Saturday, April 20, 2013

Closings of Note: Migration Patterns

If you draw lines on the map from where buyers are coming from to what properties they're buying, the migration pattern eastward that's been going on for a while becomes even more clear.  People always ask us, "Where are all these Brooklyn buyers coming from?"  The answer?  Brooklyn!

We already told you that Manhattan buyers are also heading across the river, but some of the realest buyers in Brooklyn are Brooklynites themselves.  Maybe you have to already live here to get over yourself on the Goldilocks Syndrome that holds so many buyers back.  Buyer who can't even afford Bed-Stuy anymore swear they're too good for Bed-Stuy.  But Manhattan buyers are happy to bid $500K over asking price on historic, iconic Bed-Stuy fixer-uppers.  We told you last year that the 'too good for Bed-Stuy' fallacy won't get it done, and that it's the savviest buyers who know which properties are actually worth MORE than asking price.  Some people still bid 10-20% under every asking price in town and call that a "strategy".

Who just bought a Bed-Stuy double-duplex for more than twice what it sold for last year?  None other than a buyer from Chelsea, Manhattan.  Still think you're too good for Bed-Stuy?  571 Madison Street just closed for $905K.

353A Monroe Street was a gnarly, painfully-generic renovation in Bed-Stuy.  But the list price of $479K sounded like a condo price to a buyer from Clinton Hill who picked it up for $445K.

"A generic multi-family renovation in Bed-Stuy sells for the price of a condo to a buyer in Clinton Hill?!?"  Yup, yet again at 659 Decatur Street, for $489K.

Even in Lefferts Gardens, the best places go above asking price.  235 Winthrop Street is a "mere" frame house, but the look inside cleaned up nice...


At a list price of $500K, Prospect Heights buyers said, "That's condo prices!" and took it down for $610K with a contract in a month.

"Buyers from Prospect Heights heading to Lefferts?!?"  That's right.  And other Prospect Heights buyers were at it again on 77 Rutland Road, taking an estate sale down for $925K.  Undeterred by the list price of $1.2M, they managed to compromise on a nice price.

71 Vanderbilt Avenue in Norrrrth Forte Greene by the BQE listed for $1.2M and sold for $1.05M to buyers from Brooklyn Heights.  Brooklyn Heights, people!

And where do buyers from Park Slope run to for value when the $1.5M unicorn hunt in their neighborhood runs dry?  None other than Crown Heights!  The 3-Family at 1521 Dean Street listed for $639K, and bids ran it up to $670K.  You can't find a 2BR condo in Park Slope for that price.  For those of you keeping score at home, note this is deep in Crown Heights, and probably why your impossibly-slim request for "west of Bedford under $800K" rarely clicks.

Hold on, let me get this straight, Bed-Stuy is good enough now?  Good enough for buyers from Cobble Hill to cop a 3-Family at 912 Putnam Avenue for $725K.

Maybe you're seeing a pattern here.  We'll pick up tomorrow where we left off with more closings of note...

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