Priced Right Apt Sells In First Month
A: Just a great example of how this real estate market COULD treat a seller if they price right. Take a look at this listing on 70 East 96th street as it just got a contract signed in the first month of its original listing. Sellers facing ANY type of pressure should definitely read this post and learn what needs to be done to get a deal in this housing market.
70 East 96th Street: Apt 8A
First Came on Market: 11/1/2006
Asking Price: $1,675,000
Contract Date: 11/30/2006 (Price Accepted N/A)
maintenance: $2,158
Size: 1,674 SFT
PPSF: Asking $1,001
Marketed By: Robin Solod of Halstead
So, what makes this apartment desireable? Well, the Location is fine between Park Ave & Madison Ave. The description mentions "Six stunning rooms with excellent light" giving us Natural Sunlight. No word on views. Size is fine at 1,674 sft and Monthly's are reasonable at about $1.28/sft. And the apartment offers a "working fireplace" which is a rare feature that could sometimes replace another permanent feature (such as views) that get top dollar at resale.
What's interesting about this listing is that it is in need of TLC, as noted by the words,"...waiting for your custom renovation" in the description. I did not see the apartment so I cannot tell you from first-hand experience that most likely the apartment needs work but is NOT a wreck apartment in need of a complete rehaul. This proves what I wrote about a while ago in the post titled, "Renovating In A Cooloing Housing Market", where I discussed using caution when deciding what type of renovation to spend money on when the market is slow; basically major renovations don't get you as much of a premium as in a booming market:
Past history tells us that money spent on kitchens, bathrooms, and floors get you the most money back at resale! But thats in a booming housing market, not a cooling one. IN A SLOWING HOUSING MARKET YOU WANT TO DO THE LOW RISK HIGH REWARD RENOVATIONS THAT COULD PAYOFF AT RESALE. THESE INCLUDE FLOORS & BATHROOMS, NOT KITCHENS!This apartment is in need of a custom renovation, was priced at $1000/sft and got a contract signed in 1 month!
Renovations didn't matter here. In fact, if it was renovated and asking top dollar, it probably wouldn't have sold so fast. In this case, the buyer paid for location, light, possibly some city views on 8th floor, and a working fireplace. The seller didnt have to do any major renovations, even in this cooling housing market, and still got a PPSF close to what a comparable unit sold for back in March of 2005, when the housing market was in bidding wars!
Take a look at this:
APT 7A
Sold For: $1,651,000
Contract Date: 3/29/2005 (A Bidding War Occurred For This Property)
PPSF SOLD FOR: $1,032
So, a lower floor apartment sold for $1,032/sft in a housing market that was very different from today. However, apartment 8A found a buyer that probably paid very close to $1,000/sft in a housing market that is much slower and defined by price cuts and negotiations, without any renovation work. A nice job if you ask me.
WHY? Because of pricing. This seller priced right, a bit lower ($32/sft lower than last comparable sale) than the last sale in the building taking into account the current market, and created a buzz amongst the target buyers that this apartment is a deal. Add in the renovation work needed and this seller probably got a price consistent with Apt 7A that sold in a much better market.
UrbanDigs Says: Sellers should use this example and learn from it. The way you price your property will affect your time on market. If you MUST sell due to some type of time pressure, than be sure to calculate current market conditions into your asking price based on past solds in your building. Price it right. If you have time to test the market, fine, but know that your best activity is in the first 3-4 weeks. If you are testing the market and got a lower than expected bid in the first 3 weeks, read THIS ARTICLE and "Don't Mess Up In Here"!
Add to Newsvine
Comments (1)
HI:
THis is my Exclusive at East 96th Street! 8A The reason it went so fast is that the apartment is grand with super large rooms. This is the true classic 6 from the 1920's. It had never been renovated at all!!!! It has all the major bones....Robin Solod at Hasltead Property
Posted by Robin Solod | February 13, 2007 3:41 AM