Saturday, February 15, 2020

A recent analysis we did of a property for a client

Here's a recent analysis that Norman did for a client. This is the level of service you can expect from the Burkhardt team regarding any property you may be interested in purchasing:



"Nice to meet you! I took a look at the listing and put together some comments on pricing.

So first of all, I personally love the Lincoln Square area, and it's a neighborhood that has really retained value for being such a major cultural and transportation artery. Proximity to the park is, obviously, always a plus as well.

First a question: Is there a washer/dryer in unit? It says so on the floorplan, but there's nothing about it in the listing despite mentioning the central building laundry. I'm going to go ahead and just treat it like there isn't a W/D, but if there is, we can make that mental correction.

There haven't been any recent sales in the building itself that we can use as "true" comps, so I had to go out into the surrounding blocks to find a more instructive way to view pricing. I looked at all of the sales in the neighborhood in the past 6 months and from a neighborhood and configuration perspective, two sales came closest: The first, at 91 Central Park West (at West 69th Street), is Unit 2F. It lines up with the unit you're looking at in that it was also a 2BR near ground level, it is comparable in size, and it also needed a fair amount of renovation. It differs from your unit in that this has an extra bathroom, a washer-dryer in unit. and is also in a doorman building with a gym and children's playroom. 91 CPW #2F was listed at $1.25mm, but traded well below ask at $995,000 in August after 196 days on market.

119 71st Street #5D is only one block up and was a newly renovated 2BR/1BA sponsor unit—standard grade renovation, but renovated nonetheless. The overall footprint is slightly smaller than your unit, but it has a washer/dryer in unit and sits on the fifth story—which would be arguably better natural light. This was listed for $975,000 and traded close to it in October for $965,000, after 36 days on market.

So where does that leave us? At their reduced price of $945,000, they are definitely sitting within striking distance of fair market value on this one. But current market conditions are certainly unfavorable to sellers, and I can see buyers wanting shave some more off the price for a number of reasons: The bars on the windows, for example, are always a reminder of being on the ground floor. Being on the ground floor, you do run the risk of added noise (and less natural light) that other units higher up don't deal with as much. The bathroom... Well, it needs help. The kitchen too, to a lesser extent. And finally, what are those two gigantic units in the bedroom? Is that the HVAC? It seems visibly and physically intrusive to the room. In my opinion, these are all reasons to try to negotiate down.

I suspect that the other buyer with whom they haven't come to terms with is probably on the wavelength as well, and if I had to guess, I'd say their offer is closer to $900,000. If I had to put a finger on it, I'd still want to see this land somewhere between $900-925,000—but after 90 days, the seller might not be able to deal with that reality. The fact is, though, that just down the block, closer to West End Ave, you can get a large 2BR/1BA in a full-service building for the same asking price in one of the city's most well-known co-ops, Lincoln Towers. (https://streeteasy.com/building/lincoln-towers-205-west-end-avenue-new_york/20l) It's obviously a very different kind of building, but it shows you what this unit is up against in terms of what other inventory there is out there. So again, unless there's something major I'm missing, I would personally cap this one at $925,000.

That's my two cents. Let me know what your thinking on this was.

Thanks!
Norman



Norman Brannon
Licensed Real Estate Salesperson
The Burkhardt Group"

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