Brooklyn Sales: Under a Million
Some of the sales recorded last week that went for $1 million or less: $250K or under: KENSINGTON 495 East 7th Street, #5H; Price=$145,000 GMAP This 600-sf, L-shaped studio was first listed for $172,000 in May, according to StreetEasy. The price was cut a few times, until it was ultimately asking $148,000. Maintenance=$335/month. Closed on…
Some of the sales recorded last week that went for $1 million or less:
$250K or under: KENSINGTON
495 East 7th Street, #5H; Price=$145,000 GMAP
This 600-sf, L-shaped studio was first listed for $172,000 in May, according to StreetEasy. The price was cut a few times, until it was ultimately asking $148,000. Maintenance=$335/month. Closed on 12/21/09; deed recorded on 1/4/10.
$250-$500K Range: BUSHWICK
260 Covert Street; Price=$425,000 GMAP
This is is a 2,736-sf, two-family, according to Property Shark. It sold in an estate sale. Entered into contract on 9/30/09; closed on 12/17/09; deed recorded on 1/7/10.
$500-$750K Range: SUNSET PARK
552 47th Street; Price=$715,000 GMAP
When this limestone was a House of the Day in August, it was listed for $720,000. Entered into contract on 10/27/09; closed on 12/23/09; deed recorded on 1/7/10.
$750K-$1 Million Range: WINDSOR TERRACE
540 16th Street; Price=$999,000 GMAP
This Arts and Crafts house was first a HOTD in August ’08, when it was listed for $1,350,000. (Before that, it had been on the market for $1,550,000 and then $1,499,999.) It was a House of the Day for a second time last June, when the price had been cut to $1,185,000. The reader widget guess was $954,086. Entered into contract on 10/5/09; closed on 12/11/09; deed recorded on 1/6/10.
Photos from Property Shark
No one in their right mind would commit fraud to avoid the mansion tax, but that doesn’t mean it doesn’t happen. I find it unlikely in that there are too many parties involved all of whom are at risk.
The peak ask on wt house is irrelevant imho as there were no comps at that price. We won’t know if 999 was a good or a bad deal for a long time, but it is a great block in a great neighborhood, so for the buyer it’s probably close enough.
Eventually, and by eventually I mean somewhere in the distant future, mortgage rates will be higher, so any price now at ~5% is a much better deal than a similar price at a higher rate.
Absolutely Cash under the table deals happen all of the time.
It is very simple. You and the seller excuse yourself from the room before signing the paperwork, cash trades hands, come back and sign.
You cant beleive people would try to avoid paying taxes? really? Its done all the time, that we we have a massive institution called the IRS.
I talked to the broker when we were looking in this area and the WT house did really go for 999K.
i concur with antidope. Dont know too many people that will commit tax evasion to save 10k, let alone brokers and lawyers who have much less at stake. Maybe in a transaction between family members, or “associates” where everything is done with a wink and a nod anyways, but this one was an open market transaction.
Brownie-
Do people really commit fraud to save 1%? Then when you sell aren’t your profits (and tax) larger (if you don’t put your money into another property)?
The 999 price actually seems about right to me in today’s market.
quote:
how exactly would this “underthetable” payment work. i am pretty sure none of the lawyers involved (buyer/seller/bank) would touch such a deal.
you are familiar with the term, Cash Is King, right? yes, even in 2010, cash is STILL king. it pretty much always will be. all the good stuff in life is only dealable in cash.
*rob*
but not to tired to repeat it…
how exactly would this “underthetable” payment work. i am pretty sure none of the lawyers involved (buyer/seller/bank) would touch such a deal. so let’s imagine a closing btwn you and me, where i am the buyer and you are the seller. how exactly would this go down? I am willing to pay 1.1 but would like to avoid the tax so i tell you let’s have the lawyers draft the deal at 999k and i’ll write you a check for 101k. when exactly do i hand you the extra check? before or after you sign the legal dox? if before, i am not willing to take the risk. are you willing to risk that i refuse to give you the check after?
i find this highly unlikely unless the trade is among related parties.
MR thanks you are right – i was thinking of transfer taxes (condo) where you have to bid 19k below 1 mil because of the double tax. my bad
I get tire of pointing this out, but the 999K prices most likely means the place sold for more, it’s just that the rest of it was paid in cash. Not 100% guarantee, but very very likely.