“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).
OK, 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.”