Just Sold! 4138 42nd Ave NE

If you read my last post (http://windermereblog.com/2009/09/04/just-sold-4747-45th-ave-ne-laurelhurst/), I talked a bit about seller strategies in this market.  Case in point!  I’m giving a virtual “gold star” to these sellers, for they recognized the reality of the market, priced it to sell, and were aggressive about price reductions.  Their reward?  A closed transaction in a little over a month.

The home originally listed at $550k.  The sellers dropped it $25k after 2 weeks on the market.  Big price reduction? Absolutely.  But this sends a signal to buyers that your serious, and are willing to work WITH them to get it sold.  The closed price of $500,000 shows the sellers agreed to take another $25k off the list price during offer negotiations.   My best guess is this was money back at closing for repairs or buyer closing costs. 

Keep in mind, giving money back to buyers doesn’t always have to be a loss entirely.  If you “credit” money back at closing instead of reducing the purchase price, the amount is actually a tax write-off.    It’s considered a “loss on sale”.  Keep this in mind if you’re in a negotiating position.  Simply reducing your purchase price to appease a buyer is not as financially savvy as a credit.

Bottom line, these sellers worked with the market they were in and were rewarded.  $50,000 off the original list price certainly seems like a lot, but I bet they would have had to come down that much eventually to get it sold.  They were just more aggressive about it, buyers paid attention…and made an offer.