Stick to Your Guns If the Value's There

By Dave Fratello | July 28th, 2021

Sometimes, as a seller, when the market doesn't respond as you expected, there's little choice but to drop the price on your home.

You have to meet the market where it's at to get it sold. There's no shame in that.

But maybe you were right about your price, and it's the crop of buyers who have it all wrong.

Then you stick to your guns and wait for the right buyer.

2615 Crest Drive Manhattan Beach CA These thoughts come back in looking at the now-closed sale of 2615 Crest (3br/5ba, 3215 sqft.), a super-custom modern built to take advantage of one of the finest view points in the whole city.

The home has been on and off the market for more than 3 years, first emerging in April 2018 at $7.190M, but most recently sitting at $5.999M since Oct. 2020.

2615 Crest Drive Manhattan Beach CAWe've shown the spectacular property a few times, though it was never a perfect fit for our clients.

Once it got to that $5.999M figure, you would hear more of a firm, insistent view about the price from the listing side. C'mon, you know it's worth at least this much. This is where it's going to sell.

Now it has sold for $5.900M, which we'd call a validation.

There was no need to cut further. The value was there.

(A drop of $100K or 1.5% to make the final deal doesn't strike us as a big cut, in context.)

Maybe 2615 Crest was a special case. It truly does require a specific type of buyer, as its floorplan is a bit particular and its style quite aggressive. So you really did have to hold the line on a once-in-a-generation offering like that and wait for the right buyer. 

But we also saw the value this year with our own seller clients sticking to their guns.

At 417 27th Street Manhattan Beach CA417 27th Street (3br/3ba, 1688 sqft.), we had a unique corner-lot single family home in the Sand Section with an attractive (and rare) front yard area.

We timed the listing well, emerging in February (after a brief test in Fall 2020) at $2.679M.

We had interest and tours, but for a while, we had seen just one low offer from a buyer completely new to the area and another offer that didn't reach the level the sellers expected.

In this market, in Spring, if we weren't selling, we had to all discuss whether this was a price signal. Would we need to cut to make the listing more attractive?

No.

First, we all believed in the math. That price was right. It was no seller delusion. In a way, it was validated when the sellers had interviewed agents - others suggested a price in this range. (Although Edge was distinguished in the mix by our plans both for preparing/presenting the property and marketing.)

Second, scarcity was a factor in favor. There simply never were many competing SFRs in the Sand Section with any kind of comparable location, view or condition.

Finally, there was seller motivation. They felt they were right, and were willing to wait, or not sell.

They stuck to their guns.

At the end, there were 3 offers, two that fought to the end.

And the sale: Full price, $2.679M.

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