Price per square foot Prospect Heights
I want to buy an apartment in Prospect Heights. I am looking for a three bedroom in a co-op. What do you think I should expect to pay overall and per square foot? Also, any thoughts on how the market in prospect heights will fare over the next few years (property values)? Thanks!
I want to buy an apartment in Prospect Heights. I am looking for a three bedroom in a co-op. What do you think I should expect to pay overall and per square foot? Also, any thoughts on how the market in prospect heights will fare over the next few years (property values)?
Thanks!
While everyone likes to talk about the price per square foot in the asking price, there are two figures that are much more important and will help you decided whether you are getting a good deal. They aren’t always in direct relation to the price per square foot in the asking price. The first figure is the total monthly cost of the apartment post tax, meaning, how much will it cost you for the apartment when you factor in the mortgage payment, the maintenance and the tax deductability of the maintenance. The second is the post tax cost per square foot for the apartment. This figure will help you determine whether you are getting the most bang for your buck.
It’s also fun to put these and other figures in overlapping, color coded excel charts. 🙂
The 7:57 AM poster sounds like they don’t really know Prospect Heights at all. The area has been gentrifying since the 1980s. Brownstones have been selling for $2 million plus since 2005. It’s hardly fringe. Unless of course you go further East into blocks that really aren’t a part of the acknowledged boundaries of the neighborhood. Larger apts are mostly clustered on Eastern Parkway. many of those buildings are very established so don’t expect a bargain. Generally speaking, expect to pay 20-35% less for prime PH than you would pay in Park Slope.
Average is $600 a foot. Real 3 beds are rare–expext to pay at least $900K for a PH pre-war 3 bed–they tend to be about 1700 sqaure feet unless they are previous 2 beds that have been chopped up.
Have a look on NYT.com and see what is out there. Prospect Heights borders are Flatbush to Washington/Classon, Atlantic to Eastern Parkway.
Coops have historically sold at a discount to condos due to the less desirable ownership structure and sale restrictions.
The increase in supply of condos in the last five years has substantially decreased the relative value of coops.
Resale value has been diminshed proportionately.
This is a hard question to answer. It all depends on what you want, need, can afford and are willing to spend. Most importantly, it’s about the market.
I can tell you that 3 proper bedrooms may be a bit of a challenge, but it’s doable. I’d recommend, if you haven’t already, that you start gathering info that’s readily available on the web. You need to look at the most recent comparables to determine what places are going for in a given area. These can easily be found at streeteasy.com, propertyshark.com, and zillow.com (though they tend to be the least reliable, in my experience). You should also check out a site called ownersandbuyers.com to gauge the difference in ask prices between homes that are for sale by owner and homes that are listed with brokers. Brokers do not work for you; they work for Corcoran or BHS or Warren Lewis or Brooklyn Properties and they are trying to make their commission. Do not, as a buyer, rely on seller’s representatives to help you determine what’s a fair price. There are lots of FSBO (for sale by owner) properties out there right now relative to the number of places on the market, and you may be able to strike a better deal for yourself because the owners do not have to factor a broker’s fee into their net for the sale. Not all brokers are jerks, but they are trying to make a living.
Also, in our search for our place, we looked at some NYTimes listings that were labelled, shall we say, generously. Half the places listed as “Prospect Heights” were actually in Crown Heights, and that matters when it comes to ask price and re-sale value if the economy tanks further. There were also a few places we saw listed as being in Park Slope that were actually in Gowanus or Boerum Hill or Prospect Heights. This makes a huge difference in ppsf. Get an atlas and know your neighborhoods. Also pay close attention to what school’s are zoned for the neighborhood, if that’s a part of your equation.
Be prepared to be flexible. How about a two bedroom with a dining room that could be converted? Would a small room labelled an “office” work for a child’s bedroom, at least for several years? If you’re willing to look at a space’s potential, you might be able to save 50K. Oh, and don’t be overly charmed by those stainless steel appliances and Kohler fixtures – seems like HGTV has everybody convinced they can make a hundred grand on their sale if they throw in some Ikea cabinetry and a granite counter top. If a place has good floors, a solid foundation, good electrical and plumbing, a good roof and boiler, you are capable of outfitting it any way you see fit.
Lastly, be prepared to wait. If you’re under no pressure to buy, don’t. Keep an eye on properties you’re interested in – you can easily track them through the sites I’ve mentioned. If something sits for a while, often the list price will come down, or the owner may be more willing to negotiate. Don’t believe the hype that properties are flying off the shelves. The place we ultimately bought – everything we wanted at a fair price, FSBO – sat on the market for almost four months. We were under no pressure to move, but the seller was under pressure to sell. That worked in our favor when it came time to talk price.
Good luck. The more information you gather on your own, the better position you’re in to offer what you think a place is worth.
Prospect Heights like other recently gentrified fringe neighborhoods has experienced unprecedented recent appreciation in home values. This is anticipated to moderate somewhat in the coming years if not register an actual decrease, which is the more likely scenario given the softening economy, recent increase of housing supply, troubled debt markets, and possible strengthening of the US dollar. Good luck.