July 21, 2006

But Isn't The Median Sales Price Up?

2760 Sacramento Street

Last November, 2760 Sacramento #3 (a 1,220 sqft. first floor, one bedroom, one bath condo without parking) sold for $827,000. Three days ago, the asking price for 2760 Sacramento #11 (a 1,220 sqft. top floor, one bedroom, one bath condo with parking) was reduced $40,000 after failing to sell at $795,000.

If you assume parking is worth $50K (which is probably conservative), a selling price of $755,000 is effectively $575/sqft., or about 15% less than the buyers of #3 paid ten months ago ($677/sqft.). Either we're missing something (so let's hear it), or once again, this might be evidence of a potentially troublesome trend.

Regardless, if you’re planning on hitting the open house this weekend, bring your trunks/bikini and a towel. The building has a sweet little pool…

∙ Listing: 2760 Sacramento Street #11 (1/1) - $755,000 [Coldwell Banker] [MLS]
A Troublesome Trend? [SocketSite]

First Published: July 21, 2006 12:10 AM

Comments from "Plugged In" Readers

You have got to be kidding me. Two units in the same building cannot be compared in that respect. Has one unit been remodeled, etc. What floor is it on, is it front/rear facing? I bought a unit in Cow Hollow, for which the unit below be sold six months later for $20k less than mine. The mere comp could reference the value of mine, until you conduct a walk-though as the unit below is inferior in many ways. Real estate is not apples to apples, but your post was a nice attempt to show that the market is going to fall - decline, maybe - but not for property which is quality.

Posted by: Kristian at July 21, 2006 9:10 AM

Isn't that a formica countertop and plastic handles on the cabinets in the kitchen in Unit #11? I'd love to see the pictures of the listing for Unit #3.

Posted by: Anonymous at July 21, 2006 9:35 AM

Yep, looks like it (although the caption on the picture mentions "Remodeled kitchen with subzero, top of the line appliances and greenhouse window with city views"). Then again, skylight over the shower is nice.

Posted by: Anonymous at July 21, 2006 9:46 AM

Kristian – we couldn’t agree more with respect to “apples to apples.” All we know (so far) is that #11 is a top floor (that is a nice skylight in the bathroom), garden facing unit (pro: quiet, con: Northern exposure), and looks to be relatively well kept/updated (yes, the kitchen would benefit from a cabinet/counter/sink upgrade).

As far as #3, it’s a first floor unit and most likely shares the same floor plan and general orientation (based on the unit number). And yes, we’d love to see pictures (anyone have an old statement or link?), or at least hear from some people who have been through both units as well.

Posted by: SocketSite at July 21, 2006 10:18 AM

You're all joking, right? It's a $75K difference and includes parking on the top floor. Add $50K for parking, and throw in the top floor for free, and you're talking 125K difference between the units. There is NO WAY #3 had $125K in upgrades. That kitchen could be a showplace for $50K and the bath looks done.

Although I agree with the general premise that one can be comparing apples to oranges, if I offer to sell you an apple for 50 cents, and an orange for $100, I think you'd have to admit that you really CAN do a comparison between the two in spite of the differences.

Posted by: Anonymous at July 21, 2006 11:15 AM

being on the 11th flr instead of ground, plus with the parking, would trump ANY upgrades the 1st floor unit might have, plus throw in the lower price now too.

Posted by: Anonymous at July 21, 2006 12:44 PM

The last thing to sell before #3 was #9. It sold for $655k in September '03 (listed for $629k)

http://www.loridocherty.com/address.php?property_ID=1

Posted by: Anonymous at July 21, 2006 2:40 PM

You guys.. have you forgotten they're asking a whopping $755,000 for a ONE BEDROOM? You guys are nuts.

But anyway, I guarantee you now that they have cut the price, someone will buy it for $780K+.

Posted by: ohyeahh at July 22, 2006 11:18 AM

Uh, try pricing strategy...competitive offers (four) and they are likely close to their original asking price if not over. No, the market it not cooling much.

Posted by: Nancy at July 25, 2006 2:48 PM

I think maybe it was off the tour radar for some folks since it was not obviously marketed as top-floor, semi-private garate, quiet, etc. Unfortunately 1-bedrooms under $800K are a steal in this neighborhood, still. It's over 1200 sq ft, and the kitchen upgrade would be nominal$ if required...

Posted by: Bridget at July 25, 2006 9:06 PM

Huh. I appear to have stumbled across this very early thread that may have been the basis for using apples when determining price trends.

In any event #5, same size as #3, has just reduced its price to 18% off the 2005 price of #3, for more non-apples comparisons. #5 last sold in the year 2000 for $500K, and just dropped by $20K this week to $679K. Looks to be a 2000 apple. I love the comment above mine, about under $800K being a steal. Meanwhile, they are dropping a price that was well below $800K. How times have changed.

Posted by: tipster at January 7, 2011 2:26 PM

As referenced above, the sale of 2760 Sacramento #5 closed escrow last week with a reported contract price of $667,500 ($547 per square foot) having last sold for $500,000 in July 2000.

Posted by: SocketSite at March 11, 2011 11:48 AM

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