Townhomes for Sale in Redondo Beach CA: Two on a Lot Pricing

If you are confused about some of the recent pricing you've been seeing on North Redondo Beach townhomes, both listing and selling, you are not alone. There seems to be wild fluctuations going on and it may be a while longer until valuations settle down.

Part of what is driving the pricing differential is a function of the method of valuation that listing agents are placing on the properties. Possibly an equal contributing factor is that as many homeowners who were previously "underwater" now have equity and are selling, they are, with all due respect, getting just a little ahead of the market.

One pricing methodology that many listing agents (including yours truly) subscribes to is to price the property at a discount to current fair market value in order to get multiple offers above the asking price within the first week to 10 days. I believe this to be the "Gold Standard" in today's market and have written about this extensively as well as posted videos addressing this.

As a seller, however, you do not want the listing agent to price the home so far below the market that they are leaving your money on the table while they are boosting their own stats as to "days on market" and list to sales price ratios.

At the other end of the spectrum, there are agents pricing above fair market value because it is a seller's market. Those agents are working on the "appreciation" model that as prices continue to increase, they can sell their listing for higher than the comparable sales. Fair enough unless you list for a lot more than the market will bear in which case you have to lower the price and are hurting yourself down the line because your home will have been on the market for too long a period of time and once there are price reduction, buyers may smell blood. More on both of these topics later in this post. Let's first look at what one might consider "fair market value" for North Redondo Beach townhomes these days.

So far in 2014 there have been 15 closed sales of attached and detached 2 on a lot townhouses. Currently there are 16 in escrow and 8 active. Clearly a segment with a lot of turnover and activity.

Of these 15 sold townhomes:
  • 4 attached units, 11 detached
  • 3 bedrooms (5), 5 bedrooms (2), 4 bedrooms (8)
  • 5 built after 2000, 4 '90's and 6 were built in the '80's
  • 7 sold for over the MLS list price and 6 under
  • $800K is the median price
Let's start first with new construction because that's what I always do on the assumption that no one will pay more for a resale than a new home all other factors being equal (size, location, schools, floorplan, etc.)

Currently, for $999,000 (basically $1M) you can buy a brand new detached 2 on a lot with 4 bedrooms that is about 2400 sq ft. An example would be 2016 Gates Ave Unit A (pictured above) which as of this writing is available. That unit is one of 4 built and marketed at the same time. The other 3 are in escrow (we'll know the selling price when the escrows close.)

Needless to say, these homes are exceptionally well built with all the bells and whistles you would expect in million dollar properties including high end finish work, appliances, and systems. If yoi buy one of these properties, you are getting an lot for your money and I would challenge anyone to show me anything else in Los Angeles County that is really a better deal (work and commuting consideration aside.) In fact, I believe and have stated this many times on a number of different sites that in general Redondo Beach townhomes are some of the best values in coastal LA County housing.

And Redondo Beach townhomes are great investments. Depending on the neighborhood of 90278 and a few other factors, the pricing is more or less where we were at the previous height before the housing crash.

But I am digressing.

Working backwards from you get a brand new gorgeous 4 bedroom for $1M, how much are resales worth?

You can expect to see a drop off of up to about $100K for properties up to 10 years old if they show well, are detached and have all the current bells and whistles in terms of finish work. You can deduct another $100K or more if the homes was built in the 90's and a little bit more if we go back to mid 80's. You can take off about another $50K for 3 bedroom units but as most of them are smaller and older that calculation is most likely a function of age and price per sq ft.

Unless you are getting a lot of extra space, the detached units are better sellers than attached units. And,  the "no common driveway" detached townhomes are definitely bringing a premium. For example 1404 MacKay Ln sold for just over $1M but it is 2800 sq ft and has 5 bedrooms. So, there's an example of a 10 year old resale selling for higher than a new home in North Redondo Beach.

Now that we've got all that out of the way, let's look at some currently active resale listings as to price and take a deeper dive into some of what may be confusing the market. Or, as I like to say, there's just enough real estate data available on the internet to get most consumers thoroughly confused.

2007 Marshallfield Ln Unit A is a bank owned REO foreclosure (remember those?). it is currently listed for $899,900 which is the right price. It started out at $939.9K which was not the right price.  Curiously these same foreclosure listing agents had another REO listing last year that also started out at too high and then had to be lowered. Two things have hurt this listing in the market. First it started out too high particularly when 90278 home buyers are looking to pay less, not mreo for REOs. Second, the upstairs floorplan is not the most desirable 4 bedroom layout. One of the bedrooms is better sized as a nursery and has a door to the master which is iteself oversized with enough room for  crib if so desired. But, for a foreclosure it appears to be in great shape and shows well. All in all priced right. Buy it!

Also priced at $899K more or less is 2104 Nelson Av Unit B. This detached townhouse which is considerably older and a little smaller most likely would find a buyer at $50K less. We're looking at 1991 construction vs 2004, and a front unit with front and rear yards vs a rear unit with a rear yard only. Plus the more modern bells and whistles as to build. I'll be curious to see how those two play out.

Let's move down about $50K and see what's available in the mid $800's.

2514 Harriman Lane Unit A (pictured) is listed in the MLS as a 3 bedroom but I am pretty sure that there were 4 (which is what the tax records state). It is priced at $859K and has some unique features and a different layout than you usually will find in Area 152. Most unique of all is the roof deck accessed via a spiral staircase. There are nice tasteful updates as well. Considering that it is attached and built in 1990 it is more or less priced right for over 2400 sq ft and some unique features.

Built in 1999 and in the Jefferson Elementary School area is 2010 Speyer Ln Unit A which is also a front attached townhouse.This unit is priced at $845K which considering the size (over 2300 sq ft) and location is more in line than some other properties currently on the market. It does not show very well and needs some updating but if you can see past that, there's plenty to work with.

In addition to some of the pricing disparities, there's confusion going on about attached or detached. A lot of the confusion can be placed on the doorstep of the listing agent. By attached or detached we are referring to the structure itself and not the garage. There is currently an additional field for MLS input regarding the garage. There are some attached 2 on a lot townhomes that have no common living walls because the only attachment is at the garage and the upper patio deck. Those properties are still attached and should be marketed as such. It would be proper to note "no common living walls". But attached, yes.