Adjusting Upon Return

Posted by Dave Fratello on Thursday, January 28th, 2010 at 9:00pm.

Our last post mentioned 1011 Pacific coming back to market, having finally shed excessively lofty ambitions for a big markup over a 2004 acquisition price.

The newest listing in MB has a similar story.

560 35th is a big Craftsman (6br/6ba, 3600 sq. ft.) purchased in January 2004 for $1.635m.

About 4 years later, in July 2008, the sellers tried to find someone new to take title at a hefty markup: $2.425m (+$790k/+48%). 

That didn't work. The price dropped to $2.125m over about 6 months, but the listing quit in January 2009 and the home was rented out, we believe.

A year later, the home's back at $1.895m, still a substantial step above 2004 (+$260k/+16%), but not the near-50% markup first sought.

In a "Weekend Opens" piece in July 2008, MBC said:

the home is stylish, not cookie-cutter, doesn't suffer from garage-face syndrome, and offers a decent PPSF ($591) for 6br/6ba and 4100 sq. ft. The Craftsman style on the exterior is inspired, and some elements carry over well inside. (The listing's reference to the Gamble House vastly over-promises.)
The new listing boasts a lower square footage (3600), an improved PPSF ($526/PSF), and drops the reference to the Gamble House in favor of 2 references to Sand Dune Park, which is quite nearby. Isn't it interesting to see The Dune popping up as an asset now, while the park is closed and the city has broadcast its intention to sharply limit the park's future uses?

Back to the pricing, we note that an anonymous commenter in July 2008 had some prescient things to say about the listing then (replying to "Warmer than Expected"):

560 35th Street is overpriced. It was purchased in late 03/closed January 04 just under 1.7M. No way it is worth another 700K now. Also this house sat for several years after it was built in early nineties. The location is a "C-" tree section location at best. In a hole/loss of ocean breezes, close to the Armory, Rosecrans, Refinery, crowds of sand dune runners. This house will sit again unless price comes down to around 1.8
Yes, 18 months ago someone thought that 35th would be stuck until it was priced near $1.8m. And here we are today, with the new listing having taken a big step in that direction.

We may see better sales activity in 2010 if more sellers try to find the market like this, instead of pushing the ceiling, as has often been the case.

560 35th is posted as open for the weekend, so we'll make another reference to it in our "Weekend Opens" feature coming up.
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