More Likely to Sell at a Discount

According to an online brokerage, Redfin, after looking at more than 290 home sales in the L.A. area, identified traits of homes that sold at the largest discount from the final asking price. Prices came down most when homes were:
1. Listed for more than 90 days
2. Fixer uppers
3. Owned by the sellers for 20 years or more.
4. Owned for less than five years.

Redfin also found that sellers who have already cut their list prices often agree to more reductions to get a sale.

Most of the above are fairly obvious. Sellers who have owned a home for more than 20 years probably will make a solid profit even if they come a long way down from the original price. Those who have owned a home for less than 5 years may be in mortgage trouble.

One conclusion that may surprise some: Redfin finds that buyers don't have much luck low-balling foreclosed homes sold by banks. That is because lenders are already offering foreclosed properties at deep discounts.