House of the Day: 712 Degraw Street
At first glance, $1,395,000 for a house on Degraw Street sounded cheap to us. Now we’re not so sure. It turns out that the building is only three-stories tall and 16.5-feet wide. If the two-family house is truly in “great shape” and has “lots of original detail,” as the listing says, it could still be…
At first glance, $1,395,000 for a house on Degraw Street sounded cheap to us. Now we’re not so sure. It turns out that the building is only three-stories tall and 16.5-feet wide. If the two-family house is truly in “great shape” and has “lots of original detail,” as the listing says, it could still be well worth it There’s no mention of any significant renovation or upgrades since the property last changed hands in 2003 for $667,000 but a doubling in price in the last five years doesn’t sound crazy. Guess it all comes down to what those interiors look like.
712 Degraw Street [Leslie J. Garfield] GMAP P*Shark
Photo by Kate Leonova for PropertyShark
what’s the beef about a property “doubling in price in the last 5 years doesn’t sound crazy.” we recently sold our co-op for way more than double in just a little under 5 years, and after the first open house too. it’s not crazy.
thanks 2:05 i think the seller added a little haggle room in the price. let’s see what happens. PS is on fire.
Also, this house is a piece of crap and overpriced by at least $250,000+.
– Math Wiz
Doubling in 5 years is a 14.8% per year increase, retards.
The average return of the stock market with dividends is about 9%.
So, yes, 14.8% is not sustainable (normal is more like 6% – 8%) but it’s not like it “doubled” in a year.
– Math Wiz
1:50 – best comp is recent Corcoran sale a few doors down, listed above (in contract). If that went under ask and was only asking 1.395 and was a completely renovated house in perfect condition, there is absolutly NO justification for this house property since it probably needs tons of work. Plus, market sentiment is shifting so that affects comps, which go down in weakening/falling market.
“It should take about 20 years for a double or more return in a healthy, normal market”
Nominally, but not really. Historically, even in NYC, RE has gone up with the historical average rate of inflation.
Lack of interior photos usually means lots of work, esp if no mention of improvements. At very convervative 200 psf, this house will cost 400K min to renovate. They’d be lucky to get 900K. Party days are over folks, buyers are not gonna bite for overpriced cr*p.
“very normal for this market”
But very ABnormal for the market HISTORICALLY. Here comes the flagpole of mean reversion. And with the price of oil these days, vaseline is not an option.
The Corcoran house was part of a OH on this blog: http://bstoner.wpengine.com/brownstoner/archives/2008/05/open_house_pick_184.php
Here also the link to the corcoran site: http://www.corcoran.com/property/listing.aspx?Region=NYC&listingid=1221257
If the house needs some work not sure how you can justify $1.395!