Price War Starting on Pacific?

Posted by Dave Fratello on Thursday, June 28th, 2007 at 6:15am.

The folks offering 2804 Pacific to the public apparently would rather not bother with the routine of overpricing, waiting, reducing, reducing again and wondering why there are no offers.

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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