Getting Cheap: 50 East 89th Street
A: In my constant hunt to find good value in this market I came across this listing that was reduced for the 3rd time just a few days ago. Listed with Corcoran, this large JR4 (Convertible 2 BR) apartment seems to have all the permanent features that I stress to my readers to go after & whose asking price is being reduced because of the high monthly expenses (read my post, "High Monthlys? Find The Discount")! In an environment of higher borrowing costs as lending rates rise this seems the perfect type of property to go after if you have the $$$ to do so and pass the co-op board.
Savvy real estate buyers should look to pay a premium for permanent features of any particular property that will help in the eventual resale value down the road. Permanent features that I am reffering to and that you SHOULD PAY for include:
1. LOCATION
2. VIEWS
3. NATURAL SUNLIGHT
4. RAW SPACE
I do NOT think this is the type of market where buyers should pay top dollar for renovations, crown moldings, or desired building amenities.
This property at 50 East 89th Street and marketed by Barbara Goodman of Corcoran, seems to have the permanent features that savvy buyers should look for: location steps from Central Park, high floor, open city and Central Park views, and 1,000 sft of raw space. The fact that the initial asking price of $1.1M has shaved off $205,000 so far to get the current asking price of $895,000 tells me this seller is ready to go and that the buyer will have to finance less money which is getting very expensive to borrow anyway! Here are the apartment details:
50 East 89th Street; Apt. 24C
Size: 1,000 sft
# Beds: 1 (Convert to 2 BR)
# Baths: 1.5
maintenance: $1,635 (High Monthlys Brings Price Down)
Asking: $895,000 (Reduced from $1.1M to $950K to $915K to $895K on 5/18/2006)
Price Per Sq. Ft.: $895 (Pretty Low for location & high floor)
Marketed By: Barbara Goodman of Corcoran
NOTE: This Co-op is requiring 30% down from the buyer which limits the marketability of the property; another reason besides the high monthlys why the asking price was lowered. So, this great deal really only applies to those with at least $400,000 or so of liquid assets as your down payment + closing costs will run you close to $275,000! You can read my post on "What The Co-op Board Will Look For" to get educated on the board process but generally speaking salary & liquid assets AFTER closing costs are the most important financial items that will be scrutinized!
Posted by Motts McGregor
Tue May 23rd, 2006 05:14 PM
Thanks. That math at the bottom wasn't adding up before based on the guidance in your previous post.
-Motts
Posted by UrbanDigs
Tue May 23rd, 2006 05:26 PM
Sorry about that as I realized AFTER I posted...30% down with full asking price is $268,500. Add in about $10-12K total closing costs (perhaps less for co-op) and your looking at about $280K to do the deal.
After these expenses (down payment + closing costs) you will probably need to show this board a significant amount of liquid assets; probably around 75-100K, although Im not 100% because I didnt investigate w/ seller broker. But if co-op requires 30% down, they probably also will require significant liquid assets too.