting about the finishes here and it could be argued that the unit is a bit dated. The value here is in the three deeded parking spaces, updated HVAC, and outdoor spaces. We’re big fans of upper level walk out terraces. The rub here is not everyone wants to be this far down Beacon Street and the unit needs updating; nonetheless, this deal looks market correct and we’re calling this one – Well Bought.