Still Can't Get $2.4M for This One

By Dave Fratello | July 30th, 2020

There's one particular house in the Tree Section with a long history that intertwines with MB Confidential and Dave's real estate business.

2507 N Valley Drive Manhattan Beach CAIt's 2507 N. Valley (4br/4ba, 2825 sqft).

We mention it today because it has just sold. It's the 5th sale since 2008, the 6th total since its 2004 completion.

The closed price this time: $2,383,000.

Before this sale - oh, so close to $2.4M - this listing was the 3rd attempt by someone to sell for more than $2.4M.

The first try at that price level was in 2005.

Yes, there's a story.

The first buyer, in Feb. 2004, got a nifty new house, a blank canvas, for $1.540M.

Our local real estate market was inflating at quite a pace then.

So the owner decided to cash out his expected million-dollar gain 17 months later, listing for $2.499M in July 2005.

You already know he didn't get that.

The seller also didn't get:

$2.294M from a Feb. 2006 listing,

$2.199M from a May 2006 listing,

$1.999M from a March 2007 listing,

$2.099M after raising the price in March 2007 (prompting MBC's first-ever blog post), or

$1.799M after reducing that listing, which quit in Aug. 2007.

Nope. Actually, the seller got nothing at all. The house went back to the bank.

A foreclosure investor got it for $1.643M, and tried to resell it, starting at $1.790M.

When that didn't work, the investor unloaded the property in April 2008 to a savvy local for $1.500M, or $135K less than acquisition. (Sometimes you win, sometimes you lose.)

Eventually, that owner looked to sell, and called in Dave for the listing. (We get to call our clients "savvy locals" here.)

When we took the listing, most people in town knew 2507 Valley as a house that had a lot of trouble selling in the past. But we saw that as an artifact of one dubious seller's bad strategy and unrealistic goals, not a problem of the house.

We consulted with the (savvy) seller and put it up at $1.869M, drew offers within a week, and sold it over asking at $1.885M.

The house is unusual on its trapezoidal lot along Valley, but we've always liked it. It will always offer more for the money than a typical Tree Section house due to location. Here's just a bit of our 2013 listing description (along with one of our photos):

"This is a private, modern home with quality details and upgrades, including Pella windows, solid core doors and a top-flight kitchen. Nestled behind mature foliage and a grand pine tree, this custom home was built for family living and entertaining. It will delight and surprise you to see what is hiding behind the gates. The master is a large retreat (with fireplace) on the first floor opening to the front yard with fire pit... High ceilings, ample windows and treetop views make the great room inviting... The neighborhood, that great intangible factor, is full of friendly families that gather for events and parties and help one another out."

In 2018, the folks who bought in in 2013 looked to sell.

They began at $2.450M in Feb. 2018, but you already know they didn't get that.

After 6 weeks, they cut $200K and eventually sold for $2.250M, closing in May 2018.

Scarcely 2 years later, those owners were ready to make a move. They began at $2.468M in early June.

You already know they didn't get that.

Their last list price was $2.420M, but the eventual buyer took a bit more off the top to the aforementioned $2.383M final sale price.

So, this time, at least it was close. They almost got $2.400M.

Next time?

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BONUS INFO: Our recent post was looking at on-market properties that had been acquired within the last 2-3 years.

Well, 2507 Valley fits that bill, and has sold.

2020: $2.383M

2018: $2.250M

Value increase: $133K / +6%

 

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