Another Arbolado Update

Posted by Dave Fratello on Saturday, August 4th, 2007 at 7:09am.

About 3 months ago, MBC spotlighted 3 homes in the Arbolado tract that were all for sale at once. At the end of June we updated the situation for all 3, each still active at the time.

One attraction of covering all 3 was the relative sameness of the different homes. Having been built at the same time, in much the same style, by the same developer, the Arbolado homes offered a nice data set. Price-per-square-foot would be an even more apt measure of the relative value of these 3, despite their many differences.

MBC even went out on a limb and named the price ranges these should all be within – after calling them all overpriced. (Don't try this at home!)

Now things have turned a bit strange:
  • One home, not our favorite (1140 Laurel), is now pending;
  • Another (752 14th) quit this week; and
  • A third (758 14th) has now cut its list price to the point that the sellers would net less than they paid for the home.
Let's look back at the pending listing. It has a big location challenge and little usable outdoor space. (We never mentioned the construction beginning next door.) Interior layout has issues. It's nice, but MBC has said the "utter peak price" would have been $1.5m. It was last at $1.599m. Happily, it was almost alone for a while under $1.8m. Where will it end up?

752 14th started at $2.150m and never budged. They didn't stand out much in the glutted $2m+ range in the Trees. Perhaps they were just fishing. MBC thought a price nearer to $1.9m woulda worked. The sellers loved their (very personal) ultra-modern remodel and wanted extra. And now they can keep it. (The remodel, that is, not the extra.)

And 758 14th, subject of one of MBC's earliest pieces, this week cut the asking price again. We can't count the number of separate cuts from $1.990m on March 1 to $1.750m now – many were < $100k – but here we are. The sellers of 758 14th paid $1.695m on 7/21/06. At the new price, and at 6% cost of selling, they lose $50k on the sale.

The threesome is back down to one, and it's an increasingly sad story. These folks apparently need to sell, but it also appears that their effort to grab a big, quick profit backfired rather harshly. If they'd begun at a more reasonable price, we might not be talking about the house now.
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