Bay Area

[Kenji4861]

I found these homes in Los Gatos (Bella Vista by Robson Homes)

http://www.robsonhomes.com/bellavista/

I have to say, this is the only home I have found everything to be perfect with except... for the price. Asking price was $1.89M which is 'a bit' higher than what I can afford.

Today I bumped into a realtor as I walked into an open house which asked "so.. if you can buy that house for $1.5M.. you would? ok, give me your phone #, I work magic"

Got me thinking.. how negotiable are these home prices? I doubt they'll lower a $1.9m home to $1.5m... my guess is the realtor just wanted my contact so she can try to sell me something else.

[Glenn]

Daniel McCue at Harvard's Joint Center for Housing Studies has argued in a 2007 paper that builders are most likely to negotiate in a difficult market because of their need to return capital to investors, and their decreased emotional commitment to a particular price. Usually in a new development, these are offered as credits toward closing, financing, homeowner's dues, to prevent a public precedent from being set for other buyers.

[JanelleS]

Kenji4861,

I think you are right on the money.

Although there is more wiggle room these days with new construction; as you surmised and Glenn reiterated, price is generally not where you will find it.

Reason being: sales prices become part of the public tax record. The next potential buyer has access to anything and everything on the internet these days (thanks, Redfin!) and so why would they purchase a home is the same community for $1.9M when a previous buyer got it for $1.5M?

However, we all know the housing market is not what it used to be, and there very well may be magic in the air.

And, we all know that all real estate agents are ethical.

[Hibryd]

I suspect the Realtor was just trying to get your attention. From what I can tell, the more expensive areas in Silicon Valley aren't taking a price hit because, while there may be fewer buyers, there's also fewer sellers. Neighborhoods in Los Altos, Saratoga, and Los Gatos never had a sub-prime problem so they're not suffering from excess inventory now.

Realtor David Blockhus actually has an interesting blog at www.siliconvalleyrealestateinfo.com. He's mostly a buyer's agent working with people buying $1-$2 million homes, and he's reported that demand is strong enough that, much to his dismay, some agents are getting away with bringing back "pocket listings" in upscale neighborhoods, where they don't list the home on the MLS and instead rely on someone in their own office to bring them a buyer for a super easy sale.

[JanelleS]

I suspect the agent wanted your business, not your attention.

[Hibryd]

Ah, yes, that would have been a better word.