From Too High to Too Low?

A Tale of Two Homes

Where: 29xx Benton Blvd, just southwest of Minneapolis' Cedar Lake

What: 4 BR/4 BA; 3,100 FSF Colonial built in 1939

How much: sold for $641k (July '09); originally listed for $925k (April, '08). Tax assessed value: $849k.

Not convinced that overshooting on asking price can boomerang on a Seller (especially in a declining market)?

Consider this classic, 1939 Colonial just southwest of Cedar Lake, in Minneapolis' Sunset Gables neighborhood ("Exhibit A").

Originally listed at $925k in April, '08, it suffered six price cuts totalling $225k over a 13 month period -- capped by the biggest one of all: a $59k discount from the last asking price of $699.9k.

Ultimate sales price: $641k.

Three blocks west, my clients listed their very similar, 1937 Colonial at almost the same time -- Spring, '08 -- for $875k. Call it "Exhibit B."

Based on the feedback and showing activity, after a month on the market, I advised (and my clients agreed) to cut the price to $829.9k.

Six weeks later, they had a signed deal, and two months after that (Aug, '08), they closed.

Selling price: $790k.