” If a house does not go under contract in ninety days does it mean that the market is weak?”
Real estate agents, buyers, sellers, and the media talk about ‘the market’ ad nauseam. The market is good. The market is bad. The market is strong. It is a buyers’ market. It is a sellers’ market. Demand is high. Prices are up. Prices are down.
Thankfully, we live in a part of the country where most of the houses are not ‘cookie-cutter’. We have relatively few subdivisions where the same home was built again and again with minor changes. It is easy to discuss the market when you are talking about a 4-bedroom, 2.5 bath colonial with a two-car garage. It is a no brainer for agents and appraisers to estimate the sale value of these houses.
Many of the properties that we sell are unique. The house is unique. The location is unique. What is the market for these houses? If a house does not go under contract in ninety days does it mean that the market is weak? Does it mean that the house is overpriced? Or does it simply mean that the house is so unique that there is only a handful of potential buyers for that house every year? If the right buyer isn’t actively looking this month, will he/she be looking and ready to buy next month?
“As a broker of specialty properties, I am looking for that one buyer – not ten. Twenty people attending an open house and 300 Zillow views mean very little.”
Ron and I toured two Rockport houses yesterday – 25 Penryn Way and 5 Penzance Road. The houses are similar in many ways but feel very different. You could almost throw a stone from one of the houses and hit the other. Both houses are priced over $1,500,000. Both sellers have purchased another home and are motivated. Penryn is empty while the sellers are still living in Penzance. In 2019, only four houses sold over $1,500,000 in Rockport through the MLS (multiple listing service). There are five houses presently on the market over the 1.5 mark including 25 Penryn and 5 Penzance.
” It will be interesting to see how buyers react to these two houses as 2020 unrolls. Which home will sell first and for how much?”
5 Penzance Road was fully renovated by the present owners who purchased it in 2000. The house has 3 bedrooms, 3 full baths, and 1 half bath. There is 4000 square feet of living space not counting the partially finished lower level where there is an office and workout areas. The views are lovely, and the house feels very much in keeping with today’s way of living. The main living area is open and designed with a casual feeling that is very inviting. The lot is 21,356 square feet. The list price of this house is $1,895,000. The house is assessed at $1,335,500 (land $461,200 building $874,300). It is listed by Lux Realty North Shore. The listing agent is Lynda Hemeon who is also one of the co-owners.
25 Penryn Way has a different history. It has been on the market with Julie Gamble Smith of Engel & Volkers By the Sea since 2016. The original price was $2,895,000 and the present list price is $2,100,000. The assessed value is $2,586,000 (land $578,500 building $2,007,500). The house has over 7000 square feet of living area and sits on 40,280. Penryn sits closer to the water and offers more privacy than Penzance Road. For all of its size, Penryn only has 3 bedrooms. It has 4 full baths and 3 half baths. I was surprised to see that it was built in 1999 because it felt like it was built in the ’80s or early 90s.
It will be interesting to see how buyers react to these two houses as 2020 unrolls. Which home will sell first and for how much? There is a $205,000 difference in price between the two houses, yet a $1,250,00 difference in assessed value. What are buyers looking for in 2020? Are they looking for size or are they looking for convenience? Are they looking for a good deal? I am sure that I will be revisiting these two properties as the year progresses. Stay tuned for up to date news on these and other homes and as always, if you want to look at these homes, other homes, or are contemplating selling, I can be reached at 978-764-4506 or firstname.lastname@example.org.
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