Sand Half Lot Chops 23%

Posted by Dave Fratello on Thursday, February 28th, 2013 at 10:06am.

When is a "huge price reduction" not all that impressive?

When the start price was preposterous.

Still, they're right to claim that 421 32nd Place has, in fact, made a new "huge price reduction." (We've dropped out the all-caps you see in the listing, because we don't mean to scream at you.)

Yes, it's "huge" to drop from $1.3M to $1M ($995K) in just over a month.

It's a 23% cut.

These sellers must be crazy with how they're discounting the place, eh?

But no, really, they're just approaching market value. They must have noticed the lack of offers in an otherwise hot market.

How do you value a little old cottage like this on a half lot on an alley?

This one is officially 2br/1ba, 725 sq. ft., and, frankly, cramped and old. It lacks a garage.

Properties like this get added onto or scraped. Rare is the teeny beach bungalow that survives endlessly with no more than a coat of paint and new appliances from time to time. This one has dodged the bullet, er, the bulldozer, more than once.

Get this little plot for the right price, and you could build something pretty decent. Half-lot SFRs are not unheard of in the area. A fairly nice one is on the market now at 437 28th Place (3br/4ba, 1925 sq. ft., 2-car garage) at $1.550M. (The slightly smaller lot size at 32nd Place would translate to a slightly smaller new home.)

As to where 32nd really should trade, we have one recent (pending) sale that provides perhaps some guidance.

441 28th Place (2br/2ba, 1080 sq. ft.) has the same basic (half) lot size at 1350 sq. ft., being in the same general area of the Sand Section plateau, and also on an alley.

But it's also quite a bit more house: 2 stories, 2 full-size bedrooms, a fairly open living room and – imagine this – a garage, which 32nd Place lacks. Oh, sweet luxury!

It's also about 60 years newer, sporting a 1986 build date versus the 1928 completion on 421 32nd Place.

But 441 28th Place was last priced below even the newest chopped price at 421 32nd Place: it was at $975K when it posted a deal recently. (We've heard the seller there was very firm on price, so watch for a closed sale near there.)

This would suggest that 32nd Place has further to go, even if it's getting into the right territory.

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