Tuesday, March 26, 2013

Picture's Worth a Thousand Words: 102 Pierrepont Street

[Editor's note (3/28/13):  The listing broker points out that we've overlooked how much of an encumbrance the occupied rent controlled unit in this building was.  "No user wanted to go near it," he says, adding that the sales price was "a lot of money, all things considered."]

When you're buying a house 2 blocks from the Promenade in prime Brooklyn Heights, listed for $3.8M, why would you wanna see any interior pics of that?  Or so assumed the listing broker of 102 Pierrepont Street.  The lack of pictures made everyone assume it was a gut, when actually it was a totally turnkey little gem.  The price dropped from $3.8M to $3.5M, and sold for $3M cash.  A total steal.  Yet, while everyone assumes agents don't market their properties because they don't know what they're doing, don't tell us this broker doesn't know what he's doing.  He closed over $200M in deals last year alone.  But, as we've seen over & over, people can't buy what they don't know is for sale.  Which means 102 Pierrepont sold for a big number, but not the biggest number possible, because it wasn't marketed in the traditional channels where townhome buyers stalk their prey.  All points back to the inefficiencies of the market.  Flippantly saying, "Dumb broker..." - as so many jaded buyers are quick to do - doesn't tell the story at all here.

Cue Corcoran swooping in and taking pictures on the rentals because they know what they're doing.  $3M cash purchase won't get you pics, but $2,600 - $8,000/month rentals sure will...

It ain't cheap, but there are certainly worse places all over town that rent for higher than $8,000/month.

Pro's:  pictures!, totally prime location, totally turnkey, the $2,600/month 1BR has value

Con's:  gone already, generic renovation, quirky space at times, pricey on the duplex

Ideally:  just another look at the nuances of the inefficient market

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