Houses  deluged with offers  way above their asking price are common stories nowadays. But there remain a significant minority of wallflowers. They could be challenged in some way — awkward layout, unpermitted work, problematic location — or there could be an issue with the pricing.

Here’s a tale of two recent for-sale houses, located side by side in Oakland’s popular Rockridge neighborhood — an easy stroll to BART, coffee, lots of chi-chi shops –  that underscore how real estate remains as much an art as a science.

One triggered a bidding war and sold last month for $146,000 over asking, a 20% premium. Right next door, the other house sat..and sat…and sat, and this month was withdrawn from the market, having failed to win a satisfactory bid.

The one that sold,  a  two-bedroom, one-bath, pictured at top, listed at $719,000. “It had so much of the original Craftsman charm that pulls on a lot of heartstrings,” said listing agent Scott Ward of Lawton Associates. It also had an updated kitchen and bathroom.

But at 1,306 square feet with a lot that was only 2,900 square feet (about a quarter smaller than usual), it was hardly spacious. “I was able to control the message, that yes, we’re a little small on yard space but it’s very efficient; you can still be outside, there’s great indoor-outdoor flow off the kitchen,” Ward said.

It helped that the owners were designers and had done Dwell-magazine style “hardscaping” of the yard to make it super functional. “The way they lived in that space was very efficient and utilitarian,” Ward said. “It was a good house in great shape and showed very well.”

As for the $719,000 asking price, Ward says he’s not a fan of opting for unrealistically low asking prices just to inspire a buyer feeding frenzy.

“I try not to be too hard-core with listing way under (market value); that can come back and bite you,” he said. Still, he doesn’t like to go unrealistically high either. “I wanted to make sure people got their foot through the door because then you can create a little more excitement. I always talk (to clients) about (in the) worst case would you take around that list price.”

Ira Serkes of Pacific Union/Christie’s International weighed in on the question of pricing strategy. “If buyers don’t perceive a bargain, all the marketing in the world won’t do it,” he said. “You have to price at the sweet spot to get people interested. Once they’re interested, they’re more than happy to bid against one another. There’s a kind of social validation — if others are bidding, people perceive value and feel more comfortable.”

Immediately next door to the “popular house” was a larger classic brown-shingle house that also had character and charm (see below). Property records show it as a three-bedroom, two-bathroom totaling 1,744 square feet. Its lot is also small, at 2,680 square feet. It listed for $910,000 — almost $200,000 more than the two-bedroom Craftsman next door. If it received any offers, they were not acceptable to the seller.

Houses  deluged with offers  way above their asking price are common stories nowadays. But there remain a significant minority of wallflowers. They could be challenged in some way — awkward layout, unpermitted work, problematic location — or there could be an issue with the pricing.

Here’s a tale of two recent for-sale houses, located side by side in Oakland’s popular Rockridge neighborhood — an easy stroll to BART, coffee, lots of chi-chi shops –  that underscore how real estate remains as much an art as a science.

One triggered a bidding war and sold last month for $146,000 over asking, a 20% premium. Right next door, the other house sat..and sat…and sat, and this month was withdrawn from the market, having failed to win a satisfactory bid.

The one that sold,  a  two-bedroom, one-bath, pictured at top, listed at $719,000. “It had so much of the original Craftsman charm that pulls on a lot of heartstrings,” said listing agent Scott Ward of Lawton Associates. It also had an updated kitchen and bathroom.

But at 1,306 square feet with a lot that was only 2,900 square feet (about a quarter smaller than usual), it was hardly spacious. “I was able to control the message, that yes, we’re a little small on yard space but it’s very efficient; you can still be outside, there’s great indoor-outdoor flow off the kitchen,” Ward said.

It helped that the owners were designers and had done Dwell-magazine style “hardscaping” of the yard to make it super functional. “The way they lived in that space was very efficient and utilitarian,” Ward said. “It was a good house in great shape and showed very well.”

As for the $719,000 asking price, Ward says he’s not a fan of opting for unrealistically low asking prices just to inspire a buyer feeding frenzy.

“I try not to be too hard-core with listing way under (market value); that can come back and bite you,” he said. Still, he doesn’t like to go unrealistically high either. “I wanted to make sure people got their foot through the door because then you can create a little more excitement. I always talk (to clients) about (in the) worst case would you take around that list price.”

Ira Serkes of Pacific Union/Christie’s International weighed in on the question of pricing strategy. “If buyers don’t perceive a bargain, all the marketing in the world won’t do it,” he said. “You have to price at the sweet spot to get people interested. Once they’re interested, they’re more than happy to bid against one another. There’s a kind of social validation — if others are bidding, people perceive value and feel more comfortable.”

Immediately next door to the “popular house” was a larger classic brown-shingle house that also had character and charm (see below). Property records show it as a three-bedroom, two-bathroom totaling 1,744 square feet. Its lot is also small, at 2,680 square feet. It listed for $910,000 — almost $200,000 more than the two-bedroom Craftsman next door. If it received any offers, they were not acceptable to the seller.

http://blog.sfgate.com/ontheblock/2013/07/19/rockridge-house-incites-bidding-war-next-door-neighbor-remains-wallflower/