The banks now seem to dictate the worth of the apartments as appraisal guidelines have changed. Or at least that has been my most recent experience.
The last appraiser from Chase looked at the most recent comps/sale for the past three months within a JH building and within a 1/4 mile radius. The appraisal on a 1,200 sq. ft. unit (two bedroom, two bathroom) was $390K at a 20% downpayment. Please note that the building is in the heart of JH and the appraisal was done mid December. The Chase appraiser could not find a sale any where that was more than $390K that had taken place in September, October, or November, her in JH, and was contacting all brokers/agents in JH to see if he could find a recent sale that had not appeared in the public records. Apparently, it was not found.
What a unit is on the market for and what it will sell for is very interesting. I have just experienced an appraisal issue, and therefore assume that others in the JH community have as well. My take is that unless the buyer puts down a large downpayment, and takes out a smaller mortgage, there may not be an appraisal issue, but I'm not sure of anything at the moment, as banks are being extremely cautious in their lending.
I recall having banks and mortgage brokers order the appraisal and the accepted comps/recent sales considered were within the past year. Now the most recent appraisal considered only the comps/recent sales for the last three months.
I would love to hear from other brokers/agents share their current experiences as it relates to the pricing on the JH co-op units and the ultimate sale price. And their experience on how the bank appraisars are working on their sales.
Example: Are JH co-ops listed at $550K getting offers of $525K, $490K, $450K? And are they appraising. If they are, what is the downpayment requirement for these properties. I'm sure the JH community would like to know. Not only brokers/agents but those that have units on the market FSBO. I don't have these answers now as my most expensive listing at the moment is $459K with a 33% downpayment requirement. And it ain't moving.
Michael, due share where you get your comps for those beautiful properties that are in the $500K's and up and Helen, as well please share. Also, why has that stunning Greystones duplex not sold. Helen is wonderful and shares all her listings. You go girl!
Helen