“If a property is worth $250k and you ask $350k and reduce it to $325k, it’s not an indication of a problem in the market. It’s a problem with overpricing.”

-Hall F. Willkie, president of Brown Harris Stevens; “Prices Drop for Luxury New York Real Estate”; The NYT (1/15/16).

price reduceOK, I have a confession:  I changed the amounts in the quote above to reflect prevailing prices in the Twin Cities.

So, to convert back to Manhattan prices, multiply by four.

Here’s the original, unaltered quote:

“If a property is worth $1 million and you ask $1.4 million and reduce it to $1.3 million, it’s not an indication of a problem in the market. It’s a problem with overpricing.”

Exactly the same principle applies, though — in any housing market. 

See also, “Perils of Overpricing Even (Especially) in a Rising Market”; “Perils of Overpricing“; “Reading Into a 10% Price Reduction”; “Nurse!  I Need a Price Reduction, Stat!!”; and “10 Showings, $10,000.”

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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