June 4th, 2020
Good Day Michael,
Review of Portuguese Bend and Portuguese Bend Beach Club Sales:
- 135 Seawall, began marketing a few weeks ago. Now in escrow
- 1 Limetree – Major damage. House built up on shipping containers to adjust for landslide movement.
- 100 Spindrift – Major fixer upper in the Portuguese Bend Beach Club
- 72 Narcissa – Even with about 1600 sqft of the 3000 sqft home without permit, was successful at getting property sold
- 33 Narcissa – An even more challenging sale. This home was gutted, nothing but framing and foundation and roof. That’s it – no kitchen, no bathrooms, nothing. Seller decided not to finish the major remodel and tasked me to sell the property
- 4158 Maritime – Portuguese Bend Beach Club dated home sold
- 3 Cinnamon – Had non insignificant damage from settling, along with an illegally added bedroom and bath. Nonetheless, I got the job done
- 6 Clovetree – One of my prouder moments. This home was owned by a realtor who dominated the Portuguese Bend area real estate market before she retired. She interviewed a number of top producing real estate brokers including one or two from her own firm (She was a Remax agent). Yet she hired me to list the property due to my cutting edge internet marketing skills.
- 28 Narcissa – Another damaged property I sold for nearly 2million. Property suffered severe settlement due to improper fill and some landslide issues. Property was owned by one of the original owners of property in Portuguese Bend and founder of Town & Country Nursery School (famous on the Palos Verdes Peninsula)
- 114 Spindrift – until the 135 Seawall sale (first listed property above) this was the highest priced property sold in the Portuguese Bend Beach Club
No other broker is a bigger proponent of the Porguguese Bend area even with it’s idiosyncrasies. Sellers realize they need an advocate, like me, leading Buyers to viscerally feel the benefits of living here. It’s like the Kevin Costner film Field of Dreams …
“IS THIS HEAVEN” …. “NO, IT’S IOWA” … except in our case it’s Portuguese Bend!
Let’s talk about marketing for a minute. The National Association of Realtors has stats which show that about 92% of all Buyers found the home they bought online. Are we really surprised at that? Should we be impressed then by agents that interview with their glitzy magazine ads, heavy glossy brochures, or other type of print media? How about those agents that claim their “international” reach and “big firm relocation” connections? Should that impress us? It’s all smoke screen misdirection and in many cases blatant misrepresentation. They don’t want you to know the facts. And the simple fact again is …
92% of all Buyers found the home they bought online!
- not because of a glitzy ad
- not because of a glossy flyer
- not because of an open house
- not because of a relocation connection
- not because an international broker network connection
This is why Seller’s overwhelmingly list with me when they understand the facts and the facts are easy to understand. Why?
Because we’re all online for everything … searches, research, shopping … everything!
And that’s why Sellers endorse me very, very positively; read what they have to say here
Now that we know what doesn’t work, what does work that gets Sellers to speak so highly of the results I’m creating for them? First, let’s go over some pricing models
Here are the results from some algorithms that the public will likely access. The problem with these computer algorithms is that they can’t nuance view, property condition, lot utility, or microlocation at all. In fact, they are horrible at it. It’s why you’re seeing a range from a low of $918K to $1.3+mm; throw a dart blindfolded and you will get better results!
What’s the property REALLY worth? What price has to be established so that Buyers perceive value enough so that they’re motivated to take action and buy so that they offer on 88 Narcissa instead of other property.
To approach “value” I have to first look at what the supply – demand balance in the area is. Doesn’t that just make sense. How possibly can a broker make a pricing recommendation without first understanding the fluidity and changing slip streams of supply and demand and how that WILL affect price
88 Narcissa is located in MLS Area 169 and compared to the rest of Rancho Palos Verdes, you can see that since the 1st quarter, this MLS area has under performed. In the early part of the year, there was only about a month or 2 of unsold inventory on the market. Now there’s 6. The market has weakened by 300% in it’s ability to absorb inventory through sale activity.
That means that any competitive sales we look at that sold in the past, we must discount because they sold in a hotter market. We ARE in a Buyer’s market for this MLS area.
Tax rolls show 88 Narcissa to be a 3BR/2BA home with 1,615sqft of living area on a somewhat larger than average sized lot for Portuguese Bend of 35,632sqft.
3 Thyme and 4 Figtree are the most competitive recent sales at 1.625mm and 1.68mm respectively. They were both larger homes at 2325sqft and 2400sqft and 24583 and 39631sqft of lot size respectively. Each would probably have to be discounted by 5% to account for the change in supply/demand. 4 Figtree had a spectacular view, 3 Thyme had a jaw dropping view of ocean, waves breaking on beach and Catalina Island. Extrapolating from my sales nearby, I can not imagine the 88 Narcissa has a huge view. 3 Thyme was in very nice condition and had a grandfathered pool (pools are no longer allowed in Portuguese Bend because of landslide danger and fear of water leaking into the water table).
The fact that this is a Halderman house (Bob was famous on the Peninsula in his design and construction of homes) will be a positive.
Taking all this into account and assuming that the interior of the home on a scale of 1-10 (“1” being tear down, “10”being remodeled completely in the last 10 years)is a 3-4, my belief (SUBJECT TO CHANGE ONCE I’M ALLOWED TO WALK THE PROPERTY AND SEE INSIDE AND/OR IF THE VIEW IS BEETER THAN WHAT I COULD TELL ON DRIVE BY) is that market value to affect a sale within 90 days is $1,285,000. My value could go up if the inside is not as bad as what you alluded to. I would recommend listing just under $1.3mm to maximize your giving yourself the chance of creating an environment where the “fear of loss” motivates urgency in buyers and multiple offers over list ensue.
My working hypothesis is that other agents you’re interviewing are coming in with price recommendations much higher than mine. Be highly suspect. Most agents (there are over 6000 agents in the South Bay competing for barely 500 home sales per year on the Peninsula) interview from a position of fear. They’re afraid of losing the listing unless they tell the seller what they want to hear. They will get the listing at an inflated price, all the while with the agenda of beating the seller up for price reductions claiming that the market has changed. I’ve been an agent/broker for nearly 40 years. My clients trust me to tell them the TRUTH, good, bad or neutral. I will not “buy a listing” by inflating value.
So that leads us back to what DOES work in marketing property. Read this report CAREFULLY … understand the power of what’s being done here. And of course happy to do an online screen share Zoom Video Conference.
In addition, understand the SEO tech I use. Do me a favor … open up another browser and do a google search on “Portuguese Bend homes”. On the FIRST page of a google search, you will see me two times.
Now you can understand why I’m the best agent for the job – expert analysis that’s TRUTHFUL, strong recommendations from multiple sellers, powerful internet marketing that captures buyers
After you’ve had a chance to review, may I ask for the courtesy of a phone call. Thank you