bostonbubble.com

[balor123]

I stumbled across this listing in Arlington. It's a 50 year old home on a 9k sf lot. Not small for a house but not big enough to be interesting for much else. It's nicely renovated but still doesn't look like the finishings are all that expensive. How could this house command $800k ($400k/sf)?? New homes that size seem to sell for less than that. There's a few houses in that area in the $200k - $300k range so with that budget you should be able to get 2500sf if you build something yourself with much nicer finishings.

[admin]

Good question. It's also interesting that the sellers had only owned it for a month and a half before they listed it for $230K more than what they paid. My guess is that the price premium is a consequence of very limited inventory filtering for the buyers that do not have the inclination or confidence to develop expertise in renovation, home building, or managing the same.

This house was a red flag for me because the number of bedrooms advertised did not match the public records. The asking price was problematic too (they were asking $849K and most things had been selling way above asking).

- admin