Report: Bidding War in the South Slope

well, another comp that will value my home at $2M

Posted by: guest at November 8, 2007 10:58 AM

See if an contract actually gets signed.
Over a mil for a frame house? All you bidders just got played.

Posted by: guest at November 8, 2007 10:59 AM

1.25 million is still a rather good deal for this house and location.

it's a nice 1 bedroom on the upper west side.

Posted by: guest at November 8, 2007 11:06 AM

Insane, over $1000 psf. And that's for a house that even the broker says "needs a little TLC." It's only 1200sf (plus basement) so the options are massive extension in the back, or tear down. Can't build up on a frame house. I don't see anyone spending the money on those options after paying that price psf. I agree, the contract won't be signed at this price.

Posted by: guest at November 8, 2007 11:07 AM

Looks like Corcoran went all out on the description and photos. NOT.

Posted by: guest at November 8, 2007 11:10 AM

insanity to pay that much for a crappy wood frame.

Posted by: guest at November 8, 2007 11:12 AM

You think out of 10 offers, none of those will sign a contract.

That is one of the most idiotic statements made on here.

Obviously people wanted this home, thus the bids over ask. You can say how overpriced it is till you're blue in the face, but it's not overpriced if someone buys it.

It's gotten so bad that now the bitterness has moved into full on denial. Even when you hear about properties being overbid and bought, NOW you are saying no one will sign the contract.

Do you have any idea how ridiculous that sounds?

Posted by: guest at November 8, 2007 11:18 AM

Anyone know if this is set up as 1 or 2 family? Listing says 1 family, property shark says "two family converted from one family."

Posted by: guest at November 8, 2007 11:18 AM

There was a nicely renovated house on 12th street between 6th and 7th sold by A&H for 1.25 (maybe 1.275). I live on 11th, and the house faces mine across the backyard. The house was 17x30 - the owners GUTTED the new reno and extended the house by 20 feet in the back, all three floors.

Posted by: guest at November 8, 2007 11:24 AM

I love these old wood frame houses.

So cute.

And the new Union Market is opening right around the corner from here.

Posted by: guest at November 8, 2007 11:26 AM

One...two...three. A three story woodie in Southie for $1.25M? Watching these fools pay these prices is like watching an Amway seminar. Very entertaining and very funny. God bless Corcoran and the seller.

Gimme more, brownstoner.

Posted by: guest at November 8, 2007 11:33 AM

The photos on Corcorans site look like the photographer tripped on the sidewalk, and as he was falling accidentally snapped 3 times.

Awesome!

Posted by: guest at November 8, 2007 11:36 AM

Southie. I like it. My grandmother was from Southie (in Boston).

Posted by: guest at November 8, 2007 11:36 AM

I like these wood houses too. But this one is small. Even if you add 20 feet to the back, you still only get 20x50x2. And you've paid close to $2M ($1.25M bid plus $500-$750K renovation all in). You're still talking $1000psf.

Posted by: guest at November 8, 2007 11:37 AM

Nothing accidental about those photos. Perfectly framed to obscure the low height of the building.

Posted by: guest at November 8, 2007 11:39 AM

These folks got sucked in by Corcoran. Are there so many stupid people. 1200 Sq Feet ? If it was 2000 sq ft maybe, but this place is as big a s a 2 bedroom w backyward. I recently saw a listing for a large 2 bedroom with terrace somewhere in Park Slope North for abt less than 800,000. Maybe they have money to burn, I dont know. For those of you who "lost" consider yourselves fortunate.

Posted by: guest at November 8, 2007 11:41 AM

This is a teardown folks, plain and simple. It's the 25 foot lot that makes it viable for condos.

Posted by: guest at November 8, 2007 11:44 AM

1200 Square Feet in Soho would cost around 3 million.

Posted by: guest at November 8, 2007 11:46 AM

this ain't no SoHo fool ... this is Southie.

wait, 1200 sf in Tokyo would cost ... SHUT THE F UP!!!!!!!!!!

Posted by: guest at November 8, 2007 11:52 AM

On a couple of occasions I have heard about the final accepted price. The total number of actual bids is alittle strange.

Posted by: guest at November 8, 2007 11:53 AM

11:46am,

That's not true. I live in Soho. You can still find stuff at around $1000/sq ft -- same as this wood house.

Sure Trump Soho, is a lot more, but it's an exception and provides five star hotel services, swimming pool, etc.

That place had to have been purchased for the lot. I smell condos.

Jake the Snake

Posted by: guest at November 8, 2007 11:53 AM

"Southie. I like it. My grandmother was from Southie (in Boston)."

If it weren't for Martin Scorcese, the term would never have entered my vocab.

Posted by: guest at November 8, 2007 11:54 AM

1200 sf in Alabama costs $150,000

Posted by: guest at November 8, 2007 11:55 AM

How bout "The Southie Trump"

Posted by: guest at November 8, 2007 11:55 AM

'1200 sf in Alabama costs $150,000"

exactly, but you have to live in Alabama

Posted by: guest at November 8, 2007 11:56 AM

"... SHUT THE F UP!!!!!!!!!!"

LOL

Posted by: guest at November 8, 2007 11:57 AM

Hello
I'm the winning bidder.
I am beginning to accept deposits on the condos that will be built here.

The What

Posted by: guest at November 8, 2007 11:57 AM

I give up. The prices are insane and getting worse. 1.25 for two stories in South Slope? I thought Brooklyn would be anice place to settle down but tell me, is there no room for some with their head screwed on?

Posted by: guest at November 8, 2007 11:59 AM

Southie Trump is a great idea.

Is it possible Trump is the buyer?

You never know!

Jake the Snake

Posted by: guest at November 8, 2007 11:59 AM

Watch the winning bidder and the 2nd and 3rd backup (if they exist) get cold feet and pull out.

Why not run a story about all the properties that have languished for weeks with no bid. One engineered frenzy doesn't mean anything other than people got played like a fiddle.

Posted by: guest at November 8, 2007 12:01 PM

Dat right, 12:01. Cancellations...that dreadful topic that escapes discussion...and government-reported sale figures.

Posted by: guest at November 8, 2007 12:04 PM

1. The tipster email was probably bogus--i.e., Corcoran or seller.

2. Even if it were real, it is a developer who will tear down and build condos--duh.

Posted by: guest at November 8, 2007 12:05 PM

Stop using the 1200 sq ft and using 1800 sq ft - because the 'basement' is living space - and quite legal. And compared to still getting the $1000sq ft in Soho - you can't add more sq footage onto that like you can here (and your monthly taxes are probably much higher)

Posted by: guest at November 8, 2007 12:07 PM

so all 10 offers were from devlopers?

you people are the most bitter bunch i've ever heard.

btw, a friend of mine was one of the losing bidders of this home. they are a couple, no kids. and not developers.

Posted by: guest at November 8, 2007 12:09 PM

And you can't have a HOUSE in Soho for this price.

That's the point. It's a free-standing home for 1.25 million dollars.

Posted by: guest at November 8, 2007 12:10 PM

$1.25 for THAT in today's market!?!?!? What a bidding scheme that broker devised.

Give it a few days...Let's see if the financing comes thru.

This is how the market got into the mess in the first place.

Posted by: guest at November 8, 2007 12:15 PM

This *does* look like it belongs in Southie.

Posted by: guest at November 8, 2007 12:18 PM

These woodframes burn down in a millisecond. Not a good investment.

Posted by: guest at November 8, 2007 12:20 PM

that looks like the house I grew up in. where is this park slope south?

Posted by: guest at November 8, 2007 12:23 PM

12:07, without floor plans you don't know if the basement includes mechanical/storage space or not. Anyway, who wants to live in the basement?

Posted by: guest at November 8, 2007 12:25 PM

12:10pm,

Very true. You cannot get a house in Soho for anywhere near 1.25 million any more.

But in other parts of Brooklyn, you sure can. I've owned and renovated a wood frame row house and I personally would be worried about fires if I lived in in one.

Sure, most houses in this country are wood frame, but they're not directly abbutting their neighbor's homes.

Of course, if there's an earthquake, wood frame is safer than brick, but what are the odds of that?

Jake the Snake

Posted by: guest at November 8, 2007 12:29 PM

Families might have been part of the bidding process, especially closer to asking, but I guarantee you this went to a developer. This only makes sense in the context of tear-down, build condos.

Posted by: guest at November 8, 2007 12:33 PM

I like this house. Let's see: I have a 3 bedroom in Brooklyn Heights that would get about 1.4ish. I could buy this, put 100k into it, and end up with a house in, yes, a lesser neighborhood but without my $1300/month maint. fees (and rising) and without co-op issues. Is it a lot? Yessss. But I see the appeal.

Posted by: guest at November 8, 2007 12:35 PM

You can put 100k into what? New windows??? Moron!

Posted by: guest at November 8, 2007 12:40 PM

This is idiotic. Tipster and those claiming to know a friend who put in a bid are definitely tied to the seller or broker. Pump and dump baby.

Posted by: guest at November 8, 2007 12:44 PM

A fire trap and a dump.

Posted by: guest at November 8, 2007 12:45 PM

I saw this place and had a good look around, then left when the agent started talking about "4 bids in already and best and final offers tomorrow". It will need more than $100K worth of work to make it a liveable 1 family. I would say it is too small for a 2-family (also did not see an entrance to the basement floor from outside, though maybe I just missed that). I'd estimate $200K minimum. None of the people I saw there were developers, all couples/families.

I think the reality is not that this is such a great house - it's small, ceilings were low, block is ok but not fabulous, school district is PS39 (again ok but not fab). But - there is just not a lot around out there at this price level, that is a real house. Plenty of condos and coops, but no houses. And I think the house thing has a lot of appeal for people. I would have been interested at the original price, but for $1.25, no way. There is no chance the house will be appraised for that amount, with the state it's in.

I do think the buyer (if they come through) should have paid more attention to the comps. A frame house sold a few months back on 12th St. betw. 6th and 7th (better block, better school district) for $1.175 - it was supposedly renovated inside as well.

Posted by: guest at November 8, 2007 12:46 PM

I would be interested to see what kind of condo project could be built in such a space, I live close to this house and it may be a deep lot but it's not very wide.

Posted by: guest at November 8, 2007 12:47 PM

I don't believe any of the offers were by developers.

I asked this question myself, and was told no.

1.25 for a home in Park Slope...even a small one is the going rate.

In case no one has noticed, lots of people really want to live in this neighborhood.

Posted by: guest at November 8, 2007 12:50 PM

Come on people--anyone can and does post on this blog. Does no one else think it's strange that the "tipster" included the names (correct spelling for the second dude and all) in the email? I wouldn't have. Fishy if you ask me.

Posted by: guest at November 8, 2007 12:54 PM

314 12th st - a true teardown 2 story frame on a 25x100 lot - was listed by Massey Knackal for $1.3M and went into contract in a matter of weeks.

So there's your comp.

Posted by: guest at November 8, 2007 12:55 PM

This ugly little frame house looks like its from the 1970s. There are cuter and more historical woodframe homes in the area. This is not one of them. Definitely a tear-down.

Posted by: guest at November 8, 2007 12:56 PM

12:50 - obviously, who wouldn't want to spend 1.25 mil to live in a smallish firebox in a neighborhood full of militant stroller pushers who don't care that you eat at the table at the coffee shop where they hang out all day on Sunday changing diapers? Where can I sign up?

Posted by: guest at November 8, 2007 12:57 PM

I wish someone would buy the ugly little frame house next to me and tear it down!!

Posted by: guest at November 8, 2007 12:58 PM

12:57 - Another jealous poster who can't afford Park Slope

I love the way you all think these wood frames are such a fire hazard. If they were that much of a problem, how come they have lasted since they were built in the 1900's?

Posted by: guest at November 8, 2007 1:00 PM

really, 12:55? Doesn't appear anywhere on their web site. Hmm.

Posted by: guest at November 8, 2007 1:04 PM

if it went into contract, it would no longer be ON their website.

lord you people are dumb.

Posted by: guest at November 8, 2007 1:07 PM

12:35 explains why people are bidding $1.25M and why it won't actually go to contract at that price (at least not for an owner occupant). Anyone who thinks this house only needs $100K work is the same person who would bid such a ludicrous amount.

Posted by: guest at November 8, 2007 1:13 PM

1:00pm,

Are you serious? Very few wood frame adjacent row houses are still standing in Brooklyn that haven't been butchered with sythetic siding and made to look like trailers.

Brick houses are much strong and much safer if there's a fire. 99% of townhouses in Brooklyn are made of brick, not wood, and it' not because brick is cheaper! It's much more labor intensive to build a brick house, but the payoff is enormous!

Jake the Snake

Posted by: guest at November 8, 2007 1:13 PM

Whitey Bulger bought it.

Posted by: guest at November 8, 2007 1:16 PM

I love the people who think this place needs 500-600k worth of work. You could spend 150-200 and make it great. I've done this kind of work on 2 brownstones now. For example, landmark windows this size run 1000 per. So that's 5k. (moron!)

Posted by: guest at November 8, 2007 1:18 PM

GHB, believe it or not, houses are going for around that in South Boston (note: I am not talking about the South End). My point is that the real estate madness is everywhere.

I wouldn't mind seeing a few Irish gangsters prowling around amid the strollers... spice the nabe up, a bit.

Posted by: guest at November 8, 2007 1:21 PM

1:13, if it went into contract, it would be on their website on their very extensive list of recent sales. Not there. Maybe you'd like to share your info source? I live one block over and certainly have not seen anything recently selling for this kind of price - not in teardown shape, anyway.

Posted by: guest at November 8, 2007 1:23 PM

1:18, I love the people on this site who speculate how much it would cost to renovate without having been inside it, let alone bringing an engineer or architect.

Posted by: guest at November 8, 2007 1:30 PM

I am 1:18 and I've been inside and I am married to an architect who was at the open house with me.

Posted by: guest at November 8, 2007 1:35 PM

Spending 600K on renovation of a 1200 sf house would make you a fool.

Anyone who thinks it takes that much money to renovate this space is beyond ignorant.

Posted by: guest at November 8, 2007 1:42 PM

I think people are confusing renovation with enlargement. 1:18, does your cost estimate include an addition? I'd guessing most people wouldn't pay over a million dollars for a 20x30 footprint on a 25x100 lot just to throw in a new kitchen and bathroom.

Posted by: guest at November 8, 2007 1:54 PM

the only ones quoting high renovation $$ are contractors and architects who want to jack up rates.

150K and thius house will be great

Posted by: guest at November 8, 2007 1:55 PM

Sky obscured by flying pigs

Posted by: guest at November 8, 2007 1:57 PM

Brooklyn Properties has a house right across the street for alot less. Needs a little bit of work. Check out their website.

http://www.brooklynproperties.com/house123.htm

Posted by: guest at November 8, 2007 1:58 PM

how is 999,999 a lot less than 959,000?

this house was for sale for 959,000.

nice try though, BP broker.

Posted by: guest at November 8, 2007 2:02 PM

A lot less in terms of there not being a bidding war. Don't work for BP either, but I got your attention, right?

Posted by: guest at November 8, 2007 2:06 PM

Nope. The house listed for BP is a dump.

There's a reason it has no bidding war.

Posted by: guest at November 8, 2007 2:10 PM

Posters touting brick brownstones as "safe" are deluding themselves. All of these old buildings are fire traps. While a wood frame is more likely to have a total loss in the event of a fire, everything except the brick shell of the brick brownstone will be just as toasted. If you get out of the place alive, all of your stuff is gone in either case. If you see a lot of merit in being able to rebuild in an existing burnt brick shell rather than starting from scratch, then bully for you.

Posted by: guest at November 8, 2007 2:19 PM

single family brick homes are a helluva lot safer than huge old highrises that make up the majority of this city's housing, if you're speaking about fires only.

get a clue.

Posted by: guest at November 8, 2007 2:21 PM

Michelle Williams was the winning bidder!

Posted by: guest at November 8, 2007 2:23 PM

I've dealt with these brokers before and they are very shady. They lie A LOT. There are some good brokers at Corcoran but these two ain't it.

Posted by: guest at November 8, 2007 3:07 PM

Hmmm, this whole story smells like an utter fabrication. But hey, if they were able to sucker somebody into that price for that house, then let us all raise a raise to the memory of PT Barnum.

Posted by: guest at November 8, 2007 4:12 PM

"I've dealt with these brokers before and they are very shady. They lie A LOT."

This is a VERY true statement.

Posted by: guest at November 8, 2007 5:46 PM

I am in total agreement with 3:07 and 5:46. Even their colleagues have problems with them.

Posted by: guest at November 8, 2007 6:16 PM

I don't trust those two from their mugshots alone. Whatever happened to combing your hair and washing the grease off your forehead, Wassim? My mother would never have let me walk out the door looking like that.

Posted by: guest at November 8, 2007 7:25 PM

So are they a couple? The dude's bio would suggest it, unless he's got a major crush and it's unrequited love.

Posted by: guest at November 8, 2007 7:36 PM

Some people sure pay a lot to live near latinos instead of black people.

It's the only explanation I can think of for the prices on these awful little vinyl-sider dumps in South Slope. None of which are landmarked (b/c they don't merit it) so there's always the looming threat some Fedders condo will be built right next door at some point. Some blocks are cute in South Slope, but they're scarce and this isn't one of them.

Posted by: guest at November 8, 2007 8:00 PM

1000 a SQ F is only relative to the existing house. How much for each buildable Sq. Ft is more relevant (If it were a Developer). If it were tore down completely and all the space were maxed with 6+ condos at a 1 Mil plus, it changes the equation.

Posted by: guest at November 8, 2007 8:48 PM

this house won't sell blah blah blah, it's overpriced blah blah park slope sucks blah blah blah the world is fucked blah blah it got 10 offers shoot me shoot me, none of them will go to contract blah blah my mother spanked me, who buys this shit blah blah blah 1200 sf is tiny blah blah blah, i'll sit here in my pjs whining i never bought anything kill me now.

Posted by: guest at November 8, 2007 9:32 PM

$1.25 million for a tiny piece of shit ugly house. I'm taking the limo ride to NJ:
http://www.therealdeal.net/issues/November_2007/1194214265.php

Posted by: guest at November 8, 2007 9:46 PM

that article about new jersey only made it sound worse.

i can't believe how poorly it was written.

a pretty desperate attempt by new jersey brokers to try to help their failing market and state economy rebound. they have horrendous taxes and the state is nearly bankrupt. 3 years ago it was the wealthiest state in the country, and since it has fallen behind both maryland and connecticut.

not really a good situation over there right now.

there are more things to life than having a larger house.

Posted by: guest at November 8, 2007 10:19 PM

Prices are just as high in other cities...

San Francisco

WHAT: An alcove studio with one bath in the Beacon, a mixed-use apartment building with 598 units and a Safeway, Starbucks and Borders on the retail level.

HOW MUCH: $499,000

PER SQUARE FOOT: $831

SETTING: Within walking distance of the financial district and a block from AT&T Park, where the San Francisco Giants baseball team plays; near to public transportation.

COMMON SPACES: Tiled floors in the kitchen; carpeting throughout the rest of the space.

PERSONAL SPACES: A bedroom nook off of the main room.

OUTDOOR SPACE: Landscaped grounds and a central dog park.

AMENITIES: A pool, fitness center, business center, media lounge and concierge. Private parking in an underground parking lot is $100 a month.

TAXES AND FEES: $6,000 a year; condominium fee: $560 a month

Posted by: guest at November 8, 2007 10:28 PM

We bought our apartment years ago from a broker who I swear stoked a bidding war. I can't complain too much since, like everyone who bought a while ago, the value has gone way up, but I really think to this day we were possibly lied to in order to get us to raise our price. I think buyers can make the mistake of showing their cards and getting too excited, and unscrupulous brokers can take advantage of that. That said, I, like others on this post, think this whole story sounds a bit fishy and fabricated. By the way, I saw the Brooklyn Properties house and it is a total dump - you are paying strictly for the location which granted is a good one, but it's hard to imagine someone other than a developer taking this on (and how many more new condos can be slapped together?). I really think we are seeing the last gasps of an unsustainable market that will not tank (too little inventory for that) but will definitely cool off.

Posted by: guest at November 8, 2007 11:02 PM

10:28 - I have family in the Bay Area, and despite your post, prices are definitely cooling there as they are in other markets that were recently as "hot" as NYC - Boston, Miami, etc. New York will not stay immune forever - the economy is too volatile now for it not to have an impact here eventually, and already some houses that are over-reaching (601 President, anyone?) have had to have drastic price cuts, and still aren't selling.

Posted by: guest at November 8, 2007 11:04 PM

Dude--look at all the amenities you get with the San Francisco apartment!

Posted by: guest at November 8, 2007 11:10 PM

"6+ condos at a 1 Mil plus"

Except NOBODY is paying those kind of prices in that area. None of the condos that are already built are moving in the south slope.

Posted by: guest at November 8, 2007 11:59 PM

I love these posters who compare a suburban NJ house with a Park slope townhouse. Sure the NJ house is $700K and the PS House $2.0 mm. What about the fact that the PS townhouse has 1-2 rental units that will generate $30-$60K of income that will service $500K-$1.0 mm of mortgage today. That rental income will double over 10 years and ultimately will sservice the mortgage by themselves leaving the owner with free housing for themselves.

Posted by: guest at November 9, 2007 9:53 AM

I'm 12:55 who posted about the other comp. If you want to see it, go to http://www.masseyknakal.com/search/search_frame_top.cfm

select brooklyn, then park slope. It's in the list and shows as being in contract. Here's the direct link to the setup (which isn't marked as being in contact, they disable the link once it is) http://www.masseyknakal.com/buildingphotos/314%2012th.pdf

Posted by: guest at November 9, 2007 10:13 AM

One thing that NY has going for it is the large number of foreign buyers. I live in Cobble Hill where nearly 1/5 of my daughter's PS29 class is from the UK so I knew Brooklyn was on these buyer's radar. Still, I assumed this was mostly a Manhattan condo market thing.

So I was shocked when I sold our cobble hill co-op recently. We thought the broker was reaching but we had 3 full-price offers after one open house, 2 of the were all-cash, and all 3 were foreign buyers. When the dollar is this low, our real estate is still pretty attractive to people coming here to work and selling a place in Euros or making their salary in Euros or Pounds.

Posted by: guest at November 9, 2007 10:21 AM