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November 20, 2008
Advice for a Freaked Out Apartment Seller
Help! After many wonderful years living in Brooklyn my husband got a new job and we have to relocate to Seattle. He left me here to sell the apartment and take care of our two young boys thinking we'd have the deal wrapped up and be out there by Christmas. Well, it hasn't quite turned out as we planned.
The broker recommended we price the apartment (a two bedroom walkup on Henry Street in Carroll Gardens) at $595K when it first went on the market almost two months ago. No takers.
After two more price cuts, we're down to $475K. The open houses are always very busy. But NO ONE IS BUYING. At this point, I'd consider any offers. But there aren't any. What should I do? The URL for the listing is http://www.bhsbrooklyn.com/detail.asp?id=960620
Thanks in advance for any and all advice!
Comments
Wow--I am shocked you have not gotten any offers at this price. your apartment looks lovely and the neighborhood is great. can't figure that out at all...
Posted by: wasder at November 20, 2008 3:46 PM
sorry--I meant to give you advice as well as commiserate. The only advice/wisdom I can give you is that two months is not that long on the market and you should stick to this price for a little while. It is a completely fair price, even in this market, and somebody will buy it sooner or later. Are you happy with the way the apt is being marketed? I looked at the listing and it seems decent. Photography could have been better but that is a minor point. If the open houses have been full, somebody will offer soon enough.
Posted by: wasder at November 20, 2008 3:50 PM
You can lower the price some more if you MUST sell ASAP. Or....offer incentives. Pay closing costs. Take some money off at closing. A new car, a flat screened TV, your first born...
Is it possible for you to hold the mortgage? People are scared now and banks are tight with their $.
Posted by: rh at November 20, 2008 3:53 PM
wasder. Thanks for your advice. If you know anyone who's looking, send them along! I'm totally willing to entertain any and all offers at this point. I'm not greedy!
Posted by: Cobblegirl at November 20, 2008 3:55 PM
Thanks, rh. I can't hold the mortgage unfortunately. We need to buy a place ourselves. Incentives are a good idea...I'll mention the closing costs to the broker.
Posted by: Cobblegirl at November 20, 2008 3:59 PM
PS: Me again. I wrote that before I looked at the listing. It's a lovely apartment! Agree with Wasder that photography could be better, but if your OH's are crowded, that doesn't seem to be the problem. Can't hurt to stage it a bit. Make it feel homier....coffee table books, bigger flowers, play some nice music during the OH, serve tea or coffee. Not that there's anything wrong with the way it looks now. It just looks like YOU live there. Make THEM want to live there!
Posted by: rh at November 20, 2008 4:00 PM
Maybe this is an obvious question, but can you rent out the apartment while you wait for the market to settle down?
Posted by: curiositykilledthecat at November 20, 2008 4:01 PM
Thanks so much. I will make sure there are flowers!
Posted by: Cobblegirl at November 20, 2008 4:04 PM
I just feel that you never know what shape a renter will keep it in. And we'll be so far away. I feel like I'd rather take less money now and rent it.
Posted by: Cobblegirl at November 20, 2008 4:06 PM
If you need a good photog, I know one!
But I've seen a lot worse, honestly. You should mention something about the board, and more importantly, what % down the board is looking for.
Posted by: denton at November 20, 2008 4:09 PM
Renting is always a risk, but we've had GREAT experiences time and again as landlords. You definitely have to have the stomach for it though, and it sounds like it's not your cup of tea.
Just a suggestion. Best of luck.
Posted by: curiositykilledthecat at November 20, 2008 4:11 PM
Speaking from experience. Sure renting's a risk, but if you think you might be back, it's one perhaps worth considering. I've also had good luck when I rented our my co-op during a move to San Francisco. Was there when I decided to move back.
Also, 2 months is what passed for normal not so many years ago. Not necessarily a massive cause for concern, but I'm sure an inconvenience you'd rather not have. Good luck!
Posted by: Johnny at November 20, 2008 4:43 PM
I'm REALLY surprised your place hasn't sold yet. It's really lovely. I especially love the tin ceiling.
Your building looks really well kept from the outside as well.
Maybe someone reading this will see your place and know someone who's looking. I think the price seems more than fair.
Posted by: 11217 at November 20, 2008 4:44 PM
What are the dimensions of those bedrooms?
Posted by: BrooklynButler at November 20, 2008 5:01 PM
Thanks, Johnny. We're going for good it seems. With two young kids, I don't think we could afford to come back and have the space we'll need!
Posted by: Cobblegirl at November 20, 2008 5:03 PM
cobblegirl--one other thing that I would suggest. This is something that the Corcoran brokers who sold my place in September told me. My place was similar in size and price to yours in Clinton Hill. The brokers told us to remove as much of the stuff from the apartment as we could, really strip it down to the essentials so it felt roomier and bigger and nicer. People dont want to see too much of your stuff when they are considering buyer. Its no offense or anything, just some weird psychological aspect of buyers. You might want to try this both for new pictures and for the open houses. Flowers are always a good idea too. Anyway, we sold pretty quickly but even in September when we sold it was a different market. Some of the really bad stuff economic stuff had gone down at that point but not everything as you are facing. If you could afford to rent it out for a little while it would probably be helpful to you. Good luck! We will all be rooting for you.
Posted by: wasder at November 20, 2008 5:09 PM
Your apt is lovely and I would buy it in a second if I could afford it, but sadly I cannot. However, if you decide to rent, I would LOVE to be your tenant and I would treat your home as if it were my own (and would sign something to that effect). I lived at 25 2nd Place for 10 years and left the neighborhood only because my apartment was too small for my growing family (I moved in a single girl, moved out a married lady with a baby). My old landlords, who are your neighbors, would certainly vouch for my excellent tenancy. I miss Carroll Gardens terribly. If you get to the point where you are ready to rent, please contact me offline at persephone2669 at yahoo dot com. And good luck with your move to Seattle -- it's a wonderful city and you will LOVE living there I am sure.
Posted by: I_haz_TWO_toilets at November 20, 2008 5:16 PM
Hang in there. This price is a steal and it will happen.
We lived around the corner before we bought in "fringe" part of Prospect Heights, and the location is amazing.
Two months on the market is not long in today's climate.
The only thing the floorplan does not give dimentions, and the place looks tiny in the pictures. If it is bigger than 800sf you should state the square footage.
Good luck.
Posted by: kdabrowski at November 20, 2008 5:20 PM
Remove the asking price and state "MAKE OFFER".
Posted by: DOW8000SP800 at November 20, 2008 5:28 PM
What about rent to own.
Posted by: bayridgegirl at November 20, 2008 5:34 PM
Keep lowering the price.
Real estate prices are about to tank.
The Dow and S&P are already lower than they were ten years ago.
You're lucky in a sense because the NYC real estate market hasn't tanked yet. . . but it will.
Any positive return over what you originally paid would be a good price.
Price really does talk. Folks jump when the see a real deal.
Lowering to 400k would likely incite a bidding war, even in this environment.
Good luck from somebody who has been in NYC real estate for over ten years as a buyer, seller, landlord, and building manager (not a broker).
Posted by: IronBalls at November 20, 2008 7:01 PM
Oh yeah,
And only rent if you understand that the market could be substantially lower a year from now . . . possibly 50% lower.
Eventually the market will come back, but it could be years.
Nobody knows for sure.
Posted by: IronBalls at November 20, 2008 7:03 PM
You are fucked.....
The What (OH Shit lookie at the market)
Someday (Soon) this war is gonna end...
Posted by: Return of The What at November 20, 2008 7:24 PM
There is almost no closet space. I would call in a contractor to create a closet or two. If you can't create closet space, lower the price again.
Also, the apartment looks a bit cluttered in pictures, I suggest sending some furniture to storage and/or putting away the toys under the bed.
Posted by: mkop at November 20, 2008 8:05 PM
For the first time ever I think I agree with something that Iron Balls wrote. First time for everything I guess. But really I think he is right, despite my earlier post, that renting is probably only likely to get you less money later. I have no idea what you originally paid or what you need to get to break even on the apt but I would think that as IB says 400 would get this sold, though I bet you could still get 475.
Posted by: wasder at November 20, 2008 8:44 PM
Wasder,
Glad to hear that you're getting on board, brother.
When the real estate market really does tank, I'll probably buy a brownstone myself in Brooklyn and fix it up just like you did. For a million or less, if I can get a nice one near Prospect Park I'll probably pull the trigger. I'm talking about something that would have cost around two million a few months ago.
The secret is hoarding cash for a big down payment and waiting. . .
Posted by: IronBalls at November 20, 2008 9:23 PM
IB and Wasder, I think you guys are wrong re the market tanking. Or at least it depends how you define "tank." Certainly the market has and will continue to stagnate and dip. However, even in the late 80s the market didn't drop 50% (re your desire to find a brownstone that was $2 mil a few months ago now for under $1 mil - keep dreaming). The market dropped close to 20% btwn 1987 and 1991 when it bottomed out, and that was pretty extreme. We may be in for that type of drop again, but it won't be more than double that, that's for sure. Not to mention that the city is much more desirable today (from a real estate perspective) than it was in the early 90s - crime down, international buyers, "white flight" into the boroughs instead of the burbs. So one could argue that even if the overall economy mirrors the slump of the late 80s, or is worse than that recession, nyc real estate is not in a parallel circumstance.
Cobblegirl - my advice is to calculate how much you are spending on the place each month in mortgage and maintenance. That is money you are losing every month. You can hold out for a higher price if your monthly outlay isn't that bad. But if you bought a few years ago and you're spending a lot on the place then you may save money buy selling for less sooner, rather than for a higher price a six months down the line. This calculation doesn't of course take into account the overall market and if it continues to dip, but it's a good benchmark to work from. Good luck.
Posted by: ProHeightsNewbie at November 20, 2008 10:32 PM
Brooklyn housing prices doubled or tripled over the last ten years.
If prices can go up 200%-300%, why can't they go down 50%?
The stock market is down 50%. Oil is down over 50% Wall Street is getting crushed. Unemployment is skyrocketing. A big time "wealth-distributer" is about to enter office. Billions and billions of dollars in bs mortgages are still on the books. The list goes on and on . . .
I would prefer if the economy rebounded tomorrow. I own lots of real estate and the down market hurts me too. It's not about what I want, or what you want.
It's not about being pessimistic or optimistic. It's about looking at the facts and making an educated guess as to the way things are heading.
Posted by: IronBalls at November 20, 2008 11:22 PM
Yikes, these places were $200,000 or $300,000 and barely big enough for two adults when I lived there in 2001. Not to throw cold water.
Posted by: mopar at November 20, 2008 11:24 PM
That's what I'm saying, Mopar.
Most Brownstoner regulars are still brainwashed by the housing price run up of the last ten years.
Folks like PHN can't fathom housing prices going down substantially for superficial, unrelated reasons such as the oft repeated phrase "NYC is different now," or "crime is lower now," or "foreigners love NYC now."
Bottom line: Prices didn't double because the fundamentals changed. They doubled and tripled because of a system whereby banks lent money to anyone who didn't have a criminal record. Banks only looked at the latest "comparable sale" to come up with a dollar figure to lend. Lawyers, bankers, brokers, appraisers, buyers, sellers, everybody made money because the market just kept barreling up and up!
Well, it's not barreling up anymore, and there was no justifiable reason it did in the first place.
So guess what fellow Brownstoners, it's time to take the ride back down.
Posted by: IronBalls at November 20, 2008 11:45 PM
Ironballs--before you anoint me a brother in arms let me say that my agreement was with the notion that renting would probably not be in the OP's best interest as it seems inevitable that prices will be lower in a year than they are now. That being said, I don't quite buy your notion that the market will drop 50% either, or that the drop will be as precipitous as you think it might. Now, I am no expert on finance or real estate pricing for that matter, so I am not going to go out on limb for any predictions. Certainly I hope prices don't drop 50%. I wouldn't be surprised to see 30% drops as that would be a larger figure than anything we have seen in the last few down cycles (befitting the nature of the downturn we appear headed for). But really none of us knows what is going to happen and I had enough faith in Brooklyn and in my neighborhood in particular to buy in this climate so by nature I would appear to be a more optimistic sort than you.
Posted by: wasder at November 21, 2008 12:01 AM
Wasder,
We're in slightly different boats. First of all, I breath, eat, and sleep real estate investing. My desire to have a Brownstone in Brooklyn is not necessarily as a primary residence, though I would live in it for a while. I can't overpay because I may want to sell the house for a profit a few years after renovating it.
Of course I could be wrong, but I doubt it. Too many high paying jobs are being lost -- the kinds that afforded million dollar plus properties, at the same time as the mortgage crisis is decimating the housing market.
In the long term it won't matter, so I'm sure when you sell years from now, you'll do fine. But as a potential short term buyer, I'd rather err on the side of extreme caution and buy something I can easily afford, so if the downturn continues unabated, I can still move to another country, and not worry too much about the Brooklyn Brownstone I'm on the hook to HSBC for.
Posted by: IronBalls at November 21, 2008 12:51 AM
Agreed none of us know what will happen, I do think the economy will be bad for about ten years, and yet I do not think Brooklyn prices will drop substantially more than they already have. I don't know, could be a pipe dream. But people really want to buy in Brooklyn, crime is down...prices didn't fall that far in the Bay Area in 1989, dunno. Then again, if this is the beginning of the fall of Rome, then I guess that's a whole different thing. Although prices are still high in Rome also.
Posted by: mopar at November 21, 2008 12:53 AM
Yeah, but just because "people really want to buy in Brooklyn" doesn't mean they're able to. Lending requirements are already much more stringent then they were just a few months ago.
And even if "people really want to buy," as they watch prices tumble their brains are rethinking the way they think about real estate. Before they thought they had to get in before the market went even higher. In a short time common logic has changed to "wait and see. . . what's the rush because prices keep going lower?"
The roller coaster ride continues. That's for sure.
Posted by: IronBalls at November 21, 2008 8:55 AM
I agree with the idea of putting some things into storage. It looks like the dining room is an eating/office space-- I'd try to make it just a dining room. Also, even if the apartment is small, a floor plan with dimensions would help. The listing really gives no indication of how large the apartment is, which is always a red flag to me.
This may be more that you want to take on, but if I were to live in this apartment, I'd probably flip the dining and living rooms-- the dining room looks bigger and has more light. Finally, when I was going to open houses for top/high floor apartments, sometimes I'd have to walk past three floors of cluttered hallways vestibules (squeezing by boots, jackets, kids toys to get to the next floor). Put yourself if the shoes of a buyer next time you enter your building-- that can make a difference. If you neighbors have a lot of things outside their doors, perhaps they can move them in for the open house.
Posted by: fawn at November 21, 2008 10:04 AM
There are always people looking to sublet on the bococa parents listserv -- I know with 2 kids you are familiar with it. and they're always "professor and family need to sublet for year" etc. Seem as reliable as anyone.
I think you should do that. Nobody is buying now. It's just too weird out there. In a year, it may be worse, but it will sell.
Or move on with your life. MOve out and hand keys to an agent. I personally like looking at empty apartments.
Posted by: Ringo at November 21, 2008 11:26 AM
I agree with the idea to flip the dining and living room. When I lived in an identical apt, we painted the dining room (middle room, no windows) a medium color with white woodwork and a modern white light fixture and had bookshelves lining it. It looked quite nice.
Posted by: mopar at November 21, 2008 11:28 AM
The stock market and the housing market are not comparable, at least on a historical basis. The stock market has a histtory of volatility, with 5-6 periods where the market declined in the 50% range during the last 80 years. Housing may have done that once (in the great depression). Trading costs on stock are low, making it easy to get in and out. Transaction costs on houses are very high, making them less liquid.
Posted by: Boerum Hill at November 21, 2008 11:52 AM
When was the priced reduced to $475,000? It's listed at $569,000 on streeteasy. (And if streeteasy is wrong, that's not helping you either.)
http://www.streeteasy.com/nyc/sale/356464-coop-588-henry-street-carroll-gardens-brooklyn
According to this link, the price on this place was reduced to $569,000 2 weeks ago. Unless that info is incorrect, it's misleading to suggest that this "won't sell" if it has been reasonably priced for less than 2 weeks.
This post just seems like creative real estate advertising to me - getting everyone worked up about how a great place 'won't sell' at a reasonable price.
Posted by: squaredrive at November 21, 2008 12:39 PM
2 months is not unusual! It's not time to panic the seller yet. It took a little over 2 months to sell our 2BR coop in Park Slope, back in Fall of 2006. And it was larger than this place. I don't think this apartment has to go much lower in price than it is now. Do NOT simply put "Make Offer" on the listing. Worst idea ever. You'll never sell it, you'll look like there are major problems with the property and nobody wants it.
Here's the problem to me as it breaks the major rule in real estate that all your rooms should be shown with clear identity and purpose:
The room that is a dining room AND an entry foyer AND an office with file cabinets has got to be totally cleared out and become just a dining room. If you need to store away your laptop in the closet and work on the dining room table when people aren't seeing the house, that's what you have to do. But get rid of the desk. Get rid of the coats hanging on the wall.
Having a room that's cluttered and so multi-purpose like that only shouts to buyers "there's not enough room here". I would get very anxious and turned off stepping into that room as a buyer.
Posted by: traditionalmod at November 21, 2008 12:48 PM
P.S. in addition to the desk you also have to get rid of those file cabinets in the dining room. They're huge and make the room seem tiny. Hang pictures on the wall instead. It really does need to show as a dining room. Once the office is gone you could switch the living room and dining room, too. Which is probably the original layout, right? I think the biggest mistake people can make is showing their home in an unusual way THEY used the rooms and the space. You need to show a place with its rooms arranged as they are intended to be.
Posted by: traditionalmod at November 21, 2008 12:54 PM
I think if it doesn't sell at what you determine is a rock-bottom price, then you have to rent it out. Here's the thing: If you lose $100k off what you wanted, it probably won't kill you, if your husband's job in Seattle is solid. You'll be able to make it back with a lower cost of living there, if you want. I do feel your pain if it's legitimate, but 2 months even in a hot market isn't unrealistic. It took my folks 2 years to sell their home...
Posted by: Bolder at November 21, 2008 1:10 PM
Any outdoor space with this thing? Roof deck? Backyard?
Posted by: RaginCajun at November 21, 2008 2:10 PM
definitely get rid of all the books and knick knacks except for a couple of things on the shelves above the TV. turn the dining room in to a dining room only - eliminate the shelving? storage unit? to the left of the table, ditch the desk and the high chair too (altho bring the high chair back after new pics are taken and after every open house!) add a couple of chairs to the dining room table. remove the clothes hanging on the hooks in that room too. also, ditch the drawers in the dining room too. looks like there are toys? next to the TV - get rid of those too and maybe the chairs to the sides of the TV (can go around the table). would be lovely to see the table set up for the pics and open house as well.
AND, no joke, after you get rid of this stuff, you must must take new pics. my looking at these, makes me think that the apt is really really small. also, could use a pic of the 2nd bedroom, the bathroom, and a much better pic of the kitchen. this pictures are not good. very amateur. the broker should provide a better photographer.
good luck and let us know what happens.
Posted by: wine lover at November 21, 2008 3:40 PM
Ironballs, one thing you might think about is.. I have lived on my block in the north slope for 15 years, In this time the turnover rate for houses has been way less than 1 a year. Some on my block have been here longer than me, which I am assuming means they owe next to nothing on their property. SO I really do not see anyone cashing out when the market is going down, 2-4 family brownstones with longterm owners who live off the income. The house is their income so why would you quit your "job" in a recession? Supply has always been tight, this recession will make it tighter, people scared to make a move, unless they face foreclosure. I see prices falling for sure, but 50% is off the mark. People still need a place to live and Park Slope is one of the desirable places to live in NYC. It is not like the 70's. And if prices fall dramatically in the next year there is no way they are going to raise dramatically in the next year or two after that I think you are smoking some good stuff if you think a flip of any significance is going to happen in the next 3 years. But good luck if you do it.
Posted by: billyboomer at November 21, 2008 3:47 PM
You’re up shits creek without a paddle on this one. Rent it out ASAP.
Posted by: Gowanus_Bklyn at November 21, 2008 4:30 PM
You shouldn't buy in Seattle just as no one should buy your place. If you can rent it for the price of your mortgage, that might be a good option, though housing prices are very likely to drop further, so you would have to stick with that plan for a couple of years probably. The earliest it could come back would be 2010.
Posted by: FatLenny at November 21, 2008 4:45 PM
extreme lack of closet space. that "2nd bedroom" would probably serve bettet as a walk-in closet. I love the area but that place looks really small and the maintenance is relatively high.
Posted by: jdoo at November 21, 2008 6:08 PM
I don't think it's a steal at all - nice apt, but pretty standard and I remember in 2001 or 2002 when my neighbors were trying to sell basically the same apt, but with garden, for $415k and it seemed CRAZY to me. I was so glad when they weren't able to. The point being that these standard 2 bedroom apts only very recently jumped to 800k. You should ask for $415k and see what happens.
Actually, I would not buy now since prices will drop further. just rent this and wait. You'll feel rich in 10 years when inflation makes the rent $6000 a month and your mortgage is $2500 or whatever.
Posted by: gkw at November 21, 2008 8:33 PM
Is that floorplan real? There's one closet in the place? It looks like this is actually a 1 BR, but you should probably put some dimensions on that floorplan. I'm guessing the rooms are tiny, which is what's putting off all the people coming to the open houses.
Decent location, though. And, the building looks nice.
Posted by: broadwayron at November 21, 2008 8:52 PM
Sorry, Cobblegirl. But as Nick Lowe said ya gotta be cruel to be kind.
I could buy this for cash but don't care to. This is the fast way I look at this as a potential buyer without an MBA or CFA, but as one who needs more space for children, not an extra 100-200 sf max.
Be that as it may: $475k asking. 20% down gets me a $95,000 down payment and a $380k mortgage at, I don't know, 6.375% seems fair today, gets me a $2372 nut to COF or SOV or whomever, plus the $720 maintenance (when was the last time that went up and how are the financials and what shape are the roof, the windows, the boiler, the facade, etc.) Now I'm at, let's call it $3100. At 7%, I'm at $3250.
Yes, come April my after-tax cost is less. But on a cash flow basis, I need to meet the nut 12 times a year, not once.
And for what? Mediocore-ville. Can I rent an apartment for that? Maybe, maybe not. At worst, not much more and my bet is rents are headed south, not north. Can I rent a nicer, larger apt. with more closets, a bigger kitchen, without a combination washer-dryer, and a far better location closer to better transportation? I'd give it a long, hard shot before anteing up here.
I love Henry Street too, but let's face it. You're getting down toward the Street's butt end and the BQE and it's a schlep to and from transportation. Which is OK, but why pay a premium? I want a discount for those extra 10-15 minutes up to Borough Hall in the (likely event) that the F train isn't my best commute. The upside to me relative to Clinton at the same end is there's less through traffic. Oh gee, and Lucali's up the block. Surprised the real estate agents here didn't mention that dealmaker.
To paraphrase my better half "That's the type of place I'd offer $350k in cash for and see what happened."
In one sense, this real estate market is like Las Vegas Sands plummeting 92% in the space of 90 days (which it has done, by the way. Ask Sheldon Adelson). Move the **** on. Drop the ask and move the **** on. The market won't clear until sellers drop the ask. Until then, they can marinate and roast in those checks they're cutting every 30 days. And I'll just keep clipping the (muni bond) coupons.
Posted by: Contrarian at November 21, 2008 11:35 PM
This sort of looks like a good deal to me... until I remember that we almost rented the same layout much closer to Atlantic on Henry for $2500/month. That being said, it looks much more appealing than the new construction that's priced above it for same square footage.
And if you need a house to rent in Olympia, WA, um, let me know?
Posted by: Heather at November 22, 2008 7:42 PM
I just have to say it's really sad your broker said to list it at $595K initially. 2BR coops that are larger, with separate laundry closet (not in the kitchen) and true closets in both bedrooms, sell for that same amount in Park Slope. That broker did you a big disservice. Overpricing is such a bad strategy in the current market. You did tell this broker you needed to be out by Christmas and your main priority is selling quick not selling for a lot. She should have priced it and marketed it accordingly. I do stick with my advice in my earlier post it's best not to appear too desperate because then people are afraid to buy the place at all, but the broker could have priced the place at $475K from the start and put a positive spin on it, marketing the apartment as an opportunity to pick up a great deal due to a job transfer and motivated seller.
One question nobody else has mentioned here -- before you drop to something like $350K, how does the rest of the coop feel about a super cheap price as comp for the building? Better ask them first, because if it's way lower than they believe their own apartments are worth they could decline to approve the buyer.
Good news is once this selling ordeal is over you'll enjoy Seattle. I love that city.
Posted by: traditionalmod at November 23, 2008 12:55 PM
Billyboomer,
Your argument that prices in Park Slope are protected because folks won't sell if the market goes down contradicts exactly what happens every time a real estate market goes down.
Of course, the more desirable areas like Park Slope and Brooklyn Heights will always be more expensive than the less desirable areas, but that doesn't mean prices won't fall.
Most people, old timers and recent purchasers alike don't sell because prices happen to be high or low. They sell because of life circumstances like new jobs in another city, retirement home relocation, divorce, etc. People will not wait for the market to rebound because nobody knows how long that will be. And old timers who paid relatively little years ago, will still make money, even selling at today's prices.
A 50% NYC real estate price drop in reality is conservative considering how much prices have risen in the last decade and how bad the local and national economy is right now.
Furthermore, I wouldn't expect to flip a Brooklyn brownstone for a profit anytime soon. But it certainly makes sense to wait six months and save hundreds of thousands of dollars in future debt instead of buying at todays still inflated prices.
Remember, it will only take a few low priced sales to completely upend the real estate bubble that occurred over the last ten years and drastically readjust the market for brownstones in Brooklyn.
Citibank is on the verge of collapse because they hold billions in garbage mortgage securities and you don't think Brooklyn real estate prices could fall 50%? Open your eyes and smell the flowers, my friend.
Posted by: IronBalls at November 23, 2008 10:23 PM
Actually the marketing is poor. The pictures are terrible--why don't you ask the broker to spring for professional photos? And yes, you need to de-clutter--why didn't the broker tell you that? Your other problem is the maintenance is high--nothing you can do about that except to not say it's "low" in the description.
You should have gotten offers two months ago, but the price was too high. Now, unfortunately, no one is buying. If you can't hold on until after the inauguration, you'd better rent.
Posted by: Ppark at November 24, 2008 8:39 AM
Make sure your broker will cobroke with non-rebny brokers. They sometimes don't and that omits a whole population of buyers who like to work with smaller brokers that may not be part of the "club".
Posted by: mcteague at November 25, 2008 2:44 PM
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