Counteroffers, asking price, short sales

Representing a Buyer, I just had negotiations fall through on a Santa Monica Condo.

The asking price was $439,000, my Buyer offered $05,000.    Our estimation of a fair price was $415,000 and thus we were disappointed to get a counteroffer of $434,000.  After a second round of counter-offers, negotiations broke down almost $20K apart.  It happens.   My Buyer was determined not to overpay and the comps supported his position as far as I’m concerned.

But here’s the important thing:   the listing agent revealed that the Seller owed nearly $400K on the property.  The break-even point at which the Seller would not have to put money into the transaction or attempt to work out a Short Pay with their lender would be around $425K.

Finding out what Seller owes and whether they can afford to sell at a reasonable market price is becoming an important step to take in this market.     If a Seller simply can’t sell at what seems to be a good market price to the Buyer, the Buyer needs to move on and find another property.

Number of condos on market drops under 200

For the first time in several months, the number of condos for sale in Santa Monica dropped under 200.  On my weekly market check on Monday 8/23, the number of condos for sale was 195.   For several weeks, the number had peaked in the 221-223 range before slowly receding.  Whether this is a temporary lull or a trend towards lower inventory only time will tell.    Lower inventory, if it comes, should lead to firming prices.

New Condo listing: 2 bed, 1 bath $449,000

2264 29th St.  #E.   Located in walking distance to Trader Joe’s, McCabe’s music, and other destinations, this garden-apartment style condo features hardwood floors throughout. Recently remodeled kitchen includes granite counter tops, like-new cabinets, range/stove, and dishwasher. Recently remodeled bath includes double vanity with granite counter top. Both bedrooms have ceiling fans. Parking is one half of a private two-car garage.

Call Jim Brunet @ (310) 508-6878 to schedule a showing.