There remain lots of listings simultaneously for sale and for rent. (See our mid-September update, "Why Sell When You Can Rent?" Many are still available.)
The problem for a seller is: What happens if you succeed in finding a renter, not a buyer, and then need to bring the property back to market later?
2909 Elm…
There remain lots of listings simultaneously for sale and for rent. (See our mid-September update, "
Why Sell When You Can Rent?" Many are still available.)
The problem for a seller is: What happens if you succeed in finding a renter, not a buyer, and then need to bring the property back to market later?
2909 Elm offers a cautionary example.
(Click for more pics & details via Redfin.) This 5br/4ba, 3450 sq. ft. home (built 1991) was first offered 2 years ago – Dec. 2006 – at a price that was much too ambitious. (More on that in a moment.)
Over time the price came down, but never quite to market. The home rented out, instead, in July 2007.
Now it's back, much lighter than its last list price.
The price progression:
Yes, that's a
$1.1m fall from the absurd start price in late 2006.
Most significantly, this is
a drop of $325k (-16%) from the sorta-close-to-market-price of Summer 2007 to the new reality of late 2008. In other words, by renting in 2007, the sellers were forced to come back to market more than $300k lower than before.
Need we also point out that this is a dreadful time of year to begin a listing? Renters can force awful timing on you when they leave on their own schedule.
The new price, by the way, isn't bad.
At a bit less than $500/PSF, 2909 Elm is at the lower end among recent sales in the Trees. For instance, comparably sized
3104 Palm (4br/3ba, 3425 sq. ft.) sold in July for
$1.710m, and
$499/PSF.
Out of 6 listings in the same general price range ($1.749m-$1.825m), 3 that stand out (
2600 Poinsettia,
3011 Valley and
3314 Laurel) all have a PPSF just a tick or two above $500.
So, this time around, the sellers appear to mean business, but they do have a high hill to climb with the market as it stands. Had they been offered a low-ball last year and taken it, no doubt they'd be better off today.
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 July 21st, 2024 at 10:15am 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.