Value Buy!

Our new listing of a 2005-built home on a culdesac for only $739,000! The Zillow history shows that the house was rented the first of April, and as soon as the new tenant moved in, she told the landlord that she was not going to pay rent because of the eviction moratorium. The owner decides to cheap-sell it with a non-paying tenant inside, but no takers. The ensuing hysteria around the house caused by people thinking they might be able to buy one for $100k under value eventually caused the tenant to move out.




https://www.zillow.com/homedetails/247-Glendale-Ave-San-Marcos-CA-92069/61238627_zpid/

An Old Favorite REO

Wells Fargo foreclosed on this house in 2009 when the former owner owed about $1,066,000.

They sold it for $705,000 in July, 2009, which was $61,500 over list price! The same buyers still own it.

The latest sale of one of these models was in 2016 when the house two doors down sold for $961,000:

This video has had 18,000+ views!

Our New Listing

Big or small, we sell them all!

Enjoy unobstructed views from this upgraded gem in one of the quietest parts of Rancho Del Oro. The vaulted ceilings & numerous windows fill the home with lots of natural light, and once you get to the family room & kitchen, the view over the grassy backyard will make you start looking for your check book!  Upgrades include flooring, paint, kitchen cabinets/granite counters – this home is tuned up and ready!

Only $599,000 – a model match at 1763 Avenida Alta Mira sold for $627,000 last month – wow!

https://www.zillow.com/homedetails/1755-Avenida-Vista-Labera-Oceanside-CA-92056/16605049_zpid/

Del Mar Estate Wrap-Up

At the time of this auction in 2010, it seemed unbelievable that anyone would pay $4 million (plus 10% fee) for any lot – and these auctioneers couldn’t convince anyone else to get close.

But in the end, Mr. Palmer got the last laugh when his 10-year odyssey ended last month with the sale of the 6,580sf home he built here for $18,000,000 cash:

https://www.realtor.com/realestateandhomes-detail/2160-Balboa-Ave_Del-Mar_CA_92014_M19991-23463

Palomar Models For Sale

The production homes were selling for $1.9M to $3.5M, so those new residents have to be elated to see that all three models are priced in the $4-millions. And don’t be surprised if they sell quickly!

The Plan 2 is priced on the range $4,398,000 to $4,698,000 – here’s my tour from 2018:

P.S. The grand opening was September 22, 2018. They are going to sell 69 of these between $2 million and $5 million in less than two years, all while Pardee sold 100+ homes across the canyon for $1.5M to $3.0M!

P.S.S. The Plan 3 model was nicer but my video wasn’t as good: https://youtu.be/LJEPllQNiA4

Coronavirus Discount

Our listing downtown has closed escrow!

We hear all this news about home prices being stable, and more people wanting to move to the suburbs.

Where does that leave the higher-end condo market?

There are 33 active listings of 92101 condos priced over $1,800,000, with a average DOM of 82 days.

How many have closed since Coronavirus Day, March 12th?

One – my listing.

Only one closed sale in three and a half months?  I think we can call that a buyer’s market.

ISSUES:

  1. There were no closed comps from the coronavirus era.  Buyers are reluctant to rely on old sales as an accurate reflection of where values are today, when there is NOTHING to back it up from the last 3.5 months.
  2. We had few showings, which means, using my pricing gauge, we were at least 10% wrong on price.
  3. Agents are terrible at quantifying how much the discount should be.  Many if not most have only seen a strong seller’s market over the last ten years, and are now just order-takers. When presented with data to justify our price, not one agent could present a rational counter-argument.

If you remember, I was promoting it here at the end of February because we were close to going on the market.  But with it being early in the (normal) selling season, we decided to do some extra upgrades to ensure victory.

Two weeks later, the coronavirus hit.

Remember the saying, “Time is of the essence” – it’s never been so true!

We hit the open market on April 18th, listed for $2,195,000 – based on a January appraisal of $2,100,000 which included several comps over $2 million.  But the uncertainty of the coronavirus impact was reaching its height, and we only had a couple of showings early on. We lowered the price to $1,999,000, hoping that being under $2-million mark would be the solution.

 

We received the buyers’ $1,800,000 offer on May 18th, and we countered $1,959,000 – and changed the list price too in hopes of capturing the attention of other potential buyers. Two days later, we lowered again – but we had no other showings.  Don’t you hate it when you see a sale that closes for a ton under list price, and you say to yourself, “I might have paid that!”  I prefer to lower the price while in negotiations with a lowball offer, just in case others are watching and waiting.

We were faced with either making the deal at $1,860,000 or waiting it out for the proverbial two in the bush – with no evidence suggesting they would appear any time soon!

We made the deal.

Then we had to endure the protests and rioting downtown, and other condo buildings nearby were boarding up their first couple of floors.  But the price fixed that too!

The sales price ended up being 11% below the appraised value, but after going months into the 100-year pandemic and seeing no other action around us, it was the right move – because somebody had to go first.  There might be other sales higher this year – I hope we helped them out!

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