Desperado

It seems that homeowners are starting to get antsy.  Yesterday while listening to 89.3 KPCC I heard the news that was echoed around the housing market – sales were up, sales were up, sales were up!  Investors, analysts, etc. flooded the radio speculating on what this means.  But most were wise in their reportings – prices were down – way down.  It seemed there were two schools of thought on what this means.  Both agreed that this meant that the much needed price corrections were finally starting to happen.  But one analyst pointed out that many of the sales were to investors and that this might be the first wave (of two) in this bubble devastation. 

Interesting enough, it seems sellers desperately trying to sell their homes are using one of two strategies to do so.  First, the huge price drops.  Then there are the constant micro-price drops.  Both strategies have their logical merit, but honestly, I still am convinced the best way to go is to just price it right and competitively from the get go.  No one is really interested in a home that has been reduced $500, 13 times.  Here are a few examples of both approaches.

The Big Drops
27906 Amber #231, MV
2 beds / 2 baths / 1,221 Sq Ft
Previously Listed:  $380,000
Currently Listed:   $280,000
This home just had a $100,000 price reduction.  If you look at it, it could read 26% off.  That’s huge!  Other homes in the area are going for far more.  If you’re looking for a bargain, this might be one to check out.

891 Ronda Sevilla #D, Laguna Woods
1 bed / 1 bath / 770 Sq Ft
Previously Listed:  $229,000
Currently Listed:   $129,000
I normally don’t cover too much Laguna Woods, but with another $100,000 price reduction (44% reduction) I couldn’t pass on reporting this to those who might know someone in the 55+ market looking for a condo.  Honestly I think it was a little overpriced to begin with, so this correction was necessary.

The Micro Droppers
25942 Portafino DR
4 beds  / 2 baths / 2,077 Sq Ft
Previously Listed:  $950,000
Currently Listed:   $949,500
This home is so overpriced right now it’s not even funny!  Comparable homes are going for nearly $100,000 less or more.  The home has been upgraded, but it’s still overpriced nonetheless. These microreductions might keep it on a hot sheet, but when it’s egregiously overpriced, it won’t do anything to get any lookers in there.24383 West Marquis CT #289, Laguna Hills 
2 beds / 3 baths / 1,270 Sq Ft
Previously Listed:  $400,000
Currently Listed:    $399,500
Moderately priced property – right on par with other homes in the neighborhood.  But this price game won’t get you anywhere quickly.