More Big Ask/Close Spreads

Watching some recent sales come in, you see how some sellers' ambitions got out way ahead of the market.

Notably, some were spec homes that eventually had to sell. But not all.

Here are a few of the bigger recent ask/close spreads. We had an update like this in October, also, which you may want to reference (see "Biggest Recent Ask/Close Spreads.")

1321 21st (5br/6ba, 5050 sqft.) is East MB new construction in a... what is that? Mediterranean style?

People are building Mediterraneans?

Actually, this one looks to be a case of counter-programming, if you will. No one else was building Mediterraneans, so they decided to give it a shot here. To take the field for themselves and occupy it alone. After all, there used to be a market for Mediterraneans. Why not now?

But y'know, the builder had all kinds of ambition. This was going to be the home that absolutely smashed all records for East Manhattan.

In early 2015, the same builder put out this project and 1131 6th, pre-completion, asking $4.499M for both. Really.

Now, the other, 1131 6th, did eventually sell for an East Manhattan record price of $3.600M. But that one had more of a current style: "Plantation Contemporary." (Remember that style?)

1321 21st quit off that $4.5M price and came to market at "only" $3.800M, then cut and cut.

Sale price: $3.125M. Still impressive.

But it's -$1.374M (-31%) off that joke start price, -$675K (-18%) off the first price when completed ($3.800M), and a modest -$174K (-5%) off the bogus re-list price of $3.299M, where it was at before going into escrow.

Oh, wait. On the last bogus re-list, they actually began at $2.999M. It sat at that price for nearly 18 hours.

So, technically, that $3.125M was over asking. MBC regrets the error. Haha.

428 7th (3br/4ba, 2775 sqft.) is a flat family walkstreet home on one of the truly great streets among our town's limited collection of awesome walkstreets.

Eminently livable, this custom 80s house has been updated with new stucco and a new kitchen, among other things. 

So the price began at land value + a bunch for the house: $4.199M.

When first we heard of that through networking (off-market), the number seemed pretty unbelievable. And yet, there's so much demand for the flat walkstreets... maybe?

The market said "no." The price came down to $3.999M. Still no.

As the listing began to really grow some hair, it began to look like a good target.

Dave's clients agreed, and we jumped in with an offer just a bit over land value. The seller agreed and everyone walked away happy.

Sold price: $3.650M (-$465K / -13%).

2312 N. Poinsettia (5br/6ba, 4250 sqft.) is a custom-built melding of modern and Mediterranean.

The '06 build has fared well on the market in the past, but not this time.

Based on bonus square footage and a (once) hot market, this one came out of the gates at $3.490M.

But in truth, the home hadn't aged well. It could use some stylistic updating. Buyers were getting picky and just couldn't see it. (Dave showed it several times and got similar feedback each time.) 

Every home has its price, however.

Closed sale: $2.725M (-$765K / -22%). At a notch under $650/PSF, that's a value that's almost without match in the Tree Section this year.

1561 Mathews (6br/7ba, 5670 sqft.) is quite simply gigantic. 5600+!?!? 

It's also really not what most people are looking for anymore. 

In style, you'd have to compare it to an Irvine tract home. Or something that might have been built in East Manhattan in prior building cycles, like the 90s or early 2000s, when tastes appear to have been less discriminating.

Launched at $3.400M in Feb. 2015, this one compiled a whopping 528 DOM.

It wasn't marketed in the conventional ways by a local agent, and just kind of sat there.

After one bogus re-list, it quit in August this year. But it turns out, there was a buyer for it. 

This one just closed Wednesday for $2.710M (-$690K / -20% from start).

Here's a case, too, where the listing agent didn't really pay a price for hanging on to a poorly priced listing. 

Quite the opposite: The listing agent wound up getting paid double. By representing the buyer in addition, the listing broker was rewarded for... er, persistence.

It calls to mind a similar example from last year, where a new modern at 1431 18th launched impossibly high at $3.999M, but the listing agent got the buyer's side, too, when it sold 8 months later for $1M less ($3.000M).

Yes, this is a business where accountability can be swift (you're fired!) – or nonexistent.