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Most likely to sell at large discount

August 10, 2008|Peter Y. Hong

The folks at online brokerage Redfin looked at more than 2,900 house sales in Los Angeles County from April through June and identified traits of homes that sold at the largest discount from the final asking price. Prices came down most when homes were:

1) listed for more than 90 days

2) fixer-uppers

3) owned by the sellers for 20 years or more

4) owned for less than five years.

Redfin also found that sellers who have already cut their list prices often agree to more reductions to get a sale.

Most of the above are fairly obvious. Sellers who've owned a home for more than 20 years probably will make a solid profit even if they come a long way down from the original list price. Those who've had the home less than five years may be in mortgage trouble.

But one conclusion may surprise some: Redfin finds that buyers don't have much luck trying to low-ball foreclosed homes sold by banks. That's because lenders are already offering foreclosed properties at deep discounts.

-- Peter Y. Hong

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