Price War Starting on Pacific?Posted on Thursday, June 28th, 2007 at 6:15am.
Today they have thrown a monkey wrench into the whole Tree Section market between $1m-$2m, asking a paltry $1.399m for their 3br/3ba, 2050 sq. ft. home.
As the photos show, the home is pleasantly remodeled, even a bit sleek inside. There is good outdoor space (patios, not a yard, exactly, but nicely landscaped). The listing says it's in "move-in condition," and by appearances that's right. (No one has walked through yet.)
The price is $200k below all comparable homes in the Trees, and it thereby threatens all 9 active listings currently marked at $1.5m-$2m.
Most directly, 2804 Pacific undercuts neighboring 2622 Pacific, at the corner of 27th and Pacific, which for 3 1/2 months has sought $1.699m, fully $300k more, for a home with a bit more square footage but less outdoor space and frankly much less curb appeal. (See last of 3 photos here.)
Comparable closed sales in the Trees this spring have ranged from $1.17m-$1.45m, leaving this pounding question: Why do so many current Tree section sellers think they can get $1.6m or more when recent history suggests they should get $1.2-1.4m?
The new Pacific listing moots out that debate. They're starting at $1.4m. A series of relieved buyers, who have tuned out the current crop of sellers, are going to be coming through.
Realtors like to say, when they see a nice home that's well priced, that it will go quickly with multiple offers. This one will draw that sort of comment. But the sellers just need one offer – one more than most of their competitors have drawn.
UPDATE: Late today, 2622 made a token reduction of $50k to $1.649m.
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