Sellers quick to make first price reduction, likely to make multiple cuts

Trulia recently launched a new quarterly report and interactive map, titled “Home Offer Report,” aimed at providing buyers and sellers with an upper hand prior to making offers or listing their home for sale.

Home Offer Report empowers buyers to make strategic offers and helps sellers price their homes to sell by providing local insights on when the first price reductions occurs in a neighborhood, where the reductions are happening, and how deep the reductions are.

During the past year, U.S. home sellers reduced more than $24 billion in potential wealth from home listings on Trulia.com. On average, most sellers will reduce their list price after 79 days on the market, choosing to lower their original list price by 8 percent. Following a first reduction, 35 percent of these sellers are likely to make a second discount.

By comparison, sellers in America’s 50 largest cities wait 62 days before making the first price reduction, discounting their listings by an average of 7 percent. Of the sellers who make one reduction, 42 percent will reduce their listing price again.

Key findings from the report include:

• Phoenix, AZ; Mesa, AZ; and Jackson, FL have the highest probability of making multiple price reductions.
• Home sellers in El Paso, TX; Tulsa; OK; and Omaha, NE; are least likely to make multiple price reductions.
• Detroit home sellers offer the deepest real estate discounts, with an average percentage discount of 19 percent during the first reduction.
• Boston tops the list of the stingiest home sellers with the smallest discounts on market.
• New York City is home to the nation’s most stubborn home sellers, who often wait 80 days on market before making their first price cut.
• Minneapolis home sellers are quickest to slash their list price at 45 days on average.

Reprinted from C.A.R. Newlines.

Brought to you by the CALIFORNIA ASSOCIATION OF REALTORS®

Thank you for reading this post. If I can ever be of help in finding you the perfect property here in the Napa Valley, please email me at Curtis@NapaValleyAddress.com. 

Your Broker Extraordinaire, selling Napa Valley Real Estate from its heart, Yountville.