Kendyl's Open House

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Northwest Glendale Real Estate Hot Sheet

click here for chart explanations and disclaimer

I feel a minor rant coming on…. Ok, let’s take a look at the subject of price reductions.

1434 Lee Dr. - they just reduced the price by a whooping $10k.  What do they hope to accomplish with this?  Get an offer?  Ok, let’s look at this from the buyer’s perspective.   If Lee Dr. fit their needs they likely know about the house.  There is no way that a $785k buyer wasn’t looking as high as $795k.  If they liked it enough to make an offer… they would.

If the new price doesn’t draw attention from any other buyers, what does it do?  It tells the buyers who already know about the house that the seller is getting motivated.  Maybe - just maybe-one of the current was just about to make an offer.   I can guarantee that buyer is now going to offer significantly less than the would have just before the price reduction.

What was accomplished?  No new buyers, and a signal to current buyers that the sellers are moving toward desperate.

Now, let’s look at 1516 Irving.  The agent has knocked herself silly marketing this home to every possible buyer in that price range, and this is a great house on a great block…. but it isn’t sold.  The agent knows that if a buyer can pay in the high 900’s, tops, they are looking up to a million.  By reducing into this next price category she gains an entirely NEW pool of buyers.  Someone in this pool might be the perfect buyer and stretch themselves beyond what they might have and BOOM, a sale is born.

1516 Irving is a great deal, by the way.

‘Nuff ranting.  Here is my new favorite photo.

The caption is: “Is your business evolving or going extinct?”  Ain’t that a hoot?