Strand AdjustmentsPosted on Friday, May 15th, 2009 at 4:15pm.
When we started to see a minor flurry of Strand offerings over the past 6-7 months, it's safe to say everyone was confused about how to price them.
Consider one successful sale: the brand-new home at 1712 The Strand (3br/4ba, 4500 sq. ft.) (pictured). For a couple of months before it hit the open market, the unofficial price was $12.5m.
The official start price in late February was $10.5m, and a buyer came quick.
That buyer also shaved $1.5m more off the top for a sale at $9.0m. If you count from the unofficial start, that's a $3.5m drop (-28%).
Look to the South End. 204 The Strand, a 3300 sq. ft. lot, began in Nov. 2008 at $8.2m.
No takers, but when neighboring 208 The Strand became available (same size lot), it sold at $6.7m to the same folks who took 204. (The final price on 204 is not public, but you can guess.) So your primo lot values down south are barely sub-$7m.
Now head north again. 3404 The Strand (pictured) offered a custom, Spanish-style, 2-building home – dated, but cool – on a 3500 sq. ft. lot.
In November they started at $7.8m – because, hey, who knew what to ask?
The sale recently closed at $5.35m, a not-inconsiderable sum, of course, but also $2.45m (-31%) below that start.
Getting the memo recently: 3216 The Strand, a terribly flawed duplex that is going to have to go for lot value. This one tried at $7.3m briefly last year, and is newly down to $5.499m, nearly $2m off the start and probably nearing the right price.
Still in the stratosphere: 1800 The Strand, at $13.5m, and 3516 The Strand at $13.999m.
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