Sound the Trumpets: John is Sold
Posted on Tuesday, September 11th, 2007 at 10:29pm.Here we go with another big-dollar sale in MB...
512 John is pending at last. Most recent list price: $3.99m.
The full saga as covered on MBC includes:
So at this point the question is only how bad of a hit the sellers take.
What's interesting about this one is that the financial loss appears to reflect a builder's misperception (overestimation) of the market value of the home in the first days of 2007. The home was essentially taken in trade, we're told, no doubt at a price the new owner believed to be a below-market bargain at $4.075m. Seven months later, the market has proved that opinion wrong.
We expect hard-core market watchers to have a fine sense of prices, but anyone can make a mistake – especially this year.
John makes 5 escrows for September SFRs west of Sepulveda, and a new contingent sale was posted today, too – 505 3rd on the South End, listed at $1.949m and purchased in 2005 for $1.6m. So we're at 6 now for the month, all of them over $1.5m.
512 John is pending at last. Most recent list price: $3.99m.
The full saga as covered on MBC includes:
- A discussion of the home as a "masterpiece" and evaluation of the rental option ($20k/mo.).
- News about the $400,000 price increase mid-listing, featuring this quote:
Do the people who bought 512 John earlier this year really mean to sell it?
- Description of the $750,000 price cut which guaranteed the current owners a net loss.
- A story this week estimating those losses at $316,000 (with 6% cost of sale, which may or may not apply here).
So at this point the question is only how bad of a hit the sellers take.
What's interesting about this one is that the financial loss appears to reflect a builder's misperception (overestimation) of the market value of the home in the first days of 2007. The home was essentially taken in trade, we're told, no doubt at a price the new owner believed to be a below-market bargain at $4.075m. Seven months later, the market has proved that opinion wrong.
We expect hard-core market watchers to have a fine sense of prices, but anyone can make a mistake – especially this year.
John makes 5 escrows for September SFRs west of Sepulveda, and a new contingent sale was posted today, too – 505 3rd on the South End, listed at $1.949m and purchased in 2005 for $1.6m. So we're at 6 now for the month, all of them over $1.5m.
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