Cutting the Price

John needs to talk to his real estate agent and get her to show him two statistics that will help him sell his house.

QUESTION: John has been trying to sell his house for two years. His income went from $60,000 to $45,000 during that time. His house payment is $1,300 and he’s asking $224,000. What should he do?

ANSWER: Ask your real estate agent how many properties have sold within a 5-mile area in the past year. When she tells you, also ask how many are on the market now. Those are the two statistics you need. If 20 sold and there are 50 on the market, then you have a two and a half year supply, so to speak. If that’s the case, you have to severely cut the price to stand out and get it sold.