Yesterday I went and toured a number of new listings in the Pearl. One of them was one that I had mentioned in a previous blog post, a penthouse listing in The Elizabeth. When I wrote about it the first day it came on the market, my comments were that it was way overpriced. This may have been a little premature now that I have seen it in person! At the time, I was basing it on the fact that it is a NW corner, not a SE or NE corner. The deck while reasonably spacious, looks into, not over 937. It is in The Elizabeth, not The Metropolitan, The Casey or the new Cosmopolitan. And finally, when I looked at the pictures of the unit, which were/are terrible, they did nothing to suggest that this was a $3, 299,000 listing! More on the photos later.
After viewing the unit I am changing my price opinion, if anybody cares. On a scale of priced right, fairly overpriced to way overpriced, I am adjusting my opinion to fairly overpriced from way overpriced. Why the change? When you walk into this unit it is stunning! You get something that the unprofessional photos don’t give you, a little bit of the WOW factor. This is a big reason you may have heard me talk over and over about great pictures. The agents current photos do absolutely nothing in terms of me saying “Wow, I have to see this place!”
Now the reality of the pricing. While this unit is stunning when you walk in, part of the wow factor comes from some of the owners furnishings and their sense of style, which is very nice! But, once you take away all of the beautiful furnishings, it would be hard for anyone to walk in and envision a $3,000,000 price tag. (which is $300,000 less then asking) At $3,000,000, you are looking at $909 a square foot. $900 a square foot puts you on about the 24th floor of the new Cosmopolitan. The 14th floor at the Cosmopolitan comes in around $650 a square foot. Now obviously, you would not price the Elizabeth penthouse in the $650 a square foot range because it is a penthouse, so there is a premium to factor in. Now, rumor has it that the seller’s of the The Elizabeth penthouse are selling because they bought two units to combine on the 23rd floor of the Cosmopolitan, which sells for about $850 a square foot! So, they were willing to pay more to be on a higher floor? Why do you pay more to be on a higher floor? The two biggest reasons are that you get better views and the second is that the chances of your views getting blocked by a new building are much lower. The chances of getting your views blocked at The Elizabeth at some point in time are very real because it is only on the 14th floor. Does it deserve a price per square foot of $1,000? No way! Does it deserve $850? If I am the buyers agent, I would be pushing for something in the $800 to $850 range in today’s market.
If I were the listing agent and trying to maximize my clients value, I would be giving them the very best marketing available so that they could try to achieve a premium price over the true market value! This starts with GREAT PHOTOS and great marketing that give the listing the wow factor before a buyer ever walks in the door. Photos that make the buyer say “Wow, I have to see this place!”
If you would like to view this penthouse unit or any other unit, call Brad Golik today to set up a tour. Brad is a condo specialist doing business in the Pearl District, Downtown and South Waterfront. If you are thinking about listing your condominium, call Brad and see why he believes that great marketing can play a big roll in the price you get when you sell your Portland condominium!