Neighbor Undercuts Neighbor and Sells

Two weeks ago, an oversized, midtown, Spanish-style townhome hit the market in the Sand Section.

At that time, 2212 Manhattan Ave. (4br/4ba, 2600 sqft.) became the second of 4 units in the same complex to be offered for sale.

Nearing two months on market then was a rear neighbor at 2215 Bayview (4br/4ba, 2630 sqft.).

There were differences.

2212 Manhattan is closer to the original '06-'07 build throughout, while 2215 Bayview had been thoroughly modernized in 2018. (Here's the 2212 kitchen.)

And while location is basically identical between the two, you would typically argue for a higher value on Bayview, higher up, off the street.

Asking prices did reflect these differences.

2212 Manhattan came to market asking $4.800M.

2215 Bayview had begun at $6.250M, and cut to $5.950M about a month into the listing.

This left a price gap of $1.150M when 2212 was launched.

Then, the market spoke.

2212 Manhattan found a deal within 10 days. It's in escrow now.

The very next day, 2215 Bayview went "on hold" (off the MLS), fully canceling the next day.

So, in a short span of days, it almost appears that one neighbor had undercut the other, sold, and virtually forced the other listing off the market.

You never know exactly what's going on behind the scenes, but you might imagine some cursing.

UPDATE: After this story was posted, 2215 Bayview returned to market with the same agent, with a notable price cut to $5.600M and a fresh, new DOM count. (Here on MBC, though, you also see its "Combined Days on Market" count at 67, here on its re-launch day.) This narrows the evident price gap between list price at 2212 Manhattan and 2215 Bayview to $800K from $1.150M.

The situation reminded us of one of the "races" we took note of last year, between similar homes up on the plateau in the Sand Section. (See "The Race Is On for These 3 Listings.")

• 468 31st (5br/5ba, 3745 sqft.) started at $4.599M  (pictured)
  

• 464 31st (4br/5ba, 4026 sqft.), started at $4.496M

• 444 29th (5br/5ba, 4236 sqft.), started at $4.899M

 Among these, 464 31st showed the most motivation, marking to market fairly quickly, selling eventually for $3.800M (-$696K).

468 31st had a rougher go, trying a series of cuts before firing the local listing agents and bringing in someone from out of area, who eventually sold it for... wait for it... $3.800M.

Obviously, 468 had to respond to and accept the market's verdict rendered on neighboring 464, as both sold for much less than asking.

444 29th wasn't having any of it. They simply quit the market.

(Side note: We got a mailer of some kind from the out-of-area agents who sold 468 31st on the second listing. They were effectively touting their expertise in selling a property that someone else was unable to sell. Our reaction: Guys! The neighbor did all the work for you!)

Now, did 2215 Bayview need to quit because the neighbor sold quickly and lower? 

Not necessarily.

2215 has significant advantages over 2212. So make the argument.

Is it $1.1 million worth of advantages? Make the argument.

Here's guessing that 2215 is in a good position to make another run once 2212 closes up, and its market value is known to all.