Jackson Heights Life

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

Anyone thinking of selling their coop or condo should do one thing first...CALL MANAGEMENT AND ASK THEM FOR A LIST OF THEIR LATES SALES IN THE BUILDING.  What good is it if your broker tells you how wonderful you apartment is and how chic and spacious...that it looks like a 5Th Ave flat if in fact the last sale in your building is $200 per share or square foot or what ever the particular combination they decide to use for the appraisal.  Chase uses such a wide range of appraisers that there is very little you can do to get a good and fair one.


If you do this you can price the unit at a realistic price that will get it sold reasonably fast.  If there are too many available units in your building or in similar buildings of the immediate area be ready to either spruce up your place for the competition or price your unit 1% below a comparable competing unit.  If your apartment looks amazing and your building has lots of interest price it 10% above the previous higher sale in your building but be ready to negotiate it as low as 10% or more if you feel you can't wait a few months for your sale.  Do Not over expose your unit and make nice with members of the Board so that you have a smooth transaction.   You should know that there are too many UNREALISTIC sellers out-there that refuse to look at the realities of the market or the real price of their units.  They feel that they have the most amazing apartment in the world and that since their cousins Earl sold their unit for $450 per square foot they should be able to do the same.

Would be buyers seem to be walking into apartments and one of the first things that come out of their mouth is "The market is really bad" or something to that effect to try to low ball a price.  Let your agent handle it, he or she will be able to tell them that Coops have stayed strong in Queens and especially in areas like Jackson Heights, blah, blah blah.  There are many disappointed "would be buyers out there" and too many sellers as well...don't let your buyer and your property be a statistic. [/b]

On a last Note, if you paid very little for your property and can afford a full renovation do it.  A well though out  and beautiful renovation will get your unit off the market within 30 days most of the year.  You may net much more than you put ion but be careful not to over spend because while it will get you lots of offers you still have to recoup your investment.