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March 12, 2009
House of the Day: 557 7th Street
It's fair to say that the current owners of 557 7th Street got a good deal when they purchased this limestone house at 557 7th Street in Park Slope for $1,460,000 in 2006. According to the new listing, they've done some "updating" work in the meantime and are trying to fetch $2,200,000. Before they try to do that, they should try to get up some more photos; it's hard to tell from the one photo provided what the 16-foot-wide house is really like. Do you think they have a shot at getting this asking price?
557 7th Street [Brown Harris Stevens] GMAP P*Shark
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Comments
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Posted by: Nokilissa at March 12, 2009 1:18 PM
I will hold my comment until BHS can provide adequate photos.
Posted by: TownhouseLady at March 12, 2009 1:26 PM
The person who posted that picture made a big mistake. The floor plan looks great, but the picture tells a 1,000 words, and none of them are good. Better to have no photo than a lousy one, I think.
Posted by: homey at March 12, 2009 1:29 PM
No chance whatsoever. There are many far superior deals out there, and this house is very narrow.
I think everything is overpriced right now, but this place is overpriced even in comparison to the asking price of its direct competition.
Posted by: leftmanhattanneverlookedback at March 12, 2009 1:31 PM
I don't even get why Mr. B links to houses with one photo. Can't complain about much with nothing to see!
Posted by: denton at March 12, 2009 1:35 PM
Yeah, I would imagine that the market for folks who can afford to buy a one family house in this price range is pretty limited and even if there were qualified buyers I think there would be wider nice houses available. Sometimes you wonder what folks are thinking with asking prices and this is one of those times.
Posted by: wasder at March 12, 2009 1:36 PM
Should I comment of the floor plan? I see lots of room for improvement.
Posted by: bayridgegirl at March 12, 2009 1:39 PM
Nice looking house, 'park block', I'll assume zoned for good elementary school. If I owned it - I doubt I would ask less or sell for much less than this. And if any of the faultfinders club owned it they'd be asking 20% more.
Posted by: Petebklyn at March 12, 2009 1:50 PM
petebklyn--far be it for me to be in the faultfinders club. I just don't see a market for smallish one family houses in this price range. It looks like it could be a lovely house but I just can't fathom the price in this market. Hopefully they can hold onto it if they don't find a buyer.
Posted by: wasder at March 12, 2009 1:53 PM
I think it should be required for sellers like this to divulge their reason for selling....
... bought in 2006, renovated, and now selling? Why buy and renovate just to sell within 3 years?
And don't give me the job loss economy line. If they need to sell for financial reasons then they shouldn't have bought and renovated in the first place and should get back only the previous purchase price. Maybe +10% to be nice ;)
I'm in an angry mood for some reason....
Posted by: christopher at March 12, 2009 1:56 PM
In the olden days -- like last year -- I believed that asking below-market prices resulted in a bidding war and above-market bids in a single weekend. I did this myself twice with excellent results.
Now? Nobody wants to pay close to asking. So if I wanted $1.85, I'd put the asking price at $2.2. Maybe that's what is going on here. Nice house, great location, low taxes I'm sure, decent floorplan. 1.85 sounds like a good deal for buyer and seller. I have spoken.
Posted by: Ringo at March 12, 2009 1:58 PM
I's love to put my house on the market just to see the brownstoner commentary. It was HOTD about 5 months before I bought it and that was realy interesting to read.
Posted by: daveinbedstuy at March 12, 2009 2:01 PM
Christopher,
While I understand why you'd want to know their motivation is it REALLY any of your business?
Seriously, you either want the house or your don't.
Posted by: TownhouseLady at March 12, 2009 2:04 PM
Yeah Ringo, 1.85 I think that sounds like a reasonable estimate of what would get this place sold. Still a pretty decent sum!
Posted by: wasder at March 12, 2009 2:05 PM
almost 3000 sq ft. Plus sounds like a finished cellar rec room beyond that . I can't imagine any family feeling cramped in this space. Show me move in condition park block house that has sold for less than this.
We have seem plenty of these so-called 'very narrow' houses show up on Brownstoner - will all the wise-crack remarks and then sell for high prices.
Posted by: Petebklyn at March 12, 2009 2:05 PM
CHRISTOPHER "If they need to sell for financial reasons then they shouldn't have bought and renovated in the first place"
How are these people suppose to know that
and what is wrong with aiming high in the 1st place?
Posted by: dutchman at March 12, 2009 2:10 PM
Strange--BHS usually posts very good photographs; this one, apparently taken with an on-camera flash, should be an embarrassment.
Posted by: Bob Marvin at March 12, 2009 2:12 PM
Petebklyn:
There are many that sold for less. But that is history.
The point is, you can get a bigger house in an equivalent or better location RIGHT NOW just by paying asking price.
Sure somebody might be dopey enough to buy this for $2.2M (It's a free country) but that is not what the market is telling us.
Posted by: leftmanhattanneverlookedback at March 12, 2009 2:18 PM
That house is just full of meh.
Posted by: Xander Crews at March 12, 2009 2:21 PM
TownhouseLady,
It isn't any of our business. They'll ask what they want, take what they want, and sell for any reason they want. Doesn't matter to me.
I was just in a pissy mood when I wrote my original post.
Posted by: christopher at March 12, 2009 2:26 PM
It's practically adjacent (backyard-to-backyard) to 617 8th, a very similar-looking house. Yes, 557 7th is 20 steps closer to the park, and on a quieter side street, but my guess (based on the single interior photo) is that 617 8th has way more charm and detail, and they just lopped $200k off the ask.
http://www.streeteasy.com/nyc/sale/358633-house-617-eighth-avenue-park-slope-brooklyn
So, 557 7th for $2.2 or 617 8th for $1.99?
Posted by: infirm at March 12, 2009 2:36 PM
617 8th Ave is a good example of the price chops happening in prime PS. That house started at 2.595 a few months ago, got chopped to 2.195 and then just chopped another 200K to be below the $2mil mark at $1.99. And, given that no one want to pay ask, it will probably sell for a minimum of 10% below ask, assuming it does not have to keep chopping. This is why even nice houses in prime areas are not immune from the market collapse that is just beginning. This HOTD will likely suffer more before selling too.
Posted by: Miss Muffett at March 12, 2009 2:59 PM
Dave, can you link to your HOTD? I'd love to see it. Did everyone make a lot of rude and ridiculous comments about how it was in the "ghetto"? Before people had to register, it seems there was a lot of that. (Now we just hear it from the aptly named Corner.)
Posted by: mopar at March 12, 2009 3:03 PM
Hi there, mopar. Per 617 8th Ave, now do you see why my thinking is not "magical" that prices are coming down on houses in prime areas? This is just one example - they are growing day by day...
Posted by: Miss Muffett at March 12, 2009 3:08 PM
well, it looks like Corcoran is having open house for both this one and the 1 on 8th avenue. No pics yet on Corcoran site.
So - someone report back on how they stack up against each other. Corcoran also seems to have another listing on 8th street I think for $200k more.
Posted by: Petebklyn at March 12, 2009 3:24 PM
> "Dave, can you link to your HOTD?"
While you're at it, please indicate when you'll be away and where you keep your valuables.
TIA!
Posted by: SnarkSlope at March 12, 2009 3:44 PM
I just spit water I laughed so hard Snark!!
Sorry, won't be able to make it to the Stoner party I'm going to be ummmm...indisposed.
Posted by: TownhouseLady at March 12, 2009 3:56 PM
This is also listed through CORCORAN who is having the open house on Sunday
http://corcoran.com/property/listing.aspx?Region=NYC&ListingID=1523712
Posted by: bulla at March 12, 2009 4:03 PM
Miss Muffet, I never said prices in prime areas won't drop. They probably already have. Call me when a "nice" brownstone that ACTUALLY SOLD for $2 to $3 million in prime Park Slope in 2006 ACTUALLY SELLS for $1 million, OK? Then I'll admit I was wrong.
Posted by: mopar at March 12, 2009 4:33 PM
Miss Muffet, have you considered Carroll Gardens? Or even Williamsburg? The townhouses are more affordable and the schools are supposed to be good.
Posted by: mopar at March 12, 2009 4:40 PM
Also, sorry for the multiple posts, but did you happen to see Bobjohn's comment yesterday about Park Slope prices in 2000? (In the "To Buy or Not to Buy" Forum thread.)
He said to compare prices fairly, you have to add at least 86 percent to the prices in 2000 because of inflation and interest rates.
I thought that was a real eye opener.
Also, I have always said that if the US defaults, then we could have a collapse on par with the Soviet Union, in which case prices in Park Slope certainly could drop 50 percent or more. But I must admit that is looking less likely as time goes on. The dollar is getting stronger now, Obama is talking about balancing the budget, etc. But shocks are always possible -- can't predict the future.
Posted by: mopar at March 12, 2009 5:04 PM
Yes because everyone who holds a house for 3 years and does basically nothing to it deserves an $800K windfall. I'll be glad when they do away with the gains tax exemption on homes, so that whoever sells and makes these kinds of ridiculous gains will be taxed at the full 36% income rate instead of the capital gains rate taking into consideration fed, state, and local if it were to get reinstated. OTOH hopefully the drop in values will bring this puppy back to its real price which should be what they gave for it minus about 20%.
Posted by: williamsburgguy at March 12, 2009 5:21 PM
Mopar,
Someone today in the co-op of the day thread said they saw that place back in 2000 or 2001 and it was 125K. While I don't think the place is worth 699K (as listed today), it's certainly not going to be 125K in this lifetime so I agree with your statement...
People waiting for 2001 pricing are ga bit delusional, I'd say.
Posted by: 11217 at March 12, 2009 5:24 PM
One wonders if the bulls felt that way before the last collapse.
Posted by: SnarkSlope at March 12, 2009 5:33 PM
I don't claim to know what will happen in the future, but I do remember when DOW8000's handle seemed like a joke, as if he were a prophet of doom. How ironic that today folks are celebrating that the Dow cracked 7000. So who knows what will happen to RE prices? Certainly they are going down, but no one knows how far. I don't need to hold out for a $2-3million house to cost $1mil, but I'm in no rush either and I think it's easy to imagine a nice PS house going for $1.5 and less. I would not be shocked to see prices come down a lot...
Posted by: Miss Muffett at March 12, 2009 5:49 PM
Just as long as no one has to live in a place that's less than 20 feet wide. That's where I draw the line. :)
Posted by: mopar at March 12, 2009 6:05 PM
You're on a roll today, Mope.
Posted by: 11217 at March 12, 2009 6:12 PM
While I certainly understand the inflation component of Bobjohn's comment re adding 86 percent to 2000 prices, I think adding the full value of the reduction in interest rates to come up with an apples-to-apples comparison is ridiculous. Frankly, it is this focus on monthly payments that got folks into so many problems already.
It is wonderful that today's buyers can enjoy such low interest rates, but they also should FEAR these low rates and it will put great pressure on pricing in the future when rates climb back up (as they surely will). If you are going to live in your house for 30 yrs and pay off the mortgage, it isn't a concern, but for everyone else you are taking the same economic risk as you would be if you took a long position on treasuries. In contrast, buyers who buy during high interest rate times get killed in the initial interest rates, but then reap the rewards as interest rates decline.
If it were true that house prices factor in the full value of lower interest rates because of their effect on monthly payments, I would much, much prefer to buy in a high interest rate environment...
Posted by: aishling at March 12, 2009 6:36 PM
Sorry, Mopar, I can't resist. If 617 8th Ave, which started basically at $2.6mil, and winds up selling for $1.7-$1.8 mil (not implausible since that would represent a mere 10-15% off ask, which everyone says is the minimum buyers expect these days), then that's a discount of 700-800K. Yes, the initial ask was nutty, but in retrospect, they all were at the peak of the bubble, when these houses were selling in the 2-3mil. Given that everyone agrees that things are going to go down further before they stabilize, then projecting, as an example, that particular house selling for 1.5 come next winter - really, that is extremely plausible.
Posted by: Miss Muffett at March 12, 2009 7:04 PM
"This is why even nice houses in prime areas are not immune from the market collapse that is just beginning."
Not to restate the obvious, but it all comes down to supply and demand. Sure, there will be short-term price drops as those sellers who need to sell (relocation, divorce, job loss, etc.) encounter weak-to-non-existent demand because of economic uncertainty. But all of the other potential sellers are sitting on the sidelines. In certain prime areas, all it's got to take is a little lifting of the uncertainty and there will be much more demand meeting not a lot of inventory. I'm thinking for example of the Brooklyn Heights and Cobble Hill markets. In BH, even in the recent bubble years, only 15-20 houses traded hands a year. But now, it's dead. Except for a couple of trophy houses that were on the market for a while and closed in December, there hasn't been a single sale in the last 5 months. If you're a seller now (like yesterday's HOTD), you might have to chop a lot to get a deal done. But if you're a buyer, you have nothing to choose from. Once people feel comfortable again pulling the trigger they're going to have to support a certain level of pricing to get other sellers to come into the market.
Posted by: NorthHeights at March 12, 2009 7:05 PM
Sorry, meant to say imagining a house like 8th ave selling for 1.5 next winter (unless of course, that specific house itself needs more price drops). For crissakes, today's HOTD was only 1.4 in 2006 - the escalation in prices since then is exactly the kind of madness that will now evaporate! Sure, maybe prices won't go back to 2000 but they could easily roll back 4-5 years, if not more. Even 3 years ago, you could indeed buy decent PS houses for under 1.5! (and I am not one of those primadonnas that needs 20'...)
Posted by: Miss Muffett at March 12, 2009 7:06 PM
Yes, but inventory in PS, for example, is growing - look at 1st Street!
Posted by: Miss Muffett at March 12, 2009 7:07 PM
but 8th ave is a bit different, right? do people want to live on 8th avenue?
Posted by: Ringo at March 12, 2009 7:15 PM
Also NorthsHeights, the whole supply-demand argument, while I agree has helped prices not totally collapse, is one of many old saws used throughout the run-up to justify the skyrocketing - you know, trends towards urbanization, NYC is so desirable, etc. etc. But there are very real shifts happening in the city right now, between people losing jobs, taxation changing, etc. and these are factors too, not to mention more sellers who may not have the luxury of "staying by the sidelines"...
Posted by: Miss Muffett at March 12, 2009 7:17 PM
Also NorthsHeights, the whole supply-demand argument, while I agree has helped prices not totally collapse, is one of many old saws used throughout the run-up to justify the skyrocketing - you know, trends towards urbanization, NYC is so desirable, etc. etc. But there are very real shifts happening in the city right now, between people losing jobs, taxation changing, etc. and these are factors too, not to mention more sellers who may not have the luxury of "staying by the sidelines"...
Posted by: Miss Muffett at March 12, 2009 7:17 PM
Miss Muffet are you sure this happend here on Brownstoner?
"DOW8000's handle seemed like a joke, as if he were a prophet of doom".
When was that? Who was DOW8000S&P800 ? LOL
On a serious note this HOTD is a cute little house with a great facade but 16ft is simply not appealing to a lot of folks....claustrophobic even though its a one family.
To answer Mr B's question this will not sell @ $2.2m; it needs @ least a 25% reduction and even then will not be a good deal.
Posted by: pierre de taille at March 12, 2009 7:35 PM
Aishling, I don't understand your post. Assuming a 30-year fixed-rate mortgage, why would you want to borrow at a higher rate? That means you're paying more for your house. It means the price is higher.
The price is what you pay over the lifetime of the loan.
Posted by: mopar at March 12, 2009 11:16 PM
Miss Muffet, with all due respect, especially as I am not looking in Park Slope so do not have a grasp of the details, nonetheless, asking prices are irrelevant. The actual sale price, and whether it's going up or down, is what matters.
Posted by: mopar at March 12, 2009 11:26 PM
I'm right here, pierre. Click me and peep my history.
Posted by: DOW8000SP800 at March 13, 2009 12:21 AM
Hey Miss Muffett houses in prime areas will come down just wait.. I and others have been writing this for some time. Though if your looking to get a trophy property I doubt those will come down that much...
Posted by: HOBOKENROCKS at March 13, 2009 3:03 PM
Haley, that is absurd -- unless you're buying a home in all cash and don't have to worry about the interest rates.
Posted by: mopar at March 13, 2009 4:56 PM
Oh, you must be a flipper.
Posted by: mopar at March 17, 2009 12:23 PM
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