PLG House Sells Over Ask
[nggallery id=”53716″ template=galleryview] Park Slope is not the only place where houses are flying off the shelf these days? Prospect Lefferts Gardens is getting in on the action too, as evidenced by this recent data point: After hitting the market with Douglas Elliman with an asking price of $899,000 on January 5, the three-story brownstone…
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Park Slope is not the only place where houses are flying off the shelf these days? Prospect Lefferts Gardens is getting in on the action too, as evidenced by this recent data point: After hitting the market with Douglas Elliman with an asking price of $899,000 on January 5, the three-story brownstone at 251 Fenimore Street closed on February 4 for $935,000. What is this, 2007?
I was the mortgage broker for the buyers. Yes, they were well-qualified borrowers, but I’d like to stress the importance of submitting complete paperwork to your mortgage broker or lender if you want to close quickly, no matter how well-qualified you may be.
I am so tired of people using “it’s not 2007” as a point of contention. This is New York City! Do you actually think that the price of decent real estate in and around NYC is never going to go up? This isn’t suburban Las Vegas. This is still the center of the world as far as finance and many other high-paying industries are concerned. The people in this city who were already in a financial position to buy a townhouse for over the asking price most likely have MORE money than they did in 2007. Things got quiet because rich people were waiting for people to panic and lower prices.
If your point is that people should not be taking out mortgages that they cannot afford, well, duh! That rule of thumb has been true regardless of the market. If you happen to be one of the unfortunate people in this city who cannot afford to buy something for over the asking price stop sobbing and lamenting reality. My house in Brooklyn Heights sold for over the asking price in the 1950’s: $42,000. They got a lot of sky-is-falling advice back then, but they sure as hell knew that fifty years later when they sold they would get way more than their money back. I bought the house for 7 figures AND over asking, and yes, it was during the “boom.” Am I worried? NO. I didn’t take out a ridiculous mortgage and I am sane enough to realize that a quality house in a lovely neighborhood WILL appreciate in value.
It’s a perfect example of the psychology of pricing. If the seller has asked for $995K, selling for $945K, it would have been an oh! well! sale. The sale was for 10K less, and Brownstoner is cheering like it’s 1997.
It doesn’t matter whether a sale is over or under the ask. What matters is where does it fit in the other sales? how does it compare with past sales?
Yes, despite some similarities, BHO is a poor What substitute–far less amusing IMO.
> Ah, good old Brownstoner just like the old days.
Sort of, but sadly What-less.
Happy Humpday, everybody! I gotta bounce.
Nouriel (sp) Roubini made his black swan prediction about the housing market crash, and was right. However, he then made a dozen predictions after that, all wrong. BHO may be right given international instability, but unlikley as market just doing what it always does – goes up and down. Now is up. It will go down again, just not now predictable.
I didn’t THINK anybody could cite a meaningful number of other brownstone sales over ORIGINAL ask. It aint 2007. It’s Mad Max beyond Thunderdome!
“If interest rates go up, I am paying off my loan at a very favorable rate.” – DCB
And facing the risk of having to sell to a someone who will have to finance with a very unfavorable rate and therefore a much lower price. Most “buyers” buy a payment, not a home.
It’s least risky to buy at historically high rates. You can always refinance down and down and down. Your resale price can be levered up and up and up.
***Bid half off peak comps***
Ah, good old Brownstoner just like the old days.
Or, at least, little or nothing by Krugman.