Case Study: Sunset/Parkside Homes On The Market


#1

Ok, seller, you don’t need to list your house with the price to match your street address numbers. Although if that worked, I would follow you. I get it, the 168 is sweet…

So, what ya’all think? Yes, big house but frankly poor staging and obviously a chinese owned home. Not digging the chinese granite/cabinets and the flooring is out of place. Pricing seems high to me as a result, so I will say this will not sell for list or go over.


#2

My god. Very nice house but what have they done to it??? Should sell over $2M but due to extremely poor staging I don’t think will go over listing price. Maybe sell for $2.1M or something. The Viking appliance is a definite plus though. They should’ve spent an extra $50k or so to spice it up. Could’ve gone for a lot more…


#3

Agree, this will be an interesting case study. Even though staging not ideal, it is really huge, I think it has a chance to meet the listing price


#4

Question for you all: how important is price per square foot as a valuation metric in the Bay Area for SFHs? I would have thought it’s one of the most important, but many people told me it’s the last thing they look at here.

It seems price per square foot is relatively consistent for similar houses below 2000 square-feet in the same neighborhood, but above that the price per square foot doesn’t scale and seems to drop dramatically.


#5

I don’t think people like to pull out their calculator and derive their offer price from the current price per sqft of a neighborhood when they buy houses. It doesn’t work that way. However, intuitively people tend to offer more money for a bigger or better house than the available comps, and vice versa. So in the end the math works out and homes tend to sell at around the average price per sqft of the neighborhood.

However, if you are looking for the best deals, you should always go for the biggest house that is a fixer, that way you can get the most bang for your buck in terms of the price per sqft.


#6

I see, that’s very helpful, thanks for the perspective


#7

Or to put what wuqijun said in another way - you should at times forget the price/sq ft and instead look to see if maybe you can get something unique if you pay a little more. So if you had an area where standard price/sq ft was 1000$ and you can get a 1100 sq ft house but on a 0.3 acre lot but paying 1250$/sq ft price then you should take it because you can reduce the addition cost later or build in-law and get constant rent income.


#8

Good question. I certainly don’t look at $/sq ft as much as the folks here cuz for me it is about going to the open house and really feeling the vibe of the home. Frankly, a smaller but better layout or better curb appeal may outweigh just any ginormous home that is poorly or ackwardly designed.

Back to this case study, it will be interesting to see what the final outcome on price will be. It is certainly large but did it show well though? Granted, all it takes is one buyer to love it to pieces and then offer 3M for it, but me thinks not…


#9

I ignore $/sqft totally.


#10

Uh oh, your freaking neighbor 2 ave’s over is granted smaller but waaaaay cheaper… now, your very own pride and joy is not looking so hot, or is it still???

Give me this cheaper one!!! Not that it shouldn’t go much higher…


#11

Come on, it’s obvious that this agent totally lowballed the asking price. I think they are in fact expecting an offer $1M above asking. Who is this agent? Your machine Jason Chan? If not then we have a new leader of the lowball askings…


#12

It’s Joanna Xiang. I have received her postcards…not bad looking (NOT that it matters…)


#13

15 avenue one is really nice with great ocean views. What do you think it’ll go for? It’s 2286 sqft so maybe 2.1-2.2?

These two will really show the difference between low list versus high list strategy.


#14

So should 15th Ave in theory sell before the other one or not and more or less (assuming same start date and due date)???


#15

17 ave is a full 50pc larger, absolutely huge. Just needs some updating.

I’m gonna guess they both sell around same time and have lots of same bidders.

Both should be above 2, but 17 ave might go for 100-200k more. Your guesses?


#16

This one the staging is better, not the best though I feel. I have to give it to The Machine, his stager is top notch. Worth every penny…

Small yard though… but killer view.

Price is right, so I am sticking to the cheaper one…


#17

I think 15th should sell for $2.2M whereas 17th should sell for $2.1M.


#18

This is near your place, right @wuqijun… Gonna check it out???


#19

Wouldnt this support the working theory that much less value is given to any additional square footage above a certain size (like 2,300+)


#20

Um… no urge for that… I’ll just wait for the final sales price to show.