Looking to buy a house in USA, then you should you certainly have a look at this report before you finalize the property. Home prices all over the world are mostly determined by market demand and supply. As a home buyer or seller, you should always do a market survey to find the right price of property to fetch the right price for your property. Making an informed and calculated negotiation is the basic step of successful business deal and helps you make money.

Trulia's Price Reduction report shows the average number of days a house listing is on the market before sellers make the first price reduction, the average percentage of the original price lowered during this first price reduction, and the likelihood of sellers making a second price reduction in an interactive online tool powered by Google maps.

This is in fact a very useful insight into the hidden data about a house price. The tool aims at powering the home buyers to make a calculated decision and save them from paying a higher amount than the market value.

The Home Offer Report is based on price change data from live non-foreclosure listings on Trulia.com, as of March 31, 2011 and tracks all price reductions from March 31, 2010 to March 31, 2011. Listings include residential properties including single-family homes, townhouses, condos and apartments among others. Trulia obtains its listing information from brokers, agents, third party aggregators and Multiple Listing Services. Only ZIP codes and cities with at least 20 residential properties for sale were included in this study. At the city level, only listings within a city's boundaries, not metro area, were included. At the ZIP code level, only listings within the ZIP code boundaries as defined by the United States Postal Service were included.

A simple look at the property prices in Manhattan, new York gives the following result:



Average Day on Market Before First Reduction: Trulia calculates the average day on market that listings within a ZIP code or city experiences their first price reduction based on live non-foreclosure properties listed on Trulia.com.
Average Discount During First Reduction: Trulia calculates the average discount taken during the first price reduction as a percentage of the amount reduced from the original list price for listings within a ZIP code or city based on live non-foreclosure properties listed on Trulia.com
Probability of Second Price Reduction: Trulia determines the probability of a second price reduction after a seller makes one reduction by calculating the number of listings within a ZIP code or city with at least two reductions as a proportion of all listings with at least one reduction.