Chops Around the Block

Posted by Dave Fratello on Thursday, May 1st, 2008 at 3:59am.

The Spring Selling Season might need a new name for 2008 – Spring Slashing Season.

Sales are a major disappointment. Bursts of warm weather haven't heated up buyers' motivation.

And while that translates to a steady drumbeat of price-cutting that could make for a daily feed all its own, what's drawing MBC's attention is a wave of big-dollar cuts in just the last few days.

But first, before we cover those, let's pause a moment to wave some positive vibes over to The Farmhouse, 570 27th, which is now in escrow after – achem$1 million in price cuts over the course of 13 months. Yes, yes, keep cutting and one day they'll knock on your door.

The Farmhouse began at a wish price of $3.899m in mid-March 2007. It had cut a total of $600k by September (see "The High End Gets Lower") and recently had trickled down to $2.899m. When all's said and done, that's still one pricey home (we don't have the deal price yet), just not as pricey as they penciled it in to be. Note this: a few months back, Blake Roberts – a huge fan of the home, as you know – said this of the Farmhouse:
[T]his is just speculation, but I'd guess that the builder wouldn't have (or couldn't have) moved forward with the Farm House project had he known it would end up selling close to $3,000,000 bucks.
And that was when the list price was $3.199m.

More than a million bucks were chopped off just a few listings in recent days:
  • 132 2nd, a large, newer home on the walkstreet right at Manhattan Ave., cut $305k to $5.695m. Word here at MBC previously – in comments – was that it had been in escrow well above $6m before hitting the market in late March;
  • 332 20th, an impressive new home at the top of the 20th St. walkstreet, began at $4.795m but has just cut $300k to $4.495m;
  • 923 1st chopped $220k more this week and is now down $623k from its start (now $7.375m) – no huge surprise because it never was an $8m house (see "Unpredictable");
  • The smallest cut we'll feature was at 661 26th, a mere $120k cut that allowed it to leap behind The Twins on Poinsettia, which had cut to $2.599m – now 26th is at $2.579m; and
drumroll, please...
  • 794 27th (Pacific/27th) took an amazing cut of $200k more this week and is now down $500k from its Feb. 6 start at $2.599m (now $2.099m) – most shocking because the home was purchased for $2.5m just 2 years ago (May 2006). Hey, someone is trying to sell this house!
Overall, that's an impressive $1.145m taken off just 5 listings in the past week. And one of these is a candidate to overtake The Farmhouse some day in the magnitude of cuts from start, but we'll let the market decide that one.
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