Pricing Poll: 700 35th

Posted by Dave Fratello on Wednesday, August 20th, 2008 at 6:21am.

The Tree Section market above $2m has been evolving significantly in the year-plus since MBC began.

We've seen the stagnation of the new-construction market – with exceptions! – and gradually lower sales prices among continuing listings.

Into this market, about 6 weeks ago, came 700 35th. (Pcitured – click address for pics & details via Redfin.)

It's the subject of our newest pricing poll. Please read the story below and vote in the poll, and support your position in the comments on this story. Voting closes Sunday night at 8pm.

If you're shopping west of Sepulveda, the draw of the Trees is the fairly large homes (newer homes range from 3100-3600 sq. ft., occasionally more), a yard and maybe a quiet location. You don't get that stuff closer to the beach, and the Hill Section can be just a different world.

700 35th
is newer (built in 2003) and definitely scores points for size (5br/4ba, 3675 sq. ft.) and yard. This is not some grassy patio, but a heaping serving of yard where you can actually imagine parties spilling out, or tossing a ball to a kid older than 3. (The lot is 5400 sq. ft.)

The interior spaces ooze near-perfection. The great room (kitchen/living space) is vast, connecting to the substantial patio and yard. The kitchen itself sticks the landing – terrific soapstone counters, great appliances, a good layout. The master is spacious and you can't take much away from the master bath.

The home is on a corner lot at Flournoy, facing west. Great location – though it is objectively near the Chevron refinery and Rosecrans, this is a quiet corner of the Trees.

One of our favorite aspects of 700 35th is the very sense of trees from each room. Whether by design or happy coincidence, in each room you have the sense of being surrounded by woods, not just neighbors. If we may overstate it, the feeling is more of a woodsy cabin than just one of many homes along a row of similar homes on an a semi-urban street.

Many folks who have seen the house love it, and it was one of Mrs. MBC's picks (sorta). So now we come to the matter of price.

700 35th was purchased pretty much at the peak of this submarket in July 2006. The owners paid $2,482,500. Deciding to sell now, they priced the home about $200k higher, at $2.689m (+206k/+8%). It's now down a tad to $2.649m.

The problem with the price is that the market is, as we mentioned above, evolving.

Some high-end new construction has, in fact, sold recently for $2.6m or more:
  • 2701 Palm (5/4, 3300) – $2.749m
  • 2705 Palm (5/5, 3300) – $2.689m
  • 668 33rd (5/5, 3250) – $2.737m
  • 742 33rd (4/6, 4025) – $2.7m
  • 664 33rd (5/5, 3550) – $2.605m
However, there is really no example of a similarly aged and sized property selling in the Trees recently. The biggest rationale for the current price on 700 35th is the previous purchase price ($2.482m), plus an assumption of appreciation since then.

But the reality is that buyers at this price point – and points below – have lots of options, including new construction, nearer to $2.3m (click any highlighted address for pics & details via Redfin):
Though we'll continue to rave about 700 35th, the fact that it was a peak purchase and the fact that buyers have many options suggest that the $2.6m range is an impossible bar for the listing to jump. Agree? Disagree? Please vote in the poll and share your comments here.
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