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A unique mid-century modern home in Berkeley, California, designed by architect John Hans Ostwald, recently sold for $1.6 million, a striking 101% over its original listing price of $795,000. The sale, finalized after a competitive 14-day bidding war with 30 offers, highlights the powerful combination of architectural significance, pristine condition, and strategic pricing in a hot real estate market. This article breaks down the key factors that drove the premium sale price of "The Foley House."
The property's appeal was rooted in its architectural pedigree. John Hans Ostwald, who worked with notable figures like Richard Neutra, is known for a Swiss functional aesthetic that integrates a home’s ecology with its surroundings. The current owners fell in love with Ostwald's work after visiting a friend’s home he designed. The home had only one previous owner since its construction in 1963, who maintained its original historic charm with all period details intact. Key features include a hexagonal shape creating a natural flow with very few right angles, floor-to-ceiling sliders, an open-beamed hexagonal ceiling, and an original metal fireplace.
Beyond its architectural significance, the home offered rare physical assets not commonly found in the area. Its hillside location on a 6,072-square-foot lot provided panoramic views of the San Francisco Bay, including both the Bay Bridge and the Golden Gate Bridge. While many Berkeley Hills properties have partial views, full bay vistas are uncommon. Multiple balconies and terraces allow for enjoying this scenery. The home’s unique characteristics, however, made direct comparison to other sales challenging, a common issue with architecturally significant properties.
The listing agent employed a strategic pricing tactic common in the East Bay area. The initial list price of $795,000 was intentionally set as a "tease" to generate maximum interest. Based on our experience assessment, this strategy is often used for unique properties where comparable market analysis (CMA) is difficult. Public tax records also underestimated the square footage by about 500 square feet. The agent noted that pricing conservatively, rather than at the anticipated final sale price, helped attract over 1,000 open house visitors and 300 inquiries, creating a competitive environment that ultimately drove the price up.
The successful buyer's offer provides a lesson in making a competitive bid in a seller's market. While not necessarily the highest bid, the winning offer removed all contingencies, including the inspection and appraisal contingencies. The buyer also proposed using a bridge loan, which functions similarly to a cash offer. This made the offer particularly appealing to the seller because it eliminated the risk of the deal falling through due to a low appraisal. A bank will only loan based on the appraised value, and it is unlikely an appraiser would value the home at double its list price. This allowed the transaction to close in just eight days.
The sale of the Foley House underscores that in competitive markets, a home’s unique story and condition can be as valuable as its square footage. For buyers, being prepared to make a strong, non-contingent offer can be the key to success. For sellers of distinctive properties, strategic pricing to stimulate buyer competition can yield significant returns.
