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April 14, 2008
Houses of the Day: A Couple of Price Cuts
A couple houses we've discussed recently were on the receiving end of some price cuts at the end of last week: 155 Warren Street, the swanky Cobble Hill manse with carriage house, and 150 Bond Street, the corner house with garage in Boerum Hill. 155 Warren started out at $8,750,000 back in October before getting reduced to $7,875,000 in January; now it's been chopped to $7,100,000. Hate to say we told you so. As for 150 Bond Street, it came out of the gate in early March at $2,495,000. As of Friday, it's asking $2,375,000. Seems like it's got at least another 10% to go to us.
155 Warren Street [Brown Harris Stevens] GMAP P*Shark
10% Off at 155 Warren Street [Brownstoner]
House of the Day: $8.75 Million in Cobble Hill? [Brownstoner]
150 Bond Street [Brooklyn Bridge Realty] GMAP P*Shark
150 Bond Street [Coldwell Banker]
House of the Day: 150 Bond Street [Brownstoner]
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Comments
Lots of other price chops happening in prime neighborhoods too. See 30 Orange, 106 Lincoln Place, 390 2nd Street, 466 13th Street, 146 Sterling Place, 193 Washington Park, etc.
However, I think this is more about these properties being very overpriced from the beginning, than about market softness.
Posted by: guest at April 14, 2008 1:35 PM
What's up with 150 Bond? Guy bought it last September (around $1.715 IIRC), and has gotten 3 permits since then with estimates totalling $450K (meaningless figure). The plan was to convert it from 2 unit to single family. Guts it, puts in metal studs, and voila, back on the market - ready for you to come in and hang the drywall. Bring you architect/contractor.
It's a nice prop, you won't find too many townhouses with a 3-stall garage - you also won't find a lot of 3 car famalies living in BH.
Anyone else think he'll get full price. With that quick of a price chop, I could see more coming (e.g., "motivated seller").
Posted by: BoerumHill at April 14, 2008 1:50 PM
The garage spots alone ahould be worth about $150-200K.
Posted by: guest at April 14, 2008 1:55 PM
150 Bond Street, a.k.a. "Housing Project Sandwich House"
Good luck Coldwell Banker, you're gonna' need it...
Trustfund Buyer: "Hey Buffy! We finally bought in Brooklyn!"
Buffy: "That's great! Where? How much?"
Trustfund Buyer: "$2 million. Where? Well, you know where the Wyckoff Projects are?"
Buffy: "Yeah, the ones where people are always getting shot and buying drugs?"
Trustfund Buyer: "Um, yeah ... there."
Posted by: guest at April 14, 2008 1:57 PM
Boerum Hill:
I don't think this guy will get even close to full price. I live around the corner, and I know how difficult parking is, but I don't think a three-car garage justfies an added $1m onto the price. Personally, if it were me, I'd rather have the yard and a one car garage.
I also don't know why these brokers continue to price properties while all doped up on Meth. If they did some comps, they'd see that a house of this size is $1.4 mil (max) right now.
I see more drops for this one because it was priced about $1 million too high from the onset.
Posted by: guest at April 14, 2008 2:02 PM
2:02/03: what is your comp for this place at $1.4m?
Posted by: i disagree at April 14, 2008 2:09 PM
Here are two guest comments regarding 150 Bond taken from the House of The Day thread on March 3rd. I think they are accurate.
The banks appraiser would discount the value of the property by applying a cost to cure (aka cost to make habitable), which in this instance probably equals $1MM+, to arrive at a value. I think that gets you to a number less than what the current owner paid to acquire the property a few months ago. The stage the project is in is the riskiest phase of any complete gut rehab because the property has less value then when the project was started. Current market conditions do not allow for the absorption of seller mistakes such as this.
There is no additional value added with the permits and demolition as the house is now a non-habitable shell. It worth slightly more than the land it is occupying, or approx. $200 per sq foot.
Posted by: guest at April 14, 2008 2:26 PM
if it were move-in ready, the price might be realistic. but this will require $300-500k of construction, bringing the price close to $3M and out of the realm of reason.
Posted by: z at April 14, 2008 2:27 PM
I fear I'm posting twice but my post below never appeared. Trying again!
Price drops from overinflated crazy asking prices is a different thing than price drops from recent comps.
Do brokers and sellers even LOOK at recent comps anymore? Funny, that used to be exactly how one priced a property. Price a tad over the closest most recent comp then let the buyers bid more for it and compete with each other, if it's really worth more than that. It's called a normal market, not the bubble market. Being able to sell at all puts us in better shape than the rest of the country. Why get so greedy? If you have to drop your price then buyers know they can negotiate you even lower. It's a huge mistake to overprice then have to drop the price.
Posted by: guest at April 14, 2008 2:28 PM
2:09/I disagree:
Here's my basis:
1) a similarly sized house recently sold on Wyckoff between Bond & Nevens for $1.35 (I believe). This house also had a cellar, where 150 Bond does not.
2) take a look at 160 bond (see the link)
http://www.brownstoner.com/brownstoner/archives/2008/04/house_of_the_da_476.php
This bad boy is move in ready and much less expensive.
3) see comments by 2:26 and 2:27
Posted by: guest at April 14, 2008 2:39 PM
Existing comps and the work required to make this livable suggests a minimum of 1.7 and a maximum of 1.85 for this to make any economic sense.
Posted by: crouchback 2 at April 14, 2008 3:54 PM
2:40x4: unlike the other bond st and wyckoff, this is a corner property, with multiple exposures, full depth if you want it and legal curb cuts if you don't. and it does, in fact, have a cellar. and it's just a little farther from the pj's if one cares about such things. i find 2:26 and 2:27's comments more relevant, but neither of them is suggesting $1.4m is the right price.
Posted by: i disagree at April 14, 2008 4:42 PM
i agree with i disagree. $1.4m is definitely the wrong price. 3:54's range seems about right -- i'd put it at the higher end.
Posted by: z at April 14, 2008 5:23 PM
5:23 - i'd put you at the higher end.
Posted by: guest at April 14, 2008 5:48 PM
This is ridiculous. I realize that you white folks really donot want us blacks or hispanics no where near you guys. Damn Brooklyn has lost its uniqueness becuase all there is are homogenous flocks of white folks.
Posted by: guest at April 14, 2008 7:19 PM
This is ridiculous. I realize that you white folks really donot want us blacks or hispanics no where near you guys. Damn Brooklyn has lost its uniqueness becuase all there is are homogenous flocks of white folks.
Posted by: guest at April 14, 2008 7:20 PM
7:20PM I know we multiply like flies. The problem is y'all always are too cheap to buy in early.
Posted by: guest at April 14, 2008 8:38 PM
The guy who mocked yuppie fear of the projects sounds like he's really just masking his own covert race fear. (and betraying his utter ignorance of what actually goes on in the neighborhood)
The projects! Oh my lord, black folks in large numbers!
It's 2008, dude. In a reference somebody who's apparently seen too many old Spike Lee movies should recognize, you need to wake up.
Posted by: guest at April 15, 2008 2:05 AM
2:05, who said projects = black?!
You racist S.O.B.!!
-Buffy
Posted by: guest at April 15, 2008 11:19 AM
2:05, who said projects = black?!
You racist S.O.B.!!
-Buffy
Posted by: guest at April 15, 2008 11:22 AM
learn to read between the lines, Buffy! What do you think "covert" means?
Posted by: guest at April 16, 2008 4:56 AM
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