Style matters - part 2.

In contrast to my last post, here's an example where good architecture and siting pays off.  Check out one of my favorite homes in Valmonte. The Moore Residence.

(Source: Google Maps, MLS)


Built in 2003, this Italian home spans 6,565sf on a tree-filled 0.4 acre lot.  The Moores bought the original home in 1999 for $760K, demolished it 4 years later, and erected this beautiful and simple Italian home.  The home was put on the market just one week ago, asking $3.499M and is already under contract.  If it sells at that asking price, it will be the highest price paid ever for a home in Valmonte!  In contrast to the Lunada Bay homes being built in questionable architectural styles that have languished for months on the market, this home, with its tastefully designed facade and elegant interior will soon be sold. 

There's a lot to love about this home.  The facade is simple, understated, restrained.  It masks the true size of this nearly 7,000sf home.    It's nestled by the trees and surrounded by lush greenery.

(Source: MLS)


Even the courtyards are cozy and make you feel at home.  Fingers crossed that this beauty sets the record for Valmonte!  It would be yet another example of how, I'll say it again, style matters!

Style matters.

Today, we learn a quick lesson: style matters.  Size doesn't.  And what better example of that than our famed Lunada Bay McMansion (See this post).  Remember this home, which I wrote extensively about, was listed initially for $3.8M>  It was then reduced to $2.9M, then de-listed, then relisted at $3.3M, then reduced to $3.0M, then reduced again to $2.949, and yesterday, reduced again to $2.799M.

(Source: MLS)


If we do some quick math, assuming this property sells for asking, after the 6% realtor fees, Mulligan and Co. will net $2.63M.  Recall from my previous entries that Mulligan bought the vacant lot for $1.5M in September 2010.  Netting out the land cost, this leaves Mulligan with approximately $1.13M.  The house, which spans 5,576sf, cost in the neighborhood of $1.1-1.2M to build (based on average construction costs in the South Bay of $200/ft).  Thus, my guess is that the developer just wants to unload it as quickly as possible so he can free up capital for the house he's building right in front of it.  That house is below:

(Source: NJC)

So what is the lesson learned here? That style matters.  Building a massive tasteless home,where the siting of the house is off, makes absolutely no sense.  Had Mulligan focused more on the architecture of the home, the siting of the home and spent the incremental dollars to make the house feel more authentic and timeless, this home would have sold long ago at much more than the $500/sf it is currently listed at.  What never ceases to amaze me is how little importance developers place on architecture.  It matters guys. A lot. 

In an equally unsurprising update, Mulligan's other Lunada Bay listing on Chelsea Rd was recently taken off the market, site unsold.  Could have been leased, but more than likely it will re-debut again in a couple of weeks ahead of the summer.