Big Turnout for 437 Waverly Auction
There was a big turnout and lots of bidding yesterday at the auction for the shell of a house at 437 Waverly Avenue in Clinton Hill. The first round of bidding was done privately on paper, with the highest bid coming in at $415,000. At that point, the public bidding started at $415,000 and quickly…
There was a big turnout and lots of bidding yesterday at the auction for the shell of a house at 437 Waverly Avenue in Clinton Hill. The first round of bidding was done privately on paper, with the highest bid coming in at $415,000. At that point, the public bidding started at $415,000 and quickly worked its way up to a winning bid of $540,000, well above what we thought it would go for (and far above the pricing widget average of $382,448. Surprised?
Waverly Shell Coming Up for Auction [Brownstoner]
437 Waverly Avenue [Brooklyn Properties] GMAP P*Shark
ditto, I think you’ve hit on something. haunted houses do tend to bring a premium. No one overpaid here.
If they’d taken the halloween cobwebs down they could’ve gotten 10% more.
Ringo, you are certainly correct on that “auction mentality.”
“Well, if that guy over there is bidding $520,000 and he looks pretty smart, I’ll bid $540,000.”
Winner’s curse strikes again
Not familiar with the property, but looking at the photo it appears there are two well maintained buildings on either side of the shell. Identical facades…
ditto, although these units will be small, a fully renovated rental unit iin that neighborhood will still command $1,500, perhaps even more.
Taxes $2,500
Common area utilities $2,500
Insurance $3500
Take that off of the $54,000 in income and you’ve got 5.6% NET yield to a small property management company.
I’m not saying I’d do this at this price but eventually those rents will go up and then you’re looking at 7% net yield.
Too much, but that’s what a good auction does. People who meant to stop at 450 find themselves bidding 540.
I doubt they’ll get 1500 for these itty bitty floors, but more to ’em
What kind of fool pays 540k for a single-family shell in a depressed housing market, do some people still have money to throw away.
“Three one-bedroom rental units at $1,500 would bring in $54,000 and be a gross yield of 6.75% on an $800,000 investment.”
DIBS, I’m not one to question your financial genius, but rents are still currently falling in NYC according to the latest data. And property taxes aren’t falling. So you’re painting a rosy picture, but I think you need to be a bit more hard headed. And are you saying there’s no maintenance needed?