Wednesday, February 27, 2008
$2 Million Dollar Price Reduction
This home was listed on 9/26/06. Yes, as in 2006. It's been on the market for 520 days and recently reduced again. This is how the pricing history breaks down.
I've seen this house and it's fabulous. You'd be hard pressed to find a better location in all of Texas. But did they really miss the mark by $2,000,000? Is this a prime example of how overpricing will kill a listing and cause it to end up selling below it's true market value?
I realize many of you are saying, "Jeff. Don't be silly. Pricing rules are completely different when it comes to ultra high end real estate." And I would say you are somewhat correct. But if this home had come on the market at $10.5 million in the beginning, would it have stayed on the market for 520 days? As it is now, they probably stand to end up taking far less than what they could have had they been priced competitvely in the beginning. Pricing strategies work for high and low end real estate regardless of what market Steve Brown thinks we're in.