Challenged Listings, Recent Deals

Posted by Dave Fratello on Monday, August 8th, 2011 at 8:52pm.

Looking at the range of new escrows to open up recently, we're finally seeing several longer-running listings figure out the right balance:

301 35th (4br/5ba, 3100 sq. ft.), an SFR right at Highland, had the longest run on market (400+ DOM) of the listings we'll discuss here, starting way back in May 2010 at $2.279m. For part of last July (2010), they tried an interesting tactic of offering buyers' agents 4% instead of the customary 2.5% commission on a purchase, with the price still over $2.2m. That little bounty trick didn't convince any buyers to pay too much.

The price dwindled to $1.897m by last October and got a mention in our post, "How Near, How Far," as a listing that might be "near" its market price finally. Whoops.

The cuts continued, and not those goofy $50.00 cuts, either – until the offering price hit $1.549m and a buyer finally knocked. A sale at that price is -$331k/-18% from the 2005 acquisition price ($1.880m), and -$730k/-32% from the start price last year.

2801 Pacific (3br/3ba, 2650 sq. ft.) was "priced to sell" right out of the blocks in March, we were told, but they only made a deal in late July. (The listing agent also came online to MBC to say he was "certain this home will sell quickly," but who's really good at predictions?)

It's an unusual house on a bigger lot (5600 sq. ft.) for the Trees. We called the style "quirky, woodsy, [with a] 70s vibe, and a determined architectural style that's hard to define." Very custom, pretty dated, looking for just the right buyer.

Despite logging more than 4 months on market, the list price for Pacific only came down $50k from its start at $1.349m.

707 Anderson (5br/4ba, 3800 sq. ft.) ran 4 months from a launch in early April, and came down $500k from a highly ambitious start price to find its buyer.

It's an extra-large custom home built in 1990, livable now but facing a buyer pool that would probably like to see several updates. The home has 2 master suites, including one upstairs just off the big kitchen and living rooms (the home features an upside-down layout). There's comparably little exterior space; the backyard now consists mainly of a short lap pool.

After a start at $2.199m, Anderson has twice posted deals with a list price of $1.699m. We had privately expected a sale here to wind up with a 1.6 in front. If the current deal wraps up, we'll see how that (unwritten) prediction bears out.
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