Last Week's Biggest Sales
1. BROOKLYN HEIGHTS $3,895,000 80 State Street GMAP (left) This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original…
1. BROOKLYN HEIGHTS $3,895,000
80 State Street GMAP (left)
This 4,550-sf, 2-family was first listed for $4,950,000 in late 2008, according to StreetEasy, and the price was cut a number of times until it was asking $3,895,000 last September. Ad said: “Rare opportunity to own a 25-foot-wide Gothic Revival 1850’s Brooklyn Heights townhouse with original details intact. Grand double parlor with exquisite moldings and original pocket doors, three wood-burning fireplaces, and rooms flooded with superb Southern-facing light…” Its seller bought it for $3,300,000 in 2005. Entered into contract on 10/1/09; closed on 1/5/10; deed recorded on 1/27/10.
2. COBBLE HILL $3,200,000
243 Kane Street GMAP (right)
As covered last week, this renovated townhouse was originally asking $2,950,000 in ’07, but the price was raised to $4,075,000 in mid-’08. As it lingered on the market, the price was reduced several times until it was last asking $3,500,000 as of mid-’09. Its seller bought it for $1,802,000 in 2007. Entered into contract on 1/15/10; closed on 1/15/10; deed recorded on 1/28/10.
3. BROOKLYN HEIGHTS $2,995,000
20 Grace Court Alley GMAP
As previously noted this 2,550-square-foot brick house was originally asking $3,300,000 and the widget appraisal came in at $2,766,135. Its sellers bought it for $2,675,000 in ’05. Entered into contract on 11/17/09; closed on 1/15/10; deed recorded on 1/28/10.
4. PARK SLOPE $2,125,000
524 2nd Street GMAP
When this 2-family was a House of the Day in October, it was listed for $2,375,000. The reader widget guess on it was $1,952,045. Entered into contract on 11/5/09; closed on 1/11/10; deed recorded on 1/26/10.
5. FORT GREENE $1,870,000
119 Fort Greene Place GMAP
When this brownstone was a House of the Day in November, it was listed for $1,995,000. The reader widget appraisal clocked in at $1,615,042. Entered into contract on 11/25/09; closed on 1/7/10; deed recorded on 1/27/10.
Photos from PropShark.
Just did it for my own place, BHO. Bought it in 2006 which is pretty close to, if not the peak of the market. Would you not agree?
12x annual rent.
At the peak of the housing bubble.
Why am I restricted to the list above, 11217? Is that REALLY representative of the whole market? You said yourself the market is down -30% YOY. What about Last Week’s Median Sales? My argument doesn’t have to hold water here. The majority of mortgages near peak comps are holding water for me.
10 x (rental 1 + rental 2 + rental 3 + rental 4) x 12 = value of a multifam brownstone. It’s easy, 11217. Try it at home.
***Bid half off peak comps***
I agree with BHO that there is an undeniable logic to the notion of “fundamental” values and then rent roll valuation seems a sensible way to value a property. Obviously this number shifts a lot with the strength of the market. I also agree with 11217 that it is harder to state the “value” of a brownstone’s rent roll as they are all divided so differently (or not at all) and the interest that people have in these houses seems to transcend some notions of what is fundamental in other markets. In other words I have no effing idea what the real “value” of a house, mine or otherwise, is until the sale shows up in print.
FWIW–I overpaid for my place at 10x. I am right on target at 13 or 14x.
The figure is 10 for investment properties.
15 for individual home ownership.
BHO has been unable to grasp the difference for quite a while now.
that x times rent roll is in reference to buying apt. buildings as investment property.
Not buying a home to live in.
“A bullish source”
It’s not a bullish source.
Just a foolish one.
BHO:
Give examples from the list above on how these sales prove your point that we are headed for 50% off peak.
(Will love to see this since 3 houses sold for more than in 2005 and 2007).
Until you can do so, your argument holds no water here.
P.S. using your bogus 10 times means nothing on brownstones anyway. An entire brownstone is almost never for rent. The sampling is practically non-existent.
“Yours is from the NYTimes. The most trusted news source for Real Estate.”
Exactly my point. A bullish source but yet still honest about the historical 10x norm “brokers and investors say”.
***Bid half off peak comps***
I think some people on this site have been been ran over by some bulls.