Cuts That Made the Sales

At all price points, you notice that buyers aren't necessarily paying what sellers are asking these days.

Indeed, some sellers shot so high, it took a long time and deep cuts to get their homes sold. Here's a selection of closed sales where the final toll was much lower than the start price:

1201 Oak (2br/4ba, 2170 sqft.) is something of a duplex in a challenged location near MB Blvd. and across from commercial properties.

That's not to say that the inspired Craftsman-style home lacked charm, but it's hardly a "down the middle" mainstream house. It was owned by singer-songwriter Graham Nash (as famously noted in this LA Times story, among other media).

The listing began in March at $2.350M, and you could reasonably say: Why?

There were 2 sizable price cuts of almost 20% bringing it to $1.899M, when a buyer finally knocked. And that buyer knocked off $300K more, wrapping up the sale recently for $1.600M, fully 32% under the start price.

New construction prices in the Tree Section have been fluctuating this year, after a couple hit the $3.5M range.

One that tried to catch that wave, but didn't, was the spec home at 756 36th (6br/7ba, 3600 sqft.).

First offered pre-MLS in Fall 2015, this one hit the market officially in January at $3.579M.

That was a bridge too far for this spacious, serviceable build with a location challenge – the industrial hum of the refinery is ever-present.

Months passed with no action, several price cuts, a bogus re-list and even an effort rent out the place rather than sell. Still, they did get almost $3M in the end, closing for $2.945M (-$634K / -18% from the start).

New construction with a favorable South End Sand Section location at 441 3rd (5br/5ba, 4300 sqft.) came out boldly, asking $5.800M.

The first listing on the MLS was in July 2015, but the home was a construction site. When it was ready in March this year, a re-list wiped out the first several months' worth of history, but the price was the same. There were negotiations in the ensuing months, but no deal stuck.

In the end, the recent sale at $5.350M was down $450K (-8%) from the start.

It's an impressive $100K more than the nearby new construction at 516 4th, which closed just before at $5.250M, and did not have the asset/liability mix of being situated along Ingleside, which carries some neighborhood traffic.

Here's a rundown on several more recent sales that took significant cuts to get it all done:

• A smallish, custom modern TH at 502 Rosecrans Unit A needed 4 months on market, and ultimately sold 14% under asking at $1.210M.

• An East MB Grandma house on full lot at 1446 8th shot too high at $1.865M in March, but recently closed for 14% less at $1.600M.

• A 1970s house with some views and light remodeling in the south Hill Section at 207 S. Poinsettia began in April at $3.350M, and re-listed twice before closing for $2.900M (down 13%). Disclosure: Dave had clients who offered on the property previously.

• An oversized Tree Section corner lot at 2921 Laurel (nearly 6500 sqft.) came out in April at $2.449M, but had a great deal of trouble drawing buyers near that price. It has just sold 16% under asking for $1.852M.

• A large Hill Section home with epic views, but wanting stylistic updates, at 940 1st closed for $6.350M (-7% from the start price).

• Smallish custom new construction in the southernmost part of the MB Sand Section at 221 Homer sold for an MLS-reported $4.467M (-10% from the start at $4.950M).

• An East MB new construction home at 1611 18th sold for $2.699M (-8% from the start).

More to explore: See our post "Summer of Cuts Begins" from late June.

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