To be "neighborly" is to be friendly, kind, to watch out for someone nearby. After all, you've at least got one big thing in common: where you live.
So if a neighbor's got a house on the market, you wish them well. Typically, you want to wish them the highest price possible... to help your own property value.
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To be "neighborly" is to be friendly, kind, to watch out for someone nearby. After all, you've at least got one big thing in common: where you live.
So if a neighbor's got a house on the market, you wish them well. Typically, you want to wish them the highest price possible... to help your own property value.
And then there are the times when neighbors are coming to market at about the same time.
First, a happy case study. This one seems to be emerging up on 1st Street in the Hill Section.
This week, 919 1st St. has hit the market. If it looks familiar, it should.
In 2007, 2009 and 2014, this 1950s rancher on an 8600 sqft. lot was on the market.
The price was always $4.500M, regardless of the year or the DOM. Failing to get that, the home continued to serve as a rental.
Then, late in April this year, next-door neighbor 923 1st came to market. (You can see a bit of the existing 90s Mediterranean structure there on the right in the photo here.)
For a 10,800 sqft. lot (with structure), they were asking $5.999M. The rush was on for this prime, large lot with unblockable views... and it was in escrow within a week.
Well now. If that lot (25% bigger) could get immediate action at $6M, then what was 919 1st worth?
This is the time to find out.
No $4.5M price this time. It's just launched at $5.400M.
Buyers who missed out on 923 1st now have a second chance. And the owners of 919 1st have the neighbor to thank for stoking the market for lots pretty much like theirs.
Wasn't that neighborly of them to successfully raise the price bar?
Alas, you don't need MBC to tell you that things don't always stay friendly and cheery among neighbors.
Put yourself in the shoes of the owners of 712 Manhattan Beach Blvd., a nicely remodeled condo with great views, all near town.
Imagine that you were thinking of coming to market some day soon, and gaming out a price in the $1.6's somewhere.
How much would you like it when your next-door neighbor at 710 MBB sells for a lot less, just a few months before your own timeline for marketing?
Do you remember 710 MBB?
It was first marketed unsuccessfully for a few months of 2016 at $1.800M+. Later, it was the subject of a "luxury auction" beginning back in September last year. (See "Auctions Aren't Always Distress Calls.")
As it shook out, the dated unit at 710 sold for less than the "auction" start price of $1.475M, with a closing at $1.450M in November. (Did you know auctions can go backwards, too? On this one, they erased the actual start price and it got "bid up" to $1.450M, just a stupid trick that seemed to go hand in hand with the oddball marketing.)
On a scale running from "thanks, neighbor!" to "I will throttle you the next time you step out your front door," this situation was probably tilted far to one end.
There's a good ending here, though.
The owners at 712 MBB waited a bit, brushed themselves off, rebuilt their confidence that their home was superior and worth more in the market than the next-door neighbor, then launched a conventional marketing plan (no auction gambits!) at just the right time of year (not summer/autumn!) and drew multiple offers.
Happy sigh. Got all worked up for nothin'.
There's one more still to play out.
233 5th St. (3br/4ba, 2050 sqft.) began in late March this year at $3.199M.
It's a single-family home on a half lot built in 2001. One bedroom on the lower level, two in the middle, and an open living space up top.
They had the field to themselves, if you will, for a month. There were no other half-lot SFRs south of the pier... heck, other than El Porto you don't see these too much anywhere.
But then, in the last part of April, next-door neighbor 232 5th Place came out.
It's essentially the same house, but on the alley. Built at the same time and with the same basic floorplan. In comparable condition.
But man, did they undersell the neighbor at 5th St., launching at $2.599M, fully 19% lower.
The two listings may have helped one another, drawing all possible buyers to both at the same time. But they overlapped only one week, because the lower-priced alley neighbor at 5th Place accepted an offer on Day 7.
Now 233 5th St., boasting far superior views for sure (PV and ocean, unblockable thanks to 5th St.), is down $200K to $2.999M and looking to make something happen.
If you were looking at 5th St., you'd want to know what they got for the twin first, right? So you could argue that the successful, neighboring listing is costing the sellers of 5th St. time and money.
It'll get done, of course. It's the beach. There are views.
But there may be a bit of consternation before the cashout.
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.