Houses of the Day: A Couple of Price Cuts
A couple houses we’ve discussed recently were on the receiving end of some price cuts at the end of last week: 155 Warren Street, the swanky Cobble Hill manse with carriage house, and 150 Bond Street, the corner house with garage in Boerum Hill. 155 Warren started out at $8,750,000 back in October before getting…
A couple houses we’ve discussed recently were on the receiving end of some price cuts at the end of last week: 155 Warren Street, the swanky Cobble Hill manse with carriage house, and 150 Bond Street, the corner house with garage in Boerum Hill. 155 Warren started out at $8,750,000 back in October before getting reduced to $7,875,000 in January; now it’s been chopped to $7,100,000. Hate to say we told you so. As for 150 Bond Street, it came out of the gate in early March at $2,495,000. As of Friday, it’s asking $2,375,000. Seems like it’s got at least another 10% to go to us.
155 Warren Street [Brown Harris Stevens] GMAP P*Shark
10% Off at 155 Warren Street [Brownstoner]
House of the Day: $8.75 Million in Cobble Hill? [Brownstoner]
150 Bond Street [Brooklyn Bridge Realty] GMAP P*Shark
150 Bond Street [Coldwell Banker]
House of the Day: 150 Bond Street [Brownstoner]
2:40×4: unlike the other bond st and wyckoff, this is a corner property, with multiple exposures, full depth if you want it and legal curb cuts if you don’t. and it does, in fact, have a cellar. and it’s just a little farther from the pj’s if one cares about such things. i find 2:26 and 2:27’s comments more relevant, but neither of them is suggesting $1.4m is the right price.
Existing comps and the work required to make this livable suggests a minimum of 1.7 and a maximum of 1.85 for this to make any economic sense.
2:09/I disagree:
Here’s my basis:
1) a similarly sized house recently sold on Wyckoff between Bond & Nevens for $1.35 (I believe). This house also had a cellar, where 150 Bond does not.
2) take a look at 160 bond (see the link)
http://bstoner.wpengine.com/brownstoner/archives/2008/04/house_of_the_da_476.php
This bad boy is move in ready and much less expensive.
3) see comments by 2:26 and 2:27
I fear I’m posting twice but my post below never appeared. Trying again!
Price drops from overinflated crazy asking prices is a different thing than price drops from recent comps.
Do brokers and sellers even LOOK at recent comps anymore? Funny, that used to be exactly how one priced a property. Price a tad over the closest most recent comp then let the buyers bid more for it and compete with each other, if it’s really worth more than that. It’s called a normal market, not the bubble market. Being able to sell at all puts us in better shape than the rest of the country. Why get so greedy? If you have to drop your price then buyers know they can negotiate you even lower. It’s a huge mistake to overprice then have to drop the price.
if it were move-in ready, the price might be realistic. but this will require $300-500k of construction, bringing the price close to $3M and out of the realm of reason.
Here are two guest comments regarding 150 Bond taken from the House of The Day thread on March 3rd. I think they are accurate.
The banks appraiser would discount the value of the property by applying a cost to cure (aka cost to make habitable), which in this instance probably equals $1MM+, to arrive at a value. I think that gets you to a number less than what the current owner paid to acquire the property a few months ago. The stage the project is in is the riskiest phase of any complete gut rehab because the property has less value then when the project was started. Current market conditions do not allow for the absorption of seller mistakes such as this.
There is no additional value added with the permits and demolition as the house is now a non-habitable shell. It worth slightly more than the land it is occupying, or approx. $200 per sq foot.
2:02/03: what is your comp for this place at $1.4m?
Boerum Hill:
I don’t think this guy will get even close to full price. I live around the corner, and I know how difficult parking is, but I don’t think a three-car garage justfies an added $1m onto the price. Personally, if it were me, I’d rather have the yard and a one car garage.
I also don’t know why these brokers continue to price properties while all doped up on Meth. If they did some comps, they’d see that a house of this size is $1.4 mil (max) right now.
I see more drops for this one because it was priced about $1 million too high from the onset.
150 Bond Street, a.k.a. “Housing Project Sandwich House”
Good luck Coldwell Banker, you’re gonna’ need it…
Trustfund Buyer: “Hey Buffy! We finally bought in Brooklyn!”
Buffy: “That’s great! Where? How much?”
Trustfund Buyer: “$2 million. Where? Well, you know where the Wyckoff Projects are?”
Buffy: “Yeah, the ones where people are always getting shot and buying drugs?”
Trustfund Buyer: “Um, yeah … there.”