As we wrote last month:
In contract this past March after reducing its list price from $5,500,000 to $4,795,000, as plugged-in people know 5950 Margarido over in Rockridge fell out of contract when the sale of the buyer’s house fell out of contract as well.
Relisted for $4,300,000 in June, on Friday its list price was reduced to $3,950,000.
As we write today, the asking price for 5950 Maragrido has been reduced to $3,395,000.
Future homeowners are getting more and more for less and less.
This is a good thing.
Should be a nice weekend for looking at open houses in East Bay.
“This is a good thing.”
The commissions on this thing have dropped by $70,000+. One home.
Now you can see what motivation the realtors have to argue prices haven’t dropped when they have, and won’t drop further when they will. Multiply this by hundreds. It’s real money to them.
A $2.1 million drop in 1 year? Maybe my children WILL be able to buy a house eventually. It sounds like it’s time for sellers to get realistic and stop with the ‘make me move’ pricing.
$5.5M to $3.4M – almost a 40% price drop in under a year.
$5.5M to $3.4M – almost a 40% price drop in under a year.
no. the $5.5M was an asking price, nothing more. The initial offer didn’t even happen until list was dropped to $4.8M (I don’t know what the offer was).
Clearly this house has fallen in value over the last year, because there is no way that the offer in march was for $3.4M.
my guess is the offer was around $4.3M because that is where the sellers relisted it.
we’ll know what the drop in value is when the house re-sells and we have sales data.
When we last checked in, the short sale across the street, 6001 Margarido (4,953 sq.ft.), was under contract. Looks like that is no longer the case; now listed for $1.45 million. As a reminder, 6001 Margarido was purchased for $2.15 million in Oct. 2005 with $1.935 million from Countrywide. RealtyTrac is showing 6001 Margarido hitting the auction block on Sept. 30, but I wouldn’t hold my breath. It received a NOTS on May 18, 2010. Nothing like a little friendly neighborhood competition to keep you motivated…
Having the nicest house in the neighborhood is a terrible curse. We already knew this.
“The commissions on this thing have dropped by $70,000+. One home.
Now you can see what motivation the realtors have to argue prices haven’t dropped when they have, and won’t drop further when they will. Multiply this by hundreds. It’s real money to them
”
“Now you can see”? “Prices haven’t dropped”? You can see the future?
I’ll tell you what. Some agents in the East Bay crushed it last year precisely because of huge price drop. And I’m sure you know that. Even thought it doesn’t fit in with your extreme narrative or the editor’s milder version.
Good to heare that some East Bay agents are doing well with price drops. I’ve always suggested that lower prices would actually be good for many agents because there might be more transaction volume to make up for the lower commission per transaction.