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Time Finds the Correct Price

It's axiomatic that an overpriced home listing will sit on the market.

But homes also sit when they're very particular, needing a specific buyer to come along and find them.

So, just because a home racks up DOM does not necessarily mean that it's significantly overpriced. But it might be.

Two recent closed sales help illustrate the difference.

717 Anderson Street, Manhattan Beach, 717 Anderson (3br/2ba, 1425 sqft.) debuted in early October '23, asking $2.849M.

A month later, 429 1st St. (5br/3ba, 1604 sqft.) came to market, asking almost the same price: $2.850M.

Both are SFRs on similarly sized lots west of Sepulveda.

One was a fully remodeled, ultra-cute Hill Section home, while the other was quite possibly a land-value proposition in the South End of the Sand Section. 

As the 2023 holiday season approached, Anderson, unsold, took a hiatus, going into a "hold" status on the MLS with 4 weeks on market.

429 1st Street, Manhattan Beach, Meanwhile, 1st St. ran about 6 weeks on market, then canceled near Christmastime after a $100K cut.

In late January this year, both listings re-emerged. Anderson re-activated the original listing, still at $2.849M, while 1st St. started a new listing, with another $100K cut to $2.650M.

Both listings made deals in the first week of March, with Anderson still holding to its start price, and 1st St. having made another big cut to $2.495M. 

In the end, 717 Anderson closed very close to its start price, at $2.800M. The sellers had believed in their value the whole time, held fast to it, and even with 83 DOM, they sold just 1.7% below asking.

429 1st closed for $2.515M, about 12% under the first asking price. That sale came with 87 combined DOM across two listings, and after 3 price cuts – activity that indicated that the sellers weren't quite sure where the market was for the property.

Time helped both properties find their correct prices – one very close to where they began, the other not all that close.

Please see our blog disclaimer.

Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.

Based on information from California Regional Multiple Listing Service, Inc. as of May 7th, 2024 at 8:10am PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.