Sometimes You Need to Cut

Posted by Dave Fratello on Friday, June 29th, 2012 at 4:40pm.

In a market with so many quick deals, you could almost excuse some sellers for being shocked, shocked that they didn't make one, too.

It's commonplace now to go see properties at their brokers' debuts (mainly Fridays) and hear a matter-of-fact description that the sellers will look at offers on the ensuing Monday. It's expected that there will be several. 

But if there are no offers, sellers may have to be more patient. Maybe even make a price cut or two, even if it's a smallish one. Maybe the market isn't there for the home, or maybe the start price overshot.

Here are a few recent cuts:

1821 3rd (3br/2ba, 1475 sq. ft.) is in a pretty nice cul-de-sac location despite the 1800s address near Aviation. Full-size lot, nice kitchen, plenty of living space – including a full room (no bath) off the garage, which they say is permitted.

When we reviewed this one 2 weeks ago, we could imagine instant interest from the market.

But no, not yet, so they've taken a little off the top, all of $14k, down to $1.075m. Is that even a cut?

1820 Palm (5br/3ba, 2450 sq. ft.) is less of a surprise to see here 3 weeks after its debut. We noted in our first review that the sellers were "trying to start at or above market price to see what happens."

That was $2.149m to begin, corrected now to $1.999m.

Yes, $150k (or 7%) definitely counts as a cut. What's next for this "undeniably sharp and attractive" Spanish remodel?

1836 6th (5br/5ba, 4050 sq. ft.) needs time to find a buyer who can roll with the "really, really far east" location (per our review).

Make your peace with that and you get a home we called "surpassingly gorgeous" in a boldly Spanish style. (The listing still says "Tuscan" and we still aren't buying it. The builder called it Spanish, too, 7 years ago.)

This one began at $1.999m and just cut $50k to $1.949m.

That's more of a "we're still here" kind of message cut than a chunk off the price, but, again, this one may need time more than anything.

1042 2nd (5br/4ba, 4425 sq. ft.) surprised us in 2009 with a sale at $1.810m, a sizable price in a depressed market for a home right next to a commercial building.

It came back, after some upgrades, this March, but has lingered. (That can be said about very few properties this year.) We generally liked it in our review this Spring, still noting the location challenge someone has to get over. 

Turns out the market rejected this one at $2.195m but they took 9% off, $200k, and they'll try their luck at $1.995m for a spell. 

250 S. Dianthus (5br/7ba, 8500 sq. ft.) is new to MBC and really unlike anything on the market in MB, so it hardly fits the theme of this post about sellers who've slightly overreached on launch. Or maybe it does.

This enormous, classically styled (meaning Old World ornate) home deserves its own separate writeup, but we'll need to stop short of that for now, and just take note of the effort to find the level for this one.

Launch price, nearly $12m at $11.9m. New price, call it $2m off – $9.995m, the biggest cut by far of any of these properties, dollar-wise or percentage-wise, but what does list price mean in the stratosphere like this? Don't you think the eventual buyer here just marches up and makes his or her deal?
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