A Tale of 4 Homes

If you drive along Manhattan Beach Boulevard regularly, as I do, you may have noticed For Sale signs going up and down at four homes on the north side of the street, between Sepulveda and Meadows. They are (from west to east):

• 1151 Magnolia Ave
• 1150 Magnolia Ave 
• 1150 Chestnut Ave 
• 1151 N Meadows Ave.

I became curious when I noticed For Sale signs appear at the same time, for the same agent, on adjacent homes. It turns out all these properties were owned by the same investor, who passed away in April 2007.

1151 Magnolia was first listed in October 2007 for $925,000. It was listed as an investment property, as is, with the promise that it “will make all dreams come true.” The price was reduced to $817,000 and the listing expired after 184 days. It was relisted a month later for $879,700 – this time directed toward a homeowner rather than an investor and advised that it was “THE LOWEST PRICE THAT YOU CAN POSSIBLE [sic] BUY RIGHT NOW.” I guess that was if you missed the lower price on that same home a month earlier. The second listing was cancelled in June 2009 after a total of 562 days.

1150 Magnolia (pictured) is currently listed at $890,600. It was originally listed for $1,350,000 in May 2007, with the offer of creative financing including the ability to lease with option to buy. The price came down to $1,175,000 but was cancelled in September 2007. It was listed again a month later for $1,100,000. There were still no takers and it expired in April 2008. It was relisted for $925,000 in January 2009 which reset the DOM (days on market). It expired after another 57 days. The current listing date is December 2009 and according to the MLS this home has been on the market for a total of 6 days, never mind the 2 years before that. [Note to buyers: Make sure you work with a real estate agent who will tell you the true cumulative days on market.]

1150 Chestnut recently sold for $615,000, in October 2009. It was first listed for $869,000 in January 2008 as a fixer. The price came down to $799,000 by April 2008, but the listing was cancelled with no buyers. The broker who had listed these homes was the wife of the deceased. Trying a different approach, this home was relisted in June 2009 with a local agent for $699,000. By then the property had a Notice of Default, so perhaps there was more motivation to sell. The price was reduced twice, with a final asking price of $595,000. That price reduction stirred enough interest that it ended up selling above the last asking price.

1151 North Meadows was listed for $759,000 in June 2009. There were no price reductions and the listing was cancelled after 157 days, when the home was leased.

These homes are all afflicted by their corner location along Manhattan Beach Boulevard. That traffic and deferred maintenance for some of them make for a tough sell. They are a classic example of chasing a declining market. Keep your eyes on these homes as you drive by, you’re likely to see signs popping up on the remaining three sometime in the future, perhaps when the tenant’s lease expires.

By the way, the owner has two other properties in the Manhattan Beach Heights/Liberty Village area with similar stories. One of them, 1216 18th Street, is currently for sale.