Love Thy Neighbor - UPDATE

In my January post Love Thy Neighbor, I featured one overpriced condo clinging to a ridiculous wishing price and his heartless, disgusting, comp-killing, bank-owned neighbor who priced $40,000 lower.

Well, that ruthless, scumbag bank (in the eyes of the wishing price neighbor) just made the weekly open houses a hell of a lot more uncomfortable. That's because the bank who owns #8 recently dropped the price another $30,000 to $369,000 (If it sold today at that price, the bank would eat $65,000 including commissions).

Now compare that new price to #13's $439,000 fantasy pricing and tell me what kind of day he's having.

While I respect Unlucky #13's pricing strategy (offend all buyers with a ridiculous price and STICK TO IT), if #8 miraculously sold for $369,000, #13 would IMMEDIATELY have to knock $60,000 off the price of his nearly identical property to meet the new comp and have any chance at a sale.

The worst part is that Unit #8's dramatic price reduction has been in effect for almost a month and it's still collecting MLS cobwebs. This does not bode well for either seller, but at least #13 still has some equity left.

However, if he doesn't get serious about selling soon, any hopes of getting out with a profit will disappear. My advice to him is to price 10% below the bank-owned property and keep cutting if he has any intention of avoiding a significant financial loss. The longer he waits, the worse it gets.

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