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Interesting Case Study At 769 Malcolm |Little Holmby Home Selling 2012 vs 2014|

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What Did That Westwood Little Holmby Home Sell For?

The Westwood Little Holmby home at 769 Malcolm Ave., LA CA 90024 lasted about 17 days on the market before accepting an offer on 9/22/14. This 30's Spanish has a mix of vintage details and updates to kitchen, bathrooms, electrical, plumbing and HVAC system for a move-in condition type home. Situated on the west side of Malcolm, the lot was relatively flat with minimal steps up to the front door. Great curb appeal, flat lot with minimal steps and the updates were the pluses on this house. I would say the smallish backyard and being on the west side of Malcolm (backing up to Hilgard Apartments/frat houses) were the weaker points.

Interestingly, this home creates a data point worthy of some conversation on how the market has reacted from the absolute bottom, which was considered to be 2012. Now remember, one house doesn't make or break the market so we can't make broad assumptions and apply this example to the whole market. But in this example, this house looks to be mostly unchanged from it's 2012 sale, so that makes it a good one to look at. There may have been a few small upgrades, but most of the cosmetic remodeling looks to be the same in this 2014 sale. The 2012 sale price of $1,740,000 vs the 2014 sale price of $2,600,250 represents a 49% increase over those 2 years. This particular house outperformed the market by more than double the avg over those 2 years. Why is that?

Did the previous owner get a smoking deal when they bought it in 2012? I would say so, especially in hindsight. This contributed to the huge gain.

Is this house unique and one of a kind in the neighborhood? I think the house is just average in it's location (inside the Little Holmby neighborhood). And in my opinion, I would say most things about this house are average...from the floorplan to the finishes. So I don't think this house is so special that it should outperform the market no matter what the current state of the market is.

Did the current buyer way overpay? I think the 2014 sale price is relatively inline with what is currently selling in the neighborhood. Recent comps, along with the high demand and scarcity of competing products has alot to do with today's price.

In the end, I think fantastic timing in the previous purchase in a down market has the most to do with this out performance of the average during that time period.

What do you guys think?

On 10/22/14, 769 Malcolm Ave closed about 0.2% over the asking price at  $2,600,250 |$827 $/sf|. According to the MLS, the home is a 4 bedroom / 4 bath, 3,145 sf of living space on a 7,298 sf lot.