New tool shows when sellers chop home prices

Trulia, a real estate search engine, has launched an interactive map
showing when price reductions first occur in specific neighborhoods.

The company’s Home Offer Report also gives consumers a quarterly update on where the reductions are happening, how deep the reductions are and the probability of a second reduction.

For example, in the 98116 zip code that includes West Seattle’s North Admiral neighborhood, Trulia found the average list prices ranged between $500,000 and $550,000; sellers waited an average of 68 days to make their first price reduction; first deductions averaged six percent of the listing price, and the probability of a second reduction was 32 percent.

By comparison, sellers in America’s 50 largest cities wait 62 days before making their first price reduction, discounting their listings by an average of seven percent. Of the sellers who make one reduction, 42 percent will reduce their listing price again.