Being a real estate broker for 16 years has provided me with a multitude of opportunities to see some incredible real estate. So for those of you who aren’t so fortunate to get to tour some of these fabulous homes, OpenHouseNYC gives you "one of" the Woolworth Mansions. Check it out.
Opulence is redefined as broker Roger Erickson takes us on a tour of the historic Woolworth mansion. The Woolworth mansion is listed on the market for $16,500,000 and with its ubiquitous marble, paneled walls, high ceilings and world-class artwork, it would be hard to unearth a grander Manhattan residence.
The Woolworth mansion was originally built by Frank Woolworth between 1910 and 1916 as a mansion for his daughter and husband, Franklyn and Edna Laws Hutton and it is now home to three luxurious apartments. This one on the market is 5 stories, has 6 bedrooms, 8 full bathrooms and 5 half bathrooms. Yet the statistics for this mansion do not do it justice. When you think of lavish Manhattan real estate, this is the platonic ideal. Be it the massive marble staircase, the hand-crafted marble mantelpieces or the living room with mahogany panels and 12 feet ceilings, this is a home that must be seen to be believed.
Step inside the Woolworth Mansion and view this video…
I wonder what this place would go for in Manhattan, Kansas? Who cares?
I’m being bombarded with emails from past clients asking me about the project that is likely to be built at 160 West 62nd Street (via Curbed). Gothamist has a great piece on the project exploring Objections to Fordham’s Manhattan Campus Expansion as well as some great renderings of the project. Check out one of them here:
I have actually met for lunch with the developers (Douglaston Development) of the condo tower that will be built on the northeast corner of 62nd Street and Amsterdam Avenue. It will be an amazing project. Stay tuned for more updates.
In last week’s episode of TGTV, our panel of experts shared the results of measuring a property and we suprisingly saw that each of them came up with numbers relatively close to one another. It appears that each of them measured the property the exact same way by calculating "interior perimeter"…hmmmm? Can you say "standardization?"
In this episode, you will hear our panel discuss more reasons for the lack of standardization across the market with a particular focus this week on new development projects and what factors contribute to stated square feet in these projects. Don Meade also touches briefly on real estate agent "wants and needs" in terms of square foot calculations.
This comment after last week’s episode from Justin Patwin, a Los Angeles based Architect, sheds some light on one way to "police" the standardization of stated square footage:
I am an architect from L.A. who has extensive experience in what are A.R.O. (Adaptive Reuse Ordinance) projects in our city. Those are existing historic buildings that have been retrofitted to accommodate residential "lofts". We have this conversation with our clients constantly due to lawsuits so I am interested to see how NYC handles this issue, because a buyer will always measure differently from a developer. Developers (and their architects) use a method that begins with how the City Planning Dept. and Building and Safety assess how large a potential project can be (known as F.A.R.- Floor Area Ratio). Developers then turn around and charge buyers for whatever they build to the extent the law allows(with mark-up of course). Typically in L.A., we measure from center to center of the demising walls (walls that divide units), and include the exterior wall and the corridor wall. If there is a stair, then the opening for that stair is not included as well as any other floor penetrations. Other than that columns, interior walls, etc. are included…
…The one thing that would really alleviate the guess work is if BOMA were to create a standard for residential condos which right now they do not have. Do you plan to address this specific issue? Great that you are tackling this subject and I like that you have a few different professionals however I would have a developer too since the architect does not represent their point of view.
Would have been nice to have a developer on the panel but it appears that in NYC we would have had to poll several developers and their architects to get a sense of how each calculates square footage.
Tune in next week for more as we explore accountability as it relates to overstating of square footage.
The Prudential Douglas Elliman 2007 3rd Quarter report for Long Island and Queens is hot off the presses and here are the highlights:
The Long Island/Queens housing market showed mixed results this quarter with overall prices indicating some stabilization but results varying widely by individual markets. Higher priced housing units saw price gains which was unexpected. However, inventory levels continued to rise and number of sales fell.
Long Island/Queens Market (Overall)
– Average sales price was $530,916 this quarter (a record), up 1.3% from the prior year quarter amount of $524,073.
– Median sales price was $445,000 this quarter, down 2.2% from the prior year quarter amount of $455,000 (a record).
– Listing Inventory increased 7.6% to 36,183 units from the prior year quarter amount 33,362 units. The pace of inventory growth appears to be slowing.
– Number of sales decreased 10.6% to 8,782 from 9,821 units in the prior year quarter.
– Days on market increased to 103 days by 20 days over the prior year quarter, but slipped from the 111 average days on market in the prior quarter.
– Listing discount increased to 5.3% from the prior year quarter listing discount of 4.5% but was down from the 5.6% prior quarter listing discount.
Queens Market
– Average sales price was $484,847 this quarter, down 2.9% from the prior year quarter amount of $499,388.
– Listing Inventory increased 13.4% to 11,255 units from the prior year quarter amount of 9,925 units.
Nassau Market
– Average sales price was $628,839 this quarter (a record), up 1.7% from the prior year quarter amount of $618,388.
– Listing Inventory increased 3.3% to 10,167 units from the prior year quarter amount 9,844 units.
Suffolk Market
– Average sales price was $469,331 this quarter (a record), up 2.3% from the prior year quarter amount of $458,770.
– Listing Inventory increased 6.5% to 14,761 units from the prior year quarter amount of 13,863 units.
North Shore Market
– Average sales price was $1,025,818 this quarter, down 6.5% from the prior year quarter amount of $1,097,179.
– Number of sales increased 14.7% to 680 units from the prior year quarter total of 593 units.
Luxury Market (upper 10%)
– Average sales price was $1,341,090 this quarter, up 8.3% from the prior year quarter amount of $1,237,741.
– Suffolk saw the largest rise in prices with a 15.8% increase in the average sales price to $1,298,099 from the average sales price of $1,121,379 in the prior year quarter.
Condo Market
– Average sales price increased 22.9% to $364,202 this quarter from the average sales price of $296,443 in the prior year quarter. The jump was due to a larger concentration of higher priced closings in Long Island City, Queens
– Average sales prices for Nassau were up 4.3% over the prior year quarter and Suffolk average sales prices were down 1.3% from the prior year quarter.
Here we go again with another New York Magazine Triple Assessment from OpenHouseNYC. I like to watch these segments in their entirety and venture my own guess before the actaul list price is disclosed. My guess was $599,000.00. Now you try:
In our partner segment with New York Magazine, Open House NYC host, George Oliphant meets Jhoanna Robledo, editor of NY Mag’s Real Estate Section for a new video version of the ever popular Triple Assessment.
To refresh your memory, Triple Assessment is an appraisal from three different brokers on what they believe is the proper price of an apartment recently listed on the market. In this edition, Jhoanna invites a triumvirate of brokers to 305 West 86th Street to guess the value of a 1 bedroom/1 bathroom apartment steps from Riverside Park.
The apartment has a great location, but no views. It needs little work, but isn’t large. It has high ceilings, but is there a lower ceiling on the price? What do the brokers think?
Jhoanna solicits guesses from Toni Haber of Douglas Elliman, Eric Rath of Bellmarc Realty and John Gasdaska of Corcoran. As a special bonus, our very own George Oliphant tries his hand at the exercise and hazards his own guess.
Who comes closest? What’s the actual price? You’ll have to watch the video to find out…
Note the HUGE price spread here and more often than not a seller will choose the agent who gives them a higher price which is often detrimental to the sale of the property. I’m also surprised that they don’t discuss monthly maintenance charges for the property. Even more surprising are the high prices suggested for an apartment with no view to speak of despite its condition. I used to live next door at 309 West 86th Street and a quick look at neighborhood comps would have shown some less expensive options with more desireable views. Oh well, yet another argument to get multiple pricing opinions and don’t always believe what you want to.
Case in point: Yesterday I received yet another call from a seller who I met several months ago. He and his wife were not pleased with my pricing opinion then (too low) but now that they have wasted several months with another agent, they have decided that they should hire me. The problem is that the property may in fact be worth even less than it was several months back. Underpricing is a much more effective way to see what the market will bear. Overpricing is the kiss of death…ALWAYS! Making the wrong decision here may have bitten them in the asking price.
No blog entries Monday or Tuesday as I will be out of town with no computer or email access those days. Back on Wednesday and stay tuned for Episode 3 of TrueGotham TV on Thursday.
When a doctor or lawyer gives you bad advice that proves to be harmful to you either physically or financially, there is often a case for malpractice. So what happens when a real estate agent puts on an economist’s hat and spews advice about buying or selling a home in a booming market that takes a sudden turn for the worse thereby costing the homeowner thousands of dollars or perhaps even forcing them into foreclosure and bankruptcy? Likely nothing and here’s why…
This morning, HousingPanic posted a "state of the market" letter from a Phoenix Realtor written in 2005 which provides some bold and ballsy predictions for a market that in hindsight is seeing the bottom fall out from what I am reading and hearing. Here’s the letter:
September 2005, Phoenix Arizona
How rich would you like to be?
In the 12 months leading up to August 1, 2005, single-family residences in the Metropolitan Phoenix/Scottsdale market appreciated by an average of 47%. That’s the average, and it includes challenged neighborhoods and cities so remote as to qualify as rural.
If you look at just the sweet spot, the middle of the bell curve, Phoenix/Scottsdale-area homes appreciated by 60%, 80%, over 100% in some areas.
Price pressure has not slowed down, and there are good reasons to believe that appreciation over the next 12 months will be 20% or more, possibly a lot more.
We have a built-in baseline demand from the Great Lakes and other snowy regions. And we seem to be experiencing a steady increase in our long-term in-migration from California.
Our best estimate right now is that annual appreciation over the next seven or eight years should average out to around 11%.
.. If you can make that down payment, or if you can absorb a negative cash-flow from other sources of income or with a negatively-amortized loan, your ability to build long-term wealth in the Phoenix residential real estate market is tough to beat!
Now of course hindsight is 20/20 and it’s very easy to attack this agent for this letter today. But is it fair to attack him? I have always been very careful to share opinions only and never make bold predictions on the direction of the local Manhattan real estate market. In fact, I often read with amazement the "predictions" of my colleagues and wonder precisely how they are qualified to make such statements about the future of such a complex market like housing. Even people whom I consider the most qualified to make these statements like Jonathan Miller are never heard making solid concrete predictions about the future of our housing market. So why do some feel they have a crystal ball and make such bold predictions? It’s my humble "OPINION" that many of us start to believe our own hype and our egos begin to take over. Yes, I said "us" because I’m sometimes guilty of lacking humility too but fortunately my readers provide quite a large serving of humble pie via their comments and emails. We are so immersed in our markets that it sometimes becomes difficult to step back and imagine anything different than what we are experiencing on any given day…our market change?…heck no.
In this particular instance, I believe that the forward projections made by the agent were absolutely made from a place of knowledge and integrity. I know, it doesn’t look like that now but here’s my personal experience and I make great efforts to handle all of my business transactions and conversations with the highest level of integrity. When I’m at a cocktail party and someone asks (and everyone does) "how’s the market?", I’m amazed at the different responses from the inquirer when I answer that question. If I share my opinion that the market is stable, soft, quiet, or ready to drop, I’m met with smiles, pleasantries and comments like "you’re so honest." On the other hand, if I share the opinion that the market is strong and prices continue to hit record levels, I’m often questioned further and even met sometimes with "rolling eyes" as if I’m making it up. Both response are completely honest and based on my experiences in the current marketplace when I make them.
So when this agent made these statements in 2005, he was probably quite confident that the bottom wasn’t going to fall out of his market. To suggest that he intentionally mislead his clients is pure conjecture. Unless we know this person to be someone of low integrity, how can we judge her/his intentions. Of course there are a percentage of real estate agents who tout "buy now" in any market and we (real estate agents) can always rationalize why someone should buy but it doesn’t mean we always do. I have often suggested that buyers wait or rent based on their needs and time horizons.
Many of us take our business very seriously and the relationships that we forge with our clients are precisely the reason that we succeed in any market, hot or cold. Integrity is the key factor in building those life long client relationships and lying about what direction you think the market is going isn’t going to win you clients for life. So the next time you question your real estate agent about how the market is doing, consider the source. Are you dealing with someone who is knowledgeable, professional and honest enough to qualify to answer that question? If not, don’t ask. And remember that despite their knowledge, professionalism and integrity, they’re still providing an opinion.
In last week’s pilot episode of TrueGotham TV we met our expert panel, Jonathan Miller from RadarLogic and Miller Samuel Appraisers, Yungie Hahn from H2 Architects, and Don Meade from Quality Floor Plans, and saw exactly how they go about measuring property. Surprisingly, each of our experts used similar methods of measurement and measured only the interior perimeter of the property. Why is that surprising? Because if they all measure the same interior space, why can’t the consumer ever get an accurate quote for square footage? Check out this week’s episode to see what each of our experts calculated to be the square footage of this property and learn more about their methodology.
Tune in next Thursday for more of our panel discussion including why our experts think this is such a frustrating topic for consumers.
A topic near and dear to my heart as I and most of my colleagues will recommend decluttering an apartment more than any other form of preparation before bringing a property to market. In my opinion, it is the easiest, least expensive and singular most important thing that a seller can do to directly impact the sales price of their property. So check out these excellent tips from OpenHouseNYC this week on Clearing the Clutter:
In this edition of Floorplan George Oliphant confronts the perpetual problem for residents in this part of country: making the most of the limited space in your home! George visits homeowner Dana Hiltzik whose storage closet and bathroom has been overrun by the clutter and collections every home owner accrues over time. To combat her space shortage, Debbie Harwin of I Need My Space comes to the rescue. With items that can be purchased from the Container Store for no more than $200, Debbie adds wall hooks, supply caddies, mini-drawers and a variety of other space saving techniques.
Does it work? You’ll have to watch the video to find out, but let’s just say that Dana is thinking of calling her walk-in closet a “run-in” closet after Debbie is done…
I love what Debbi Harwin of I Need My Space has done here. I especially like the slide out containers under the sinks…nice idea! My wife and I tried to do things like this to little or no avail. Maybe I should call Debbi.
In the "What You Get For…" column of today’s New York Times, Anna Bahney describes three properties in Front Royal, VA (uh….where?), New Orleans, and Friday Harbor, WA (uh…again…where?). Check out the entire article but here’s the gist:
Front Royal, VA-A three-bedroom, two-bath house with 1,778 square feet of living space in the residential subdivision High Knob; this home is new construction. Asking $299K or $168.67/sf.
New Orleans-A 100-year-old renovated Creole cottage with one bedroom, one and a half baths and 1,400 square feet of living space. There are dark hardwood floors and ceiling fans throughout this two-story home. The renovation included new wiring, redoing the plumbing and roof, and the installation of a central air-conditioning and heating system. Asking $299k or $213/sf.
Friday Harbor, WA-A two-bedroom, one-bath condo with 1,222 square feet of living space in the 31-unit Victoria Crossing condominium development. Asking $299,990 or $245.49/sf.
So what does $300K get you in Manhattan?
Upper Westside of Manhattan-A single room 250 square foot studio just off of Central Park with a renovated kitchen, new windows, just finished maple wood floors, and a Murphy bed. Asking $299k or $1,196/sf.
Can you say LOCATION, LOCATION, LOCATION?
Since I have lived here for almost 20 years or more than half of my life, I totally consider myself a New Yorker at this point (except for my professional sports alliances). Having said that, I often find myself trying to explain city living and our pricing structure to friends, family, and just plain ole non-New Yorkers. Explaining that $300k gets you a 10′ x 25′ room blows most people’s minds. For instance, my best friend owns a 6000sf home on 4 acres with closets that are almost 250sf. He just can’t fathom why anyone would pay that kind of money for such little space. Well I get it! It has taken me a long time to appreciate all that this incredible city has to offer but their is no place in the world where the "location, location, location" mantra holds more true. If you don’t believe it’s an amazing place to live, just ask all those $300k studio dwellers.
You gotta love this town to call someone else’s closet "home."
