It Wound Up Flat

One of the longest-running listings in MB finally made a deal in late January, after 10 months on the market.

Now, 232 30th Place – formerly 3009 Highland – has closed for $1.271m, just $46k more than its July 2005 purchase price. A standard 2.5% buyer's agent commission would be $31k, meaning the sellers lost money if they paid their listing agent more than $15k.

MBC first took note of this listing in April 2007 (see "Decelerating Returns"), noting that the home had changed hands several times during MB's price runup. Here, again, are the recent sale prices:

• $510k in Oct. 1999
• $789k in July 2003
• $1.225m in July 2005
• $1.271m in March 2008

We noted in that first story that the sellers were hoping for a "modest 10% gain" at the time. These many months later, the closed price is essentially flat against that Summer 2005 price.

Two End the Suffering

True story: Your humble correspondent drove by the longtime listing at 232 30th Pl Friday morning, gave it a quick glance, and a little voice said, "It's time." As in – this one has suffered enough, it's time for a sale.

Imagine our surprise – well, maybe not surprise – to learn later in the day that 232 30th Pl is actually now in escrow, after almost 10 months on offer. Whoa.

Now, it's a contingent sale, so let's not jinx it, but it seems it might be time to say goodbye to another old friend.

MBC first featured the home in late April when it had a different address, 3009 Highland (see "Decelerating Returns.") We noted that the home had been sold frequently in the boom years, rising from $510k in 1999 to the $1.225m that the current owners paid in July 2005. When they listed for a modest markup at $1.369m, MBC viewed that as nearly flat pricing, and said:

"Here is a case of fairly realistic sellers. They don't expect a pot of gold for the trouble of living in the house for < 2 yrs. They're just ready to move on. They have room to offer price reductions without selling for less than they paid."

The sellers later changed the home's address, which confused us a bit (see "Changing Address Midstream.") They took modest cuts from time to time, and lingered at $1.289m for many months.

So let's do the math – if they pay out commissions at the near-bottom level of 4.5% in total at that price, they earn $5k. A sale price below $1.289m, or commissions above 4.5%, means a net loss. As charter members of the two-year-itchers club in 2007, the sellers here provide a warning – you may not get what you paid at the peak anymore.

At this point, regardless, the sellers have just got to be happy to be moving on.

On the same day, the longest-running listing west of Sepulveda also went into escrow.

Frankly, it ain't the same kind of story as 3009 Highland/232 30th Pl, but the new construction at 2709 Oak is in escrow now, last listed at $2.049m.

If anything, 2709 Oak was a warning flare showing that the Tree Section's $2m+ segment had stalled out, and that buyers would be insisting on quality and location henceforth. This newbie was first offered in August 2006, more than 520 days ago, at $2.395m, which must have seemed reasonable at the time, including a location discount.

MBC has mildly raved about this house before (5br/5ba, 3600 sq. ft.), and lots of readers have said here and privately that they liked the build, the brightness, the size, and, really, everything but the location and maybe the curb.

Not long ago the builder set an absolute minimum of $2.050m, perhaps reflecting a break-even price. Once list came down recently to that level, though, you had to figure it'd sell somewhat below. (The lot was purchased for $920k in April 2005.)

Botttom line: It's likely we've got another case of new construction selling for a loss in the Tree Section.

These two sales dredge up a thought about one more – the new home at 911 Duncan in the Hill Section was on the market more than 7 months when it went into escrow earlier this month, at a new list price down $470k from start.

Could it be that buyers here in January are bona fide bargain hunters?

Another Notch Down at '232 30th Pl'

We're down to $1.329m now at 232 30th Pl., the home formerly (recently) known at 3009 Highland.

This is the second $20k step down in two weeks. (See story here.) Happily the listing agent was able to recycle the poetic:

JUST REDUCED!!! 20,000 smackers!!

Today, a full-price sale with 6% cost of sale would net the sellers $25k over their July 2005 purchase price.

Not 25%, $25,000.

Also, we see the first hint that the listing might be better off as a lot sale. New language tacked on at the end:

This is zoned for a three story home.

Next door, at 233 30th St., new construx just fetched $2.250m. That's on a (steep) walkstreet, not an alley, like "232 30th Pl." The builder paid $1.250m for that lot in July 2005 – a different time.

Overhyping a Token Cut

We know listing language is ad copy.

We know buyers must beware.

But you can still insult your readers with hype and overstatement.

There's a new reduction on "232 30th Place" (not so long ago, 3009 Highland – before a mid-listing address change). It's down from $1.369m to $1.349m. To celebrate, the listing now screams:

JUST REDUCED!!! 20,000 smackers!!

Yes, but, it's really just 10,000, er, "smackers." Because as of July 10, the same home was listed at $1.359m. The price was bumped up to $1.369m when it was re-listed with the new address.

There's also this:

This the best deal going so make a move on this quick or it will be gone.

Today, the listing is almost 4 months old. (It began April 10.) Evidence suggests you don't have to move that quickly.

We have to go back to our first post on this home. MBC noted that the owners paid $1.225m two years ago, but it had wildly appreciated in the prior years:

3009 Highland sold for $510k in Oct. 1999, then for $789k in July 2003. Precisely 2 years later (July 1 '03-July 1 '05), it went for $1.225m to the current owners.

It doesn't look like it will go for much more this time.

At $1.349m and 6% cost of sale, the sellers will barely profit ($<45k).

With each dollar below $1.349m, the owners are threated with a net loss. Does that sort of thing happen in the Sand Section?

Home is Livable Now: Re-List It!

Who knows what situations might come up during a listing that might merit a quick cancel-and-re-list?

Oh, you might have a realtor/developer who just wants to restart the clock, or an address change on the property mid-listing, or this:

Certificate of occupancy just received!!

That's the great, great news on the new construction at 2309 Pacific. After nearly 75 DOM, they can actually legally allow buyers to move into the house. Bravo!

To celebrate, today the sellers got a fresh, new MLS#, replacing tired old S947286 with the much cleaner new S951920.

There was a token reduction, too ($60k to $2.239m) but the certificate of occupancy was the headline. Finally, they're ready for offers!

Changing Address Midstream

We've established pretty well by now that a common ploy of stale listings is to pull a bogus re-list and reset the DOM clock.

Earlier this week MBC discussed what appeared to be a unique case of a property address being changed at the same time as a bogus re-list was pushed through. (232 16th St., with a front door facing Highland Ave., became 234 16th.).

Some thought the tactic strange, others outrageous. But some sellers, assisted by their agent, apparently thought it was a brilliant move to change address while they were on the market.

That's how 3009 Highland Ave. became 232 30th Place this week. Same house, same agent, new address and new MLS# starting July 11. (Old: S945313, New: S950705.)

It might be significant that the new construction (now in escrow) next door to "232 30th Place" had also changed its address from a Highland number to 233 30th St., but if that wasn't done before the listing went live, it's just a sidenote.

One reason this move didn't slip past us is that we wrote about 3009 Highland before its identity crisis. At the time we lauded the sellers' non-greedy pricing, since they paid $1.225m in July '05 and were seeking a markup of just 12% – fairly little real cash once a sale closes. The new listing carries $1.369m as the start price, though 3009 Highland had been down a tad to $1.359m before that listing was canceled.

So that's two now. How many make a trend?

Intriguingly, the agent on "232 30th Place" is the same one hawking the new construction at the corner of 45th and Highland (most recently discussed here).

At this time, that address is 4419 Highland Ave., but if it gets stuck...

Hello 220 45th St.!