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  • Incredible…much nicer than those 300 block Stuyvesant Ave homes that sold for $1MM +

  • Amazing. I’d love to see pix of the rest of the house.

  • Between Lewis and Stuyvesant so prime Stuy Heights location.

  • Excuse me, while I wipe the drool off my monitor.

  • Wanted: Sugar Daddy
    This cute lady will do just about anything for a house with inlaid floors and wainscoting

  • Good location, landmark block, beautiful home.. This is still very cheap…

  • I was going to ask this in yesterday’s HOTD, but got sidetracked.

    if someone is buying a home, say this one or yesterday’s HOTD, the traditional way. You know, 20% down and a mortgage. Are the banks appraising them for these prices?

      • I know this ONE was all cash.
        I’m asking IF one takes out a mortgage, are these houses (and the ones further east) appraising for this much?

        • not sure about new mortgages, but friends/neighbors refi-ing in PLG are all getting their desired appraisals. e_t, there’s a house here that just came back on the market, not sure why the deal fell through: http://realestate.nytimes.com/sales/detail/11580-S9033815/BACK-ON-MARKET-180-Sterling-Street-BROOKLYN-NY-11225

          • 180 Sterling was an immediate flip – the first contract fell through when it turned out that the deed of the flipper’s purchase hadn’t even been recorded yet (meaning that they legally didn’t have the right to sell it). Check it out on ACRIS – the deed (for $350K!) wasn’t recorded until March 18, although the house was listed for sale (and with an accepted offer) before then. It was an estate sale; the flippers have done nothing with it beyond clean out the former owners’ possessions (“bring your architect”). Nice way to make $500K overnight.

            Well, no wonder – that absolute wreck of a house at 279 Lefferts Ave had over 100 people at the first open house and was in contract within 10 days – probably all-cash as well, as it’s in such a state I doubt banks would lend against it.

          • “probably all-cash as well, as it’s in such a state I doubt banks would lend against it.”

            I wonder if that’s the case with lots of cash deals.

            Why do people pay all cash? Even if they have all cash, I would think they’d take advantage of the low interest rates and invest the cash and make more $$$.

          • 1) Because credit is really tight 2) If you have all the cash and still have enough left over to live comfortably, it makes more sense financially (you’re not paying interest that you’re never getting back) 3) And the competition right now is so fierce, that’s all people have to go on. 4) Investing the cash is paying all cash for a place, and the stock market will inevitably get woozy and you can never guarantee that return in the market (again, you’re paying interest.)

          • 1) Because credit is really tight

            for people like me.
            But if someone’s got 1.8M in cash and then some, I’m sure they wouldn’t have a problem getting a mortgage.

            2) it makes more sense to me if I had the cash, to take a mortgage at the low rate and invest the money with a higher (than the mortgage) return rate.

            3) makes the most sense as to why people offer all cash. THEY WANT THE HOUSE and there’s lots of competition.

          • A lot of all-cash sales lately are also foreign money. I’ve done sales in the past year with money from Israel, Switzerland, and Italy, and I know there are also a lot of Chinese buying all-cash (though mostly condos in Manhattan). NYC real estate is seen as a very safe investment, much more so than in Europe and Asia right now.

            But #3 is the best answer in most cases – as late as last October you could still get a place for under ask with all cash, but now you need to offer ask just to get invited to the best and final, cash or no.

          • And where are you going to get a better than 3.75% return these days anyway? That’s also what’s spurring all-cash sales – you can’t invest in something with that kind of return, unless you’re willing to take more risk than is currently perceived in the NYC real estate market.

          • LOL…there’s just as much risk in the NYC real estate market as there is in the stock market over a 20-30 year mortgage “timeframe.” If the stock market corrects sharply and for a year or two, so too will real estate.

            Andf yes, you can find a lot of things that are relatively safe yielding >3.75% in the market

          • Of course, you can’t live in your stock portfolio, and your mortgage payments will not change, regardless of what happens to your stocks.

          • That statement misses the point entirely.

          • What point is that? If the economy tanks, your stock portfolio collapses, and you lose your job, you’ll still be on the hook for the mortgage or face foreclosure. If on the other hand you don’t have a mortgage you won’t have those worries.

            Or maybe you have a lot of money now, but want to do something different with your life, such as quit that high-paying but oh-so-stressful job and don’t want to have to worry about paying a mortgage every month.

          • Ummmm…that was the pointof the discussion of the interest rate differential…the cash can be invested in interest bearing stocks that are yoying you MORE than what the 3.75% mortgage is costing you. That’s what “positive cash flow” means

          • They are not paying you more when you consider that you will pay income taxes on dividend and interest income, whereas without a mortgage you will have rental income (assuming it’s a multi-family house), which will be sheltered from taxes by deduction of expenses, some of which are non-cash in nature or would exist in any case (liek a portion of real estate taxes, maybe not even normally deductible to someone in the AMT).

          • And even if, as DIBS says, you could construct a low-risk portfolio to achieve that return, it’s still below what you’re earning in rental income if you buy a house with rental units (like 341 Hancock, which wound up with multiple all-cash offers over ask), while also shielding that and, potentially, part of your other income from taxes, after deducting expenses (including depreciation, a non-cash expense) from that rental income.

          • 180 sterling immediate flip incense me!

          • Babs, any idea if there are offers on the big-ticket places in PLG (like that $1.7M place on Maple or the $2.1M place on Rutland)? There’s so little inventory now. I saw the place on Chester sold for near ask.

          • No idea on 79 Maple – it’s priced so high none of the buyers I’m working with now even were interested in a look. 36 Rutland needs several hundred thousand of work for most peoples’ tastes (or so I overheard at the open house, although it’s perfectly livable as is), but I imagine there are offers on it at something below ask. 201 Ocean could be an amazing house, but it needs a lot of work to make it habitable as well – but its size and location would make it a well worth over $2 million when you were done. There were several other buyers there when I showed it, but they all seemed rather unsophisticated and unfamiliar with the neighborhood, so not really aware of the house’s potential. I hope someone with deep pockets buys it and restores it to its former glory – the details are there, just covered up with years of dirt and paint. Needs a new boiler, new electric, new plumbing, kitchens, and baths, and probably a new roof as well.

          • PS That terrifying wreck of a house at 352 Parkside (looked like something out of Hoarders) sold for $875K at the end of last month, after asking $729K. The buyer was able to get a mortgage for $656K, so I guess it appraised – I’m stunned. It had severe structural damage, as well as being an overall mess. I heard Chester went for over ask – checking now.

          • Chester went for $928k, ask was $989k. And it’s going to have a 23-story building site in its backyard soon. But curious your thoughts on other PLG places on offer. Have you seen the Parkside Court place? Or 200 Fenimore? I’ve got friends looking in the neighborhood, but they’ve had no luck.

          • Didn’t see Parkside Court, but was told there’s an accepted offer. 200 Fenimore IMO is overpriced given that it’s a frame house, not in the HD, and directly next to a church that several years ago expanded to cover up the original details and cement over the entire front yard, now used as parking and drop-off for churchgoers.

          • The owner bought 200 Fenimore in 2007 for $925K and has just over $800K in mortgages. I’m told the church is part of the reason she’s selling – was waiting for the right time. The dangers of not living in a HD.

          • What about 201 Ocean? Seems like a bargain for an HD place right on the park, but maybe the train in the backyard is keeping buyers at bay.

          • See above – it’s a wreck inside. Needs extensive restoration and all new mechanicals. But, for someone with the money to do all that, it will be a gem. But definitely not liveable as-is. People get used to the train, although it is a disruption.

          • ah, thanks Babs. I’d missed your detailed response above. Hope someone fixes it up right. I’ve been into the one in that Ocean row that’s on the house tour, and it was amazing.

  • PS has it at 4,140 sq ft so it’s going for $422 psf…VERY CHEAP. And taxes are $4,666.

  • Mine appraised out OK a year ago. I was worried then thast it wouldn’t. Given what has sold for $1MM or close to that I think this will be fine.

    Anyway it was all cash supposedly so no appraisal necessary.

  • Looking at the floor plan now.
    oooh, what I can do with this baby.

  • expert_textpert, I am waiting to see what happens with the listings further east in Bed Stuy. There is one house on Decatur in contract that was listed at $675,000 but to my knowledge it hasn’t closed yet. But there are other comps in that range in the east already…depends on where exactly you look.

  • That’s some of the most ornate woodwork I’ve ever seen. The stained-glass screens in the arch are bananas. If the systems are upgraded, this is a good price. In PS this would be $4M easy.

  • Magnus Emil Dahlander was the man!

  • All of Dahlander facades are different all over Brooklyn. I have never seen two that are just alike done by him. He was not a lazy architect at all! To only lived in Brooklyn for 8 years he worked very hard it seems. He is clearly the architect (along with his buddies F. B. Langston and Axel Hedman) that makes Prospect Heights, Crown Heights, Stuyvesant Heights and North Slope look so beautiful!

  • 286 Macon Street just sold for $1.475. It doesn’t seem nearly as nice as this place.

    • 286 Macon hurts. That group of houses was built for the church and also designed by Houghton who was the architect of Our Lady of Victory. 286 Macon had a lot of detail but the developer owner wanted it all of it out. It seems like these guys are allergic to historic detail or something…

      • The developers are purchasing alot of these houses without even seeing the interior. They are only interested in the location of the shell–the margin is much more compelling to them without negotiating the old charm.

        And buyers appear more than willing to forego the charm these days. Incidentally, 286 was sold one developer to another as a rental investment.

  • They specify all cash or, more appropriately, no mortgage contingency to get the property. Any seller is going to accept that over an offer with a mortgage contingency, all other things being equal.

    That doesn’t mean they won’t get a mortgage or already have one linbed up at closing. But, if something goes wrong and they can’t obtain the mortgage and can’t buy the house, they lose the deposit.

    I regularly bought with no mortgage contingency but closed with a mortgage but that was in the days when mortggaes wre pretty much a done deal given credit, numbers, etc.

  • Actually, prertzel, where rates are currently it makes total economic sense to get a mortgage. They have never been nor likely ever will be this low again in most of our lifetimes. Plus, you can invest the money not spent on the all cash purchase in MANY fairly safe (certainly over the life of a mortgage) types of investments at HIGHER RATES OF RETURN.

    We can debate all day long whether the stock market will go up or down but that doesn’t negate a well diversified portfolio of securities and funds that will yield you more than the interest portion of the mortgage payments, otherwise known as an economic return and positive cash flow.

    You can “lock in” returns higher than mortgage rates and, if diversified, there’s very little risk in them. yes, there’s risk in the capital but over a 15, 20 or 30 year mortgage, not really. I can construct this portfolio for you.

  • Wow, what an absolutely gorgeous house. I know envy is a sin, but I’m simply sinning right now. The carved wood in the second parlor is jaw dropping. and the stained glass is just beautiful. It’s amazing it was never painted.

  • This is very similar to my house. Almost exactly the same layout with very similar details and woodwork. I’m thanking my lucky stars I closed just before the market got crazy or I would be belly aching like nobody’s business. Are the kitchens and baths updated? Central Air?

  • ” it appraised for sale price. Appraiser said we were getting an “amazing deal.”

    This is why the appraisal process is still so f&^cked up. If he thought it should appraise out higher then it should have.

    • Agreed. Don’t think I’ve ever seen an appraisal come in higher than ask (in my experience). Even what we sold in South Slope appraised at ask. A higher appraisal might have helped us avoid a switch to an FHA mtg. If prices keep raising though, hopefully we won’t have trouble refinancing to a traditional mtg.

  • I went to the open house. The details are exquisite and the house just goes on and on. You could stable a horse in the cellar. The owner is a tiny, fierce 80 year old woman and she is thrilled with her realtor for getting this price. Evans and Nye deserve a shout out here IMHO since they are local realtors – Ban Leow 917-607-3838

  • Wow…Congrats Ban Leow! A class act always. A job well done.

  • Oh to have that much cash laying around… I am clearly a simpleton, because I really can’t grasp the concept of having access to that much cash. Glad we bought when we did, since people like me will never stand a chance if things continue like this.. Having said that, beautiful house. Hope whomever bought it keeps it intact.

  • Rental income will be taxed at ordinary rate(to the extent there is an accounting profit which is unlikely). many dividendsa re qualified dividends and taxed at a much lower rate.

    The deductibility of the mortgage interest against the income and against your taxes for your own unit EVEN MAKES IT MORE ATTRACTIVE.

    Of course tax bracket determines a lot of these BUT it is simple mathematics that if you can borrow at 3.75% and you can earn a higher aggregate yield in the market (you can) then you do it. The deductibilty of the interest makes it even more attractive. I hope you are not arguing that isn’t correct. You seem slightly confused on that issue.

  • Glad to see Stuyvesant Heights is getting some love!