Time to Close the Books on the MBB TH Price War?

Posted by Dave Fratello on Monday, July 30th, 2007 at 6:25am.

It might be time to finish a story MBC began long ago, that of two townhomes in the same building on Manhattan Beach Blvd. that wound up in a price war.

Winner: 710 MBB (left), sold 7/27/07 for $1,206,000.

Loser: 714 MBB (right), paid $1.355m in April '06, last listed at $1.349m, before quitting the market in late May.

To recap, 710 MBB was the more up-to-date unit and 714 MBB is actually on MBB, so when 710 undercut 714, it looked hopeless for 714. (Hence the dropout.)

If 714 MBB really has to sell, and that's what it looked like with the sellers having less than a year in the unit before offering it back up for sale, then the only questions were:
  • how bad the (pricing) damage would be once 710 closed, and
  • what the prospects might be for the market once they were ready to re-list.
Well, 710 MBB closed $149k below the purchase price on 714. And prospects are...

All things being equal except remodeling – obviously superior at 710 – 714 MBB would be fortunate to get $1.15m. They probably would need to accept an offer between $1m-$1.1m, if it went back on the market now. The potential losses could range from $250k-$400k, after costs of selling.

And that's if they list now. If the sellers wait...
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