Home Buying in Tulsa>Question Details

Kat Hays, Home Buyer in Tulsa, OK

What would cause a home price to be reduced by almost half in about 5 months?

Asked by Kat Hays, Tulsa, OK Sat Sep 22, 2012

I have been looking at a house which is in a decent area. It is a 4 br/2 bath house. From the pictures, it looks to be in pretty good condition. It was built in '55. A lot of the appliances seem newer and in good condition. I see that it has been listed for 160 days, and it has been reduced in price from $40k to about $25k in 5 months. What variables could cause this sort of dip in price? It seems too good to be true.

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Answers

5
Could have been initially overpriced, at Seller's request. If no activity, Seller may have okayed price reduction in order to generate some interest. Many things can cause this, but don't necessarily assume something is wrong with the property. Always worth looking at the property and seeing if you like it.
0 votes Thank Flag Link Thu Nov 8, 2012
One of two things:
Either the HOUSE,
or the SELLER.

Don't forget that just becaise the house is LISTED for $25, does not mean that it will SELL for $25!!!
0 votes Thank Flag Link Thu Nov 8, 2012
I would have to say the condition of the property and the motivation of the seller. Sometimes this can also happen with short sales.
0 votes Thank Flag Link Thu Nov 8, 2012
Many things can do this. i am still trying to get my head around a house for $40k or $25k since here they start around $200k, but then we are near the ocean.

Since it is an older home they might have found problems, the Realtor should disclose any if so. There might be total equity in the house and the owner wants it to sell and so they just keep lowering it to find a buyer. Was it grossly over priced (hard for me to imagine at $40k but maybe there it is)? Termites? I would ask if there was an offer and an inspection done? Go in with eyes wide open.
0 votes Thank Flag Link Sat Sep 22, 2012
Without having more information about the property, it is hard to say for sure, but it could be a corporate/bank owned property that the price is being lowered in order to generate offers. The condition and location of the property are probably factors.
0 votes Thank Flag Link Sat Sep 22, 2012
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