|Golden Hills Tall & Skinny SFR for Sale|
My buyer clients just closed escrow on a home in the Redondo Beach Golden Hills "Triangle" neighborhood. Because I am going to write a quick "case study" on this one I'll omit the property address and final sales price for now even though it has closed escrow. Please note, my following comments are meant entirely to benefit the public in better understanding the market and not to be taken as critical of any other agent involved in this transaction.
Short version is that this particular "Tall & Skinny" sold for $89,000 less than the original list price while many Golden Hills homes are selling considerably above the list price. It even appraised for more than the final sales price plus we has some termite work and other repairs done as well. (I guess I'm a good negotiator.) My readers are certainly aware that a few of my Golden Hills listings sold for between $40-81K over the MLS asking price as have other Realtors.
So what went wrong here for the sellers and right for my buyers? Great question.
First was something entirely outside the seller's control, the floor plan While most Tall and Skinny Houses are reverse floor plan 3 bedroom 2 baths, this one was a 4 bedroom with 3 bedrooms downstairs. The upstairs was a very nice interpretation of your standard reverse floor plan with a west facing living room for some nice sunsets. But the living room is in the rear of the house, not up front as is standard.
Downstairs there are 3 additional bedrooms meaning that each was somewhat smaller than usually found in the reverse floorplan. But not much smaller because the house itself was larger than the usual SqFt.
Personally, I think this 4 bedroom plan is going to be more valuable over time.
The 2nd factor that most likely didn't help the sale is that the house is fairly close to Artesia Blvd. Too many buyers just look at the location on Google maps and draw a conclusion. What I can say is that while certainly some traffic could be heard, really no noisier than many others.
Now we get to factors certainly in the control of the sellers.
The first is price. This property came on the market at least $50K higher than the high end of where I would price it. So, I'll say it again: when you are pricing your home for sale do not "leave room to negotiate". Price it right at or slightly below the market to get multiple offers. As for this home, if it were my listing I would have initially priced it about $100-120K lower than it came out and I would have sold it for $25K more (at a minimum) than my buyers paid. The gold standard in pricing right now is to get as many people in as soon as possible and get some competitive bids going. You maintain control and sell for more. FYI, Zillow estimated this house far lower than the final sales price or appraisal for what that's worth.
Next up was that to the best of my recollection by the time this listing hit the market, a number of days had already ticked by. That happens because agents have a signed contract but an MLS waiver. The net result in this instance was that by the time it appeared in syndication it was a) over priced and b) did not appear to be a fresh listing.
Here's what my buyers did right (other than selecting me as their agent).
Instead of chasing the latest and greatest listings that were bound to get the most activity and over bids, they made an aggressive offer on a property that was sitting on the market for a while. That's how you get a deal.