If you’re considering purchasing or selling Manhattan Beach houses or real estate you may have wondered how we come up with a suggestion on current market value. It’s always based on the sales prices of comparable homes. Think of current list prices as a bit of a fantasyland for the seller. It merely represents what sellers hope to get for the home, not what homes are truly worth.
To illustrate this point, let’s look at a Manhattan Beach home that was listed in March of 2012. The average listing price at that time was $2,606,000, while the average sales price was $1,723,000. Since area homes tend to remain on the market an average of 97 days, the home most likely sold in early July. The average sales price at that time was almost a million dollars less than March’s listing price: $1,660,000. So you can see the disconnect between list price and sales price
Real estate forecasters take these sales figures, typically over the past six months, and calculate the median and average sales prices (the market value) of Manhattan Beach property.
Manhattan Beach Houses: The $16 Million Dollar Sale
Imagine what those numbers looked like last year when 853 3rd Street in Manhattan Beach sold for $16 million. This sales priced made this home the largest Manhattan Beach residential real estate sale ever.
Not your average South Bay beach abode, the five-year old home sits on a double lot (11,401 square feet), and has six bedrooms and seven bathrooms.
This home was sold off-market, but public records show that it last sold in 2005 for a little over $3.5 million. The national real estate websites, that have no way of knowing anything about our local market, tout the percent of appreciation in value that this home realized with amazement. What they don’t understand is that the 2005 purchase was for a vacant lot. Yes, $3.5 million for a piece of bare land.
Obviously, this home isn’t considered comparable to a whole lot of what Manhattan Beach has to offer, so don’t expect a slew of homes priced in the double-digit millions to flood the market. It did, however, factor into the rise in median home values last year during the period in which it sold.
Right now, however, if a home that’s listed for sale, located on the strand, sells for list price, it will take 853 3rd Street’s place in the record books: $22,499,000.