Details: 3 bed/3 bath, 2,477 sq ft house on an 8,329 sq ft lot. Totally flipped.
Previous Purchase: 10/31/05 - $1,549,000
Listing History: 1/19/08 - $2,295,000
Expired after 61 days on market
Re-Listed: 1/28/10 - $1,875,000
Canceled after 42 days on market
Re-Listed: 1/27/11 - $1,985,000
This listing price is too high. The owner is either in total denial about the fact that they have lost a bunch of money or else he simply can't afford to sell it at a true market price. Good luck.
The next property coming back out of the shadows is 2619 Washington which I featured back in November 2009. This house has been listed twice already so now they are hoping the third time is a charm (at this price I don't really think it will be). Just like the house on 26th street, the last listing ended in the house being rented out.
Previous Purchase: 12/20/96 - $715,000
Listing History: 11/3/08 - $2,284,800
Re-Listed: 10/13/09 - $1,995,000
Re-Listed: 1/28/11 - $1,995,000
This seller is listing for the same price as their last try, however the current description cites a "newly renovated kitchen" and from the photos alone I can tell they painted the house. So at least they have spent some money and kept the price the same. A net price reduction. The joker on 26th can't say the same. So I give this house a much better chance of selling than the one on 26th, but I still think they will need to bring the price down by a decent amount.
The last of our trio of 90403 houses coming out of the shadows is none other than the slanted roofed, gaudy fountained, 843 25th. I last featured it in August 2010.
Purchase History:
1/12/07 - $2,100,000
6/21/05 - $1,600,000
Listing History: 7/26/10 - $2,199,000
Reduced: 08/11/10 - to $2,099,000
Reduced: 08/13/10 - to $1,999,000
Reduced: 08/13/10 - to $1,999,000
Re-Listed: 1/31/11 - $1,999,999
This house was the most recently listed out of these three as it was around in the summer of 2010. They came out asking a ridiculous price and quickly cut a few times, but it was obvious that they were still way out of the ballpark. They have raised the price by a nominal $999 this time around. If this seller takes quick action and cuts the price (by a bigger margin than last time) then I think they can sell it. Otherwise, I think nothing happens up around $2mm.
All three of these examples show that we are not out of the woods yet and that we still need to clear through some shadow inventory. At some point I would hope these sellers would realize that the strategy of listing at a price that is too high is not working. As I have shown on this blog many times, if you list a property at a low price, you will create excitement and buzz and likely get a bidding war. I think that in at least 2 of these cases, the owners may be unwilling to go that route because they are underwater and are in denial or can't afford to really sell...but who knows. I will keep an eye out and see what happens.
"All three of these examples show that we are not out of the woods yet and that we still need to clear through some shadow inventory."
ReplyDeleteI think the real question is, if these were listed at 2005-06 prices, would they sell in a heartbeat?
Such wishful thinking on the part of these reemerging dark shadows!
ReplyDeleteAnd just emerging now in the 90402 is 746 26th Street: Feb 11, 2011 Listed (Active) $799,000 -- TheMLS #11-506839. It's like the prices you might see on busy Cloverfield or 11th in Sunset Park 90405.
But this is the 90402. And, yes, it's on 26th Street, which some consider horrifying, but the asking price is in no way terrifying. And, it sits on 8,700 sqft of land, close enough to walk to that Franklin School. Bidding war, anyone?
The house on Washington would easily sell if it were priced well. The 26th street house would need a bit of a deeper discount because that location sucks and the 25th street house is in a good location but the house seems a bit odd. Location would overpower that and it would sell without too much trouble if it were priced right.
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