Value of Renovations?

The ad says they put in central AC, and the vents show in the LR picture. Going by the pictures and plan, the kitchen and baths were gutted, along with the new wiring etc. mentioned in the ad.

Not $1,000,000 worth, I guess, but I don't know how it ranks with other sixes in the neighborhood.

To the extent renovations offset bolster prices, the other owners like them.

Oops, "bolster prices or offset declines".

Reno or no, this unit is overpriced. There is simply no way to 'renovate away' the low-floor location and attendant lack of natural light. Both are major negatives. The layout isn't thrilling either. Maintenance seems a bit on the high side for the space/floor level.

I'd say this should be priced closer to $1.6 or 7. If they're lucky they'll get $1.5 and change. Cannot imagine it going any higher than that.

NWT: You are correct on the Central AC--no wonder the window vents didn't appear in the pictures. However, it may be more relevant how it compares to Classic Sevens off Park, not Sixes.

Bramstar: Isn't there some value to having an apt. that is "move-in ready"? The new windows will certainly help the street noise, but not the lack of light. The lack of flow between the LR and DR would also be a problem for me. It may not be worth $2.3mm, but I'd think it's worth $1.8mm, no?

The renovations may help bolster the price of other apartments, but it must have been a tough renovation for the other owners to endure. Do buyers like this present their plan to flip to the Board when buying? Do Boards look well on this type of buyer?

Great Ceaser's Ghost!
When I saw this listing I quickly checked my calander...for a moment I thought I fell into a time vortex and it was 2006. What on earth are these psycho-flippers thinking?
I'll tell you...sticking to time tested business plan...buy low/sell high.
What's this reno worth?
In this case, it's not worth a penny.
A second floor 3 bedroom apartment on 84th street with a CC of $3328 not to mention this tid-bit: A 2% flip tax is paid by buyer is worth NOTHING.
ABSOLUTLY NOTHING.
Ungatz, zippo, zero, nada....fogettaboutit!
These are the moments I wish my mother had sent me to clock cleaning school.
It's so funny that it's sad.
I wont even comment on the reno because it's basiclly superfluous. The property which was bought for 1.3M was a reasonable transaction cost as long as the buyer knows that they had no expectation of renovating and reselling. This is the kind of place you buy, renovate for yourself and when you leave...you leave feet first and you estate tries to figure out why you ever made such a shitty investment.
If they could get 1.5MM they sdhould 'take the money and run' even if it is at a loss (assuming they don't want to stay). I have met folks that after a difficult renovation that comes out relativly well the owners are delusional as to the actual value of their creation.
sad sad sad...my heart hurts for these ambitious flippers...who knows, maybe the chinese will save them.
I usually save this comment but.................FLMAO

There's no way to tell for sure whether this was a planned flip or whether something is forcing the buyer to sell so soon after purchase (job loss, relocation, etc).

jsw--Yes, there is value to move-in ready but remember that even the 'best' renovations often require minor (or major) tweaks depending on the buyer's needs/tastes. The premium that's being asked here is, quite bluntly, aspirational. Based on what I see in the listing (and not having seen the place in person) I stand by my assessment re: the final price. But time will tell.

I don't think this is a far-fetched ask.

Ok nyc10023,
You usually have some bright insights. I'm surprised at your response.
Care to elaborate?

1st, I know nothing about the UES market. I'm not familiar with specific buildings, which streets are uber-charming, which are not. I have not seen this apt in the flesh.

What the apt sold for 2 years ago is not relevant.

What I see now is an apt that's in good renovated condition - sure, maybe some minor tweaks, but take it at face value - a gut reno (say medium-end) that's not had any wear. Don't know why everyone is talking about classic 6es - this is a small, but typical Classic 7 of the era (similar to ones at 120W70, a touch smaller than those at 277WEA). 84th between Park and Lex (closer to Park) is a solid UES location - I'll equate thatto an average building on WEA between 72nd and 79th. Zoned (haven't double-checked the map) for P.S. 6, a good school. On the UWS, an apt like this on WEA could ask 2.295m w/o too much eye-blinking and head-shaking.

there are a couple of positives for renovated apartment besides the renovation cost:
1. You can not borrow against the reno cost any more which means that you need to pay for reno in cash which means that there should be a premium for renovated apartment.
2. Hassle and lack of use during reno. At least worth a $100k for this size of apartment. Some people will not even looks at apartments need reno.

The original buyer did get a very good price at 1.3mm for 1800 sq ft. Assume the renovations are not too specific to the owner's taste.

with those monthlies, no way is it worth more than 1.3mm, I don't care how much $ they put into it

well, aside from the snakiness, what I see is this -

new central air
new floors, moulding, and baseboards
new kitchen casework + appliances
two new full baths
new powder room
new paint
plus odds and ends (closets, new doors, new hardware, etc.)

I'd say, if they used an architect + contractor, based on square footage and quality of work, this is a $250,000 - $350,000 renovation job. Might be a little bit more, though...

what about the min $250 per sq ft estimates we get on this board mj. That would put it at least $450K reno cost.

300k is a pretty good guess for the reno pictured here.
So now they are in for 1.7K with transactional costs and what not.
Search around the UES for 2 bedroom properties with equal monthlies and see what you get.
Some stiff competition in that hood.

300_mercer: That might be possible. Maybe $300,000 - $400,000 is more accurate.

Matson, so if we did some quick math:
New Central Air: $100k
New Floors, Millwork, Baseboards: $50k
New Kitchen Casement and Appliances: $50k
Two New Full Baths: $70k
New Powder Room: $20k
New Paint: $30k
Odds and Ends: $20k

This rounds to $340k. Is that a reasonable estimate. They've also had $85k of maintenance costs and they'll have transaction costs. Anyone else, please feel free to adjust my estimates.

Brooks: The monthlies ($3,300)seem reasonable compared to other Classic Sevens, which often average above $3,500.

I still think it's expensive compared to other Classic Sevens in UES given it's on the second floor and the floorplan isn't ideal.

I think the place could sell around 2mm on a higher floor. It's a nice apartment in a solid location but I believe 84th is a cross street and a low floor and traffic don't mix.