As the U.S. Marshals Service charged with selling Bernard Madoff’s former digs can attest, home sellers have it rough these days.
Madoff’s 4,000-square-foot penthouse in Manhattan got a 10% price cut (to $8.9 million from $9.9 million) after two months on the market while the Ponzi schemer’s Palm Beach, Fla., home was reduced by 7%. (The two properties were put on the market in September.)
The US Marshals dropped the list price 1 at the recommendation of the listing agents (Sotheby’s International Realty) to attract more potential buyers. But the challenge of selling the Madoff lavish homes reflects the broader housing picture.
About one in four homes currently on the market (as of Nov. 1) have experienced at least one price cut over the past 12 months, according to a report from Trulia, which tracks property listings. What’s more, the average discount for a reduced home is holding steady at 10% off of the original listing price. And luxury homes, those listed at $2 million and above, are seeing even steeper discounts with an average of 14% slashed from their original asking price, according to the Trulia report.
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