Malibu, California luxury or high end homes that are reasonably priced for this current market are still selling. The optimal word is the definition of “reasonably priced”. Each seller has their own home value but a true seller is one who prices their home realistically. What is realistic? It is the recent sales price of a comparable home.
Appraisers study the recent home sales within the past six months or one year for comparable homes [similar square footage, bedroom/bath, view type, etc.] Another indication can be the offers that come in from buyers on that property. If two or more low offers are coming in at similar price range, one should re-evaluate the active listing price.
I did a quick analysis on the Malibu, California beach front homes valued from $10 million and up that completed the sale from Jan 2009 to Feb 2010. There were seven estates that closed in the same period. Note that these entire beach front homes enjoyed unobstructed ocean views with direct beach access in most instance to a sandy beach.
The value already lies in the fact that most beach front homes cannot be replicated for the most part under the current California Coastal Commission guidelines. The key is direct beach access – no denying there is high value for this coveted location.
Six of the seven luxury beach front homes came on the market initially at high prices – their last listed prices reflect a price reduction from the original list price that range from $18 million to $2.6 million price drop. The sellers on these properties adjusted the asking price in order to attract the qualified buyers to these properties.
One of the seven homes sold at the same price as the last asking price. Six of the seven homes sold at a further reduction from the last asking price that ranged from $6,500,000 to $395,000. The sellers often require that the buyers be pre-qualified and prove they have the financial ability to make a purchase in the price range before access to view the property is granted. Buyers should be prepared to either provide a signed letter on a company letterhead by their financial brokerage, bank or attorney.
All of this study is coming from available data in Combined Los Angeles Westside MLS from beach front Malibu homes sales from $10 million and up during the time frame from Jan 2009 to February 2010.
If you are interested in purchasing a property or selling a property in Malibu, Pacific Palisades or the surrounding Beverly Hills/southern California area then please contact Judy Kunisaki for professional real estate advice in the Westside Los Angeles area, on 310-317-8396 her online contact form on her website.
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Judy Kunisaki – CA DRE license 00963582
One Comment
That was a awesome read,You learn something totally new every day.