Interviews Archives

November 21, 2006

Meet John Doe: Negotiating A New Dev

Posted by Noah Rosenblatt on November 21, 2006 at 12.18 PM

A: John Doe (requested to remain anonymous) is a reader of UrbanDigs and contacted me to help him buy a property a few months ago. Unfortunately, I was away in Europe for 4 weeks and then homeless for another 6 weeks making my work very difficult. But that didnt stop him from buying in a new development in Brooklyn and negotiating with the developer on the final purchase price. Lets see what can be learned from his experience!

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Q. What was the New Development asking for the apartment you bid on?

A: It was orginally listed at $554,000 but I think it's been on the market for almost a year now so the current asking price was $463,000.

Q: What price did you submit to the developer to begin with?

A: We submitted $432,000 and with that price including the storage unit they were charging $7,500 for.

Q: What was the first counter-offer from the developer?

A: The first offer was $450,000 and they basically said that was the lowest they were willing to go and didn't want to waste time going back and forth and that was why they told us their bottom line number. They weren't including the storage unit in this.

Q: Did you accept that or was there more negotiations?

A: We said we were ok with the price but wanted the storage unit included. They eventually agreed to include the storage unit.

Q: Did the developer pass on any seller fees to you; i.e. transfer taxes, etc.?

A: Not that I'm aware of.

Q: Were there any incentives offered by the developer after negotiating that wasn't there before negotiating?

A: No, they were offering washer and dryers as an incentive but after negotiating the storage unit that wasn't really an option anymore.

Q: How big was the apt you bid on; how many square feet?

A: 1,034 total square feet

Q: What amenities or apartment features drew you to this specific building?

A: The fact that everything is brand new. Location is 2 miles from Prospect Park. Some amenities we liked included:

  • Dishwasher

  • Washer/Dryer

  • Balcony

  • 15 year tax abadement

  • Elevators (Penthouse style, open right into unit)

  • Trash Chute in unit (love this one)

  • State of the art heating & air conditioning

  • Also we have a 75 pound chow chow and buying a co-op would have been extremely difficult with him as he would have had to been approved

    • Q: When will the building be ready for occupancy? Is it ready now?

    A: Ready now

    Q: How long do you plan on holding/living in this property before reselling?

    A: Good question, we plan to have a kid in maybe 4-5 years and would like to stay there for a little while after that. Given the 15 year tax abadement I would say 7-9 years.

    A big THANKS to this buyer for his willingness to share with me and you the experience of buying a new development and how he negotiated for a better purchase price at a time that is perfect for buyers to get better deals! Good Luck with the purchase!

    November 1, 2006

    Life at Place 57

    Posted by Noah Rosenblatt on November 1, 2006 at 10.47 AM

    place-57-nyc-condo.jpg

    A: Place 57 is a new development that is located at 207 East 57th street in MIdtown East. As noted on the website, " Rising a graceful thirty-six stories, this arresting glass tower created by acclaimed architect Ismael Leyva consists of sixty-eight luxury residences". I had the opportunity to meet one of the pre-construction purchasers of Place 57 who agreed to answer a few questions about life in this new development. While her name will be held anonymous, I hope you find her comments helpful should you be thinking about buying here.

    Q: What type of apartment did you purchase at Place 57?

    A: 2BR/2.5BTH (likely floorplan below)

    place-57-207-east-57-nyc.jpg

    Q: What price did you pay?

    A: More than 2 Million.

    Q: What are your TOTAL monthly expenses (maintenance + Taxes) with the tax abatement?

    A: $1,600 with the tax abatement.

    Q: What is the total square feet of the apartment?

    A: 1,626 square feet.

    Q: Can you describe the views/exposures/features of the apartment that sold you on it?

    A: Fabulous views with East, South & West exposures. The floor-to-ceiling windows throughout the apartment provide great sunlight.

    Q: How would you rate the quality of service at Place 57?

    A: Quality of service is actually not very good.

    Q: How would rate the building amenities?

    A: Everything in the building is terrific. There's a small gym, childrens playroom and a lovely baccarrat crystal garden. Basically there are only two apartments on every floor and a resident lounge.

    Q: How was the experience of buying pre-construction?

    A: The experience was a positive one. No problems.

    Q: What were your total closing costs to do this deal?

    A: Close to $80,000.

    Q: How would you rate the neighborhood for quality of life?

    A: Neighborhood is very good. There is hardly any noise heard from the apartment and I am very close to the subway and central park.

    There are currently 22 ACTIVE SALES LISTINGS at Place 57 right now including these looking to be flipped:

    APT 4C

    Price: $1.799M (Reduced from $1.875M)
    Size: 1,434 SFT
    maintenance: $1,137
    RE Taxes: $130
    PPSF: $1,255

    APT 14AB

    Price: $4.48M
    Size: 3,250 SFT
    maintenance: $2,723
    RE Taxes: $406
    PPSF: $1,378

    APT 25B

    Price: $2.45M (Increased from $2.35M)
    Size: 1,628 SFT
    maintenance: $1,597
    RE Taxes: $232
    PPSF: $1,505

    A big thanks to this new homeowner for sharing with me some details of her purchase, the process, her new home, and living at Place 57! If you have more specific questions for this person, please leave a comment and I will advise her to check in every once in a while to try to answer!