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Great expectations

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eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

http://www.corcoran.com/property/listing.aspx?Region=NYC&ListingID=2286805

Other real estate dorks will remember this as the shell whose pointing looked like it was about to burst bricks all over Sterling Place just about a year ago.

It sold for the mid-$200k's sometime last year (a freakin' steal) and has been under renovation for a while. The result? A single-family townhouse going for almost $600 per square foot.

Now, there's not a whole lot of single-family townhomes in the area, and they do (surprisingly) command a premium over multi-family homes in terms of square footage. And this renovation does look pretty good. But the asking price seems pretty optimistic to me.

Thoughts?

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

Note the "two kitchens" -- this is a potential (illegal) two-fam masquerading as a single-fam.

The developer is definitely keen on flexibility. Not too surprising for a flip.

"The home has central AC, an extra large hot water tank,security system,many overhead lights on energy saving timers,& features found in better homes today."

LOL.

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

The asking is 1.1M. I wouldn't be surprised if it went for 950k.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

I would be. At $950k that's still $500/square foot. A buyer would have a very hard time convincing a bank to lend even that sum given neighborhood comps.

578 Sterling, which is a block away in the right direction, is a slightly smaller single-fam. It's presently listed for $520k and has no takers in the past 90 days. Sure, it needs a reno, but $200k of work would turn it into a pretty posh pad, and the lot is 50% larger than 662's.

I'd peg the value of 662 at around $800k, tops.

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

You are assuming the buyer is a first time buyer, and needs a large mortgage, and -hence- will not be approved.

Given your assumption, I concur with 800k.

However, if the person bought their first place in -say- 1996, and are now selling it to buy this one, they will have a lot of cash. Hence, they will not need as large of a mortgage and could pay more.

For the sellers sake, I hope there are lots of people like I describe.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

Having cash on hand is hardly an indicator of appetite to overpay for things.

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

True. But people did pay incredible amounts of $ to live in The Prosepect on Classon

I was amazed....

Hopefully this seller will figure out where The Prospect buyers came from...

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

BTW, the one whose prediction ends up furthest away from the actual selling price owes the other a beer.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

Ah, but that's exactly the point. The penthouse at The Prospect sold for $1.1m, and at 2700 square feet was substantially larger than this house. That comes out to $407/square foot, and you get a brand-new building with views of Manhattan and no need to do maintenance. It also came with a parking spot.

At $407/square foot, 662 Sterling would be $773k.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

whynot_31 said:
BTW, the one whose prediction ends up furthest away from the actual selling price owes the other a beer.

You're on

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

Ah, but you have to factor in the Brownstone Factor.

People love having a thick, brick wall between themselves and their neighbors. They love being able to say, "I didn't buy a condo, I bought a Brownstone. It has a back yard where the kids can play, I can garden, and we can BBQ".

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

Well, it's not a brownstone. It's a brick townhouse, with a bulging pointing.

That said, I totally agree with (and practice) the benefits of townhouse living. But the market is the market, and the comps just don't stack up.

# Posted 3 mos ago
arches
above average
Joined: Aug '07
Posts: 810

eastbloc said:
Note the "two kitchens" -- this is a potential (illegal) two-fam masquerading as a single-fam.

Where's the second kitchen?

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

Someone has to have the most tricked out, move in ready house on the block.

A friend flipped a place in 2007, and the buyer remarked that he loved the house because it already had speaker and ISDN wiring installed. Cost: About $500 to install during construction.

People who have wanted a "brownstone" their entire lives, and who don't have $ to compete in PH and PS might be willing to "settle" for CH if the house is so renovated that they don't have to do anything but hire a painter. ....this might fit the bill.

Also, the two kitchen thing might make some people willing to pay a premium (such as our Orthodox friends, or someone who likes to entertain). ...For some reason, I don't the buyer will be a family with kids.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

Arches-
I just got back from the open house. Both kitchens are in the same room, the second kitchen is located on the central island. Kosher ready.

The developer planned to live there, but is now selling it once it is complete. S/he converted it from a two family to a one family; it would take lots of work to make this a legal two family again.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
vaportrail
rookie newb
Joined: Oct '09
Posts: 44

There is nice basement space not counted in the 1,900 SF. There is a large family/rec room, a full bathroom, and a small room. The total SF is closer to 2,500+ but the basement cannot be counted in the SF total.

in the thick of it

# Posted 3 mos ago
whynot_31
Former Lurker
Joined: Mar '06
Posts: 12,754

The more I think about this home, the more I think I would spend my fictional 1.1M elsewhere. There are a lot of row houses in PLG that are about the same price.

Granted, they are further from a commercial strip, but they are on intact blocks of owner occupied row houses.

I am told one can respect the beliefs of others, without ratifying them.

# Posted 3 mos ago
eastbloc
comprador bourgeois
Joined: Jul '09
Posts: 547

Looks like it's off the market -- link is dead, listing doesn't show up anymore.

# Posted 2 mos ago

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