Houston sellers wait before making price cuts

With low mortgage rates and home prices well below their levels from a few years ago, many analysts have said that buyers have the upper hand in the current housing market. But as a report from Trulia finds, some sellers in many parts of the country are remaining stubborn.

According to the report, home sellers nationwide waited roughly 79 days before making their first price reduction, slashing the price on their property by an average of 8 percent. After that, 35 percent cut their prices again.

However, in major cities, sellers were quicker, waiting just 62 days to make a 7 percent cut, which resulted in 42 percent making an additional reduction.

"Sellers who don't cut their homes' list prices deeply enough the first time face a long lag-time on the market and a high chance of needing to make a second cut, which can result in lowball offers from buyers," said Tara-Nicholle Nelson, consumer educator for Trulia.

In the Houston real estate market, Trulia says sellers wait an average of 65 days before making their first price cut - which is usually about 6 percent of the original asking price. After that, 40 percent of sellers make an additional price reduction.

Courtesy of 2M Realty News