Quick Deals Aren't Common, But They Happen

By Dave Fratello | June 23rd, 2017

This is neither the time of year nor the time in our market when a lot of homes are selling quickly.

Time of year... it's Summer, and things often slow down for 2 months or so now.

Time in the market... we're at least 5 years into an upcycle, with prices rising and the total number of sales growing a bit each year. It seems that buyers are just being cautious, taking time to size up a listing and decide how they value it before making a move.

Compelling prices can change that dynamic, though. 

2204 Oak Avenue Manhattan Beach CALook at 2204 Oak (3br/3ba, 3235 sqft.).

Here's a 1980s original with some very bold, personal colors on the walls, wanting updates and TLC, and possibly held back by that #1 factor for any real estate: Location.

2204 Oak in on the commercial side of Oak and backs up to a commercial site under construction along Sepulveda. Its next-door neighbor on Oak is a parking lot, where a house should be.

How do you sell that at a time when buyers are being "cautious" and even picky?

Maybe price it shockingly low. Like $1.599M.

Just by way of comparison, consider one of Dave's sales from earlier this year on a better location along Oak.

1701 Oak Avenue Manhattan Beach CAThat was 1701 Oak (4br/3ba, 3575 sqft.), a larger home with an extra bedroom + office that had some good remodeling completed. Buyers paid $2.230M ($624/PSF) in March 2017.

2204 Oak was priced at $494/PSF, or 21% lower that 1701 Oak. 

Or look at a different nearby corner: 1829 Oak (3br/2ba, 1400 sqft.) is less than half the size of 2204 Oak. It's gotten a flipper remodel and is in escrow now with a list price of $1.749M.

Buyers noticed that 2204 Oak was "cheap."

Offers flooded in. The sellers didn't have to wait. They're under contract now within a week.

What's that, you say? You wouldn't have the stomach to list "super low" to attract offers? You're afraid of leaving money on the table?

What about trying to price right at, maybe a little under, market? Not a lot under.

29 CAtalina Court Manhattan Beach CALook to 29 Catalina Court (2br/2ba, 1450 sqft.) in the Village.

That's a super remodel. 

Listed at $1.150M, they had a deal at once.

Barely made it through the first weekend. The start was very compelling given that there's not a thing to do.

Or what about 3005 Maple?

They could have brought out this 5br/5ba, 3120 sqft. Tree Section remodel in the 2.5-2.6 range, feeling that was justifiable. But they would have been crowded among a series of competitors. And then when would the buyers have come?

Instead, with a start at $2.450M, they drew multiple offers immediately after the first weekend.

3609 Maple Avenue Manhattan Beach CAOn the new construction at 3609 Maple (5br/6ba, 3250 sqft.), they knew they had something very special. The home's custom "modern farmhouse" vibe is very appealing and refreshing.

But they had a location near Rosecrans that could have been a challenge.

They might have shot for $3.200-$3.300M, on the theory that this would be lower than some new construction sales, and on par with others.

Instead, they listed a tad under $3.100M at $3.089M. After two weekends, they had multiple offers.

Maybe the lesson here is as obvious as it appears: There are buyers there. You need to convince them to move. Compelling prices draw action.

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