Question - I am considering buying one of two condos, one on the UWS and the other on Central Park North (not 111). Both condos were bought summer of 2006. The one on the UWS was purchased for 830,000, and now has an asking price of 925,000 (down from 975,000 after several months on the market). It looks like the current seller did some renovations of the course of the year, some of which I would... [more]
Question -
I am considering buying one of two condos, one on the UWS and the other on Central Park North (not 111).
Both condos were bought summer of 2006.
The one on the UWS was purchased for 830,000, and now has an asking price of 925,000 (down from 975,000 after several months on the market). It looks like the current seller did some renovations of the course of the year, some of which I would probably undo (such as walling off of an unwindowed area that would otherwise be used as a dining area) and others which I would upgrade (for example, it looks like the kitchen was redone on the cheap).
The one on CPN was purchased (from the developer) for 977,000, and a year later the initial asking price was 1,295,000, now down to 1,199,000.
I am shocked at what is being asked for these two condos. Have condos appreciated that much over the course of little over a year? Any advice as to what opening offer I should make, given that I am willing to walk away from both situations?
Thanks!
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Response by yournamehere
about 18 years ago
Posts: 172
Member since: Mar 2007
Condos have moved more than coops, largely due to foreign money coming in. Lux condos in Manhattan with views/prime location/other unique attributes as a class will be valued quite differently than coops and lesser condos simply because there's a completely different universe of buyers and demand dynamics - foreign buyers who generally cannot buy coops and want trophy apts - so the bubble continues to inflate for these condos.
As for your specific properties, if they have been on the market for some time and have had price reductions, I would be more aggressive on your bid, i.e. lowball. Truth is, I'm not so shocked by their current asking prices because after you factor in their closing costs on purchase and reno costs, they're not making much $ on their investment.
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Response by tenemental
about 18 years ago
Posts: 1282
Member since: Sep 2007
I've seen this happen quite a bit, though I'm shopping at a lower price point: buyers who purchased within the last couple of years thinking they had a great short term investment only to find out that 2005-2007 has in many cases not appreciated enough to cover their costs, never mind make them tons of money. I guess looking at the market from 2003-2005 made it look like a sure thing. In the cases I've seen the units either undergo significant price chops, become rentals, or get pulled from the market. I know of one case where the seller struck gold; a clueless college student got her equally clueless dad to buy her the place (I saw the unit and the comps, it was 25% overpriced). I guess some other sellers are hoping for similar luck. I agree w/ yournamehere, make a lowball offer. You may get a call back in a couple of months.
Condos have moved more than coops, largely due to foreign money coming in. Lux condos in Manhattan with views/prime location/other unique attributes as a class will be valued quite differently than coops and lesser condos simply because there's a completely different universe of buyers and demand dynamics - foreign buyers who generally cannot buy coops and want trophy apts - so the bubble continues to inflate for these condos.
As for your specific properties, if they have been on the market for some time and have had price reductions, I would be more aggressive on your bid, i.e. lowball. Truth is, I'm not so shocked by their current asking prices because after you factor in their closing costs on purchase and reno costs, they're not making much $ on their investment.
I've seen this happen quite a bit, though I'm shopping at a lower price point: buyers who purchased within the last couple of years thinking they had a great short term investment only to find out that 2005-2007 has in many cases not appreciated enough to cover their costs, never mind make them tons of money. I guess looking at the market from 2003-2005 made it look like a sure thing. In the cases I've seen the units either undergo significant price chops, become rentals, or get pulled from the market. I know of one case where the seller struck gold; a clueless college student got her equally clueless dad to buy her the place (I saw the unit and the comps, it was 25% overpriced). I guess some other sellers are hoping for similar luck. I agree w/ yournamehere, make a lowball offer. You may get a call back in a couple of months.