Its official, Erin and Lou (also know as Erlu) the founders of this blog site, closed on their two Bedroom one bath co-op this past Friday. Due to the new addition to their household, Erin needed to be close to her parents in Queens.
For those wondering what my relationship to them was; here it is. Besides advertising on their site I also was their realtor when selling. As a realtor I must confess they did everything right when buying which allowed them to sell their property with at a slight profit, even though they purchased at the top of the market and sold in more turbulent times. They purchased a two bedroom co-op at 325 E 201st back on 4/2007. They closed last Friday, February 11th for $10,000 more than their purchase price. From listing to closing it took 92 days which is very uncommon in today’s market. I represented both the sellers and the buyer in the transaction. Here is what the unit offered that allowed it to sell at above its purchase price so quickly, in a difficult market. Highlights of the building include strong financials, high owner occupancy, low maintenance, some parking and its pet friendly. Besides the above they also purchased a 2 bedroom, which usually has a quicker turn around time when selling.
Even with all this and a rock solid buyer the bank still gave us a last minute “adita”, requiring a Fannie Mae waiver. For a co-op with a 90% owner occupancy this was completely unexpected and out of the norm. Usually Fannie Mae waivers are needed only for buildings where the sponsor owns more that 50% of the outstanding shares of the co-op. Just one more example of government regulations or banks tightening and hurting the local real estate market. They went for one extreme to the other. Fortunately, the building and buyer were both strong and the issue only cased a delay.
Please do note I have an open house in that same building tomorrow, Saturday February 19th from 11am to 11:45am. Please see next post for additional information. As per Erin and Lou I am sure many of you missed them and appreciated their stay in the Bronx. I am sure I am not alone when I wish them much success.
Gregory
6 comments:
Good news that a seller made a profit, especially a young couple who made a contribution to the neighborhood. Heard that the apartment was in great condition and that they made renovations that helped their sale. Kitchen? Bathroom? Any idea who did their work and what they paid? It would help those of us considering moving up and out in the future and want to spruce up their digs You might get more clients.
Who knows?
I know you're not Italian, but it's "adita," not "agida." What do Greeks call it?
To my Italian Boogiedowner; I took your word for it and made the change. Thank you.
Gregory
Is Espada's pad available yet?
I wouldn't say that getting $10,000 more for what they paid for it in 2007 is a profit. If they did all the renovations, it might have cost them more than $10,000 not to mention closing costs and all that when selling and buying. It would be nice if they at least broke even.
I did not see the unit when they moved in. I can however attest it was beautiful when sold. I believe they did put in a new kitchen with a granite top. In this market they did well. Many people are beginning to suffer due to the banks tightening money supply and appraisal rules that specifically hurt the Bronx real estate market. Yes there was a commission and other fees, such as attorney fees and various taxes. I should post what expenses are part of a real estate transaction so people are more aware and can calculate what we call a “Walk away number”. What you “walk away” with after you get up and leave the closing table is often called a “walk away number”.
Gregory
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