Does lowering house prices really help sell the home ?

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slamdunk73_IHB

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Once a house is priced and listed, does lowering the home price help sell the house ? In this market, I have notice houses that sit there tend to lower their prices over and over again, and a lot of time, the house doesn't sell. Since the the seller lower the prices, the buyer waits and expect the house to be lowered more. Is this correct ? Would you buy a house that has been lower their prices or would you wait to see how low they can go or wonder what is wrong with the house ?
 
<p>They aren't lowering the prices far enough soon enough. They end-up chasing the market down.</p>

<p>New listings only get 15 minutes of fame among prospective buyers, then they're old news. If the initial price is too high, the seller needs to adjust very rapidly to maintain interest and create a sense of urgency among buyers.</p>

<p>There's nothing that the right price won't fix, and sellers are getting their prices wrong for the most part. </p>
 
Yes it does! But you have to look at how fast and sharp a house drops in price. One prime example is 118 Lattice in Quail Hill (92603). It is a 2460sqft fairly new home that was nicely upgraded. The highest comp, at the peak for this floor plan was 1.45mil in 2005. I believe it was 1.2-1.3mil when it was first offered for sale last year, below the competition even when it was first listed. Then there were two or three significant price drops until it was being offered for 1.15mil. It then went into escrow for months and just sold this month (or the end of last month?) for 1.085mil. This is a good price for this area if you want to buy NOW. It is the lowest price for a home of this type sold in the last two years--a definite rollback. I don't know about foreclosures though; does anyone know of a better deal than this, foreclosure or otherwise?
 
My friend, an re agent, told me that he won't take a listing unless the seller is willing to get underneath present prices, because he doesn't want to spend time and money marketing a property for 12 months, only to have it sell for less than it would have when he originally took the listing. Nor does he want his reputation associated with dead properties.
 
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