Anatomy of a Multiple Offer Listing

Here’s an interesting lesson in the “slower” fall 2010 marketplace. 427 Biscayne , listed by Joe Benvenuto of Alain Pinel, came on the market last week listed at $1,039,000. It’s a 4 bedroom, 2.5bath, 2620 sq ft Grant 3 model. It’s in good, but not terrific shape. Clean. The price of $1,039,000 is an eye catcher for sure! The same floor plan at 400 Biscayne closed on August 27 of this year for $1,150,000 and another Grant 3 at 161 Beach Park closed on the 9th of April for $1,100,000. Beach Park of course is a much busier street and thus the value should be expected to be less.

Now the market in the last month or so has been significantly more sluggish and it’s only been in the last few weeks that sales seemed to resume somewhat. Pricing a home well lower than the recent comps carries with it certain risks…like what if it doesn;t sell and the house goes for lower than it’s really worth? Never the less, 427 Biscayne boldly came on the market. The strategy worked. Joe gave out 15 disclosure packets during the week it was on the market. Last night they got 4 offers. It’s hard to say what price it went for but the status was changed to Pending-No Show…which in my mind means that there’s no contingencies. It’s a clean offer and it closes in 30 days. I can’t wait to find out how much they got!

The biggest element here seems to me to be risk. Will a house priced aggressively get the kind of response a seller wants? It sure worked here! The other news that’s worth mentioning if you’re a buyer is…the market is pretty darn solid! It’s not in free fall. If given an opportunity for a discount, the market will perceive a value and react accordingly. In a truly dead market that wouldn’t happen. The floor in this market is alot higher than lots of people think. It’s good news for Foster City. Congratulations to Joe Benvenuto and the seller at 427 Biscayne.

Comments

  1. Solid or not, something need to happen to get the market moving, maybe a lower or reduced price will help? A stagnant housing market hurts everybody, sellers (not investors, of course), buyers, realtors, mortgage brokers, builders, contractors, even handymen.

  2. hmm. Just 2 cents from me as new home owner.
    No one wants the hyper activitiy that went in between 2003 to 2008 fuelled by scammers at every layer.
    I dont consider homes need to be sold and bought just like in stock market. It hurts the taxpayers most right now and not those you mentioned above. Imagine NY Fed is forcing Bank of America to assume 47 billion worth of bad mortgages. Is it the fault of BofA fully. No.
    Its everyone that played together when things were going good.

    We just need a stable market with little or few transactions per year. Not flipping.

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