Many sellers are fixated on the past (2020-2022) where they heard how homes would hit the market, receive multiple offers within a week, and sell well above asking.
We are longer in that world now that interest rates have more than doubled since then.
While I do stress the importance of pricing well and marketing well with the goal of selling within the first two weeks - that is where attention and desire is at its peak. This is a story of how not to lose hope or give up after that two week mark.
While many sellers can get discouraged and some agents can get lazy; the sellers and I continued to work as a team to present a pristine home during showings with relentless follow up, leading to a situation where we received 5 offers after being on the market for 33 days.
We had a bidding war that started on day 33. Like what? Sounds odd, right?
I’ll explain how we were able to make that happen.
The Property
When first visiting the home, I knew it was special. But I also knew it would have some hurdles to overcome.
The property was located in the upper South Shores neighborhood of San Pedro and featured 4 bedrooms, 3 bathrooms, 2,531 SF of living space, an 8,661 SF lot, a pool, and some of the most impressive Catalina Island views you'll find anywhere in San Pedro. On a clear day, you could see Santa Barbara Island, Catalina Island, and all the way down the coastline toward Dana Point.
Despite all of those positives, this wasn't an easy home to sell.
In fact, there were several reasons buyers could have talked themselves out of it.
So I knew pricing and marketing would be especially important on this one. Not only was it not cookie cutter, but it also had a lot of extreme pro/con factors that the majority of homes don't encounter and don’t make it easy to outweigh one over the other.
Luckily, I grew up in the neighborhood, understand the area well, and know what buyers are looking for - so this allowed me to put a strategy that would maybe take time, but was confident it would work.
The sellers were selling and retiring out of the country, so it was important for me to get them as much money as possible for them to retire on.
The Challenges
The home had a tri-level floorpan which can be an acquired taste.
While I personally appreciate the character and separation of space with a tri-level homes, today's buyers often prefer open floor plans and large great rooms that tri-level homes can’t provide.
The property was also located within the South Shores landslide investigation zone, which naturally causes some buyers to proceed with caution or walk away.
On top of that, the home hit the market at the beginning of global tensions that caused interest rates to spike (higher mortgage) and the stock market took was pulling back sharply (smaller down payment and reserves). Higher-end homes in San Pedro already attract a smaller buyer pool, so the economic uncertainty and challenge to purchase shrunk our group of buyers.
Even Mother Nature wasn't cooperating.
One of the home's biggest selling points was its incredible Catalina view, but unusually cloudy weather lingered for weeks. Usually the marine layer covers the coast during “May Grey” and “June Gloom”.
Here we were in March where we tend to have some of the clearest and most spectacular views.
We had killer photos online, but people couldn’t experience the view in person. They would show up, and you could barely see grey water and no island.
Talk about frustrating… We couldn’t get the buyers to experience the home at its best.
The Pricing Debate
Let's backtrack a bit. Even pricing was a challenge!
The only tri-level home to recently sell happened to be the same exact floorplan, but it was lower on the hill on McRae, so it had a fraction of the view, loud street noise from 25th Street, no pool, and really no yard. It sold for $1.32M which really hurt us since we were literally just two blocks above it.
A home at the top of Grenadier sold for $1.75M but it was bigger, newer/custom, and was perched higher up with an insane view that had no wires and houses blocking anything. A truly unique home on one of the best view lots South Shores has to offer which holds a premium.
Everything else was $1.6M or below, including a home on Marina with a similar view but no pool, smaller yard, and less SF. It was a single story home at the end of a cul-de-sac which holds value.
We really didn’t have good comps to go off of, and then you throw in the tri-level and investigation zone situation to make it even more complicated. So I studied the comps deeply and ventured out to view properties in Palisades and Point Fermin.
Other agents that interviewed for the listing believed the home should be listed no higher than $1.65M with professional staging as a must.
I respected those opinions and it honestly made me question my own valuation. But after triple checking, I felt confident with my analysis. I had personally toured almost every comp in person so I really understood where each property stood in comparison. I also understand buyer demand in South Shores so my range just felt right. I had a range of $1.65M to $1.7M.
The sellers chose to work with me and we decided to list for $1.675M. Homes at this price point typically sell below the asking price and over 80% of our comps sold below the asking price. We figured if we start at $1.65M then we risk the chance of selling below market value, and if we list at $1.7M then we might stretch the value and sit on the market too long which the sellers weren’t in a position to do.
I think another reason the sellers chose to work with me was because they did not want to stage and I didn’t push it upon them. I did think staging would allow us to test the $1.7M mark, but staging isn’t for everyone and some people may prefer less money for the convenience.
The house was going to remain occupied with multiple pets, so staging probably like a hassle to put their current furniture in storage and uncomfortably live with staged furniture with the anxiety of the pets damaging the staging companies furniture.
So, I listened. Rather than forcing a strategy they weren’t comfortable with, I gave them their options with the honest pros/cons, and let them decide on what was best for them. We ended up working together to declutter personal items, move things around, and maximize the presentation using the furniture they already own. And it came out nice!
It played a role in our price, but it was a discount that was worth it to them for their comfort and convenience - plus our price was still higher than the other recommended prices WITH professional stages. We did good!
My job isn’t to provide a linear path.
My job is to understand the sellers goals, provide options, lay out the risk/reward, and work with them in executing a strategy that best fits their needs.
Anyways, back to price.
Just to be clear - I am not in support of overlisting in hopes a “lowball” offer comes in the range we actually want. That doesn’t always work. In terms of this house, I just knew it was worth more than $1.6-1.65M and felt the sellers deserved to give it a shot.
The Marketing Plan
Because I knew this wasn't a home that would sell itself at the price we wanted, we put together an aggressive marketing plan.
We completed:
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Professional photography
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Twilight photography
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Wide-format video
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Vertical video reel for social media
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Matterport 3D walkthrough
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2D floor plans
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Instagram marketing
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Facebook marketing
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Google posting
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Social media advertising
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Local postcard campaigns
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Broker open houses
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Public open houses
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Private showings
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And much more
Many people skip out on the broker opens, but they are so powerful. Our first offer actually came from someone who attended the broker open. A few of the other offers came from buyers where their agent came to the broker open and I got to show them around before previewing with their buyers. This helps make the experience better for their buyers when the agent that they trust shows them the house with a deep understanding of the details and really sell the home to their clients without the client going to the house alone at a weekend open house or with their agent without the agent knowing much about the home.
Broker opens allow us agents to network and build relationships, tour homes without our clients, and eat… I always pick up mini burritos from Maria’s on 19th and Pacific - agents call me the burrito man.
Over the course of the listing, we hosted roughly 5-7 open houses, conducted more than 25 private showings, and welcomed a steady stream of agents and buyers through the property.
I personally attended every private showing. I wanted buyers to fully understand the home, the upgrades, the floorplan, and the value. Too many important details get overlooked when nobody is there to tell the story. Especially with this home.
Day 33
After 33 days on the market, we finally received an offer. The buyer had seen the property on day 1 during the broker open house.
During that month, we stayed in constant contact. The buyer considered multiple price points before eventually submitting an offer.
It was not at the asking price, but the sellers were eager to move and highly considered the offer.
The same day the offer arrived, two additional buyers requested to see the home.
It could have been easy to turn down those showings. I mean we had 20 other showings with no offers. It was exhausting for the sellers to round up all the pets and vacate. What are the chances that these two showings would stir any action?
Leverage.
Instead of convincing the seller of taking the existing offer (which I would have made more money), I suggested that we allow the showings to take place.
From One Offer to Five
After the two showings, one of the buyers immediately submitted an offer at $1.68M.
Now the conversation changed.
The question was no longer: "Is this home worth $1.675 million?"
The market had now answered that question.
I immediately contacted every buyer and agent who had shown interest in the property.
I let them know we now had multiple offers and established an offer deadline.
The result?
Another offer at $1.68 million.
Another at $1.685 million.
And a fourth at $1.7 million.
This home was one of those ones where it had so many great characteristics to make it appealing, but a few uncommon factors that made buyers question it.
I call it a herd property. Once one buyer submitted, the herd followed. It’s like the first offer gives the other buyers comfort and confidence that if someone else is willing to submit then they must not be crazy for wanting to submit either.
In a matter of days, we went from one offer below asking to four offers above asking.
Why We Didn’t Choose the Highest Offer
One of the most valuable lessons for sellers is that the highest offer isn't always the best offer.
After reviewing financing strength, reserves, timing, confidence level, speed of offer, agent representation, and overall terms, the sellers chose the buyer at $1.68 million who had submitted quickly, demonstrated strong financial qualifications, and inspired confidence throughout the process. They really set the tone. If we never received their offer, who knows where the others would have landed or if they would have arrived at all.
The $1.7M offer wasn’t the automatic winner.
The goal isn’t to accept the highest number. The goal is to identify the buyer most likely to close successfully. And that they did!
Promising Discovery
The landslide investigation zone was also thoroughly reviewed by the buyer.
One encouraging discovery came from comparing manometer readings taken in 2014 by the seller with new readings obtained during escrow. The results were remarkably similar, providing the buyers with additional comfort regarding the property's historical movement.
What was once an area of concern turned into confidence and peace of mind.
Lessons for South Bay Sellers
This sale reinforced several important lessons.
First, don't assume that a slower start means your home is overpriced.
Second, one offer doesn't necessarily mean one buyer.
Third, strategic marketing and diligent follow-up matters. Some of the eventual buyers had already seen the home weeks earlier. They simply needed a reason to act.
Finally, pricing matters.
Had we listed substantially lower, the sellers may have left money on the table. Had we listed substantially higher, buyers may have never engaged at all.
The goal isn't to guess.
The goal is to position a property where you can argue a fair justification of price based on the comps and buyers can see value, allowing competition to develop.
In this case, a carefully planned pricing strategy, consistent marketing, and a little patience turned one offer below asking into four offers above asking in one of San Pedro's most competitive neighborhoods.
And that's a result worth waiting for.
If you're considering selling a home in South Shores or anywhere in San Pedro, I'd be happy to discuss your property's value and create a strategy tailored to your goals.
This sale was a huge win for my sellers and I would love to do the same for you.
Property Details
2225 Grenadier Drive
San Pedro, CA 90732
https://jakesullivanhomes.com/properties/2225-grenadier-drive-san-pedro-ca-us-90732-pv26057872
