$1 MILLION DOLLAR PRICE REDUCTION
February 20, 2017 | Richard Sites
Real estate, as they say, is all about location, location, location. But the real story is not location it is price. Location is one of the keys to making a profit or at least making a sound investment. But when a property is not selling, price is the issue.
Let’s take a look at a nearby million dollar price reduction.
This home is directly on the Intracoastal Waterway on the border between Jupiter and Palm Beach Gardens. The location is on Palmwood Road, a short, mostly private street adjacent to The Bear’s Club and behind Admirals Cove.
Here, old classic, Florida, ranch style homes have given way to massive, waterfront compounds. One house up the street, recently purchased by Dustin Johnson, even has it’s own private island.
There could hardly be a better location in this area.
The home is the classic, Mediterranean styled home popular a few years ago throughout this area. Although new homes have moved away from this style to the “West Indies” style, the home still fits in with others of similar prices whether in Boca Raton or in country clubs like Mirasol.
It has over 8,000 feet of living space with 5 bedrooms and 5.3 baths.
Inside, the home is in mint condition and offers every luxury amenity you might expect.
But the house is not selling so the price was just reduced nearly $1 million dollars. The location is perfect, and the home is in mint condition, so price is the issue.
There are 5 things that affect the sale of a property:
So getting a home sold is simply getting these things in the right combination. It’s sort of like a see-saw, only with 5 seats instead of just 2.
When any one of these is out of balance, the home won’t sell. And the homeowners in this case are taking the right steps to get the house sold.
As I mentioned last week in a post about the “comps”, in these situations the “comps” may be irrelevant since the house is unique. An appraiser could give you a value based on the replacement cost, but again these are just price ranges not what the property will actually sell for.
A home, or anything else for that matter, is only worth what a buyer who is not under duress will pay for it and not a penny more.
So when a home, in an ideal location, in mint condition, is not selling, price is the problem.
Another factor in a home priced near $8 million could be the lack of club amenities. You could purchase an
$8 million dollar home in Admirals Cove or our other country clubs and get all the luxury amenities provided. If you were to purchase this one and wanted the club scene you would have two options: Join either PGA National or Jonathan’s Landing. These are the only two clubs that offer non-resident memberships.
If you would like to see this home or any other in this price range, contact me directly at 561-762-4073. Unlike most agents, I have lived here 25 years and know the market inside and out.