Who's Gonna Buy This Stuff Now?
We can see how a few naive souls might have been induced to buy this type of thing back when the market was frothing but, seriously, who’s going to step up at this point in the market? Are these the squats and crack houses of the future? $645000 DON’T MISS OUT!!! Crown Heights [Craigslist] $799000…
We can see how a few naive souls might have been induced to buy this type of thing back when the market was frothing but, seriously, who’s going to step up at this point in the market? Are these the squats and crack houses of the future?
$645000 DON’T MISS OUT!!! Crown Heights [Craigslist]
$799000 New Construction 3 Family! Bed Stuy [Craigslist]
$699000 New 3 family 3/3/2! Bushwick [Craigslist]
And what happens, what, after 90 days if you are mistaken? Do you go away?
Re Corcoran pricing — what you need to keep in mind is that Brooklyn is highly atypical in terms of residential real estate. In particular: 1)there’s no MLS; 2) very limited buyer’s broker representation; and 3) largely exclusive listings. What Freakonomics demonstrates is that brokers get a higher price for their own homes than they do for their clients — so normally, they do indeed want to push a sale forward at a slight underprice, because their 4-6% commission on the delta isn’t usually a huge sum, particularly compared to the overall commission.
However — because brokers in Brooklyn only represent the sell side, the criticality of getting the listing is much higher than in other parts of the country. As a broker, you have no opportunity to make money until you get the listing. Unlike other parts of the country, you can’t try to work the buyer side. So now your incentive is to get the listing at any cost. One easy way to do this is to promise the seller that you’ll get him a higher price than the other brokers around. This dramatically skews the self-serving incentives that Freakonomics describes. Put another way, Brooklyn brokers are every bit as self-serving as their national counterparts — but the peculiar local rules make them self-serving in a different way.
That 3rd floor balcony in the second picture is perfect for sniping people, That’s probably the only redeeming value to it.
i agree with fsrg about brownstone living. it’s definetly not cheap. i have been inside many a brownstones and many are not pretty on the inside and not laid out ‘for modern living’. these homes may have better layouts and someone out there that can afford them will buy them. there are people that do not want a brownstone. i have a friend that sold her brownstone and was specifically looking for this type of ‘new construction’ in brooklyn. of course we were all shocked but she was from the west coast and really could not stand her old brownstone and frankly got sick of the contruction to ‘modernize it’.
i think the beautiful interiors that we see here are definetly the minorities in brownstone living not the majority. at least not yet.
at the right price everything eventually sells….
Nanook, you seem to be accepting the notion that low income neighborhoods like yours can only afford uninspired, poorly/cheaply built homes. The fact is, it doesn’t have to be like that. It is possible to build an attractive, functional building using lower cost materials and techniques. This isn’t being done for lots of reasons, but mostly because of the stupidity and greed of the developers who put up the monstrosities Brownstoner disapproves of.
All freak, no nomics.
Biff,
Fair. But your Corcoran model still doesn’t refute my lowball for a fast sale hypothesis. They’re just adding a “price high for a few days and see what happens” twist. And prices will always be adjusted down more frequently than up ’cause you never need to adjust a price up, just take a bid over ask.
To me, a bidding war is just another way of saying broker underpriced. AND . . . even a downward adjustment, could just be an error on the part of the broker on what a low price is. Doesn’t have to imply intentional overprice.
If freekonomics says broker houses stay on the market longer, you’re gonna have to concede buddy . . . .
Love him or hate him, this place would be a lot more boring without The What.
“And where are your posts on all things mutant? You are slowing down in your old age.”
Nope Homeboy! I got a cold one and siting on the mountain. Watching everyone and everything. The piper has broken the perimeter and is headed strait for the Asshats!
I say in about 90 days all hell is going to break lose. The crash will be very very bad. Then you will here from me in a big way. When I post something like this: I love the smell… There will be no refuting any of my arguments!
The What (Tick.. Tick.. Tick..)
Someday this war is gonna end…