Below is a blog in italics I posted back on September 24th 2018. It is close to four (4) months later. I walked by the residence again, the “For Sale” sign has been removed and based on public records I reviewed from the Denver Assessors Office there was not a change in ownership.
As you can see from the prior blog post noted below the property was being listed by Rex Real Estate. The company has a unique business model; the use of social media to sell homes as noted excerpted from an article about the company: “A full-service brokerage that eschews the MLS, uses technology to displace traditional agents, and charges home sellers a set 2 percent listing fee.” As mentioned I was mystified as the listing did not show up in our local MLS service (and yes I know what eschews means) which is accessible by the general public at www.REColorado.com.
Long story short the house does not seem to be listed for sale anymore; the last asking was $650,000. I did a quick check in the immediate vicinity of what sold in the last 6 months for between $600,000 and $700,000 within the Congress Park neighborhood i.e. comp. properties:
- 1115 Madison Street: $699,400
- 745 Madison Street: $680,000
- 1233 Jackson Street: $640,000
- Based on the above:
- Median Sales Price: $680,000
- Size: 4BD/2BA, 948 SF Above Grade, 1,896 SF Total
- PSF: Above Grade – $694 / Total – $347 (including basement)
Concerning 800 Jackson Street the Denver Assessors Office has the residence which is a charming tudor design measured at 1,229 SF above grade (281 SF larger then the comps) plus 1,184 SF basement which is considered fully finished. Based on the above comp. sales and being conservative let us use the $347 PSF total. The value of 800 Jackson Street should be approximately $837,000 (if based on the above grade PSF amount the home would be $852,926) and is over 500 SF larger than the median figures above.
I am the first to suggest some buyers may balk at being adjacent to 8th Avenue as well as across an alley from neighborhood serving retail (full disclosure my dry-cleaner is in the across the alley strip, The Cleaners which saved one of my favorite ties from a nasty and I assumed terminal grease stain) thus let us discount the value by 20% bringing the value down to $670,000. Yet the house was listed at $650,000 and did not sell or was taken off the market for other reasons.
With a 20% discount to comparable listings/sales there is a value play. Asking was $650,000; even if someone closed at the asking there seems to be value. Anything below $650,000 is even more attractive. I have no idea why the home did not sell yet my gut advises the following; I as a broker had challenges securing information about the listing; I would assume others did as well assuming they were even exposed to the listing beyond the sign and that was only visible if driving/walking west on 8th Avenue west of Colorado Boulevard.
Please note I am not disparaging any brokerage and I am intrguted with companies wishing to be disruptive including marketing, reduced commissions and so forth as I do believe comptition is healthy and produces innovation. However based on comparable properties this listing seems to be value priced and did not transact; why? I do not know and yes I am curious.
Below the original blog post including the response I received when I inquired about the listing with the agency marketing the home for sale:
September 24th 2018: Last week I was walking to Trader Joes on Colorado Boulevard and detoured slightly seeing a For Sale sign on a home at the northeast corner of 8th Avenue and Jackson Street in Denver’s Congress Park neighborhood. So what do I immediately do; I pop the address into my Engel and Volkers App and nothing comes up!
Now I am mystified so I put the address within www.REColorado.com our MLS service, again nothing shows up!
Finally I took a picture of the sign, looked up the contact information for the firm and sent an inquiry concerning the listing as per traditional services not to be found.
I did receive the following via email the next morning.
I am not going to opine on REX Real Estate which proudly boasts they purposely do not upload listings to the MLS as per the following from a trade periodical: a full-service brokerage that eschews the MLS, uses technology to displace traditional agents, and charges home sellers a set 2 percent listing fee. Now I understand why the listing did not show up in any of my go-to searches.
Again I am not disparaging any new firm or start-up. I actually encourage and am intrigued by such businesses; while the real estate trade is somewhat old-school and may need some disruption, how is an issue I prefer not to discuss at present..
Now concerning 800 Jackson Street, the asking is $650,000. Based on the condition and my comparable knowledge, I would put the correct valuation closer to $525-$535,000.
On their site if you scroll down there is an option for comparable’s and it lists three(3) as follows:
747 Cook St: Sold for $815,000 or $245PSF
823 Monroe St: Sold for $811,000 or $402 PSF
811 Cook St: Sold for $781,000 or $311PSF
Thus based on their generated comparable’s this makes 800 Jackson Street look like an absolute bargain at $650,000 or $269 PSF. Yet…..
- The three comps provided by Rex Real Estate are on better blocks with stronger housing stock and urban fabric
- Their homes are south of the actual Congress Park.
- All three homes are in better condition inside and out.
- All three homes are mid-block where as 800 Jackson Street is on a corner abutting a one-way west-bound arterial and literally ½ block west of commercial development and Colorado Boulevard including a gas station less than 500 feet to the east.
So being a broker you may ask what would I use as a comparable?
I would use 601 Cook Street for the following reasons:
- Similar neighborhood.
- Adjacent to 6th Avenue, a one-way arterial east-bound.
- Similar lot size and design.
- In better overall condition.
The sales price on 601 Cook: $540,000 or $213 PSF within the last year.
My gut is if or when 800 Jackson Street does in fact sell I believe the sale price will be closer to the low to mid $500’s, this is just my prediction. Now someone may absolutely fall in love with the house, the location the layout and so forth and pay the asking however assuming they may be working with a full-service knowledgeable real estate broker, I assume that broker will provide comparable’s that are more alike and will of course assuming financing order an appraisal.
I will be keeping an eye on this one, just not via the MLS will use Assessors Records.
Of note, next Monday October 1, 2018 I will not be publishing as I will be in Asia. Will post the following week.