Price cuts on Baltimore homes for sale: $44 million
Here's a just-reduced sign for Baltimore's housing market: "$44 million off!"
That the collective cut real estate site Trulia calculated on city homes for sale as of Sept. 1. Any home with an asking-price reduction over the past year -- except foreclosures -- added to the grand total.
Baltimore was ninth among large cities for its share of homes with asking-price cuts, at 34 percent. That's par for the course for the city, which has been in the top 10 for a while now.
The average asking-price reduction among Baltimore would-be sellers was 12 percent. Market statistics show that the average homeowner who sells is getting less than he or she was asking for, too. So there are a lot of people out there settling for a significantly lower price than they originally thought they could get.
Some buyers say they will always offer less than sellers are asking. (Wonk reader elweedz, for instance, commented yesterday: "I think 80% of asking would be the MOST I would pay.") I wonder how many homeowners put their properties on the market with this sort of buyer philosophy in mind, thinking, "Well, I'll have to take a cut regardless, so I'll start at 110 percent."
It's a game of chicken that can leave a lot of sellers frustrated ("why isn't anyone looking at my home?") and a lot of buyers annoyed ("why are all the homes so darn overpriced?").
Unless you're the sort of buyer who gets a kick out of negotiating, of course.
Buyers, what should sellers do to make the experience better?And sellers, what should buyers do?