1805 John: Predictions and Sale Price

Posted by Dave Fratello on Thursday, April 5th, 2012 at 2:42pm.

It wasn't quite a month ago that we saw the market launch of the biggest sensation of the year (so far).

That was 1805 John St., a major fixer or teardown in a prime "A" location in the Trees, near school and town but isolated on a flat, quiet street.

The lot's bigger than normal at 5065 sq. ft., and the yard faces west – sunny all day.

"Multiple" offers didn't capture what happened here: There were 20 parties bidding for 1805 John. The start price of $1.1m was endangered.

We asked MBC readers to guess at the sale price once the sellers accepted an offer.

The question wasn't whether there would be an overbid situation, but how high the final price would go.

We gave you lots of tiers to choose from, mostly broken up by increments of $50k.

Turns out, based on the final sale price, 55% of readers responding to the poll got within $100k of the final number.

There were 17% in the "winning" tier of $1.35m-$1.4m. The final sale price was $1.352m, an overbid of $252k. And if this is a lot sale, that's a remarkable price for dirt, even with the prime location factored in.

Plus, we hear that wasn't even the highest bid, just the bid with the prospect of the quickest close.

What we don't know yet is the plans the new owners have for John. But the more closely we looked at this property, the harder it was to imagine a "remodel" in anything but name. (Dave had clients bidding for the property among the 20.) More likely this is a teardown, where someone will want to start fresh with the big, flat lot and build a modern home. More power to them.

In closing, we must note one of the strange aspects of this offering. At the initial broker's open and in the days immediately after, we discussed the likely sale price with several local agents. One predicted it would sell for "around $1.150." Another was simply floored when someone suggested it would go over $1.2m. And yet another said the discussion in their office had been that John would get bid up, "but not by too much."

Granted, no one knew there would be 20 bidders, but at the time, your blog author here thought everyone was terribly under-valuing the property. Yes, MBC author Dave Fratello was shocked at how the local real estate community was failing to grasp how high the price would go. That was strange.

We did eventually talk to a couple of agents who were certain that John would sell for $1.35-$1.4m. And they, like some MBC readers, had it just right.
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