Now That's An Overbid

By Dave Fratello | October 3rd, 2013

Oh there are bidding wars, and overbids, and shocking sale prices.

And then there's the case of 1023 Dianthus.

This is a smallish 50s house on a lot that's very small for the Hill Section (3br/2ba, 1250 sq. ft., 4425 sq. ft. lot).

The location is sub-sub desirable. We won't call it an 'F' location, but you know, if there's going to be a grading scale, some properties have to be more at one end for some others to rate an 'A.'

Here Dianthus is a fairly busy street and the corner lot suffers for that. It's in sight of traffic from MBB, and during heavy traffic times, some will dive off MBB onto Dianthus rather than wait for the light at Sepulveda – boosting rush hour traffic on this block. It's also pretty darn far east.

The house itself – you'll see it online and maybe think, "scraper." But not necessarily. It's an older place (one of Dave's clients called it "a Grandma house") but could be refreshed. The little courtyard is a nice touch.

When they put this one out at $987K, back in May, we knew at once that it would get overbid.

That seemingly precise asking price was low for the Hills and low for Spring 2013. But how low?

This being a probate sale, there was a most interesting way to find out.

First, the public listing went under contract for $1.170M in June.

Next, there was a "court confirmation" process in which the property could get overbid – again. Right as the market, even for lots in the Hill Section, was moving up.

And it did get overbid again.

That's how they got to $1.379M, the posted sale price from this week. The confirmation process requires any overbids to be at least 5% higher. This one was 18% higher.

Call it $1.4M for a fixer in a subpar location. Wow.

So in the end, the overbid was nearly $400K, and 40%, on top of that start price.

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