The past two weeks have seen a push of new inventory after the Labor Day Holiday, which is fairly normal for our market. This added inventory has been a relief to many buyers, as is the recent news that the Fed did not raise interest rates. Despite the increase in prices, it remains a great time to buy while the market and rates are holding firm.
The market has remained and strong, and in particular homes and condos under $1.5 million are still in high demand. This week’s top property is a great example of that.
1125 Marco Place is a charming 1920s Spanish style home set in Venice’s increasingly popular East of Lincoln section. The home has 2 bedrooms, 1 bath in roughly 1,000 square feet on a 4,000 square foot lot and is listed for $1,250,000.
Normally, any house listed at over $1,300 a square foot would not cut it as my selection for a top property, but this home underscores the strength of our market and I believe does represent some value, which I will get into.
The house itself is incredibly charming and has retained many of the original details from when the home was built in the 1920s including arched doorways, a wood burning fireplace, and the original hardwood floors (mixed with some Saltillo tiles). The house has a tremendous vintage feel to it and its easy to pick that up as soon as you set foot in the front door.
The house also has a converted garage that has been turned into a studio space. This is a perfect addition to the property since the existing house is so small. It could used as a den, office, or even a guest house when the main house becomes too cramped.
The main downsides to the house are its size (under 1,000 square feet) and the fact that it needs some updating. However, that is where the value of the house lies. Since the existing shell of the house is so charming, a buyer could update the kitchen and bathroom, and add an master suite (the back deck space would be a perfect location) to increase the square footage to roughly 1,500 and to make it a 3 bedroom, 2 bath house.
So despite the seemingly high asking price, if a buyer purchased the house at the asking price and spent roughly $150,000 on updating and adding to the house, they would be sitting on some immediate equity. You would have a nicely remodeled 3 bedroom, 2 bath house plus a converted garage in a neighborhood that would support sales of $1,000 a square foot. On top of that, you would have a created a home that many buyers are currently looking for, without have to battle it out in bidding wars to lock down such a house.
It will be interesting to see the amount of interest the home gains due to its seemingly high asking price, but based on what I described above, I expect the home to sell quickly to a savvy buyer.
If you have any questions about this top property, or the market in general please do not hesitate to contact me.