I haven’t seen a lot posted here about the conditions in Escondido, and I would not use this example as an indicator of the whole market there, but this is a pretty good one. Maybe more worthy of Dr. Housing Bubble’s “Real Homes of Genius”.
Price Reduced: 07/12/2007 from $289,900 to $274,900
Price Reduced: 06/05/2007 from $294,900 to $289,900
Price Reduced: 05/11/2007 from $319,900 to $294,900
Price Reduced: 04/19/2007 from $339,900 to $319,900
Price Reduced: 04/07/2007 from $358,900 to $339,900
Price Reduced: 03/16/2007 from $364,900 to $358,900
So this house was bought a year before the peak, they tried to list it orignally below what they paid, and have had to knock 90K off the asking price so far. Assuming they get the 274K (doubtful looking at the pics) that is a 26% loss from the late 2004 price – ouch.
Classic case of chasing the rabbit down the hole. Had they priced it aggressively from the beginning or reduced it aggressively it would already be sold. If they had started at 290k back in March they might have looked like a bargain to someone. What makes me go hmmmn, is not that they lost 26%, but priced it 26% incorrectly. Look at some of the others threads where the realtors and appraisers are toiling over list price and value and all of the factors they considered. What did this guy’s realtor do, throw darts?
Classic case of chasing the rabbit down the hole. Had they priced it aggressively from the beginning or reduced it aggressively it would already be sold. If they had started at 290k back in March they might have looked like a bargain to someone. What makes me go hmmmn, is not that they lost 26%, but priced it 26% incorrectly. Look at some of the others threads where the realtors and appraisers are toiling over list price and value and all of the factors they considered. What did this guy’s realtor do, throw darts?
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