bostonbubble.com

[Guest]

The real estate market in Arlington almost feels like a seller’s market. My own experience: I’ve been outbid twice since March. The first time, I was outbid by a buyer who offered $25K over ask and waived the inspection. The second time, there were 20 offers, and the house went for $50K over ask.

From what I understand, these are not isolated incidents.

Thoughts? Is this specific to Arlington? There are plenty of properties languishing, but many that aren’t.

[Eric]

There's a pricing strategy in vogue right now to price 'below market' and let the buyers bid the price up. By starting very low, the property generates interest and multiple buyers, whereas starting the price where the selling is hoping to close at (or +10% for negotiating room) would not produce the same auction mentality.

Remember that "asking price" isn't a real metric -- it has nothing to do with sales price, value, or much of anything.

Also remember that people buying homes aren't a reliable gauge of the market, anymore than people buying stock in Pets.com circa 1999 were a gauge of where the internet economy was headed.

-Eric

[AgentGrn]

It's the same strategy I use on eBay. Start the bid out at a low price, and more people get interested. By the end, it generally sells for more than I thought it would.

[Arlingtonite]

I have been renting in Arlington for 4 years. The house down the street went from 599 to 499 to 489 and is still on the market 6 months later. My landlord is getting foreclosed on. Arlington is a well paid community so the prices wont fall as far or fast, but I have been watching the prices slowly tick lower for over a year now. Plus look at the number of houses in forclosure and pre-forclosure on realtytrack. It looks likes its going to get a lot worse. I am considering buying in spring 08 or 09.