A Tale of Two Homes

Where: 29xx Benton Blvd, just southwest of Minneapolis’ Cedar Lake
What: 4 BR/4 BA; 3,100 FSF Colonial built in 1939
How much: sold for $641k (July ’09); originally listed for $925k (April, ’08). Tax assessed value: $849k.

Not convinced that overshooting on asking price can boomerang on a Seller (especially in a declining market)?

Consider this classic, 1939 Colonial just southwest of Cedar Lake, in Minneapolis’ Sunset Gables neighborhood (“Exhibit A”).

Originally listed at $925k in April, ’08, it suffered six price cuts totalling $225k over a 13 month period — capped by the biggest one of all: a $59k discount from the last asking price of $699.9k.

Ultimate sales price: $641k.

Three blocks west, my clients listed their very similar, 1937 Colonial at almost the same time — Spring, ’08 — for $875k. Call it “Exhibit B.”
Based on the feedback and showing activity, after a month on the market, I advised (and my clients agreed) to cut the price to $829.9k.
Six weeks later, they had a signed deal, and two months after that (Aug, ’08), they closed.
Selling price: $790k.
About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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