Defending the Eight-Figure Price Tag
We’ve already covered the record-setting price of Brooklyn Height’s 70 Willow Street (above), the $25 million asking price of the Dumbo Clocktower, and the $12 million price tag on Bay Ridge’s Gingerbread House in recent months. As the New York Observer notes this week, these are the only three residential props on the market in…
We’ve already covered the record-setting price of Brooklyn Height’s 70 Willow Street (above), the $25 million asking price of the Dumbo Clocktower, and the $12 million price tag on Bay Ridge’s Gingerbread House in recent months. As the New York Observer notes this week, these are the only three residential props on the market in the borough with eight-figure price tags; by comparison, Manhattan has 288 (and another 54 already in contract). Is Brooklyn really ready for this price strata? Well, the brokers with the $10-million listings certainly think so–if you’ve got something unique. “It would be almost physically impossible to have anything like the Gingerbread House in Manhattan,” said BHS broker Bill Radtke. Of course, a little old-fashioned chutzpah doesn’t hurt either. As Asher Abehsera of Two Trees who’s the pitchman for the Clocktower says, “It’s ballsy to come out in Brooklyn and say, ‘I’m going to price this at $25 million,’ but we were confident about it because there’s just nothing like it.
Why Three Brooklyn Listings Dare to Ask $10 Mil [Observer]
70 Willow Street Hits the Market [Brownstoner]
All About the Clocktower [Brownstoner]
The Gingerbread House Hits the Market [Brownstoner]
So there was *never* a sizable gap in Manhattan real estate prices? Never?
I am sure there was, there has always been brokers looking for the ‘greatest fool’; my point isnt that there is no chance that a sucker will be found (you never know) – my point is that these properties are grossly overpriced and while there is an outside chance somebody will come along and pay near ask, the much more likely scenario is that these will sit and linger and/or sell for a MUCH lower number.
The flip side of the “will it sell at that price?” is “does it need to sell?”
There is a big difference to someone “needing” to sell and listing at $18 million, and someone “hoping” to get $18 million.
There is a building on Joralemon St that I’ve put offers in on 3 times over 3 years. They “want” a certain number. It’s not worth their number. They don’t “need” to sell, so they keep turning me down and re-listing it periodically.
If these people “needed” to sell they would be priced more realistically. They “want” the #, so they’ll sit on it until the get it. Once they “need” to sell the price will drop and it’ll move.
Of course the price matters at every point. Is anyone saying that it doesn’t?
And I also don’t think that sizeable gap is dispositive. If the 6mm property doesn’t have everything you want/need/lust for and you have the money to buy everything you want/need/lust for, then in that buyer’s eyes, that 6mm property may as well not even be there.
Boreum Hill
Or 1 Buyer realizes he is the only person within a country mile of ask and says ok my prices is 3/4 of a country mile less than your ask, take it or sit with your “art” forever, and then seller delists or sells at much lower price.
All you people who think that at some number price no longer matters are delusional – if that was so every listing above a certain threshold wouldnt even mention the price (instead of listing it at the top where it always is) AND when these types of listings sold it would always be at ask – when history tells us that is far from the case. Price ALWAYS matters. And if you dont believe me, go find the nearest multi-millionaire or billionaire that you trust and ask them.
My guess is that the gingerbread house will be the first to sell (at between $7 and 11 million). It’s a very different property that just waiting for the right buyer.
I have a hard time believing that anyone will pay above $14 million for Willow Street unless there is something there that I jsut don’t see. It’s just not worth more than 2 to 2.5x what other properties in the Heights are selling for.
The Dumbo Clocktower is such a weird property that I don’t know who will buy it or at what price. I guess if they leave it out there long enough someone with lots of cash will fixate on it for the views, etc.
So there was *never* a sizeable gap in Manhattan real estate prices? Never?
‘Buyers’ (plural) is irrelevant.
The widget doesn’t have to come within a country mile of the ask.
1 buyer + 1 seller meet @ agreed upon price = deal.
Well, time will tell if there are no such folks wishing to pay that $$$ in Bay Ridge. Until then, no one really knows for sure.