Not So Delusional – Now

Posted by Dave Fratello on Tuesday, January 6th, 2009 at 5:12am.

Time heals wounds. It can help cure pricing errors, too.

A bit more than 7 months ago, a head-scratcher of a listing popped up in the Hill Section – 1015 Boundary Place. (Click for more pics & details via Redfin.)

The mid-century home on an alley near Sepulveda really should have been a $1.5m-type offering, but it was priced near $2.5m (at $2.480m) out of the gate last Spring.

That seemed to us to be breathtakingly out of whack. MBC readers agreed. We provided a list of 3 newer listings in mid-May 2008 and asked readers to vote on the question: "Who's Most Delusional?" 1015 Boundary won in a landslide, with 52% of the vote.

In September, Boundary chopped substantially to $1.759m – a single cut of $721k/-29%. No takers. Eventually, the listing took the holidays off.

This week, it's back at $1.579, a figure that's strangely similar to the old price, but lower again. The listing is now down $901k/-36% from that start – we can all agree it was delusional, now, can't we? – and it is starting to look more reasonable.

That price for 3br/3ba, 2400 sq. ft. yields a PPSF of $658/PSF for Boundary, putting it on a par with the two similarly sized homes priced just below it in the Hills:
  • 856 11th (4br/3ba, 2225 sq. ft.), at $1.479m and $665/PSF; and
  • 234 Larsson (3br/3ba, 2300 sq. ft.) at $1.449m and $630/PSF.
Time has begun to work its magic on Boundary, and with that overrreach behind them, the sellers are saying that maybe they do mean to sell, after all.

Speaking of magic, they've changed the pitch for Boundary, too. Noting that the livable area consists of one 1800 sq. ft. space and a separate 600 sq. ft. "work/studio space," the listing touts the benefits of working at home.

1015 Boundary, you see, does not have a chopped-up layout, it is:
a place to be part of a movement: a place to bring home and career into the same holistic locale; a place that inspires a kind of life that's free from the grind of a commute, that is private, serene and more planet-friendly.
Amen to that, sure, but why not mention that you can also sell carbon offsets to help pay the mortgage?

We're not sure that $1.579m is the magic price for this home. Last we checked, that was still a lot of money, and there was a growing proliferation of options – some not so, er, environmentally friendly. But you have to give credit when people are trying.

As to those other "delusional" listings – one, 1705 Pacific, trimmed a bit last Summer but quit the market, indicating that they were just toe-dipping. (Not that there's anything wrong with that.) The other, 217 35th Place, is still asking for a 50% markup on a small duplex bordered by two alleys, with no cuts after 235+ DOM.
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