Two on a Lot Townhome Pricing

Just Sold 121 S Helberta Ave Unit A 

My listing at 121 S Helberta Unit A, a fully detached 3 bedroom 2817 Sq Ft townhouse built in 1991 with a loft and an ocean peek from the upper deck closed escrow in January for $1,200,000 which was just slightly above the original MLS list price.

I had it staged so it (mostly) looked great. Well the photos were great but it did need quite a refresh and some updates. It was literally in the same condition as when my Seller client bought it around 6 years ago. I should also add bought it for a lot less than he sold it for.

A few observations about 2 and 3 on a lot Townhome pricing in North and South Redondo Beach.

New Construction is hitting new highs. North Redondo Beach detached 2 on a lots are coming out at $1.4M to over $1.5M. Really. New construction 3 on a lots are routinely over $1M with many end units selling for closer to $1.2M. I see some about to be completed in MLS Area 152 and would not be surprised if we see a price tag of $1.3M pretty soon as the new floorplans are just slightly less Sq Ft than the detached units.

If you think those are high prices, new construction in South Redondo is coming out at $1.8M. I wrote about that here. (Same article also highlights the new $1.5M N Redondo townhomes.)

Which brings us full circle back to 121 S Helberta because the $1.8M new homes are also on Helberta about a block away. True, the new construction has more bedrooms but you also don't have to do any work. And that's half the story as to why builders are able to drive the prices so high.

For many Buyers it makes more sense to pay a higher price for a turn key property than to pay out of pocket to do a remodel. It is not that difficult to spend $100K to update some of these older properties. Here's how:

  • Flooring $25-30K
  • Master Bathroom $20-30K
  • Painting $7,500-12,500
  • Kitchen Update or Remodel $20-40K
  • Secondary Bathrooms $5-10K
  • A/C $10-15K

and that list is before we get into any potential roof issues, (Helberta roof was good), window replacement, etc,

And the same holds true in N Redondo as well. There are a number of mostly original Townhomes that have had a challenge finding new owners because they were just, how should I phrase this, tired. Not old, structurally sound, but needing work. I'm talking specifically about the 1990-2010 properties.

Ironically, many of the older homes have already had a lot of updating or even extensive remodels and those have sold rather quickly.

Bringing us back to Helberta (sorry N Redondo readers). A new listing came out in the 200 block of Helberta priced at $1,395,000. Nice property, smaller than my Helberta listing and with 4 bedrooms not 3 but also a reverse floor plan. Somewhat newer, 2003 vs 1991 and with a great ocean view and deck. Will the market value those amenities to the tune of $200K. We'll see.