90k Over Asking On A Single Family????

[Ernest Partin]

Hello BP,

Hope all is well with everyone. 

I am in Lynn, Ma area which is basically the Boston area. The buyer competition is beyond aggressive. I have clients who get over bided on aggressive offers. 

Example: (SF)

Price: 500k

Offer: 550k, No inspection, 15 day close

We got beat out by a 90k over asking offer. 😨 This is getting ridiculous.  Boston, ma area needs a real estate correction soon, the number do not really add up for smaller investors. It is not my area of interest, I just felt I'd share this madness up here in Boston, Ma Real Estate.  🏡🤣

I do want to share, South Shore of Boston is still a good place to look into. 👍

Do you have any crazy over bid stories in this market? I would love to hear. 

Thank You for listening 

[Ed Brancheau]

Sounds similar to San Diego.

What you probably have to do is look for deals that nobody else is looking for.

For example, when it comes to SFH, 3B/2BA at around 1500 sqft are the most popular and so that's what everyone is searching for.

But what if you searched for a 2B/1.5BA that is 1500 sqft? You'd have much less competition which would drive the price down significantly because there's not as many bidders.

Also the owners will have experienced very few people calling them. So they will be less likely to demand a much higher price because they'll feel that there's less demand and might get more desparate.

Then you can take that 1500 square feet and add another bedroom and for much less than you would actually be paying to buy the 3 bedroom 2 bath that everybody else is trying to get.

You can also do the same thing if you look for like a one-bedroom that's around 1,000 square feet to which you can add another bedroom and still have it be you know relatively we spacious.

Really, this works for just about any number of bedrooms. I helped a friend find a house for his family of eight. They wanted 7 bedrooms and 3 baths -- five rooms to be used as bedrooms and the other two for an office/study area. But unless you're buying a mansion, that's pretty hard to find.

So what we did is we found a 2500 square foot 4 bedroom / 2 bath house that few people were interested in because it was too big square-foot-wise for people looking for 3/2s and had too few rooms for people looking for 5/3s.

Then we resized all of the rooms to be able to added one bedroom and one bathroom. And in the backyard they added an ADU to currently be used as the office/study/gym but they will be able to rent out as a STR in a few years when their oldest children go off to college.

Again, this really works for for just about any number of bedrooms. Just look for larger properties with fewer bedrooms.