PLG Home Sells Over Ask

This fall we wrote up 292 Sterling Street, a two-story landmarked brownstone in Prospect Lefferts Gardens, as House of the Day. At the time it was asking $880,000. A broker involved with the sale reports that the house closed in December for $895,000, $15,000 over the asking price. The home received multiple offers. Reason enough to be bullish about the PLG housing inventory, especially the brownstones right next to the park?
House of the Day: 292 Sterling Street [Brownstoner] GMAP

18 Comment

  • Judging from the traffic at an open house down the block last weekend…

  • More thoughts. Tough exit for the buyer. I don’t know who the target seller is after new bank rules clamp down on jumbo loans starting Jan 2014. Rich who can afford $1mn+ still prefer Park Slope. After you factor in transaction costs in and out, this thing will need serious appreciation to make sense esp since rents are falling in Brooklyn. Bubble = when math fails?

    But if you stay it in for a long time and love brownstones, make sense.

  • I’m getting confused. Is “this thing” the Sterling Street house, 611 Macon, or some other place?

  • Difference is that one’s a gut. The place never saw a renovation in its life and is falling apart. It even comes with an antique furnace wrapped in asbestos in the cellar…

  • Rents aren’t falling, the rate of increase is slowing slightly, after years of record runups–and that could be due to a surge of buyers leaving the rental market. This per Jonathan Miller:

    $1m, unfortunately, will not buy you anything like a house in Park Slope. Certainly nothing with potential rental income.

    • Bobmarvin: 611 Macon’s a dump. Heard about Sterling from a contractor friend who popped in and fled from the cellar.

      Fred, good point on y-o-y small increase. Still, q-o-q’s important. We’ll see what 1Q brings.

      You can see the supply coming for rentals as more and more SF brownstone get Massada-ed and converted to 2/3 family. Also, a walk around BK will show all the new rental buildings coming up.

      Point is if you buy these dumps at $850K, reno for $150K (and these places sound/look like they need it), you’re up to $1mn in cost. What’s the end game? Between taxes, commissions, and interest your gains are chewed up. You have to sell >$1mn to get a decent recent to compensate for an illiquid investment.

      I don’t mean you can buy an MF in PS, but you might be better off getting a <$1mn condo there for appreciation than one of these overpriced brownstones. Bad investments, unless you want to live in it. Intangibles like personal taste can't be quantified… :)

      Sorry if prior posts were confusing. Hope this clarifies?

      • Clarifies? You’re kidding, right? That last post is pretty much incomprehensible. The only thing that’s clear is that you don’t seem to understand that that someone might actually buy a house to live in, rather than flip.

        FWIW, my only interest is in the Sterling Street house, as an example of what’s happening in my neighborhood. The Macon Street house isn’t my concern.

      • BTW, if your contractor friend “fled from the celler of the Sterling Street house, why did you write earlier that it “needed minimal to zilch reno” and that the “higher price…makes sense”?

  • OK, there was one problem with the cellar and that was that the exhaust pipe from the furnace was detached from the wall and therefore capable of spreading CO throughout the house when the heat was on.
    And why? Because there was a chimney problem on the roof..

    This is why my people walked away and why the eventual buyers insisted that all be fixed before they signed the contract,. Good for them,

  • Oh, and PS this is nowhere near the park – it’s just off Nostrand.