Should “Blind” bidding wars be regulated? Time to launch iPetition?

In response to an article entitled, Year’s end lifts sales of condos in Boston, one of readers wrote:

“Seriously, the bidding wars that have been going on for the past 2 years, that is what someone should write an article about.”

I agree, articles about bidding wars are warranted, but NOT because of an uptick in sales or housing prices.  In my professional opinion, “blind” bidding wars over an eight year period, 1998-2006, fueled the “irrational exuberance” that drove housing prices in Boston — and elsewhere — to artificial, unsustainable levels; and ultimately left the taxpayer to pick up the tab.  (See Real Estate Bubble Map created by The Real Estate Cafe in 2006 when most real estate professionals denied the existence of a housing bubble.)

As home buyers know from this past Fall, the original deadline for the first-time home buyers tax credit was hyped so shamelessly by the real estate industry that too many buyers were once again manipulated into paying OVER asking price.  That’s why I would love to see multiple bid situations regulated through a transparent bidding process outlined in this blog post:

Dual agency: The illusion of individual savings & the real cost to society

If readers and others agree, should The Real Estate Cafe create an online petition to regulate “blind” bidding wars?  The goal is not to eliminate competition (that would be politically unacceptable in our capitalist system); but to maximize transparency and minimize deceptive buyer manipulation through a controlled bidding environment, like

Over 650 people signed the iPetition we created in 2003 to Protect Consumer Access to Real Estate Listings, without the benefit of social media to turbo charge a viral marketing campaign.  If you want to help organize a campaign to regulate “blind” bidding wars, or just to sign an iPetition if we create one, please leave a comment below or contact us privately.

Posted in Bidding wars, Bubble Hour, Bubble map, Consumer protection, Defensive Homebuying, Dump Dual Agency, Mapping, Real Estate Bubble, Real Estate Consumer Bill of Rights

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