news alert! well-priced lofts sell (sometimes quickly)
is ‘the glut’ limited to over-priced lofts?
When I work with buyers – and especially when I work with sellers – we have long conversations about inventory stats and whether they indicate buyers have “a lot” of power in the current market. In my typically infuriating way, my answer is consistently “it depends”.
all buyer-vs. seller power is very local
Buyers definitely have more power than they had in 2005 but well-priced lofts still attract strong interest from well-qualified buyers. The stuff that has been on the market for a while (and which may be suffering death-by-small-increments, like #8A at 4 W 16 St, which is still on the market at $1.225mm) give buyers relatively more power. But if a loft is well-priced they should expect competition.
We just went into contract on an apartment I listed (full price, with competing offers, in 5 weeks), but two loft listings at 22 West 26 St are better illustrations of this.
First, the good news
#12B is in contract after three weeks as of this weekend, with competing offers, off an asking price of $2.195mm. In any market conditions, that is a terrific result for the sellers who owned the loft for 2 ½ years and just completed a major renovation. This is a beautiful top-floor loft with great light, about 2200 sq ft.
Next the not-so-good news (for sellers)
#2B has a similar price and a slightly smaller floor plan than #12B and is – to (legitimately) use an over-used word – a unique and special loft. No kidding – it has to be seen to be appreciated. It has been marketed by Corcoran only since September (at $2.199mm) but it was offered last year by Sotheby’s for $2.695mm, then $2.55mm, then $2.275mm until it dropped off the market. This in a building in which the top sale to date was $1.81mm.
Second-guessing is so unrewarding, but it is hard to believe that it would not have sold last year off this year’s $2.199mm asking price – but the sellers and/or agents were not prepared to do that then.
Now the listing is well familiar to agents who specialize in lofts and is still available. Granted, #2B has a much more limited market than #12B (the way that all truly “unique” lofts have more limited markets) and has some ‘second floor’ issues, but it is still out there while #12B came and went in a (relative) flash.
Buyers looking at #2B may feel that they should have a lot of power. The two buyers (at least) who competed for #12B will have a different view of who had the power in that negotiation.
© Sandy Mattingly 2006
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