Sunday, August 14, 2011

Price Bump on Atlantic Commons FSBO: 355 Cumberland Street

Yesterday we took a look at a Fort Greene 4-Family for $1.55M with no pictures listed a few doors down from a fully photographed 4-Family that could barely get $1.25M. Today we have a Fort Greene 3-Family with no pictures for $1.6M, right next door to a fully photographed (and identical) 3-Family that still hasn't fetched $1.1M. But what's a half a million dollars between neighbors anyways?

355 Cumberland Street is another listing in Atlantic Commons, a nice row of recently constructed 3-Family brick buildings between Fulton and Atlantic. Except for a few owner upgrades, these buildings are pretty much all the same. Cocoran sold two a few doors down from each other for $960K and $1.075M, respectively. 357 Cumberland later came out with lots of pics and a few potential tenant issues, but a similar price of $1.1M. That listing still hasn't moved. So who would want to pay $500K more for something they know even less about? There are no pictures or description of 355 Cumberland. We're not going to consider their "3Family 2over 2over duplex 3br" as a description. Either way it's a far cry from what a REAL ~1.6M property over here looks like.

Much like yesterday's neighbors, the more expensive, less justified list price probably comes from an effort to recoop the extensive home equity loans out on the property. In the case of 355 Cumberland, at least another $700K in equity was taken out between 2006-2009, on top of what most of these owners in Atlantic Common already owed. Unless a lot of that was spent on some kind of upgrades that aren't being called out here, you're basically looking at a $500K price bump next door for nothing.

Pro's: all the old Pro's from Atlantic Commons are intact

Con's: the $500K price bump (besides no pictures or description)

Ideally: buy the neighbor 357 Cumberland for $999K

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