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This Listing Cut $600K Within 3 Weeks

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Setting a starting list price for a property is one of the most important decisions a seller and agent will make.

The start price will dictate the initial reception for the property and the likely course of the listing, all the way through the closed sale.

Start too high, and you could get stuck. Days on market stack up, there are eventually some price cuts, and buyers start to view the property as either (a) undesirable, or (b) a candidate for lowball offers.

Now, one listing in East Manhattan Beach is making rapid price corrections to try to avoid getting stuck.

In less than 3 weeks on market, they've made two big cuts totaling nearly $600K, or 23% below the start price.

1504 Mathews Avenue, Manhattan Beach, CA1504 Mathews (4br/3ba, 2024 sqft.) is a 1950s house with modest upgrades and a fun bonus room in back off the garage. (1504 Mathews is listed by Mike Giltner, Giltner Realty.)

Like a bunch of listings this year, it's a fixer. (See: "So Many Fixers and Lot Sales.")

Any buyer is going to have a goodly amount of remodeling to do. So you have to take the purchase price and add on $200K, $400K, or more.

1504 Mathews Avenue, Manhattan Beach, CAThe listing launched at $2.590M right before the long July 4th holiday weekend. So, to begin, it was probably a $3M proposition to move in.

Before the next weekend, they had cut $241K to get the price to $2.349M. Getting better...

On Tuesday, they cut another $350K (!) to $1.999M.

It's almost head-snapping to see a price drop nearly $600K before a home has been on the market for a month.

But kudos are surely in order.

1504 Mathews Avenue, Manhattan Beach, CAThe sellers are responding to feedback and doing what it takes to get noticed.

It's huuuuge to see this one get under $2M. Maybe it'll get bid back up over that point.

The ride has been a little bit bumpy, right?

The start price shot the moon for a fixer that's just one door off of Peck, with the dominant sight of the Mira Costa High School campus right out front.

The first cut was substantial, but obviously didn't quickly lead to offers that the seller wanted to see.

So it would appear they decided to start an auction, and see what happens.

We'll all be watching.

Please see our blog disclaimer.

Listings presented above are supplied via the MLS and are brokered by a variety of agents and firms, not Dave Fratello or Edge Real Estate Agency, unless so stated with the listing. Images and links to properties above lead to a full MLS display of information, including home details, lot size, all photos, and listing broker and agent information and contact information.

Based on information from California Regional Multiple Listing Service, Inc. as of April 27th, 2024 at 10:31pm PDT. This information is for your personal, non-commercial use and may not be used for any purpose other than to identify prospective properties you may be interested in purchasing. Display of MLS data is usually deemed reliable but is NOT guaranteed accurate by the MLS. Buyers are responsible for verifying the accuracy of all information and should investigate the data themselves or retain appropriate professionals. Information from sources other than the Listing Agent may have been included in the MLS data. Unless otherwise specified in writing, Broker/Agent has not and will not verify any information obtained from other sources. The Broker/Agent providing the information contained herein may or may not have been the Listing and/or Selling Agent.