Now, THAT’s a Deal!
“An overpriced “For Sale” home depreciates in value faster than an appreciating housing market rises.”
—Ross Kaplan, first law of real estate; “Market Appreciation vs. Home Depreciation” (10/23/2013)
Here’s a news flash for at least some prospective home Sellers: even in a Seller’s market like today’s, not everything sells right away, for full price.
In fact, the odds of a (deep) discount from original list price increase when one (or more) of these three variables are present:
One. A too-high initial asking price, followed by the inevitable too-long market time;
Two. A large, upper bracket home that fewer Buyers can afford;
Three. Budget-busting updates in excess of $100k.
Three for Three
Unfortunately, in the case of this stately-but-dated 1942 home in Hopkins’ lovely Knollwood subdivision, all three variables applied.
The home debuted on the market at a listing price of $949k, way back in Spring, 2010(!) when prices were still falling.
What would normally be a strength — its size — was instead a liability because of all the updating required.
Result?
After more than 3 years of market time and six(!) price reductions, it finally closed last Fall . . . for $565k.
