Sorry, That .8% Price Cut Won't Help Sell Your Home

What is it about homeowners that after this incredible period of price collapse, they still kind of think they’re still going to scratch out a small profit on their home — or at least sell it for around what they got it for.

Megan McArdle noticed a hilarious new listing in her area which promised a “FABULOUS NEW PRICE” and a “NEW LOW PRICE” from when it was last listed, so as to expedite the sale.

Says Megan:

What, you may ask, is this fabulous new low price?


DatePrice% ChangeDays at Price 5/15/2009 $499,000            26 6/10/2009 $495,000        -0.8%  
That’s right–they’ve dropped the price almost 1%.  Perhaps you did not want this house at $499,000.  But now that it is $495,000 how can you resist acquiring two small bedrooms and a bathroom on an OK block?  Assuming a 10% downpayment and a 30-year mortgage at a 7% fixed annual rate, you could save nearly a dollar a day–almost the price of a cup of coffee (if you are not picky about where you buy your coffee)–off of your roughly $3,000 monthly payment.

Snarking aside, check out what the buyers paid for the place in 2005:

10/4/2005 $460,000 -$5,000$455,000

Good luck on that!

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