Thursday, November 18, 2010

Price cuts on nearly half of homes for sale

Nearly half of homes on the market [took] a price reduction at least once in October, according to a monthly review of multiple listing service listings in 26 major markets conducted by national online brokerage ZipRealty.

The ratio of price-reduction amount to list price was 7.5 percent...

If you’re selling your home, read that again. Let it sink in. Half of your competition cut their price last month. And most did so by more than 7%.

Do the math with me – if you’re priced at $150,000 and you need to take a price cut, you probably need to cut the price by just over $11,00 – down to $138,000 or $139,000 – to remain competitive with your neighbors’ homes for sale.

The old real estate adage is true: if you have to take a price cut, don’t use a scalpel, use a hack-saw.

More pricing wisdom in the days to come…