Those Most Reluctant Cuts

By Dave Fratello | December 19th, 2019

There's value in making a price cut.

If your listing is stuck, you can always try to gin up interest from fence-sitters by showing that you might sell for less.

Many listings on the market here a week before Christmas are stuck.

1776 Voorhees Avenue Manhattan Beach CAOne that's stuck is a flipper remodel at 1776 Voorhees (3br/2ba, 1625 sqft.).

Beyond the implied patriotism of that address, the location is a challenge. The property runs along busy Aviation Blvd. (not pictured; just to the left). The yard will feature significant traffic noise, whatever isn't blocked by a 6' fence.

But with the location challenge comes a lower price.

Consider how the flipper got it.

A couple of days before the Super Bowl this year, 1776 Voorhees came out for sale at $1.200M.

It had been 19 months since an East Manhattan/Mira Costa property had come out with such a low asking price.

1776 Voorhees Avenue Manhattan Beach CAMultiple offers greeted the mostly original 1970s-vintage bungalow. It sold for $1.231M, and the flipper got to work.

By mid-July, the nicely done finished product was back asking $1.650M.

The price has been reduced 8 times since then, and now stands at $1.468M. That's arguably about $100K under comps that weren't even as nice, up to $300K under others that were. (Again, just in the Mira Costa area south of MBB.)

1776 Voorhees Avenue Manhattan Beach CAOut of those 8 cuts, though, only 4 were what you'd call "real" cuts - actual price adjustments that might inspire buyers to reconsider the property. There were 3 cuts of $50K, and one of $26K.

1776 Voorhees Avenue Manhattan Beach CAAnd then we have the reluctant, jokey cuts:

$900,

$1,000,

$3,000, and,

again today, $1,000.

These cuts aren't meant to persuade anyone that the home's been properly re-priced.

In fact, they kind of suggest that the seller can't cut anymore.

The cuts do work for one thing: They help push out free notifications to the world of online real estate consumers.

For the price of $1,000 off your asking, for instance, you get online real estate portals telling the world all about your property all over again. There's no dollar minimum for the cut to trigger emails to hundreds of people.

Heck, you get mentioned in the MB Property Ticker if your property's in MB, and you might even get a whole blog post dedicated to your price cut.

Even if you're not going to cut anymore, publicity like that might actually work.

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