All Forum Posts by: Jason Lee

This doesn't quite add up. How does the buyer walk away a couple days before the closing without losing their deposit?

Also, I wouldn't consider 5% off asking, for all-cash, for an investment property, in this market, a lowball... but there's perspective.

We don't have JC January data yet but December shows median YOY increase in both single family (+7.6%) and townhouse/condos (+13.9%). There's no breakdown for 2-3 family homes but I'd guess there's a similar increase there as well. And December is historically one of the slowest months. Based on what I'm seeing I think January and February data will be even stronger. We're starting to see a lot of bidding wars at the lower price points... had one Downtown on a condo this past week. If you are close to best in price and best in class you should do well.

You're assuming the combined two 1 beds will comp equally against a natural 2 bed. I've seen some seamless combinations but very rarely with two 1 beds.

The real problems start when you try to purchase the 3rd and 4th units. Investor financing for co-ops has always been very difficult. All cash doesn't solve things either. You can call them pied-a-terres/second homes/whatever but the board will see it for what it is, an investment property. With so few units in the building I think your owning 4 units (or possibly 5) will make the building unwarrantable, which will hurt it's marketability, and depress prices.

If you can make a nice apartment out of the two units and you can't find anything existing that's comparable (including the cost to combine), then go for it. Having said that there's a decent amount of inventory of larger apartments that don't need combining, and right now, smaller, more affordable units, are actually trading pretty briskly. Do you know enough about architecture and code to know if combining can even make sense? I've worked on a lot of combination deals and I haven't seen too many 1 beds that could be combined to make a layout that makes sense.

Not sure what the point of owning the entire building would be but it's close to impossible. You won't be around to see all 22 of the other units trade. Even if you were there's the darn co-op board that probably wouldn't let you buy the 3rd unit as an investment. If they did it would probably have to be all cash. Then if you were able to get to your 4th unit you'd make the building unwarrantable and your neighbors would have problems selling because it would be difficult to get mortgages in the building for everyone else because you own too many units. There's a reason no one does this.

I do know of a small co-op in Gramercy where the whole building is being shopped to developers. Shareholders have to vote on it but the co-op has retail units that might make a conversion attractive for a developer. What's missing from your idea is any kind of upside.

Yes, exodus is overblown and prices falling depends on the price point and type of apartment you’re looking for.

400K and up in Manhattan for something that can attract good tenants and will appreciate. With 250K you can try Brooklyn (Bay Ridge or Midwood), or Jersey City (the Heights or Journal Square).

The entry level condo sales market in Hudson County is quite strong right now. Lots of first time/entry buyers looking since the last week of December. Since you're at the lowest price point condo you should be able to sell pretty quickly.

Median sales price for condos/townhouses in North Bergen in November was up 17.6% YOY. That's based only 12 sales so take it for what you will. Percent of list price received increased .7% to 97.7% which I think is a pretty good indicator of where the market is. Inventory is up 12% and months of supply is up 36%. Most expect both of those to rise so I would sell sooner rather than later.

Where's your data coming from for dramatically falling prices in NYC? Manhattan Q4 YOY average sales price is up 2.9%. Median sales price is up 5.1%. Case Shiller for NY region was up 6% YOY in October.

If the cause of the leak is from the building common element, then it seems odd the HOA will repair it but not take responsibility for finding the cause. I'd try to get them to hire the roofer/siding company to figure out the problem.

How much are you looking to spend on an apartment? That will help you narrow things down.