I wonder occasionally whether or not certain people live in a bubble (not the real estate "bubble"). A new listing came on the market in Brookline recently that was originally purchased in 2006 for more than $100,000 less than its current asking price. Now, as much as I champion the Brookline housing market, it is critical for people in this market to be realistic. There is nothing that has happened to this market over the past two years that would justify an almost 30% appreciation in price.
The frustrating element is one of my "peers" in the industry has taken on this listing and is going to present a case to the home buying consumer that this is an accurate listing price. They have also allowed the seller to think that they have an opportunity to sell their home for this much money.
I don't see the gain here on any side of the process. While I hope these sellers find a willing buyer, I don't know what data, if any, an appraiser will use to justify the mortgage amount needed to purchase this home. I know buyers out there are doing their homework, but sellers seem to generally be too willing to sign up the highest listing price they hear. The unfortunate end result in these situations is the property doesn't sell. It sits on the market for ages and the sellers finally dramatically reduce the price far below the proper selling price because of a market stigma. After that, any neighbor who has to sell their condo is negatively impacted by the artificially low selling price of the original listing. All around this is bad news, but unfortunately it happens way too often.
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The frustrating element is one of my "peers" in the industry has taken on this listing and is going to present a case to the home buying consumer that this is an accurate listing price. They have also allowed the seller to think that they have an opportunity to sell their home for this much money.
I don't see the gain here on any side of the process. While I hope these sellers find a willing buyer, I don't know what data, if any, an appraiser will use to justify the mortgage amount needed to purchase this home. I know buyers out there are doing their homework, but sellers seem to generally be too willing to sign up the highest listing price they hear. The unfortunate end result in these situations is the property doesn't sell. It sits on the market for ages and the sellers finally dramatically reduce the price far below the proper selling price because of a market stigma. After that, any neighbor who has to sell their condo is negatively impacted by the artificially low selling price of the original listing. All around this is bad news, but unfortunately it happens way too often.
Email this post to a friend.
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