We first took note of the well-designed unit #1 at 236 States Street back in 2008, a few years before it was marketed as a short-sale near the bottom of the Great Recession, foreclosed upon, and then sold by the bank for $600,000 in early 2012.

Having since been remodeled, including an upgraded kitchen and bath, the Corona Heights condo returned to the market listed for $999,000 this past March.

And last week, the sale of 236 States Street #1 closed escrow with a contract price of $1,245,000. That’s nearly 25 percent, or a quarter of a million dollars, “over asking!”

Of course, the condo also sold and was marked to market at $1,175,000 back in 2016. And while total appreciation of 6.0 percent over the past 32 months on an apples-to-apples basis, or roughly 2.2 percent per year, is certainly greater than zero, it paints a rather different picture of the market than a “25 percent over asking sale,” especially when it’s an above-average unit which just sold.

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Comments from “Plugged-In” Readers

  1. Posted by Mark F.

    Very nice unit.

  2. Posted by c_q

    why not just list for like $1? then people will bid to the same level and it can be marketed as sold for 124,500,000% over asking!

    • Posted by bachman_erlich_overdrive

      Because people have to feel like they have a chance of buying. Even if it’s an auction in practice, you can’t let people feel like it’s an auction, as many buyers have fatigue from losing deals. I don’t think anyone cares as much about the over/under list price % as our faithful editor does.

      • Posted by Brahma (incensed renter)

        The listing agent cares more than our faithful editor does, because they can tell the next potential client that their last listing went for “25 percent over asking”, and the potential client will think that the agent is some kind of real estate savant. Which is the point. It’s about perception.

        • Posted by hundo_p

          80% of Realtor activity seems to be focused on creating perceptions. Need to protect that 6%. Or is it 5%? 4%?

          • Posted by bachman_erlich_overdrive

            80% of Realtor economic activity seems to be focused on creating perceptions.

            Also, for everyone who complains about realtor fees, there’s always the chance not to use one. Don’t have an agent help you list your home. Hire a good marketing photographer, hire a good stager. You don’t have to use all of the boilerplate forms. You don’t have to get your house on the MLS. The Internet is available to EVERYONE. Just make a Wix page or something. I mean, houses in San Francisco sell themselves. Just put up a sign. You can buy them on Amazon. You don’t have to use all of the boilerplate contracts. Make sure that you understand your legal liabilities as a seller, (stuff about Like hidden fuel tanks and child molester proximity) and that you know how the escrow process works. Explain to your buyers who want to use their own real estate agent that normally the seller pays the buyer’s agent too, but nahhh bro. Not this time.

            As a buyer you don’t need an agent either. Show up at an open house. Don’t have an agent help you buy a home. Submit your own offer. You probably have access to google docs and a printer – you can write your own contract and it will probably be legally binding on at least you. Make sure you know how to get good title etc.. Make sure you have done all of the likely due diligence on the home and that you know what to look out for. Hire a home inspector. Hire a termite inspector. Check the earthquake and flood maps. You’re a smart person. Get a Natural Hazard Disclosure map. Find out from the seller or seller’s agent if there are any other offers. Maybe they will tell you why they are selling. Do your own homework and come up with comparable sales. Reach out to a lender and explain you are buying the house yourself. Coordinate the appraisal visit after you are in contract. It’ll be easy for a credible person like you.

            Maybe you should do it one better and CREATE AN ON-LINE BUSINESS AROUND HOME SALES. Just automate that stuff bro. Make some forms that people can click through without reading, like privacy policies. Change the world, one “I accept” button at a time.

            I have a license sold my own real estate but never for a third party. It would be easier for me if commissions were lower. But really, if you don’t like paying real estate agents, then just don’t. I’ve listed homes with Redfin for 1%. I think it’s a pretty good deal, but I still have to cough up another 2.5% for the buyer’s agents. I mean, do I want the transaction money or not?

          • Posted by Fishchum

            @ BEO – Yeah, good luck getting all that done while working a full-time job and taking care of your kids. And better stash away extra funds if something goes wrong and you get dragged into a lawsuit because an issue with the home wasn’t properly disclosed.

          • Posted by bachman_erlich_overdrive

            Indeed!

            Despite the price, kind of makes sense to hire an agent and play the game, right?

      • Posted by The Milkshake of Despair

        ” I don’t think anyone cares as much about the over/under list price % as our faithful editor does.”

        This metric comes up in many cases when I’m talking with home sellers or buyers (I’m not a real estate professional, just a friend and/or coworker). The person considering a transaction is trying to predict what they should expect to sell for or pay for a house.

        I think those who are aware of the uselessness of the metric just simply ignore the “over asking” claims. But a large number of naive lay people are still bamboozled. This website does a good service to continue educating new home buyers or sellers..The real estate industry certainly is not helping people understand the relevance of this metric in what is likely the biggest financial transactions of their lives.

  3. Posted by Sam Walters

    I have bought lots of real estate and learned the hard way the best deals go to the buyer with NO agent. So the selling agent can double dip their excessive commissions. My last 3 property were all done this way. Trust me, when they reel in 5% rather than 2.5% they make sure your bid wins…..

    • Posted by bachman_erlich_overdrive

      Shhh. Don’t make it obvious.

      “I don’t have an agent. Do you think you write one up for me?”

    • Posted by anon

      ethical industry …

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