Author Topic: Highest Sold One Bedrooms in Jackson Heights in the past 3 months  (Read 3144 times)

Offline agentarmen

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Hi everybody. I wanted to share an article I recently wrote. This data should prove helpful for folks having trouble selling or refinancing one bedrooms due to low appraisals.

Link: http://www.jacksonheightslistings.com/highest-one-bedroom-coops-sold-jackson-heights/

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Highest One Bedroom Coops Sold in Jackson Heights!

In a rising market, one of the toughest challenges Sellers and Realtors face are low appraisals conducted by independent third party appraisers if financing is being used. Several deals have fallen through or been sent back to a negotiation table due to the disparities between the agreed upon contract price and the bank appraisal.  Low appraisals are often a result of lack of comparable sales within the building or the surrounding area. It seems the increased values due to recently seen bidding wars are being adjusted downward.  I am happy to say that we now have at least three shining examples of recent sales on public record that may help turn things around.

37-30 73rd Street, #6E – 1bed 1bath Closed at asking $318,000 on April 10th 2014
35-24 78th Street, #A55- 1bed 1bath Asked $325,000, Closed at $315,000 on March 6th, 2014
35-36 76th Street, #523- 1bed 1bath Asked $309,000 Closet at $300,286 on January 14th 2014
Marketplace is always changing, and in our experience consumers are much faster to respond to it, and if their demand is loud enough, lenders will begin to embrace change as well.

 

PS. This data is also important for owners who tried refinancing in the past, were discouraged from doing so due to low appraisals.
Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Offline wooden_soldier

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #1 on: April 16, 2014, 03:16:17 PM »
Great to hear things are trending higher.

Offline petster

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #2 on: April 16, 2014, 10:04:52 PM »
Thanks for sharing this.

Offline agentarmen

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #3 on: April 18, 2014, 07:57:01 PM »
Wooden_soldier: as are we! ...but not without a struggle :) We put 6E at Sheila Terrace into contract THREE times, and the bank under-appraised it all three times. The last one - the buyer bridged the difference and we closed at $318k.

Petster: you are of course welcome! 

We also just closed on one of the smallest one bedroom units at Colonial Court for $280k - and will continue to step up to new challenges.

Our sites are: http://www.jacksonheightslistings.com and http://www.jacksonheightsgardens.com

We have over 440 buyers registered on our site and we have over 150 visitors a day. We have the attention of local media and continue to post potent articles and information about Jackson Heights.
Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Offline yt28

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #4 on: April 21, 2014, 01:27:40 PM »
Thanks for the very helpful info.

I'm in the process of buying a place - could you please let me know the range the banks appraised Sheila Terrace for? During all three attempts, did the would-be purchasers use the same bank, or different banks?

Offline agentarmen

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #5 on: April 23, 2014, 03:57:26 PM »
Thanks for the very helpful info.

I'm in the process of buying a place - could you please let me know the range the banks appraised Sheila Terrace for? During all three attempts, did the would-be purchasers use the same bank, or different banks?

yt28: It's important to note that banks do not appraise apartments, but rather third companies which receive the bank's order and randomly choose appraisal companies from their list, so even if same bank were used, chances are completely different appraisers would come to appraise and render their OPINION report to the bank. Also buyers are free to use any lender of their choosing. So it's rare that the same lender is involved in subsequent deals. How an appraiser views comps and makes adjustments is really up to the appraiser. Some take a more conservative approach than others. Some ask brokers for assistance with comps and some don't. Some know the area well others come from remote locations. Lenders have a protocol as to how you can challenge appraised value - but more often than not they hesitate to go higher than the appraiser's opinion.

I realize I am not giving you a direct answer, but given that a real estate appraisal is not an exact science, any numbers I throw at you will not be relevant. The closed sale numbers are the numbers that will help formulate an appraiser's opinion of value. And now, as far as one bedrooms go, there are at least three comps that appraisers will hopefully find and use in their evaluation.

For complete list of our recent closed transactions please visit: http://www.jacksonheightslistings.com/armen-armen/transaction-history/
Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Online dssjh

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #6 on: April 23, 2014, 08:47:19 PM »
I find it interesting that the general consensus here is that rising residential rents should be applauded, while rising commercial rents should be feared and hated. for the record, I own an apartment and don't object to an upswing in property values.....but I do wonder where our neighbors in the real estate biz stand on commercial rents. are the very high rents good or bad for Jackson heights?

Offline wooden_soldier

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #7 on: April 24, 2014, 10:55:10 AM »
Great point.


Offline agentarmen

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #8 on: April 24, 2014, 02:08:19 PM »
This topic was certainly not intended to discuss rents, which can be a whole topic all to itself, I am happy to contribute.

Though I am also a seasoned commercial broker, I have not yet gotten involved with commercial transactions in Jackson Heights. My business partner and I have concentrated on residential sales, which explains the angle of most of my posts on this forum :)

What I can tell you from experience of working in the commercial realm is that market rents of retail and office spaces are driven by supply and demand of space at any given time. Both the landlord and tenant take what's called Market Risk with every lease based on its term. Using one building as an example I can state the following: I’ve seen an office building across from my office in Manhattan go from 35% vacancy and asking $28/RSF to $55/RSF and virtually 2% to NO vacancy in a couple of years time. It would be foolish to think that businesses there who have their leases come up  and be looking at their rent doubling, would not be negatively impacted if they choose to stay in that same building.  The result would typically be that those businesses would move out and businesses who can afford to pay the higher rents would come in. 

Looking at these exact same principals applied to a whole town will paint a much different picture. When staple businesses have their leases come up, can’t afford to renew, ultimately close their doors, where local residents’ memories reside, and blocks get leased out by banks, major “pharmacies” and an occasional Starbucks  - the original makeup of a neighborhood changes. I will reserve my personal opinion on the matter if that’s good or bad.

Now let’s look at it from landlord’s perspective for a moment. Many landlords issued 10, 15 or even 30 year leases on some of their spaces, at what I can only presume to be lower rents than what we are seeing today. I’d venture to say that their built-in increases barely kept up with the inflation, and they saw rents rise much more aggressively over that time period, have probably been kicking themselves for what a commercial landlord would consider “market loss”. Now imagine one of his leases is up and major franchises are actively looking to take space at what the supply and demand determined to be the “market rent” which is significantly more than what his current tenant based on his business formula can afford to pay in order to turn profit. Can that tenant afford to dramatically increase prices in order to adjust to higher rent without losing customers? I’d venture to say no, and the space will turn over, even if it stays vacant for a while.

Let me sum it up by bringing up Bleeker Street in Manhattan. Most of that block was occupied by bars, music venues and novelty shops with long term leases. Years went by and literally the entire block is down to one music venue and all store fronts have become banks, ATM stops, pharmacy, and there is a revolving door of restaurants just unable to cut it there due to what I am presuming to be the higher rents.  Traffic on the block has decreased dramatically as entertainment venues disappeared, and the esthetic of the entire block is forever changed.  Obviously Café Figaro, Back Fence, The Elbow Room and Kenny’s Castaways could not charge triple for their food/drinks and door to have the slightest chance of staying open. Is it good or bad? – I will reserve my personal opinion on the matter yet again.

http://www.jacksonheightslistings.com
Armen Meschian
Licensed Associate Real Estate Broker

CORE
673 Madison Avenue
New York, NY 10065
t:     212-612-9694
c:     917-848-6928
f:     212-612-9650
am@corenyc.com

http://www.JacksonHeightsListings.com

Offline wooden_soldier

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Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #9 on: April 24, 2014, 07:58:52 PM »
Thanks for sharing, Armen.

Jackson Heights Life

Re: Highest Sold One Bedrooms in Jackson Heights in the past 3 months
« Reply #9 on: April 24, 2014, 07:58:52 PM »