comps vs. price

I have no idea what the heck just happened. I just clicked and it came up multiple times.

Now I look like a psycho........................nice to feel at home.

Please answer my question here and ignore all those other posers. which is me.

unless you intend to divulge more details liek the PRICE of the unit in question, your not going to get any useful help.

great job flying in under the radar and bumping my skull. What a day I'm having.

Wish I could help directly with your question but don't think I can. Buying a place is just way too personal. Maybe I can from a different perspective.

You are an insightful regular here with a healthy skepticism that should serve you well if you're seeking to maximize your value. Nobody can do it better than you can. You've got all the tools and the data to mount a serious offense. Will only price make it a winner? If so, maybe its not the right place.

I know this is a common comment, but comps should be thrown out as a method for real estate valuation. The only way to value a property is through its ability to generate income. We should value this stuff the same way you might value the purchase of a Dunkin Donuts Franchise.

your kidding right?
17A closes for 1.3M/goes to contract in Jan.2009/condition=B+
5A closes for 1.1M/goes into contract in March 2009/condition=C-
13A goes on market in August/ask 1.495M/condition=A-
Build is a Coop/50% down and and a CC of aprox. $3000/mo.
All apartments are exact in size (listed as 1900sq/ft) Real measures is 1760 indoor/180 outdoor
Great guarded views, blaa blaa blaa

You know what I'm asking. The comps will help determine my top price. I guess I asking where do you think we are today when we have such good data points.

'The only way to value a property is through its ability to generate income'
It's an unrentable coop. A primary residence. Alought I agree with you I view my future purchase as more of a liability than an asset. It's just something I want but, I still want to make a wise choice.

Spin,
I like the place but, at the same time I looking long enough to know around the next corner is another true love so price, to a great deal, is what might determine the outcome. My own thoughts is the final price is somewhere between those 2 numbers. I think I'd put a ceiling on 1.275M or is that too high? Come on baby, through caution to the wind!!! Hurt my feelings.

can you put rough dollar figures (based on your wants/needs) against the condition rather than letters? is 5th floor a whole different deal because of views?

5th floor was feet first removal of the original owner. All original details and conditions reflected a home that had been lived in for over 40+ years. Needless to say, this place was in need of some serious TLC. When considering 5A, I estimated aprox. a 1 year renovation w/o me in residence. I thought 5A was over priced considerind the sale on 17 with a MUCH better view and in move in condition. 13 is also a good view and also clears the park to give water views. 5 had views of trees but only water views in the winter. I didn't bite on 5 because I was not up for a time/mind/heart consuming renovation. The building suits my needs. Parking/gym/pool/good financials all good. I focus on this building because it plays to my strenghts. It's a 2br./formal dining room/2.5bath/post-war/50%down/difficult board building.
I'm a 50% down guy with excellent financials, a 22 yr. old professional business in the neighborhood, married with one child. The build is some-what undesirable b/c of it's 'edge of the earth' location which works for me b/c I seldom leave the neighborhood. kid goes to school close by and wife is adaptable. Hope that gives a little more insite without giving away the store.

falco, you're only looking at half the picture -- sold comps.

You need to look at on-market comps too.

If sold comps dictate 1.275, what can you buy for that? A market where there are four things you like for sale for that and a market where there's nothing else you like for sale for that indicate two different things, comp-wise.

ali r.
Ask the Agent at CBS Moneywatch.com:/bit.ly/12afCB

fwiw and i'm not an expert i felt "5a" got an amazingly high price particularly given its condition. 17 was aided by the 5a comp which was on the market for a high price when 17 went to contract and by 3 bedroom comps which went to contract before the big downturn. i think 1275 is way way too high but it's more of my sense of the current market than analytically supported.

falco - buy it before opheus12 does.

'falco, you're only looking at half the picture -- sold comps.

You need to look at on-market comps too.'

on-market comps? Are those similar apartments that are for sale a the moment? So you think I should evaluate asking price comps? So this place is asking 1.495M. I should see what's the market, offering at the moment for 1.495M and do that comparison?
I never thought of that type of comparison. A year on this site learning the magic of sold comp comparison I thought would be enough. I see you throughing tiny monkey wrenches into my well organized plan. I did mention that all the above properties are the same exact layout and square footage...right?

I agree with Ali 100%: think of it this way: let's say you only looked at sold comps, but tomorrow the unit one floor above and in better condition comes on the market for $1,050,000. You still gonna pay $1,275000 for the inferior unit? Off topic: this is one of the reasons i always told Coops they were crazy for rejecting sales of apartments which "had to sell" (like foreclosures) for low price: which does more damage to the value of a building, a low sale which can be explained away as a distress sale, or a low priced unit on the market which is sitting there and can't sell? Obviously the latter, but that's the situation you set up nevertheless by rejecting low sales.

Without knowing the building or particulars, I agree that it sounds if anything like the 5th floor sold a little high.... but that's only fodder for my "sideline buyers overpaying for wrecks theory" which I expressed here a few times recently.

falco, I'm not TRYING to toss the monkey wrenches -- I'm just telling you a little of the art/science behind pricing so you can be happy when you finally buy. (Bonus: someone reading this thread will think I sound smart and end up hiring me).

You got it exactly right, you take the sales price of your target apartment (or, for even greater refinement, the price that you want to PAY for your target apartment -- and see what else you can buy for that money. It's a purchasing power exercise, and 30 Yrs walks you through it exactly.

I'll have to remember to write about this "both kinds of comps" exercise later.

GL!

ali r.