Does anyone know the story behind this short sale? I see that it was listed at $1.395 million recently (when the owner first ran into trouble paying?), and now it's listed at $850K. I believe short sale means that the bank has agreed to sell the property, even though the price will not cover the outstanding loan. I guess this property last sold at $1.25 or maybe more? That would mean owner would... [more]
Does anyone know the story behind this short sale? I see that it was listed at $1.395 million recently (when the owner first ran into trouble paying?), and now it's listed at $850K.
I believe short sale means that the bank has agreed to sell the property, even though the price will not cover the outstanding loan. I guess this property last sold at $1.25 or maybe more? That would mean owner would need to get $1 million, or so, to just to pay back 80% to the bank.
This has to take a heavy toll on the owner, the neighbors (whose properties may be devalued as a result of this new comparable) and anyone else trying (or hoping) to sell in the near future. If you have a 2 BR in Dumbo, suddenly everyone shopping will use this as a benchmark: "Well, I could get a 1300 sq ft 2BR for $850K or maybe less...so what kind of price are you thinking of?"
I'm an owner, so I hope that things stabilize, and become more sane.
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Response by stevejhx
over 16 years ago
Posts: 12656
Member since: Feb 2008
"Office" = large closet with no window, aka mausoleum space.
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Response by nyc10022
over 16 years ago
Posts: 9868
Member since: Aug 2008
$650 for dumbo with views. If the price holds, thats easily 40-50% off peak pricing.
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Response by RE_PRO
over 16 years ago
Posts: 161
Member since: May 2009
Sorry but I wouldnt buy this for 850k.. they would have to go much lower... there are two properties that went for the 900 range for 1250 sqft. There are other listhing for this building with 1000 per sqft. For that price, I would buy Manhattan. Brooklyn should be 30% discounted. I will pay 500-600k for this.
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Response by nyc212
over 16 years ago
Posts: 484
Member since: Jul 2008
10022, I wasn't aware that the prices in DUMBO had gone up that high--up to $1,300 PF? That's more than most Manhattan neighborhoods! To me, it still seems overpriced at $650 PF, relative to what one can get in Manhattan in that price range these days. But, then, I suppose that's how much the bank wants based on the money owed...
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Response by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
Just to corect the title of this thread, a short sale is NOT a foreclosure. They are two entirely separate things. Just because a place is a short sale does not mean it is a foreclosure.
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Response by SkinnyNsweet
over 16 years ago
Posts: 408
Member since: Jun 2006
That's a distinction without a difference. Explain what you mean by how they are different.
The point of a short sale is that it would be a foreclosure absent a short sale. From a market function perspective, they are the same because both enable the seller to more easily go below their equity basis in the sale price.
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Response by nyc10022
over 16 years ago
Posts: 9868
Member since: Aug 2008
> 10022, I wasn't aware that the prices in DUMBO had gone up that high--up to $1,300 PF? That's more than most Manhattan
> neighborhoods!
$1300 for views, loft space, and a few years old construction. I think DUMBO overall was closer to $1100 psf, as were apartments overall in that building. Add the views back in (water and skyline), $1300 easy, maybe more.
And, yes, DUMBO was running higher than some of Manhattan. That was well reported a year ago.
> To me, it still seems overpriced at $650 PF, relative to what one can get
> in Manhattan in that price range these days. But, then, I suppose that's
> how much the bank wants based on the money owed...
If $650 for views/loft space in the most expensive neighborhood in Brooklyn is overpriced, what does that mean for inferior neighborhoods with no views.
$350 in park slope?
What should the marginal stuff be? $200 at the toren?
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Response by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
"The point of a short sale is that it would be a foreclosure absent a short sale."
That is not true. Not all short sellers are in distress. Also, a foreclosure is when a property is bank owned (aka (REO). Short sales are not bank owned. They are owned by the seller.
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Response by otisrules
over 16 years ago
Posts: 3
Member since: Mar 2009
President - Sorry, a bit of a novice here but why would there be a short sale if the seller was not in distress?
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Response by The_President
over 16 years ago
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because they simply want to sell, but don't have any equity since they either bought with no money down or they sucked it all out through a HELOC.
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Response by alanhart
over 16 years ago
Posts: 12397
Member since: Feb 2007
Sounds distressing either way.
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Response by nyc212
over 16 years ago
Posts: 484
Member since: Jul 2008
10022, I don't think many buyers in NYC are that "view-ccentric." Area desirability always trumps good views--or we'd see everyone moving to Jersey & the boroughs.
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Response by nyc10022
over 16 years ago
Posts: 9868
Member since: Aug 2008
Yes, but even in Jersey the apartments with views sell for a lot more than those that don't....
You can argue that it shouldn't (which doesn't make much sense to me), but there has definitely been a premium for these apartments over non-view apartments.
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Response by The_President
over 16 years ago
Posts: 2412
Member since: Jun 2009
As somone who once had to go throgh the hassle of selling a 2nd floor apt., I can assure you that views are EXTREMELY important to NYC buyers. Had I had a view, I could have sold in the snap of a finger. Instead, it took me 2 years.
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Response by GraffitiGrammarian
over 16 years ago
Posts: 687
Member since: Jul 2008
yes, nyc10022 -- $350/sf for the Slope, $200 for the margins, like prospect heights, boerum hill, clinton hill, etc.
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Response by nyc10022
over 16 years ago
Posts: 9868
Member since: Aug 2008
> Had I had a view, I could have sold in the snap of a finger. Instead, it took me 2 years.
Yes, the high floor apartments in the projects are much more valuable. Because you don't smell the crack.
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Response by duvravcic
over 16 years ago
Posts: 78
Member since: Jan 2009
10022, I think our reference points are getting switched in your Jersey example. Sure, for comparable units (in terms of location, amenities and layouts/space), we'd all agree that apts w/ better views would certainly be priced higher. There is no controversy there.
Maybe it's my reading comprehension, but I thought the original discussion you raised was about a Brooklyn apt. commanding more money ($1,300 PF, as you cited) than many Manhattan neighborhoods because of the view. I know some people absolutely LOVE Brooklyn, but I thought that perspective was a bit unconventional. But, again, I have no vested interest, so I don't really care that much. Maybe you are right.
Also, Prez, based on my experience, the biggest problem w/ 1st and 2nd floor apts isn't really the view at all. It's the noise, vermin, theft, and so on. Most NYC apts, even higher floor units, don't have decent views, and they typically don't take 2 years to sell.
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Response by DowntownBrooklyn
over 16 years ago
Posts: 1
Member since: Sep 2009
The owner of this condo unit passed away, and from what I'm told by people who knew him, he had financial troubles.
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Response by samadams
over 16 years ago
Posts: 592
Member since: Jul 2009
that is sad downtown, i would not pay 850 to live there though. 600 would make it intresting
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Response by nyc10022
over 16 years ago
Posts: 9868
Member since: Aug 2008
"Maybe it's my reading comprehension, but I thought the original discussion you raised was about a Brooklyn apt. commanding more money ($1,300 PF, as you cited) than many Manhattan neighborhoods because of the view. I know some people absolutely LOVE Brooklyn, but I thought that perspective was a bit unconventional. But, again, I have no vested interest, so I don't really care that much. Maybe you are right."
No, not at all.
DUMBO was more expensive than many Manhattan neighborhoods, period. We're talking apartments with no views. It was the most expensive overall in Brooklyn, and outdid much of Manhattan.
I was separately noting that this specific apartment would have fetched even more because it had the views...
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Response by fratello
about 16 years ago
Posts: 8
Member since: Apr 2007
Sorry to hear about the owner of this property, my condolences to his friends and family.
Flmao. Why does it take a heavy toll on neighbors? Cause you actually get a data point? Like if a neighbor dies of old age? Does that mean it takes a heavy toll on the neighborhood cause now we all know we gotta die sometime? Flmao.
Mkt is mkt, it just so happens you got a mortgage thatz much larger than mkt. It's not causation. R ppl reall that dumb?
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Response by w67thstreet
about 16 years ago
Posts: 9003
Member since: Dec 2008
One other thing be careful short sale marketing shanningins.
"Office" = large closet with no window, aka mausoleum space.
$650 for dumbo with views. If the price holds, thats easily 40-50% off peak pricing.
Sorry but I wouldnt buy this for 850k.. they would have to go much lower... there are two properties that went for the 900 range for 1250 sqft. There are other listhing for this building with 1000 per sqft. For that price, I would buy Manhattan. Brooklyn should be 30% discounted. I will pay 500-600k for this.
10022, I wasn't aware that the prices in DUMBO had gone up that high--up to $1,300 PF? That's more than most Manhattan neighborhoods! To me, it still seems overpriced at $650 PF, relative to what one can get in Manhattan in that price range these days. But, then, I suppose that's how much the bank wants based on the money owed...
Just to corect the title of this thread, a short sale is NOT a foreclosure. They are two entirely separate things. Just because a place is a short sale does not mean it is a foreclosure.
That's a distinction without a difference. Explain what you mean by how they are different.
The point of a short sale is that it would be a foreclosure absent a short sale. From a market function perspective, they are the same because both enable the seller to more easily go below their equity basis in the sale price.
> 10022, I wasn't aware that the prices in DUMBO had gone up that high--up to $1,300 PF? That's more than most Manhattan
> neighborhoods!
$1300 for views, loft space, and a few years old construction. I think DUMBO overall was closer to $1100 psf, as were apartments overall in that building. Add the views back in (water and skyline), $1300 easy, maybe more.
And, yes, DUMBO was running higher than some of Manhattan. That was well reported a year ago.
> To me, it still seems overpriced at $650 PF, relative to what one can get
> in Manhattan in that price range these days. But, then, I suppose that's
> how much the bank wants based on the money owed...
If $650 for views/loft space in the most expensive neighborhood in Brooklyn is overpriced, what does that mean for inferior neighborhoods with no views.
$350 in park slope?
What should the marginal stuff be? $200 at the toren?
"The point of a short sale is that it would be a foreclosure absent a short sale."
That is not true. Not all short sellers are in distress. Also, a foreclosure is when a property is bank owned (aka (REO). Short sales are not bank owned. They are owned by the seller.
President - Sorry, a bit of a novice here but why would there be a short sale if the seller was not in distress?
because they simply want to sell, but don't have any equity since they either bought with no money down or they sucked it all out through a HELOC.
Sounds distressing either way.
10022, I don't think many buyers in NYC are that "view-ccentric." Area desirability always trumps good views--or we'd see everyone moving to Jersey & the boroughs.
Yes, but even in Jersey the apartments with views sell for a lot more than those that don't....
You can argue that it shouldn't (which doesn't make much sense to me), but there has definitely been a premium for these apartments over non-view apartments.
As somone who once had to go throgh the hassle of selling a 2nd floor apt., I can assure you that views are EXTREMELY important to NYC buyers. Had I had a view, I could have sold in the snap of a finger. Instead, it took me 2 years.
yes, nyc10022 -- $350/sf for the Slope, $200 for the margins, like prospect heights, boerum hill, clinton hill, etc.
> Had I had a view, I could have sold in the snap of a finger. Instead, it took me 2 years.
Yes, the high floor apartments in the projects are much more valuable. Because you don't smell the crack.
10022, I think our reference points are getting switched in your Jersey example. Sure, for comparable units (in terms of location, amenities and layouts/space), we'd all agree that apts w/ better views would certainly be priced higher. There is no controversy there.
Maybe it's my reading comprehension, but I thought the original discussion you raised was about a Brooklyn apt. commanding more money ($1,300 PF, as you cited) than many Manhattan neighborhoods because of the view. I know some people absolutely LOVE Brooklyn, but I thought that perspective was a bit unconventional. But, again, I have no vested interest, so I don't really care that much. Maybe you are right.
Also, Prez, based on my experience, the biggest problem w/ 1st and 2nd floor apts isn't really the view at all. It's the noise, vermin, theft, and so on. Most NYC apts, even higher floor units, don't have decent views, and they typically don't take 2 years to sell.
The owner of this condo unit passed away, and from what I'm told by people who knew him, he had financial troubles.
that is sad downtown, i would not pay 850 to live there though. 600 would make it intresting
"Maybe it's my reading comprehension, but I thought the original discussion you raised was about a Brooklyn apt. commanding more money ($1,300 PF, as you cited) than many Manhattan neighborhoods because of the view. I know some people absolutely LOVE Brooklyn, but I thought that perspective was a bit unconventional. But, again, I have no vested interest, so I don't really care that much. Maybe you are right."
No, not at all.
DUMBO was more expensive than many Manhattan neighborhoods, period. We're talking apartments with no views. It was the most expensive overall in Brooklyn, and outdid much of Manhattan.
I was separately noting that this specific apartment would have fetched even more because it had the views...
Sorry to hear about the owner of this property, my condolences to his friends and family.
I get a broken link.
Do we know if it sold? Or is it still listed?
I see that it is listed as "in contract" on this Luxor LLC site: http://www.luxorllc.com/BrokerWebsite3/Code/sales_detail.asp?listing_id=298642 the last listed price was $850,000.
Flmao. Why does it take a heavy toll on neighbors? Cause you actually get a data point? Like if a neighbor dies of old age? Does that mean it takes a heavy toll on the neighborhood cause now we all know we gotta die sometime? Flmao.
Mkt is mkt, it just so happens you got a mortgage thatz much larger than mkt. It's not causation. R ppl reall that dumb?
One other thing be careful short sale marketing shanningins.