Many Realtors struggle in this market trying to figure out the right comparables for their listings. Even proverbial 3 bedroom 2 bath family homes are impacted by short sale and foreclosure pricing; however, think of how difficult it must be to do an effective market analysis on true estate properties. A great example is the recent sale of the Helmsley Mansion in Greenwich, Conn. http://www.greenwichtime.com/default/article/What-a-steal-Helmsley-estate-sells-for-35M-688860.php This parcel was listed in 2008 for $125 million. Did it look like a bargain when it was relisted for $55 million? Was the $70 million price reduction enough to make it the largest price reduction for a residential listing ever in the US? It finally sold for “only” $35 million. That means the Helmsley Mansion sold for 28% of original list price! According to the article, the Helmsley’s bought the property back in 1983 for $11 million so I don’t feel bad for them having to take $20 million less than their list price. I wonder how a short sale negotiator would have dealt with this file? I know for a fact, I would have a tough time looking my clients in the eye if I had to recommend taking an offer that was $20 million under current list price on a residential property! Here is a timeline of the sales price of this home:
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