Rebooting and Repricing

By Dave Fratello | September 23rd, 2016

Sometimes, sellers make mistakes.

Especially in a market like this one, where sellers can look back at a few years' worth of upward pricing momentum, see underlying strength in the market and the buyer pool, and get fixated on nabbing that big number that they always hoped their home might be worth.

Then reality intervenes. If there are no buyers at your dream price, the question becomes: Are we really sellers?

200 38th Street Manhattan Beach CAAt 200 38th St. (3br/4ba, 1800 sqft.), a modern-style TH with nice views in El Porto, it looks like the sellers are answering, "Yes, actually, we'd like to be sellers."

You'll see in the property details here on MBC that the CDOM ("combined days on market") count is 89 as of this morning, even while this is a "new" listing as of Friday.

But this is not your typical bogus re-list. The sellers changed horses, too.

The old agent helped them bring out 200 38th in June at $2.850M.

Ladies and gentlemen, that is $1,583/PSF for an El Porto townhome.

That was not going to happen.

The high sale and high for a townhome in El Porto is still a bit shocking to recount, but it's a neighbor to this subject.

228 38th Street Manhattan Beach CAThat would be 228 38th (3br/4ba, 2175 sqft.). It was brand new, ultramodern, on a wider-than-average lot and emerged during the height of the fast-paced runup in the market (late 2014/early 2015). They pre-sold it for $2.800M.

That was $1,287/PSF for new construction. If you like your math simple, this means 200 38th was priced 23% higher by the square foot.

That was, as noted, "Not going to happen."

The listing for 200 38th chopped 3 times after the June launch, meandering down to $2.599M a couple weeks ago. Still, no deal.

At 3 months, the listing contract for 200 38th ended. The listing canceled Weds., and it was back Thursday at a whole new price: $2.395M, 16% lower than the launch price in June.

With that restart and new attitude, they've at least got a chance.

Bonus fact: 200 38th, while a TH and not an SFR, is a dead ringer for an El Porto SFR that Dave sold in Dec. 2014 at 209 41st. At the time, we hit a new record for the region with a sale at $2.160M, more than $400K over the prior high for SFRs. There was more to the market rise after that.

625 17th Street Manhattan Beach CAThere's another reboot "new" to market this week over on a prime block of the American Martyrs area of the Tree Section. As of Wednesday, 625 17th (4br/4ba, 4380 sqft.) is back on the market for its second try this year. 

The large, custom-designed 2005 home features 4 official bedrooms upstairs, plus a sorta-bedroom on the entry level, plus a basement – a feature you kind of expect today, but didn't see a lot even 10 years ago when this one was being finished.

Now, Dave has toured clients through 625 17th, so we'll need to be a bit restrained in comments on the property.

But the simple fact is, when the home listed in June this year for $5.195M, there wasn't much support for that price. Lacking action, they shut it down pretty quickly, tolling just 39 DOM before quitting for Summer.

Now it's back, with some repainting and restaging that was necessary, and re-pricing that was also necessary.

At $4.495M, it's nearly 15% lower now, and better aligned with comps and the current market. 

They didn't change horses here – same agent – but they've changed attitude.

Now a darling house on one of the best blocks in the area has, shall we say, more than a fighting chance of getting sold now.

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