Listed for $11.25 million, or just over $2,000 per square foot, in May, the asking price for the designer Russian Hill home at 1209 Filbert Street, which is LEED Platinum certified, was reduced to $9.5 million ($1,693 per listed square foot) in July.
And yesterday, the sale of the 5,610 square foot home closed escrow with a contract price of $8.288 million, or roughly $1,477 per square foot, after six months on the market.
Designed by John Maniscalco, the five-bedroom home was purchased as new for $6.888 million ($1,188 per square foot) in 2011 having been listed for $7,000,000 at the time.
The recent sale at 26 percent below original list represents total appreciation of 20.3 percent for the top-tier property since 2011, or roughly 3.4 percent per year.
I guess when I said 8.5mm six months ago I was off. Owners must have been led astray by an unscrupulous agent or blindsided by a crashing market. Not that they themselves had unrealistic expectations.
Any thoughts as to how those unrealistic expectations might have been set? Keep in mind that they represented appreciation of a ‘mere’ 9 percent a year for a top-tier property.
Crossed fingers and a brief prayer?
How on earth is 3.4% appreciation per year representative of a crashing market?
Absolutely. What is a stabilizing market supposed to look like?
I believe that was sarcasm. Soccermom was suggesting that the sellers are likely to be blaming their agent for not getting there unreasonably high asking price.
Soccermom’s original remark (from 6 mos ago):
“$8.5mm in +/- 4 months or removed from the market.Overpriced. ”
Which would seem to win the Silver Signpost award for prescience, but was then followed up by:
“Incidentally, this listing I think demonstrates what people with resources do when they ‘rush to the exits.’ Throw up a high listing price (based on some wishful-thinking personal net worth spreadsheet) and see if anyone salutes.”
Which seems – by my reading – to contradict the assertion made today as to the seller’s expectations.
On rereading, I think SFM is correct: not so much a contradiction as a sarcastic “told ya so”.
Sarcasm/Chance to brag.
“Crashing market?”
3.4%/year is crashing?
Out of curiosity, what is your definition of crashing anyway?
This was sarcasm. 11+ was never realistic for this house. Reductions from an absurd list price tell us little. The market is not crashing. However, as I was standing at Market and Van Ness today, a small chicken ran by screaming, “The sky is falling! Read my blahg”
After paying the selling commission and closing costs, that 3.4% takes a bit of a haircut…
Again overpriced by a mile! Listed at 11+ million.
The market is far from crashing however this agent is notorious for overpricing properties.