of its original asking price.

And the sale price, which real estate sources pegged at between $3.6 and $3.85 million, is apparently a sign of the times in the lives of the rich and famous.

Mr. Edward Acker, the former head of the now-defunct Pan American World Airways, had originally asked $11 million for the 2.7 acre property, which is just west of Newstead on the Paget shoreline across the harbour from Hamilton.

He later dropped the price to $7 million, but settled for much less in the sales agreement struck this week.

Darling and Dapena was the listing agent for the sale, but Thomas B. Moss Real Estate agent Mrs. Vicky Hamshere lined up the buyer through a co-brokerage agreement.

Mrs. Elaine Darling of Darling and Dapena yesterday confirmed the property was sold, but would not discuss the price or buyer, except to say that a price of $3.7 million was "incorrect.'' But real estate sources said an Englishman bought 68-year-old Paget Hall, with its huge main house and two-bedroom guest cottage, large dock, pool with poolhouse, and grass tennis court.

Various sources placed the price at $3.6 million, $3.7 million, and $3.85 million, with the latter two figures said to include furnishings.

The modest sale price will affect the entire luxury home market, real estate agents said.

"If they have indeed accepted that offer, I think it will tend to affect the price of other luxury homes,'' said Mr. Andrew Horsfield, sales manager at L.P. Gutteridge Ltd.

"I don't think anyone wants to be the last kid on the block to pay the highest price,'' said Mrs. Helen Cooper of Cooper Associates. "People are going to use that as a bit of a benchmark, and people are going to rethink what they are asking for their properties.'' "It certainly sets the trend for some of the others in that price range,'' concurred Mr. Patrick Outerbridge, a partner in First Properties of Bermuda Ltd.

But there was less agreement on whether the top end of the real estate market is truly depressed, or vendors simply set their initial asking prices far too high.

"Perhaps (the market's) rate of growth might have slowed down a bit, but I wouldn't say that the prices have fallen,'' said Mr. Arthur Jones, president of Jones Waddington Ltd.

Instead, a false impression of a falling market is created when inflated asking prices are not met, he said.

Agents said several luxury Bermuda homes, particularly in the Tucker's Town area, have languished on the market because vendors are asking for prices that no buyer is willing to pay.

The Castle Point Estate in Tucker's Town was listed for $23 million in 1991, but it is believed Austrian millionaire Mr. Wolfgang Flottl picked it up for about $15 million.

Mr. Robert Stigwood's 26-acre Wreck Hill Estate in Somerset is on the market again for the third time in two years. The asking price is $20 million.

The Bermuda market for non-Bermudian home buyers is extremely limited.

Non-Bermudians are only eligible to buy homes with an annual rental value of at least $43,800. That translates to a sale value of at least $1.25 million, agents said.

There are only about 250 such houses on the Island, and only about one-tenth of them are on the market at any given time.