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All posts tagged Value

What Does A Multifamily Home In Lynn Cost?

Interested in buying or selling a multifamily home in the Lynn or North Shore area? Your first move should be to find out how/ what the market is doing? Find out what’s selling and for how much. Want to know what’s happening with Lynn Multifamily home sales and rentals?

Here are Lynn’s multifamily sales and rental market statistics over the last 6 months.

Total Multi-Family Listings SOLD: 137

Average Living Area by Square Feet: 2,839

Average Listing Price: $410,045

Average DOM (Days on Market): 14.87 Days

Average Sales Price: $411,680

Average Rent for 1 Bedroom Units: $1,302

Average Rent for 2 Bedroom Units: $1,568

Average Rent for 3 Bedroom Units: $2,831

Average Rent for 4 Bedroom Units: $2,020

Want to see sales data for another local area?

I Want To Know My Home’s Value!

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We are currently in the process of finishing (hopefully) a 3 family listing in Dorchester, which has had many speed bumps along the way. The owner of the triple decker decided to convert the property into three separate condos, going against the advice that he received from the listing agent. The problem with doing this was that he was therefore, involving many more parties to the buying process than there would be, had he just sold the property as a whole.

Five takeaways from this experience from an outside perspective:

• You need to value your time: Most people do not put a value on their time. Sometimes you need to ask yourself, “is this worth my time” and if your time could be better spent doing something else, then the answer is no. Doing everything yourself isn’t always the best option.
• It is better to hire out the work: Similar to the first takeaway, you hold up the project when you try to do everything yourself. Big picture, it is best to hire a contractor to do all the work. Yes, it is more expensive doing this, but the quality of work should be the best it can be and more importantly, this frees up your TIME.
• Listen to people’s advice: By going against the listing agent’s advice, the owner has added months and months onto the sale of his property. In hindsight, he ultimately admitted that he wished he took the original advice he received and sold the property “as is.”
• Don’t chase extra money: The decision to convert the property to three separate condos was due to the thought that by doing so, the owner could roughly an extra $100,000 off the sale. Even though this will be the end result, the extra six months the project took, along with many other factors, eats into those profits more that you realize until all is said and done.
• Learn from your mistakes: Everyone makes mistakes. The most important thing is that you learn from that mistake and do not make the same one again. Fortunately, the seller acknowledged his mistakes and mentioned that he would do things very differently if this situation arose again.

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Assessed Value Vs. Market Value – Do you know the difference?

When searching for properties many first time home buyers often get confused about how the value of real property is determined. It’s falsely assumed that the assessed value (on a listing sheet) is also the “market” value of that particular home. Here in the city of Boston and throughout Massachusetts that couldn’t be further from the truth.

The “assessed” value of a home is the value the local municipality places on the property for the purposes of assessing taxes. The government (simply put) looks at the size of the lot, the square footage of the home and any improvements recently done and determines the value for assessing taxes. The total tax bill given (annually) to that particular property is determined by dividing the total amount needed for the municipality by the local homes and the associated values.

The “market value” or true value of a piece of property is determined by supply and demand and a few other factors. Market value is based on what the market (or able and willing buyers) are willing to pay for that home. The market value can be higher or lower than the assessed value.

In Massachusetts the market value is often much higher than the assessed number. Taxes can be paid on an assessed value of $200,000 while the home recently sold for its market value of $300,000. Local governments typically review assessed values annually and adjust accordingly.

One last point. The “listing price” for a home is not always an indication of the property’s value. A seller’s real estate agent can list a property for any number they want. Unless they can find a buyer to pay that price, the listing price is just a seller’s wish.

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