Sold Stories | 454 W Ave 44

A former client called us and let us know that his tenants were buying a home and moving out of his Mt. Washington bungalow. He wanted to know what it would sell for and if we could sell it with the tenants living there for another month or so. There were sure to be challenges selling with a tenant temporarily in place, especially during COVID, but we felt it was absolutely possible.

Regarding value, our gut felt that the Mount Washington bungalow was worth $800K based upon the other options for Buyers at that time. With 726 square feet of living space that made the price per square foot $1,100. That’s an expensive square footage price given that the house was set up as a 1-bedroom, and the kitchen was not updated. Because we know the area intimately, and have a good idea about the current buyers in the market, we were considering two strategies: 

1. Price low to create a bidding frenzy 

Or

 2. Price at the number we all felt the property was worth

We chose the latter and priced at $798K. We had several reasons for pricing higher for the “right buyer” than lower to create a war and have dozens of buyers and looky-loos coming by the home. COVID factored into that decision, as did the fact that this was on a narrow street that would have made life difficult for the neighbors on days in which we showed the unit. But most importantly to me was that the buyer pool for this home as a 1-bedroom may not have been large enough to ensure the bidding price increased dramatically.

Before we hit the market, with some pre-marketing efforts we received a full price offer with a small down payment. The agents attached to that buyer were excellent but we had reservations around the possibility the property may not appraise, and the small down-payment would become a liability. We did not accept.

The tenants’ schedule restricted showings but we were able to field two more offers. After sharing our pre-inspections with the prospective Buyers, the Seller accepted an offer slightly below the listed price. That Buyer had a lovely agent but ended up cancelling on the same day inspections took place. That Buyer never made a request to the Seller to repair anything. They simply cancelled.  

By this point (30 days on market) the tenants had moved out, and we felt the best strategy to get back or close to $800K after falling out of escrow was to moderately reduce the price to $769K. I still strongly believed in the original price of $800K because even though the house was not big in terms of actual square footage, it offered character, a lifestyle, and outdoor living that was coveted and hard to find.  

After approximately 45 days on the new market, the new price of $769K received attention quickly. New offers were presented at various price points in the $700’s, and we were able to negotiate an accepted offer at $800K, with an understanding that certain items (termite, roof and sewer) would not be repaired or credited by the Seller. Before accepting the offer, we had prepared the Seller to expect a request for some foundation repairs as it was one item we had differing opinions about.

The escrow went incredibly smoothly, closing in 31 days. The appraiser ended up being someone I’d worked with a few times before who knew the area and appraised the property at $800K. The Buyers made a reasonable request for a credit towards the foundation which was within the Seller’s comfort zone.

Total time on the market 43 days.

Sales price $2,000 above the original list price.

7 total offers received.

Learnings: Perhaps it would have sold at $800K more quickly if we originally listed at $769K or lower. It’s impossible to say. Pricing low can also backfire if you lose the momentum of the sale by it falling out of escrow. This ended up being a case of our team being confident that the right buyer would happily pay $800,000 for this home and that we had to be patient in waiting for them.