Home News Nearly $1m over the asking price: What some people are paying for land in the burbs

Nearly $1m over the asking price: What some people are paying for land in the burbs

by admin
0 comment

The 1.67-acre site on Weston’s 50 Laurel Road went public for $ 1,590,000 and was recently sold for $ 2,400,000. Joni When John ShoreThe Mother and Child Coldwell Banker Sales Associate Duo, focused on Metro West, represented trading buyers. Shores said in an interview with Globe that he had won more than 20 bids.

The stunning price doesn’t seem unusual.

“There is evidence of other buyers wanting such real estate,” said John Shore.

Land sales for the ultimate home development are not new. Since early 2015, there have been more than 19,000 of these transactions across Massachusetts, according to real estate records from data analytics firm Warren Group.

However, the appearance of today’s home-developing land transactions is different from the past.

In wealthy suburbs like Wellesley and Weston, it’s very difficult to get the land available to build a house. As a result, we often see buyers acquire a home, demolish it, and then build a new one to their liking. With developable lands like the 50 Laurel Road on the market, it can cause a bid frenzy these days.

Terrier DollerMetroWest’s managing partner at MGS Group Real Estate, has had its clients buy one acre of Wellsley raw land for $ 2,150,000 on New Year’s Eve. The property was located on Buckingham Terrace, a very upscale dead end. Her client decided not to build a house on the property and instead listed it for $ 2,695,000 earlier this year. They ended up getting $ 2,800,000 for it after a bidding war between four sets of buyers.

What exactly do you build on such expensive land?

The builder is the winner of Adler’s deal and plans to list the real estate he creates there for $ 9,900,000. Shores expects homes to rise somewhere in the $ 5,000,000 to $ 6,000,000 stadium with land sales like those made in Weston.

Builders also participate in disassembly games. Another home, Adler, for sale on Wellsley’s 8 Deerfield Road, had seven offers. Some buyers wanted to remodel and build their dream home, but the rest were contractors trying to break it. It also went public for $ 1,500,000 and then sold to builders for $ 1,725,000.

“The problem is [these deals are] It’s usually convenient for sellers because it’s all cash or there are no financial contingencies, “Adler said. “Unusually, builders in the past never bid as high as end users, so they always lose. But now it’s the builders who have won these bidding wars, and the cost is very high these days. I’m surprised because it’s so high. They’re there and hungry for this land. “

However, caution should be exercised by builders who usually participate in games dedicated to individual buyers.

“Developers really need to build something substantive,” said Jon Shore. “Developers carry more risk because they have to make big profits, relist it, and pay brokerage fees.”

Other examples of land sales above the asking price:

1 Little Lane, Newberry

Offer price: $ 1,349,000

Sale price: $ 1,400,000

60 Livingston Road, Wellesley

Offer price: $ 2,195,000

Sale price: $ 2,373,000

47 Scott Road, Needham

Offer price: $ 1,350,000

Sale price: $ 2,000,000

Lot 7, Conant Road, Lincoln

List price: $ 1,100,000

Sale price: $ 1,300,000

Source: Multiple Listing Service

Send a comment [email protected].. Subscribe to Globe’s free real estate newsletter, a weekly digest of buying, selling and designing. pages.email.bostonglobe.com/AddressSignUp.. Follow us on Facebook, LinkedIn, Instagram and Twitter @globehomes..

You may also like