While the number and speed of price reductions is certainly interesting information (to some), what really matters to folks out there in the market right now is the size of price reductions. Better yet, how receptive are sellers to accepting an offer below their asking price?
Let’s get down to the nitty gritty. Where are buyers currently getting the biggest discount off the asking price around Boston? Knowing which neighborhoods are softer in terms of sale price discounts off list price will better equip you when making an offer.
In the charts below, we have taken all sales data from the last three months and sorted it by zip code. We calculated the overall difference between the sale price and the list price. Note that this reflects the final list price, after all price drops in the listing. Any zips with fewer than ten sales are excluded from the top and bottom ten rankings, but interested readers may download the full data summary in Excel 2007 format.
Here are the top ten zip codes with the largest overall discount:
The largest discounts were found just outside of downtown Boston to the north in Revere (02151) and to the south in Roxbury (02119), where buyers were able to get over 6% off the final asking price, on average.
The smallest discounts by far were in Mattapan (02126), where the 19 homes sold in the past three months sold for an average of just 1.5% less than asking.
Of the 803 sales we tracked in the 3-month period, 25 homes sold for more than 20% off the asking price, while 65 homes sold for more than asking.
It will be interesting to keep an eye on this data once we have been able to run it for a number of months, to see which neighborhoods are trending toward larger discounts and which are trending toward selling at full price.
I think the takeaway from this data is that when crafting an offer, buyers should be aware that not all neighborhoods are created equal. While an offer 10% below list price may be accepted in a neighborhood where buyers are few and far between, some areas are still seeing enough interest to command nearly full price.