Forum
« Where can we get carpet in a week? Caprese Diem: Where are the good, ripe, reasonably priced tomatoes?! »
August 28, 2008
Assessing property value given past sale
Hi, I'm currently on the market and interested in bidding on a pre-war 2bd, 1.5ba property in North Slope. Asking is 700K which seems about right (given that it has outdoor space as well); however, I discovered that an identical apartment in the *same* building (I believe it even has the same outdoor space) sold in 2004 for a little over 400K. My question is, how can I figure out if the apartment is priced right based on this information?
Comments
That sounds about right. Property values were much lower in 2004.....so that woud be a bad comparable. How large is the apartment?
Posted by: PHfamily at August 28, 2008 1:28 PM
It's about 1000sf. We've seen a lot of places in the area and haven't found a deal quite as good, but when I saw that sale price from '04 it got me a bit worried we may be overpaying.
Thanks for the feedback!
Posted by: spyre98 at August 28, 2008 2:26 PM
Good luck trying to time the market. You never know what the peaks and troughs are until long after they've passed.
What if you pass on this place, and the economy perks up, and then all the buyers on the sidelines start panicking and run up prices again?
Seems like if you can afford it, and you really like it, now's a good a time to buy as any. As for specific numbers, there was a huge run up from 04 to q2 07, on the order of 50% or more. Will the housing market in NYC lose 50% in the next 3 years?
Posted by: Bolder at August 28, 2008 2:39 PM
I know it is depressing to see the apartment (or a similar one) priced so much lower just a few years back, but you need to compare the current price with other similarly sized and located apartments on sale now. My husband and I just bought a 2 bedroom in Park Slope, and $700,000 hits me as being on the low end for a 1000sf place with outdoor space. (That said, lots of other factors impact price—state of the apartment, building, location, maintenance fees, aesthetics, etc.) Street Easy is a good place to look for recent listings.
Posted by: fawn at August 28, 2008 2:45 PM
Bolder, prices already are run up...all the way to the top of the affordability range, and to be blunt there is just no way they are going up again any time soon. The fear of missing out is what created a lot of the bubble in the first place. In my view this is just about the worst possible time to by, notwithstanding what the snake oil salesmen -- I mean Corcoran brokers -- might try to tell you.
Posted by: lechacal at August 28, 2008 2:59 PM
I think $700K for 1000sqft sounds about right to cheap--it depends on the finish level. But with barebones info it sounds like you are getting a good/fair deal. Good luck and enjoy the outdoor space!
Posted by: PHfamily at August 28, 2008 5:26 PM
Post a comment
Please be patient while your comment is published. It may take a moment.