Sunday, November 16, 2014

Off-Market Bed-Stuy Fixer-Upper Sold: 109 Malcolm X Boulevard

As seen first on BK to the Fullest, available only on, 109 Malcolm X Boulevard in Bed-Stuy closed this week for $725K cash.  The original asking price of almost $900K was aggressive, but by the time the asking price dropped to $750K, it was within range for lots more buyers.  This legal 3-Family delivered vacant needed lots of work, but was a fixer-upper project that attracted end-users and investors alike.  Last year, a similar house across the street in live-able condition went for $860K cash at 104 Malcolm X Boulevard, but prices for finished products have ticked up since then.

And, as we pointed out, "124 Malcolm X Boulevard got over asking price, closing for $999K in May of this year.  And another 3-story, 98A Malcolm X Boulevard got $1.079M 2 months earlier.  Could [109] be the next house to trade on this block?"  It appeared for a moment that Elliman would have the next house to move on the block, next door at 111 Macolm X Boulevard, a house in much better condition came out asking $800K.

But the deal fell through, and by the time they were back on the market and reduced the price to $725K, it only took another month to get in contract.  But Elliman's required 6% commission on listings under $1M nets the seller much less than $700K at a purchase price of $725K, while the marketplace allows buyers and sellers to interact on their terms, and without big broker commissions getting in the way.  If Elliman's pictures, renderings, and marketing net the seller with a better house less than HomeCanvasr does for a worse house - who needs a big broker anyways?  And if the Elliman house goes for anything less than $725K, then it really begs the question of a broker's value-add.

A special shout out to attorney Rich Boatti of Boatti PLLC for helping keep the deal together by getting a contract out in a day while the previous attorney for the seller was stalling.  And also to broker Chris Horner for keeping the buyer in the deal.

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