The Oil Drum | DrumBeat: March 21, 2008

213 comments on DrumBeat: March 21, 2008

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theantidoomer on March 21, 2008 - 5:36pm

Regarding your house, if I were you I would cut the price to 5% below the last comparable sale, and then keep cutting it by 5% below the last comparable sale.

How much do you want to bet westtexas isn't taking his own advice? and how much do you want to be he'll use Spousal Nesting Syndrom as his excuse.

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westexas on March 21, 2008 - 6:20pm

Actually, when I can sell, pricing the house at 5% less than the last comparable sale is precisely what I plan to do. As I explained in my missive, I have some personal experience in surviving deflationary cycles. Partly because of that experience, we never went crazy in real estate, and we live in a much smaller home than what we could have techically afforded (I would just prefer to be in a two bedroom rented unit).

In any case, you will note that they have basically had zero activity after six weeks--that kind of sounds to me like the property is overpriced.

BTW, why don't you go over the recommendations in the following article, posted almost a year ago, and see how people would have fared if they had followed my advice to radically downsize then?

ELP Plan (April, 2007)
http://graphoilogy.blogspot.com/2007/04/elp-plan-economize-localize-prod...

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skylar on March 21, 2008 - 6:25pm

Wasn't it Dr Abernathy that said -- regarding smoking; "Do as I say, not as I do?"

WT may be constrained in following his own advice, but it doesn't mean it's not sound.

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westexas on March 21, 2008 - 6:55pm

Being above market price in a falling price environment is not a good place to be--much better to be somewhat below market price in a falling price environment.

This also holds true for labor costs, which is one of the advantages of implementing aggressive cost cutting, it allows you to underprice your competitors for declining job opportunities. If people want to do as I did, you should give some serious thought to going into to your boss's office and demanding a pay cut.

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aangel on March 21, 2008 - 7:57pm

I'm using the strategy as I attempt to sell my Subaru. Unfortunately, the glut of used Subarus plus this strategy still have not resulted in a sold Subaru.

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213 comments on DrumBeat: March 21, 2008

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