Deep Discount in South Tyrol Hills

50% Off Original Ask

There may be another home in the Twin Cities that's been on the market longer, or has been discounted more from its original asking price than this one.

But if so, I'm not aware of it.

Originally listed at $1.395M in September, 2007 (yes, that's 32 months ago!), this postcard-pretty 1937 home -- located in Golden Valley's South Tyrol Hills neighborhood -- is now asking $699.5k.

Now that's patience (or stubbornness).

So, is it finally a bargain?

Who wants to know??

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.

Pre-Thanksgiving Leftovers

Sizing Up (What's Left of) the Summer Market

Maybe it's just the unseasonably cool weather prompting thoughts of Fall(!), but here's how I see the Twin Cities housing market shaping up between now and Thanksgiving, when things traditionally slow down.

Basically, I think the sub-$500k market has different qualities before and after Labor Day (housing above $500k is likely to mirror overall economic strength or weakness).

Between now and Labor Day, Buyers will have the best selection, and can expect stronger (higher) pricing.

After Labor Day, that will reverse, and Buyers can anticipate softer pricing, but smaller selection.

Swimsuits -- and Houses -- in Feb.

That's so because the Twin Cities market still has a strong seasonal component, with "Spring" (beginning mid-Feb.) the busiest, and Nov. - Jan. predictably the slowest.

Think of it this way: if you listed your home in April, and still haven't sold -- it's time to get serious. Cut the price, invest some money in fix-up, make a final marketing push.

In fact, many home Sellers are already at this point, and alert Buyers will snatch up the most enticing of these homes.

Once this process is complete, what will be left on the market?

The true "leftovers."

Such Sellers will now have to overcome three obstacles: 1) even greater accumulated market time (referred to on MLS as "CDOM," for cumulative days on market); 2) a rapidly closing window to sell before truly cold weather arrives; and 3) a depleted pool of Buyers.

Offsetting these negatives will require a truly compelling (read, low) asking price.