Taking a Modest $500k Makes the SalePosted on Monday, September 17th, 2007 at 11:20pm.
Six weeks ago, MBC took note of two Hill Section listings that were similarly priced, but whose sellers had vastly different ideas about how much their homes had appreciated since they were purchased. (See "Two Views from the Hills.")
One purchase was about 3 years ago, and the other 2 and a half years back. Both were newer homes, but one was alleged to have grown 25% in value, while the other supposedly shot up 64%.
The more bullish sellers happen also to be local realtors, folks you expect to be tuned in to the market.
We're ready to close the first chapter of this story. A closed sale price has come through on 637 6th (pictured above). They got $3.625m. That's a tidy $500k profit, tax-free (before costs of sale). Somewhat remarkably, the sellers took $274,000 off their list price to make a deal, with just 47 DOM. They were ready to sell.
With that closed price, the market is telling us that 637 6th appreciated by 16% over 33 months; an annualized rate of about 6%. Nothing garish there.
Next stop: 869 3rd (click for property details, or here for an update from last week).
The owners paid $2.44m, and now want $3.99m.
Put it another way – the comparable listing just sold quickly and handed $500k to the sellers. These folks want three times the profit, $1.55m. (Maybe they snapped it up below market value in 2004.)
We know they know the market. How patient can they be, and what magic can they pull, to get what they want?
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