Quick Cuts in the Teens

Posted by Dave Fratello on Monday, July 12th, 2010 at 7:12pm.

Some newly closed sales will raise some eyebrows. In each case, fairly quick purchases came with discounts near 15%.

It didn't take long, apparently, for the sellers of 605 8th to recognize that they wouldn't be getting what they paid for their Hill Section home new in 2006.

Though they listed in April this year at exactly their June 2006 acquisition price of $5.495m,
the closed sale has just posted at $4.7m.

That's a somewhat breathtaking $795k/-14% off the purchase price. The listing ran just 50 DOM before that haircut.

It's not because the home lacks for much that its value dropped over these 4 years or so – that's just due to the change in the market since the peak-year purchase. The big house (5br/7ba, 6625 sq. ft.) is a marvelous Cape Cod, quietly luxurious, that has almost too much going for it: an extra-large lot (9300+ sq. ft.) with a pool, real ocean/PV views from several decks and a location just steps from downtown. And now it's got new owners to enjoy it all.

Meanwhile, up at 641 18th, at the crest of the hill on one of the great streets in the Martyrs area, sellers proved that they weren't too attached to their much-too-ambitious start price of $3.295m.

In writing up the quick escrow at 18th, we said "[y]ou could have counted MBC as skeptical" of that start price. (See "Near and Over $3m in the Trees.")

The buyers, too.

They paid $2.865m instead, a chop of $430k/-13% from the list price.

And this was in a multiple-offer situation on a home with just 2 weeks' market exposure.

As it happens, the winning bidders didn't offer the most money, but they did go all-cash and closed quickly – the most attractive terms, if not top dollar.

Yes, cash does give you leverage. You can ignore the start price, win a bidding war and pay less.
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