Crown Heights Gets a $2M+ Listing: 1234 Dean Street

One of our favorite blocks in our favorite neighborhoods in Brooklyn now has a $2.195M listing.  The owner gave us a tour a few weeks ago before the listing came out.  1234 Dean Street came with original details in about as good of condition as we've ever seen.  From the wood floors to the wainscoting to the pocket doors, to the built-in cabinets - even the original glass & hardware!

Sure, much of the original details came in almost this good of shape the first time around, when the house was purchased for less than a quarter of this price.  But the updates sure take it to the next level.  Our iPhone shot of the kitchen alone had ladies swooning...

And the listing didn't even include a proper pic of this incredible original stove!

The owner showed us this throw-back intercom still intact, for all you Downton Abbey heads to call up your tea from the maids' quarters...

If you liked 1142 Dean Street as much as we did, then you'll be all-in on this one.  And to think they had to practically beg people for bids over $900K on that badboy not long ago.  Heck, just across the street they found it hard to justify over $1.2M last year for an 8-Family with upside at 1243 Dean Street.  But this is a new era, a new Brooklyn.  When the top tier neighborhoods effortlessly command $3M, fixer-uppers in the $2M's start to poke into the next-best neighbs.  Then something like this comes along.  We can already hear the peanut gallery whining about the owner's cost basis, but that's just sour grapes.  Where were the folks who could easily afford these homes in 2009-2011 when they were begging to be swooped up for over half-off today's prices?  Those who missed the boat might take some solace in throwing rocks at the throne.



Pro's:  curb appeal, original details for dayyyys, modern upgrades, great block, perfect for end-users

Con's:  no secret, won't go cheap, not for investors or those banking on rental income

Ideally:  you can scoff at the price, but certainly not the quality

In Contract in Prospect Heights: 398 Sterling Place

On a block in Prospect Heights that can give Park Slope a run for its money, what's a 4-story 20' x 50' on an extra-deep 123' lot worth these days?  On Platinum Member radar just before it hit the interwebs, 398 Sterling Place is a 2-Family that came out asking $2.99M.  It's not like the $3M mark hasn't been hit in Prospect Heights, but by the time it dropped to $2.79M in a month, it didn't last another month on the market before going in contract.  The same agent who brought you 408 Park Place around the corner (and a few others on this block), is back at it again with wood everything...

No shots of "renovated kitchens and bathrooms complete with stainless steel appliances and granite countertops", but they ain't making houses with these wood details anymore.  Or these extra-deep lots...

Whenever "the lower duplex is vacant, and the upper duplex is currently tenant occupied but can be delivered vacant," it offers nice flexibility to buyers with different plans for the house.  If you're old enough to remember the yesteryear of 2010 when it was hard for a house like this across the street at 407 Sterling Place to fetch $1.5M; well, don't worry - you're not the only one.



Pro's:  full-sized yard & double-duplex townhouse with great original details on a great block in Brooklyn's next-best neighb' 

Con's:  gone already, it ain't cheap, no shots of updated kitchens & baths

Ideally:  beats most of its North Slope counterparts any day of the week

Topics: Couldn't Hurt to Ask

If you didn't like Fort Greene's 54 St. Felix Street for $1.65M from 2010 to 2012, then how about $3M in 2013?  Yes, sellers all around Brooklyn who could or couldn't find their price over the past few years, are asking higher and higher prices this year.  And why not?  Prices are soaring.  What was once an absurd asking price can become quite modest.  So sellers ostensibly want to keep up.

Did you miss the prime Park Slope stone beauty at 27 7th Avenue, when it dropped from just under $2M to just over $1.5M and closed last year?  Then we don't imagine their latest asking price of $3.8M is calling your name on the flip.

Nobody wanted to touch prime Prospect Heights' 181 Park Place for a penny over $1.275M in 2011-2012, until Elliman listed it for $2M and sold it at that effective number.  Couldn't hurt to ask when they came right back out for $3M+.

Prime Park Slope's 864 President Street wasn't that attractive for an end-user or investor at $2.7M in 2011-2012.  Wanna chase it for its latest list price of $4.5M?

"Why do some of these sellers even bother?" they ask us.  The answers are pretty simple:  First of all, it costs them nothing to ask a high price.  Second, sometimes outrageously high prices do set the tone for a listing and net the seller a high price that's still far below the asking price.  Third, sometimes it totally works & they meet or beat their expectation.  105 St. Marks Avenue couldn't get $2M as a fixer-upper, but then they cruised to over $3M this year.

If you've been getting altitude sickness from the high prices throughout Brooklyn, trust us, you're not the only one.  What passes for $2M+ in Brooklyn these days has shocked even the most bullish.  Yet there's still enough value left about for the NYTimes to flaunt in a piece with the headline "I'll Skip Manhattan":

"...there are still hefty discounts to be had in the other boroughs, despite all the drumbeating about how certain areas have recently achieved parity with Manhattan.  (Sorry, Brooklyn!)"

And yet all they could find in Brooklyn worth speaking about were condos, including one in Bed-Stuy for $657K, a price some buyers were reluctant to pay just 2-3 years ago for a renovated townhouse on that block.  And the Times headed over to Williamsburg to see a condo that went in contract for $1.329M, where they were told that even $1,200/sqft was hard to find in Manhattan, by the agent who happens to be named Overbye.

It's still all relative.  Even as interest rates climb back up off historically low levels (still lower than they were during the peak of the boom in 2006-2007), prices continue to climb too.  Even if Brooklyn is "the poor man's Manhattan", that man is still pretty darn rich.

Back on the Market in the 'Burg: 199 Devoe Street

Back on the market in Williamsburg, it's 2-Family fixer-upper at 199 Devoe Street.  With an open house this Sunday, it's easy to go see if the work needed is within reason for your budget.  The asking price of $1.15M is within condo alternative range.  The vinyl-siding is pretty much what we've come to expect for this area, and why we rarely go to the 'Burg for houses, but the seller told us it'd be $10K to slap a brick facade on here.  The inside?  Well a few quick & dirty shots is all we get...

You know we'd rather be deep in Crown Heights, Bed-Stuy, or Lefferts for this same price, but that's just us.  We're sure there's a Billy-Burger for whom 20' wide on 3 stories, even with almost no yard, even in fixer-upper condition, is a better look than a condo for ~$1M.  As the owner told us, "Small yard but sick views from the roof."  It wouldn't be the first time that was a compromise that worked for the right buyer.

Pro's:  anything off the L gets many people goin', open house is easy to check out, duplex with rental income, a few details worth keeping

Con's:  work to be done, almost no yard, vinyl-siding

Ideally:  even the raw ppsf heads could make a case for this one

In Contract in Prime Clinton Hill: 388 Washington Avenue

When we saw 388 Washington Avenue hit the scene asking $3.5M, we were underwhelmed by the lofty asking price.  Granted, it's listed at 24' wide, which is debatable.  It's listed at 45' deep, which doesn't seem to do it justice.  Whether it's an 8, 9, or 10-Family was also contested, but it's indisputably delivered vacant.  It needs a ton of work, but what 100 year old house doesn't?  Then we heard the deal was going down for $2.65M.  Then that fell apart and we were told it was up for grabs at $2M.  Then the contract went out and was executed at a reported $2.4M cash.  What we love about this place is the location, and the mostly-unattached side allowing windows on the side...

Next to this adorable little library...

Just a block & 1/2 from the C train at Clinton-Washington, with historic gems like these on the same block...

Whether kept as 8+ units or converted to a 1-4 Family, we saw this house as the 2nd coming of nearby 461 Washington Avenue.  And, for a moment, it was available for a price lower than the high offers on 461.


Pro's:  size, location, curb appeal, unattached side

Con's:  gone already, needs a ton of work, the $2M+ fixer-upper isn't for everyone

Ideally:  in an inefficient market, value finds a way

The Directory: Mortgage Banker

New to the Directory section of the blog, it's another mortgage lender doing it in Brooklyn.  One of our go-to residential mortgage guys Mike Goldberg of Powerhouse Solutions has become a reliable member of our network.  He's held it down for us with his expertise in loans, pre-approvals, refinancing, and even little credit counseling.  With knowledge of the local Brooklyn market and experience in FHA loans, Mike says he still does deals with as little as 3.5% down, with closing costs wrapped into the loan.  Even though sourcing a deal that fits that profile has become harder with pricepoints on the rise, Mike's demonstrating that less than 20% down on a house is more than just urban legend.

Mike says his personal touch is one of the things that sets him apart from lots of the big banks.  He's not just behind the desk; he's always game to swoop by our neighborhood to grab a coffee and discuss whatever situation we need help with.  We traded war stories about difficulties with appraisals in this up market.  He told us about a few deals he saved by going FHA, allowing buyers to cover the difference between the contract price and appraisal price.  In addition to competitive pricing, Mike says direct lenders offer lots of advantages, especially when it comes to underwriting.  With his experience in some of the hottest neighborhoods like Bed-Stuy, we're happy to have Mike on the team!

Crown Heights Beauty Showing This Sunday: 291 New York Avenue

You know we love Crown Heights.  So you know we were all-in when 270 New York Avenue came out for $1.25M in this pretty little pocket of Crown Heights a few months back...

 

Now that 270's in contract with an asking price of $1.25M, another one comes out at 291 New York Avenue.  Not on everyone's radar, local broker Emmanuel Victor tells us he's showing it this Sunday, September 1st at 1:30pm.  With an asking price of $1.4M, we think they've got the price activity across the street in mind.  And without as much big broker REBNY competition on the scene as an Elliman listing, maybe a nice price can be struck for both sides.

 

With great original details and a large extension, the house is effectively used a 3-Fam plus basement with a pretty solid rent roll.

If you're diggin' the embellishments on the limestone exterior, the nice street just a block east of Nostrand, just off Eastern Parkway, then 291 might be worth a look.

Pro's:  curb appeal, great block, great details, fairly turnkey with flexibility on the rentals, not on everyone's radar

Con's:  deferred maintenance to do, it's not like it's cheap or anything, trade-off w/the big extension is not much backyard

Ideally:  we're not saying it's $1.4M, but there's a laundry list of neighborhoods in town where this identical house & situation soars over $1.7M