Today the price was essentially cut again as they are playing the re-listing game and have started out with a price $30k less than the old listing.
Listing History: 11/11/11 - $1,379,000
Reduced down to - $1,329,000
Re-Listed: 2/21/12 - $1,299,000
The old listing was canceled after 102 days. During that time there was a lack of inventory and pretty firm demand out there. Yet these sellers decided to be aggressive on pricing and started too high. They cut the price by $50k but that was too little, too late. So here they are back again with a reset DOM and a price just $30k lower than before. I think that is stupid. If any buyers cared within $30k or so of the last price they would have just negotiated and gotten into escrow.
From this, we can deduce that the current price is still too high. So they have already wasted their opportunity to show that they have learned from their past mistakes. These sellers are either stubborn/greedy or somehow leveraged and are simply not able to cut much further. I think they would have been better off re-listing at $1.179mm or so and getting the price bid up by multiple offers. It would be a shame for them to let this listing get stale again like the last one. I've seen this house in person. It's a little goofy and not as clean around the edges as I thought it would be. They aren't going to be able to be so aggressive on pricing and get top dollar. Maybe someone should print this post out and put it on their doorstep. Maybe I would do that if I were a potential buyer of this property.
I agree that this is terrible pricing
ReplyDeleteThey won't get their price
We now understand that the cost to own is about four thousand or five thousand a month on a one million dollar home
that means it is eight to ten thousand a month to own a two million dollar home
the two million dollar SFRs are either located in ocean park near the ocean or in the 90402
Can anyone confirm if today the two million dollar homes are renting for eight to ten thousand a month
is there honest rental parity on the two million dollar homes
One more thing - about this over priced home. It is just four blocks away from Virginia Avenue Park where there was a shooting of a teenager
ReplyDeleteVirgina Avenue Park is also home of a future neighborhood library, a delightful playground, and a saturday farmer's market. All within "just 4 blocks away"
ReplyDeleteThose are some classy wires sweeping across the pool in the back yard -- nice touch!!!
ReplyDeleteTake a look at the map... This house is two blocks away from a 99 cents store. And go two more blocks and you are at the giant Stewart Street trailer home park (most people who read this blog don't even know that Santa Monica has its own trailer park)
ReplyDeleteFor those paying attention, you will notice that I did NOT take issue with the location of this property when I was critiquing it. There is indeed a fairly obvious disparity between the areas around the freeway (north of Pico) and those south of Pico. But those of you making comments pointing this out are missing the point completely and are blowing hot air. 90405 is an area that has continued to attract more and more high income folks. Go walk this block. Its nice and fairly quiet. The area is going to continue to get better whether you like it or not.
ReplyDeleteI'm trying to understand the angle of the people who make these stupid comments. Are you a snob living in some Brentwood mansion looking down on the poor folks who are willing to pay $1mm for a property in this area which is clearly below your upper crust standards? Are you bitter because you would secretly love to be able to live in this area but can't because values aren't crashing like you hoped for? "Well Warchest, what is YOUR angle?". I'm calling it like I see it. This area has gotten better over time and should continue to do so as more and more high income and wealthier families make their homes there. Good luck trying to scare everyone away and force down property values. It isn't going to happen.
War Chest, you make some good points. What do you call this Neighborhood - would you call this North Sunset Park or South of Pico?
ReplyDeleteOverall, some parts of Sunset Park are more highly sought after than this one but yes this neighborhood is one in which people will pay one million for a house
I believe there's a typo in your post. You list a good price for this as $1.79 MM. Perhaps you meant $1.19 MM?
ReplyDeleteFixed it thanks. Should read $1.179mm
ReplyDeleteWarChestSM - It seems you are advocating buying property now as prices have dropped since 2007. What do you think will happen to prices after the 2012 presidential election?
ReplyDeleteI'm advocating buying if you have a stable job, a proper down payment, a reasonable debt/income ratio post purchase, and plan on living in the property for more than a few years. So basically all the things that a reasonable, conservative purchaser would plan on. My point is that you really won't gain much at this point by waiting and trying to time the market. If you have been waiting to buy and are able to do so, I think it makes sense...and remember, it might take you a year to find something that fits your parameters. You can't wake up one day and say "ok I'm ready to buy" and have a ton of really ideal properties sitting there for the taking. If you are picky about location (as you should be) it might take a while.
ReplyDeleteI don't think the presidential election has much of anything to do with the future of real estate prices.
A lot of similar houses in a better located part of SP are selling for 1.150m after being listed over 1.200m, like this one, so your proposal to list at 1,179 is a good idea but might not generate multiple offers as you foresee.
ReplyDeleteFor that price you can get 5,000 Sq ft on 10 acres with a view of the Sonoma Valley. With a guest house and 6 acres planted to Pinot. 2001 Bloomfield rd, 95472. Needs a litle work, but great schools and an hour to SF.
ReplyDeleteYes but you are in Sonoma. Sure it is nice, but there aren't any jobs there which will pay enough for you to afford $1m house. If you're looking at buying a 5,000 sqft house in Sonoma, chances are it is your second home and you own a 5,000 sqft house in Santa Monica (on a 8,000 sqft lot!).
ReplyDelete