100 west 5th street, 3G, lONG BEACH, CA 90802

Provided by The Whipple Group

Thank you for reaching out today.

I wanted to put my thoughts in writing to align with the proposal below and give you clear context around what I am seeing in the loft market and how I would approach your property strategically.I remember when your loft came on the market, right around the same time as my fifth floor listing. You initially listed at $699,000, which I believe was high. In this market, it is extremely easy to overprice a property, and lofts are particularly sensitive to that mistake.

I sell a significant number of downtown lofts and have for many years.

Over the past two to three years, the loft market has struggled more than most segments, largely due to affordability. At its core, a loft is an expensive one bedroom home. With elevated interest rates and higher price points, lofts feel the squeeze faster than traditional condos or single family homes.

Lofts are also a niche product. They typically attract dual income households without kids or single income buyers without kids. That buyer pool is already smaller. While hard lofts have qualities that make them special limited supply, architecture, character, and uniqueness they are still condos, which means higher interest rates than single family homes. On top of that, buyers today often offset affordability by taking on roommates, which simply is not realistic in a loft layout. All of this reduces demand.

Because of these headwinds, pricing and presentation matter more than ever.
Unit 5A sold faster than I expected. That was the result of a very specific combination of strong pricing, elevated presentation, and targeted strategy. I want to be clear that I would be surprised if another loft moved that quickly. We can absolutely aim for a strong and efficient sale, but I do not want to over promise and under deliver.

Here is what I see with your unit specifically.

• The unit originally came on overpriced, which hurt its first impression. You only get one true launch window. If you miss it, you are chasing the market instead of letting the market work for you.

• Facing Pine is both a positive and a negative. The views and windows are interesting, but Pine is noisy, especially on a lower floor. That noise will be a deterrent and needs to be accounted for in pricing.

• The brick, layout, and separation are strong. It shows well conceptually.

• The mini split is a major plus. Very few units in the Kress have this, and it is a real value add.

• The kitchen and lighting upgrades are meaningful and differentiate the unit from builder grade inventory.

• The photography did not do the unit justice. This is an area where we would significantly elevate the presentation using architectural grade photography and more intentional visual storytelling.

Presentation and exposure are critical. We market lofts directly to a large buyer pool in our database who already associate us with this product type. We also use paid digital and social advertising to reach the exact demographic that buys lofts. The goal is maximum exposure to the right buyers, not just passive MLS traffic.

From a pricing standpoint, here is how I would position it.
• You originally listed at $699,000, then reduced to $649,000.
• My fifth floor listing was smaller, not on Pine, and sold quickly after being listed at $659,000 and closing at $625,000.
• Your unit is slightly larger, but Pine exposure is a real detractor. The mini split helps offset that, but not completely.
• Based on current market behavior, I would expect a realistic 45 to 60 day timeline when priced correctly.

My recommendation would be to re-list at $635,000.

I know that is lower than where you are now, but it is far easier to overprice than to underprice. In reality, it is nearly impossible to underprice a well positioned listing. If we are in the sweet spot, the market will respond. Buyers will come. Activity creates leverage. The market will push the price to where it belongs.Pricing high does not give you room to negotiate. It removes you from consideration entirely.

If this were my property, I would relaunch at $635,000 with elevated presentation, targeted exposure, and a clear strategy that leverages the current tailwinds of improving interest rates and growing buyer confidence, while acknowledging and pricing around the real headwinds of affordability, a limited buyer pool, and condo hesitation.

I am sending you a packet in the mail so you can see the caliber of how we present our listings.

Everything outlined here is detailed further below so you can review it clearly.

That is exactly how I would approach this if I were representing myself.

Thank you again,

Beatrix Whipple
CEO & Realtor of The Whipple Group
562- 972-4336
Beatrix Whipple Lic#01355505 | KW Pacific Estates Lic#01917184