(author note: If you have not read the original article (link below), I suggest you do so before reading this one)
From “How Much Is Your House Worth Today? Another Crisis Brewing?” …
"Maybe it is time to sell the ‘investment’. After all, it has been more than ten years since our investor broke ground on his personal gold mine. But, after speaking with the realtor, our investor is even more discouraged. Apparently, a reasonable asking price is somewhere in the neighborhood of $690,000.00 – $700,000.00. That is considerably less than the purchase price of $1.1 million. And it is also less than what is still owed – $850,000.00. Which means it will have to be a short sale – if the bank will agree. After some negotiation, the bank agrees to a conditional listing at $749,900.00. Exactly two months later, the asking price is reduced to $699,000.00. And a short two weeks after that, it is reduced again – to $649,000.00. Ten long weeks later, an offer is tendered. The offered price is $550,000.00. It is quickly turned down by the bank. The listing is removed."
Now for an update. Five months after removing the listing, our investor decided to try again. The house was relisted in July 2018. The listing price of $749,900.00 was identical to the original listing price in August 2017.