Systematic $100k Cuts on Elm

Posted by Dave Fratello on Friday, September 28th, 2007 at 5:57am.

In three months on the market, the new construction at 2807 Elm has cut $400,000 off its asking price. Each time, the cut was $100k.

The initial list date was June 28. The cuts:
  • July 20: $100k
  • Aug. 19: $100k
  • Sept. 5: $100k
  • Sept. 25: $100k
That's a drop of about $33,000 per week.

2807 Elm (click for details) is a lovely and mostly well-thought-out home that simply started much too high at $2.899m.

The current price of $2.499m for 5br/5ba and 3550 sq. ft. means it remains in the upper tier of comparable active listings. (Click here to download the newest MB Market Update.) The closest comps are 648 35th (5br/5ba, 3600) at $2.295m (began at $2.45m) and a quite nice one at 2709 Oak (also 5br/5ba, 3600) at $2.299m.

It seems plain that Oak could drop further, given the major location issue and its year-plus time served on the market. It has plenty of charms.

Meanwhile, 35th is nice enough (MBC objects to a ridiculous use of stapled-on stone for the protruding front room; click address above to see listing pics) although buyers seem not to love this part of 35th.

It seems that the sellers of 2807 Elm are actually trying to get it sold, which is more than we can say for lots of the other 27 actives in the Tree Section above $2m. MBC has recorded only 6 sales of new construction in the Trees between $2m-$3m since March, and there are now 13 active new construction listings in this price range, including everything mentioned here.

Step by step, the folks offering 2807 Elm will keep working to find the price that gets you to say, alas, "this is a great home at a good price."

With a decent location, a plus build and two nice outdoor spaces (the lot is larger by 1100 sq. ft. than your average Tree Section lot), they could pull it off. They have to get the price right, but at least you can say they're trying to find where the market is now.
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