Hot $2mm coop market

Im not active in the market currently but it makes sense.
Those same size condos are going for $3.3mm
Condos trading at $2k to $3k per square foot and looking at condo taxes after the abatements run out to be astronomical (add $10k tax cap for 2018 onward to boot) vs a co-op trading at $1200 p sq ft with stable maintenance between $!.50 and $2.50 a foot I think is finally starting to sink in.

I think makes sense for coop and condo difference to narrow.

Somewhat seasonal due to bonuses.

Good point. I just could not believe 1200-1300 plus per square ft prices for places needing updates but not gut reno.

My friend bid 5 percent over ask and lost!! Property on the market for less than 2 weeks.

300 -- Have him/her call me. /a

Ali, He is already working with a broker. Are you seeing crazy coop prices too at 1200-1300 per square ft in $2mm range with some updates needed?

300: $1150-$1200 a square foot for a pretty Prime classic 7 overlooking Prospect Park and across from the Brooklyn Museum is not a crazy price. Especially considering the condition.

Keith Burkhardt
TBG

300, so much depends on location -- I repped buyers who bought in prime UES, so the unit was just over $2 million, and I think they stole it, because it was six-figures under comps. But technically, probably $1,500/sf. If you have friends who want to be in a coveted park of Park Slope, then it looks like their pool is fewer than 10 apartments and pre-bonus season comps look like they were running at $1200-$1300/sf, so I'm not surprised that bonus season prices are above that. If your friends thought it wouldn't be prudent to stretch that high, that's one thing, but if they just stalled out because they thought they were at market, they miscalculated ... I would say wait and look again in the summer.

Bid what the property is worth based on a thorough analysis of comparable sales in the subject building and if necessary in the immediate neighborhood. Intangible part is your emotional connection to the property, and what that value is to you when translated the dollars.

The issue is, now it will be even more difficult to land a deal in this particular property, a new Baseline for price has been set (if the current offer closes). This particular listing agent priced soft, psychologically it can be difficult to bid significantly above what is essentially just a subjective price point. Whether this was a calculated move on the agents part, who knows?

That said, there's always something else around the bend.

Keith

Ali and Keith, You both have great points. For me, this is a great data point about the strength of the underlying market. People are willing to pay $1500 per sq ft for a coop in prime Manhattan location (fully finished and in many case post war 60s building) and 1200-1300 in Prospect Heights (not even Park Slope area with good school). Wonder when the strength of $2-$2.5mm market will creep up to $3mm and higher for the properties which are in $1500 per sq ft range. Perhaps it is already strong and every one in the media is focused on ultra-luxury new developments, which are simply overpriced and supplied.