Price reductions escalate in today’s housing market

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

In March, a home seller in Oakland, Calif., put his home on the market and listed it for $925,000, which was above the price his agent recommended. The house, a charming Mediterranean, was newly painted inside and out. It was decorator perfect. The listing was well received at the agent and public open houses. But, at the end of the first week on the market, the listing agent hadn't received a single inquiry. The listing was located in a desirable neighborhood. It showed well. And it had a lovely setting. Furthermore, well-priced listings in the area were still selling quickly. Although the listing was relatively new on the market, the listing agent recommended that the seller reduce the asking price to $875,000. The seller agreed. Within the next week the showing activity picked up dramatically. Three offers were made and the listing sold for over $900,000. In this case, it was easy to figure out that the listing was priced too high for the market. When listings like yours are sellin...