This is neither the time of year nor the time in our market when a lot of homes are selling quickly.
Time of year... it's Summer, and things often slow down for 2 months or so now.
Time in the market... we're at least 5 years into an upcycle, with prices rising and the total number of sales growing a bit…
This is neither the time of year nor the time in our market when a lot of homes are selling quickly.
Time of year... it's Summer, and things often slow down for 2 months or so now.
Time in the market... we're at least 5 years into an upcycle, with prices rising and the total number of sales growing a bit each year. It seems that buyers are just being cautious, taking time to size up a listing and decide how they value it before making a move.
Compelling prices can change that dynamic, though.
Look at 2204 Oak (3br/3ba, 3235 sqft.).
Here's a 1980s original with some very bold, personal colors on the walls, wanting updates and TLC, and possibly held back by that #1 factor for any real estate: Location.
2204 Oak in on the commercial side of Oak and backs up to a commercial site under construction along Sepulveda. Its next-door neighbor on Oak is a parking lot, where a house should be.
How do you sell that at a time when buyers are being "cautious" and even picky?
Maybe price it shockingly low. Like $1.599M.
Just by way of comparison, consider one of Dave's sales from earlier this year on a better location along Oak.
That was 1701 Oak (4br/3ba, 3575 sqft.), a larger home with an extra bedroom + office that had some good remodeling completed. Buyers paid $2.230M ($624/PSF) in March 2017.
2204 Oak was priced at $494/PSF, or 21% lower that 1701 Oak.
Or look at a different nearby corner: 1829 Oak (3br/2ba, 1400 sqft.) is less than half the size of 2204 Oak. It's gotten a flipper remodel and is in escrow now with a list price of $1.749M.
Buyers noticed that 2204 Oak was "cheap."
Offers flooded in. The sellers didn't have to wait. They're under contract now within a week.
What's that, you say? You wouldn't have the stomach to list "super low" to attract offers? You're afraid of leaving money on the table?
What about trying to price right at, maybe a little under, market? Not a lot under.
Look to 29 Catalina Court (2br/2ba, 1450 sqft.) in the Village.
That's a super remodel.
Listed at $1.150M, they had a deal at once.
Barely made it through the first weekend. The start was very compelling given that there's not a thing to do.
Or what about 3005 Maple?
They could have brought out this 5br/5ba, 3120 sqft. Tree Section remodel in the 2.5-2.6 range, feeling that was justifiable. But they would have been crowded among a series of competitors. And then when would the buyers have come?
Instead, with a start at $2.450M, they drew multiple offers immediately after the first weekend.
On the new construction at 3609 Maple (5br/6ba, 3250 sqft.), they knew they had something very special. The home's custom "modern farmhouse" vibe is very appealing and refreshing.
But they had a location near Rosecrans that could have been a challenge.
They might have shot for $3.200-$3.300M, on the theory that this would be lower than some new construction sales, and on par with others.
Instead, they listed a tad under $3.100M at $3.089M. After two weekends, they had multiple offers.
Maybe the lesson here is as obvious as it appears: There are buyers there. You need to convince them to move. Compelling prices draw action.
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.