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September 29, 2009
Cost of Run-Down vs. Reno'd
The four story brownstones in the North Slope that are in decent condition seem to sell for close to $2 million and as much as $500,000 more and then some if it has a high end renovation. If a place needed a gut renovation (or at least serious work) to make it livable but in the same area - how much "off" full price would it likely be?
There is a three story brownstone on Park between 5th and 6th for sale for $999,999 but it is cash only and sounds like it needs a total redo. Nice three stories are priced between $1.6mil and $2mil. Does the price for the one that needs major work seem typical or is it more because it is cash.
Any opinions on what a four story brownstone that needs heavy work might/should cost on these pricey blocks?
Any ideas on this appreciated.
Comments
Seems to me it is *less* because it is all cash. People around here say 100K per floor for a complete reno. I think that's high, but let's say they are right. A million to purchase, 300K to renovate and you have a beautiful house in a great neighborhood for 1.3. You say comps sell for 1.6-2mil. Sounds like a good deal, if you have the cash.
If it's not habitable, though, financing the reno could be an issue. But maybe not with that kind of equity.
Posted by: dylanfan at September 29, 2009 1:49 PM
if you have the cash available, it is a brilliant move...just get someone to assure you that there are no major structural issues involved, which could push the price way up...the cash issue may be due to a lack of a valid c of o
Posted by: eman1234 at September 29, 2009 10:38 PM
Don't know about prices in Park Slope. However, I do know that you can't take a real estate agent's word for what needs work and what doesn't. They don't know. You just have to see it yourself. Be sure to use a structural engineer for the inspection, don't mess around with someone who's just a licensed inspector.
Posted by: mopar at September 29, 2009 11:15 PM
It could be a great deal or a major nightmare...
... if the bones are good you could easily have a mint renovated building for $1.3 all in. If the bones are a mess, then you could very well drop as much on renovations as you did on the purchase.
I've seen "gut" renovations go from walls, ceilings, floors, and finishes to a real gut meaning no roof, no floors, just open sky and basement floor, needing absolutely everything replaced. So depending on how extensive the "gut" is...
Posted by: christopher at September 29, 2009 11:32 PM
money is a good move, that's means you a need money baby.
Posted by: rebeccamartin at September 30, 2009 8:28 AM
This all depends on the actual condition of the structure and interior finishes. But, assuming nothing catastrophic, $300-$400k is probably in the range of doable.
Posted by: archigoddess at October 1, 2009 10:44 AM
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