Discount for a gut renovation

Well, except for one little thing you forgot...All the buyers who will say, "Don't show me any apartments that need renovations!!" The ratio of those kind to the kind who say, "I'd like to fix it up myself" is probably 2:1 right now... at best.

The supply and demand curve is not going extinct any time soon.

Upshot, I think you're pricing your apartment too high.

{Manhattan real estate agent.}

{Manhattan real eatate agent.}

I think there was a time when that warranted a bigger discount. However, new/reno places are so plentiful -- that you are not going to make up the difference on inconvenience alone. All prices are depressed.

so the inconvenience and extra carrying coat (5 month construction) you need to shell out on top of 150k renovation (and don't underestimate this cost, it usually comes up higher than the original estimate) cost doesn't warrant a deep discount from same unit selling fully renovated?

I would say if you perceive the full renovated unit to sell for 900K today, you should put in a bid for nothing higher than 700k, then you will be at PAR! NOT getting a good deal, just evening out. And this doesn't account for all the effort/stress during renovation.

One thing people forget, don't consider those currently "listed' on the market fully renovated to be your comps for renovated units, most of the sellers today are still delusional, so base it off on peak comps. Meaning if comparable unit all renovated "sold" (not listed) for $1 million in 2006-2007, the peak, then discount 20-25%, as that's the average % that came down from the peak, which brings it down to 800K. than account for 150K renovation cost, and carrying cost. hence, it should be purchased for 600K.

Instead of figuring out what your apartment trades at renovated, compare it to comps that were run down and in estate condition.

realestatejunkie, but in order to get back on your investment, for the renovations, shouldn't you take into account what it could sell for once renovated? that when all summed up, you are not paying more than what you could get for just buying a fully renovated apartment already? I personally found it hard to get run down, estate condition comps, for the properties I have looked at atleast.

Well, except for one little thing you forgot...All the buyers who will say, "Don't show me any apartments that need renovations!!" The ratio of those kind to the kind who say, "I'd like to fix it up myself" is probably 2:1 right now... at best.

I agree with Fluter. The thought of renovating anything is painful right now. The time ... the thought ... the MONEY ...

THIS property should come with a $500,000 renovation discount:

http://streeteasy.com/nyc/sale/477718-coop-16-west-16th-street-chelsea-new-york