Previous Purchase: 3/21/00 - $740,000
Old Listing History: 5/11/09 - $1,575,000
Reduced down to - $1,475,000
Re-Listed: 1/14/10 - $1,475,000
Reduced - 11/11/10 - down to $1,425,000
This listing has been the definition of "stale" as it sat for about 300 days with the same bloated price tag. The location is not bad and there is certainly demand for this type of property in this location, but not at the unrealistic price they were asking. I had also heard that they were unwilling to negotiate with potential buyers.
I think this price cut is not enough and it barely even accounts for the seasonal softness in prices in the winter. The bigger issue is that the price was originally too high and now they are even that much higher due to what I think is a likely decline in the market that is going on right now. So the big question here if you are a buyer is the following: is this price cut yet another case of being too little too late as was the case with the 2009 listing? Or is it a signal from the seller that they are finally ready to think about becoming more realistic and negotiate?
My guess is that they are still delusional and will still be stubborn since the price cut was so small and they are still a good ways away from asking a market price. One comp for the area would be 835 25th which sold back in the hot spring market for $1,385,000. It had the location flaw of being next to the school but had a little work done on the interior whereas the house on 22nd has not had work done. But again, the bigger issue is that the market was stronger fundamentally and stronger due to seasonality back in the spring.
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