Santa Ana: Condo Price Slashing… or “Shaving”
I’ve seen a lot of price reductions… and yet they all still fascinate me. What makes them so varied? Why do people increase their price only to reduce it later? Who decides that a 2% reduction is good? …And the list of questions continue. Below is sampling of all of these different scenarios. One is just plain bizarre (I’ll let you be the judge of which one). Why do some people slash their price while others just shave it? Are more reductions (regardless of size) better?
In Santa Ana, properties that have been on the market 120+ days, are most likely to have at least four price reductions. However, those that are new to the market are most likely to have zero price reductions. So, who’s right? Well, without diving into a full analysis, my gut (and Redfin’s “Science of Real Estate“) say that it’s better to price your home correctly from the start. This means an aggressive price. If you find out that it’s the wrong price, then you should rectify the situation asap, not do these piddly reductions which just take time. Just look at where the reduction junkies are… they’re not sold, I’ll tell you that much.
2622 N Tustin Ave #149, Santa Ana 92705
2 bed/3 bath; 1,853 sq ft; built in 1975 (land lease)
Price $75,000 ($40/sq ft)
Price History:
May 5, 2008: Listed for $198,000
Jun 4, 2008: Reduced to $188,100
Jul 8, 2008: Reduced to $178,700
Jul 28, 2008: Reduced to $134,500
Aug 17, 2008: Reduced to $89,000
Sep 6, 2008: Reduced to $75,000 (down 62% from original)
3050 S Bristol St #15j, Santa Ana 92704
2 bed/2 bath; 943 sq ft; built in 1970
Price $136,900 ($145/sq ft)
Price History:
Aug 7, 2008: Listed for $142,900
Sep 6, 2008: Reduced to $136,900 (down 4% from original)
3050 S Bristol St #2E, Santa Ana 92704
2 bed/2 bath; 975 sq ft; built in 1970
Price $176,000 ($181/sq ft)
Price History:
Dec 8, 2007: Listed for $199,000
Dec 27, 2007: Increased to $199,500
Dec 30, 2008: Increased to $199,900
Jan 4, 2008: Increased to $259,900
Jun 13, 2008: Reduced to $159,900
Aug 1, 2008: Increased to $196,000
Sep 6, 2008: Reduced to $176,000 (down 12% from original)
2 bed/2 bath; 1,600 sq ft; built in 1983
Price $199,000 ($124/sq ft)
Price History:
May 31, 2008: Listed for $203,000
Sep 6, 2008: Reduced to $199,000 (down 2% from original)
