Million Dollar Listing LA – Episode 8
Sorry for my absence last week. I had an out of town meeting and my schedule did not allow me to time to write the blog.. Nice to be back..
I was flabbergasted that Josh Altman, THE JOSH ALTMAN, showed up at a business meeting in casual attire. First of all, it looked un-natural. Secondly, he looked un-natural. Lastly, I laughed my ass off when his smug new client opened the door in a suit.. Classic.. The Hermosa Beach house was finished off very nicely. You could certainly see that there was some real money spent in the finishing touches. Unfortunately, and this is where some sellers become delirious, no one cares that the stone used for the wall was from Mars and the wood panels for the ceiling came from Venus. Yes, it looked nice but most buyers in the price range of that home understand quality. To point out the country of origin in anticipation of impressing a potential buyer is futile. People want quality and buyers or buyer agents hopefully know quality, wherever the material comes from. I thought Josh was on the mark about the price point of the house from the start. I often write about managing a seller’s expectations and true to form, we witnessed that arduous task a few times tonight. Josh’s seller was obviously a successful guy. Successful people understand their strengths and weaknesses and time and time again we see sellers fight to try and justify over-pricing their homes. In the end, the contract price almost always ends up near the real estate professionals estimate. At the end of the day, an offer was put on the table for $3.1MM and Josh did a good job of managing his seller and the other team in successfully closing the deal and $3.225.
Madison had another tough evening. Not only did he have to manage another seller with unrealistic expectations, he had to manage a co-broker that I think was not a good partner for Madison. Their styles were different, it seemed that the two were never on the same page and they did not communicate effectively prior to meeting with their client. Not a good match in my humble opinion. Let’s face it, that house was beautiful. Location and views were great. Once again though, the sellers become the largest obstacle in the transaction. The market does dictate the price. I was shocked when an offer was presented at $5.5MM and the owner lowered the price to $6.5MM. Truth be told, Madison was correct in that the lower price would spur activity. And it did. Activity is one thing but additional offer’s are another. After all that time and energy, the Madsion team was back to the original buyer. Good for all that the buyer was still in the market and even better that they came back at a $6MM, all-cash. That was a very surprising second offer and the seller was finally convinced to go under contract at that price. Kudos to Madison for sticking to his belief in the pricing and convincing all that he was correct as illustrated by the sale! Nice job..
How come Josh Flagg always gets the problem clients? Another issue laden assignment for him tonight. Rodeo Dr. I have been to Rodeo Dr. and I didn’t even know there were residences. I thought there were only stores.. I should stick to NY. Josh had the tall task of selling a very unique one bedroom home smack in the middle of the most famous street in the world. Seems easy on the surface until the sellers restrictions were placed on the process. I think that was an example of someone wanting to do business with a “name” instead of doing business with a very creative and qualified broker. Josh said it best when he indicated that he gets the job done by throwing elaborate brokers opens and spurring excitement and interest. One thing that was puzzling for me was the final listing price. The client made it clear that in no uncertain terms was the home going to sell for under $3MM. All of a sudden there was an agreement to list for $2.995MM. To me, that would mean that the final selling price would be negotiated to under $3MM for sure. Unless a bidding war erupted but I don’t think that that property in this market would make that occur. Josh’s ability to market the property may have been slightly hampered but he still showed us that successful people find a way to make things happen. However Josh and his assistant made it happen, it worked. An offer was produced at $2.9MM, all-cash. Great offer, no haggling, SOLD!. Under $3MM but very close. And, as we were told by the client’s representative, the money was not needed by the seller so what’s a $100,000 amongst friends!! Nice job Flagg..