Lately, homebuyers have been taking a more conservative, less-flashy approach with regards to their housing choices. Part of that choice has to do with expenses; who wants to heat, cool, maintain, and furnish more than they really need?
We saw the 10,000 sf launch pad yesterday that has been listed for around $5 million, but not selling, and some viewers may have wondered about my $1.9 number. It was partly due to the unconventional look, but it was also because you can buy 5,000sf around the Del Mar Mesa area for less than $1,900,000 – I’ve sold two myself.
Are there a lot of buyers today who really need more than 5,000 sf in today’s environment?
Are they willing to pay for more than they need?
Buyers are willing to take the extra room, if they can get it for free, or for a discounted rate. We’ll see what happens on the SpaceStation, but for an idea of how recent buyers have spent that type of money, take a look at the youtube video below. The second house in the video will be the primary comp used to price the SpaceStation, and as a result, my guess is that they’ll list it for around $2,995,000 – and it’ll sell because the buyer will feel like he got the extra square footage for free:
P.S. You’ll hear how I don’t always film these in order!