Purchased for $2.4 million in September of 2018, the two-bedroom, two-bath unit #40E near the top of the Infinity tower at 338 Spear Street, a 1,588-square-foot unit which features an open floor plan, large bedroom suite, two private decks, panoramic views and a parking spot in the building’s garage with a coveted EV charger, returned to the market priced at “$1.995 million” this past February.
With an acceptable offer having failed to emerge, the “asking” price for 338 Spear Street #40E was reduced to “$1,656,353” last month. And with an acceptable offer still having yet to materilaize, and the “seller saying sell,” the list price for the luxury condo has just been increased to $2.375 million, which now reflects a “transparent price” and actual expectations/ask.
If you think you know the market for luxury view condos in San Francisco, now’s the time to tell.
Sellers says sell. Isn’t that the pening Salvo at most major downturns?
I’m confused. Two six figure price drops don’t generate an offer, and the solution is to increase the price to close to the level is was before the price two price reductions? Was the intent of the price reduction(s) to generate multiple above asking bids, i.e., a bidding war? If that didn’t work, why would anyone think that pricing it well above the last reduced price would generate a desirable offer. As noted, I’m confused — or maybe not smart enough to understand real estate pricing strategies and techniques.
The flipside of a bidding war approach is to court the “massive discount” underbid. A buyer bidding $2.1M will feel like they got a bargain if they are unaware of the marketing history of this property.
Ishmael – how do you know that neither price drop didn’t generate an offer? It’s possible that they did, but they may not have been enough to satisfy the seller, who’s expectation is near $2.375M.
This property was held for auction. The sellers had a “floor rate” that is not disclosed to buyers. When the live auction was held, the offers did not meet the expectations of the sellers and they refused the offer based on the floor rate set, but undisclosed. Those in the business were aware the floor rate was likely 2.3-2.4M based on how much the seller paid for the property a few years ago. In addition, the price per square ft for recent comparables would indicate where the transparent pricing should land.
This is called a Reserve Price, not a “floor rate”. And using “rate” makes no sense, because the number is an absolute value, not a percentage or any kind of fraction. I understand that real estate agents seem to have to make up new terms to make themselves feel more like professionals but this is a clear case where there is no need for one.
Typo, should have been “floor price”, another term used for reserve price. Had no idea this typo would make anyone so agitated. Have a great day!
this unit doesn’t have bridge views, and in fact it has views of the underwhelming towers of rincon hill (I mean the east cut).
Pricing of these towers– especially when they are nearing 10 years+ of age– has not bottomed out yet. 1.55
It has bridge views if you count the bit of span you can see as it crosses over Beale St. Never underestimate the creative writing skills of a Real Estate agent! 2.25M
What? No Sutro tower view? 1.2. J/K. It’s definitely got a pied a terre for the 0.01% feel. Can’t help but notice how many of the neighbors have full curtains/blinds drawn in mid-day, likely indicating mostly absentee owners. But these days, downtown SF seems kinda unappealing, who’s looking for a pied a terre? The pricing strategy seems flawed as bidding wars for condos, even for nice view ones in buildings not about to fall over, appear nonexistent. No one is freaking out over a status symbol condo in an era where parties are still not quite to pre-covid levels, the way a young family with one in the bun might freak out over a SFH with outdoor space, offstreet parking, and minimal upgrades needed. And the other kind of buyer that I can imagine, the introvert techie wanting quiet way up high, well, do they really need to stay in Soma these days? Anyway, I lack the imagination to imagine any other kinds of buyers so…2.2 mil.
Floor has got to go. That’s probably max 36″ long planks and just awful.
This reminds me of San Francisco politics. By the time everyone owns up, stops gaslighting and tells some truth, it’s too late.
2.05 (1.95 if playing price is right rules), but won’t close until next quarter.
the move to drop from 1.99 to 1.65 is puzzling, given that the first number was already below the “floor price”.
Overpriced … if you got 2.5 million to spare for a 2 bedroom you can find better ones…
UPDATE: Sub-Transparent Pricing Finally Yields an Acceptable Offer