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February 25, 2009
Co-op appreciation
I found a co-op in Bay Ridge listed for $199k. After some research I noted it sold back in October 2007 for $110k. Considering the economy/housing market in the past year, I cant believe a co-op would have appreciated 80%. I was told some renovations were done, but come on 90k's worth? I'd like to hear what this community has to say. I like the place but I wonder how much would to a low-ball offer?
Thanks,
Comments
Is it possible that the 2007 $110K was a low price for a quick sale (or some similar reason for a low price)? What were the comps in 2007? What are the comps today? Hard to judge without knowing the building - just Bay Ridge.
Posted by: SenatorStreet at February 25, 2009 10:41 AM
How much more renovation does it need? Is this a studio? The price sounds like the fringe area of Sunset Park. What are the comps of recently sold units in the building and the immediate area?
Co-ops have not been as affected by the downturn as condos and houses:
http://www.nytimes.com/2009/02/08/realestate/08COV.html?scp=1&sq=condo&st=cse
Posted by: SlopeStyle at February 25, 2009 11:32 AM
Why would you base your bid on what the people bought the apartment for a few years back? Seems kind of foolish.
Base your bid on your comfort level and local comparables.
Is this a 1 BR or Studio?
Posted by: Streetwise123 at February 25, 2009 12:57 PM
I agree with Streetwise. I wouldn't be so concerned with what the owner paid but more concerned with the recent comps, the financial situation of the co-op and what the apartment is worth to me.
Posted by: Chaka at February 25, 2009 1:22 PM
SlopeStyle: The place is actually in the 90s and shore road area. Beautiful spot. 1 BR a little under 700 SF.
Posted by: guikazoid at February 25, 2009 1:33 PM
I am not clear on the "comparables" in case of coops. Because you are buying a share in enterprise not a condo. This share might include coop loans or it might include extra apartments, which shared by the coop and rented out.
Posted by: bobjohn at February 25, 2009 2:35 PM
Most 1 bedroom co-ops are in the low-mid 200s in Bay Ridge right now. The 2007 sale must have been either a distressed sale or a sale between family members. I was in the market for a 1 bd co-op in 2007 and looked at about 30 different units over the course of many months, along with scanning the listings pretty much daily the whole year (even after I bought). There was not a single 1-bedroom listed below $189k at the time. Anything below $189k was a studio being advertised as a 1 bedroom. Vast majority of listings were between $229k-279k.
I think the important thing is the relative value now. Can you find anything nicer, cheaper. If not, then it is a good value assuming prices remain steady.
Posted by: setancre at February 25, 2009 3:24 PM
If you want something that's a good deal now compared to what it cost in October 2007, consider Citigroup stock.
Prior price may be interesting, but as others have noted the relevant thing is what it's worth now. For that look at comparable recent sales, and what else is on the market, keeping in mind the general consensus that prices are heading down in the short term.
Posted by: Bklnite at February 25, 2009 3:44 PM
Bklnite... I know a little too much about Citigroups stock :). I got in at like 5 bucks. And BAC at 15. Ouch.
Posted by: guikazoid at February 25, 2009 3:53 PM
110K in 2007 for a 1-bedroom 700 sq. ft. apt. in Bay Ridge sounds very very low.
I agree it must have been a major fixer upper at the time.
Even today in the 90's / Shore Road area 199k sounds like a bargain.
Is it on Shore Road? Water views? Mint Condition. If so, those 1-bed's are listing at 260k+
I would look at the buildings financials, something doesn't sound right.
Posted by: bayridgegirl at February 25, 2009 5:12 PM
WOW!!!! That is a deal!!! 700 s/f coops on Shore Road range in the mid 200's to mid 300's. I would jump on this before someone else does!
Posted by: Streetwise123 at February 25, 2009 9:23 PM
quickazoid,
how about posting a link to the listing? $199k sounds cheap of shore rd area. Is the maint. very high?
Posted by: MrHancock at February 26, 2009 8:49 AM
quickazoid,
how about posting a link to the listing? $199k sounds cheap for shore rd area. Is the maint. very high?
Posted by: MrHancock at February 26, 2009 8:49 AM
Sounds like a good deal. What's the monthly maintenance?
Posted by: SlopeStyle at February 26, 2009 11:11 AM
If you post the link then everyone will be after this apartment! Get the deal for yourself!
Posted by: Streetwise123 at February 26, 2009 11:43 AM
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