Help Price PLG Studio
Hi, I am a first-time homebuyer hoping to get a sense of what I should offer on an apartment. It is a 400 sq ft studio located in Lefferts Gardens, on Winthrop between Flatbush Avenue and Bedford Avenue. The area isn’t everyone’s cup of tea but here are the amenities: on-site laundry, short walk to…
Hi, I am a first-time homebuyer hoping to get a sense of what I should offer on an apartment. It is a 400 sq ft studio located in Lefferts Gardens, on Winthrop between Flatbush Avenue and Bedford Avenue. The area isn’t everyone’s cup of tea but here are the amenities: on-site laundry, short walk to Prospect Park and Q/B and 2/5 trains, walking to two nice coffee shops and a couple of nice restaurants. Cons are low buyer/tenant ratio in the building, not spectacular financials overall, and the area is up-and-coming but still rough. Buyer is asking $110K. Maintenance is $331. Here’s my dilemma. The early 2008 comps for the apartments in the same line went for $130K, $140K and $125K. However, a similarly sized apartment on a lower floor just sold in July for $80K. What’s the right number in your opinion? Thanks so much.
“How so?”
The seller is motivated to sell and since the (re)seller has a minimal investment in the place, I don’t think she should be married to realizing a 500% profit. I may be naive in thinking that. Did some more research and discovered that in ’08, the sponsor sold a remodeled unit for $223/sq. ft. studio so I think the max this place should go for is $90K and I’m going to offer accordingly.
How so?
Brief update. I just found out that the seller purchased in ’04 for $22K. Needless to say, that changes things considerably.
Thanks very much everyone for your responses. The unit is a resale and while the higher comps were sponsor sales, I’m not sure of the condition of the $80K unit on the ground floor. You’ve given me a lot to think about and I think I probably need to understand more about the finances of the bldg and the reasonableness of the maintenance before I go any further. Honestly, $110 seemed like a bargain but I don’t know.
Crownlfc, I do not wish to break your heart. I know those terms are loaded and I should have been more careful in my writing–I just wanted to paint a quick sketch for ppl who don’t know the area since I have read comments on Brownstoner like “you’ll get shot over there.” I live in the area already and I like it. Still, I think ‘rough’ is fair for the area outside of Lefferts Manor; there were two fatal shootings this summer; the lobby glass of the building (which you correctly ID’d as 80 Winthrop) was smashed a few months ago; noise is an off-and-on problem as are new graffiti tags and things like public urination. And as far as ‘up and coming’, I was thinking of things like the new block association more than, say, developer-driven wholesale gentrification.
Assuming you’ll be taking out a mortgage for this, I’d talk to a lender/mortgage broker as soon as possible about how financiable this property is actually gonna be. The reason for this is the low owner/tenant ratio – something that banks HATE to see in my experience. If you need financing and nobody will lend on it, why even bother making a bid? Plus, once you talk to the lender, you’ll have a better idea about how much it’s worth. If the lender is saying this is gonna be a tough one to finance, you’ll know to lowball your offer even more….
I’d start at 60K, if I were you.
I’s start at 8- & see where you end up. We just moved into the neighborhood a couple of months ago & love it. We make a new discovery every day. Good luck!
how do you think condition of one you are considering compares to th 80k one. floors, kitchen, bath?
“Up and coming” and “rough”? Oh, you’re breaking my heart. Are you referring to 80 Winthrop by any chance? I would take Chris’s advice. You didn’t say however – if the unit that was sold or the unit you are buying is/was a sponsor unit? If it is 80 Winthrop, I would be more worried about the high maintenance than your perceived “roughness” of the neighborhood