A Couple More Widget Comps
A couple more properties that have received the widget treatment on Brownstoner have sold and both sales prices, not surprisingly, are well in excess of the widget average. As we know by know the widget average, almost by definition, underprices the ultimate sales price since all it takes is one buyer, not a consensus, to…
A couple more properties that have received the widget treatment on Brownstoner have sold and both sales prices, not surprisingly, are well in excess of the widget average. As we know by know the widget average, almost by definition, underprices the ultimate sales price since all it takes is one buyer, not a consensus, to get a deal done. In the case of Apartment #2 at 56 Garden Place, the widget predicted $645,093 and the two-bedroom ended up selling for $750,000; this difference of 14% is about what we’ve come to expect ye olde widget. Over at Apartment 5E at 125 Eastern Parkway, the widget came in at $314,911, or only 9% less than the actual selling price of $345,000. Surprised by either of these?
Co-op of the Day: 56 Garden Place, #2 [Brownstoner]
56 Garden Place, #2 [Brown Harris Stevens] GMAP P*Shark
Co-op of the Day: 125 Eastern Parkway, #5E [Brownstoner]
125 Eastern Parkway, #5E [Corcoran] GMAP P*Shark
Nomi,
I just want people to realize that they speak here as if they are never wrong and then NEVER admit when they are.
Just go back and read the comments on these things to see where the whole frownstoner thing comes from. Nearly everyone on that thread got the Garden Place thing wrong. And now here there are saying that the person who bought it is an idiot?
Really? Cause they couldn’t have found something cheaper?
How about maybe they LOVED it? Nope, the crowd on brownstoner are too miserable to say that.
I think the point is even more basic. The market-clearing price and the true economic value of an asset are not the same thing. To anyone who thinks the argument is done because widget prices has been exceeded and collapse forestalled –why does this mean anything relative to the future prices of housing? I really encourage anyone reading this blog and thinking that a debate about the rational prices for a Brooklyn brownstone has been permanently settled in favor of the “bulls” to consider the whole economic and financial picture that went into forestalling collapse, and ask yourself how sustainable it is. Think, for example, about gold in the early eighties –you had a bubble that brought in the general public at peak prices; you had a subsiding of the frenzy; then you had a nearly twenty year grind down to the bottom. Had there been blogging back then, no doubt every day for at least two or three years, maybe more, some ninny like Dave would come on and heckle those silly gold bears for insisting his precious metal would one day sell for less than half off.
Oh, man, 11217, you’re not gunna dig up old posts all day, are you?
Or, wait. Is that a sign of affection?
“Tybur6, in some cases the highest offer *doesn’t* get the deal done. When were selling our co-op in 2003 we went with the next to highest offer because they had a better chance of getting by the board.” (quig)
Yes. I know this wasn’t to me, but just want to say — didn’t want to complicate my exquisite point by muddying the waters, but, of course, there are sometimes reasons why the highest bid is not the most desirable.
No gold star for Ditmas Snark either:
**
Lovely deck. Laughable price.
Posted by: DitmasSnark at September 2, 2009 1:49 PM
Tybur6, in some cases the highest offer *doesn’t* get the deal done. When were selling our co-op in 2003 we went with the next to highest offer because they had a better chance of getting by the board.
Well Snappy…We know Minard sure ain’t gunna win that prize:
**
“I think one of those bedrooms is too small to be a legal bedroom. There is no real kitchen to speak of. The deck is the best part of the whole apartment. This should be priced in the 500’s.”
Posted by: Minard Lafever at September 2, 2009 12:48 PM
“DESPERATE FOOL”? why would a buyer be desperate? aren’t there plenty of choices of places? inventory on the market?
Are they forced to buy instead of rent?
Someone pay 750K for a coop…I would guess the person or couple that successful is able/smart enough to make decisions based on the market out there.
“It would be interesting to see which poster, on average, tends to input a correct (or very close to correct) price on the widget.” (Snappy)
I would win.