Educated Guesses
Normally, when a house doesn’t sell within 60-90 days, a 3% to 5% price reduction is in order.
See, “Perils of Overpricing Even (Especially) in a Rising Market”; “Perils of Overpricing“; and “Nurse! I Need a Price Reduction, Stat!”
So, what does it mean when a home listed for $500k (in St. Louis Park’s popular Fern Hill neighborhood) takes a $50k price reduction — after only 30 days on the market?
A. Traffic has been poor and/or the showing feedback has been abysmal;
B. The Seller is now (more) motivated;
C. The home is significantly overpriced (see “A.”);
D. All of the above.
Correct answer: “D.”
“Heads up” to prospective home sellers: notwithstanding the headlines, not everything is selling in multiple offers, within days of hitting the market.
Observation #2: 30 days of market time (especially in Spring) is more than enough to know whether a home is properly priced — or not, as the case may be.
