HOME OFFER REPORTPRICE REDUCTION TRENDS (Q1 2011)

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• Trulia’s Home Offer Report gives homebuyers and sellers the upper hand – whether they’re making an offer or putting their home on the market. Knowing when the first price reduction occurs in your neighborhood, where the reductions are happening and how deep the reductions are, helps sellers price their homes to sell and guides buyers to make strategic offers.

About

Home Offer Report

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Key Findings

Trulia’s Home Offer Report Reveals Where Home Buyers Can Find Deep Discounts This SpringSellers in major U.S cities quick to make first price reduction and more likely to make multiple cuts

– During the past year, U.S. home sellers slashed more than $24 billion in potential wealth from home listings on Trulia.com. On average, most sellers will reduce their list price after 79 days on the market, choosing to cut their original list price by 8 percent. Following a first reduction, 35 percent of these sellers will make a second.

– By comparison, sellers in America’s 50 largest cities wait 62 days before making their first price reduction, discounting their listings by an average of 7 percent. Of the sellers who make one reduction, 42 percent will reduce their listing price again.

Multiple Reductions

Least Likely to Make Second Cut

Deepest Price Cuts

Stingy Sellers

Most Stubborn Sellers

Quickest to Slash

Interactive Price Reduction Map

Check out Trulia’s new interactive price reduction map to find out when the first price reduction occurs in your neighborhood, where the reductions are happening and how deep the reductions are. http://explore.trulia.com/datavis/priceredux/Q1-2011/

Home Offer Report

• Trulia’s 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 report. 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.• 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.

Methodology

• Trulia is the fast growing online real estate resource focused on empowering buyers, sellers and renters with smarter tools to help you find the right home. Trulia is headquartered in downtown San Francisco and is backed by Accel Partners and Sequoia Capital. Trulia is focused on helping you find the home that truly meets your needs, and delivers on what’s more important for you. Ultimately, we built a smart real estate search experience bringing together local information, community insights, market data and national listings all in one place.

About Trulia

Home Offer Report

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