Nicholas, Home Buyer in Bay Ridge & Fort Ham...

I'm thinking of buying a multi-family house. However, the current listings cannot be compared to recently sold places. Are the recently sold?

Asked by Nicholas, Bay Ridge & Fort Hamilton, Brooklyn, NY Mon May 23, 2011

houses foreclosure buys? Am i missing something?

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7
Nicholas,

I am responding to your message above. I am currently selling a multi-family house on Ovington Avenue and 6th Avneue Bayridge Brookly, NY. The large corner home with a 2 car garage.

If interested, please telephone me at (212) 835-9024.

Have a nice day.
Barbara
0 votes Thank Flag Link Thu Apr 19, 2012
Hi Nicholas;
Just wanted to check in and see if you found what you are looking for.
If not I may have some other options for you.
Please let me know if I can be further assistance.

Regards,

Jack Menashe
jack@sherestates.com
http://www.sherestates.com
0 votes Thank Flag Link Tue Jun 14, 2011
I am sorry I do not understand the question! The sold prices that are most recent are on the public records like ACRIS AND PROPERTY SHARK. Properties in Bay ridge and Fort Hamilton are being sold at premium prices if there are foreclosures and short sales they are selling quickly and would give a false impression of market price.
0 votes Thank Flag Link Mon May 23, 2011
The one thing you said made me react: SOLD houses are only accurate Comp. LISTINGS can be all over the map; some are prices low to attract multiple offers, and some are priced too high for various reasons. Even with SOLD Comp's we have to sift through them and compare the square footage, bedrooms, neighborhood, etc. But if you're thinking of buying income property, you should be looking at the ROI.
0 votes Thank Flag Link Mon May 23, 2011
I'm not familiar with Brooklyn property, so I gladly defer to the other answers provided by those who are.

However, just a few more general thoughts:

Sometimes comps ARE difficult to come up with. That's where a Realtor familiar with the area can be especially helpful. Sometimes, for instance, you may have to extend your search geographically. Or look back more than 3-6 months. And it is a hassle when there are foreclosures mixed in with non-foreclosure sales. In those cases, you do the best you can. One thing your agent might do (depending on the protocol where you are) is to ask the listing agent: "How did you arrive at the price you're asking?" Although the listing agent has a responsibility to get the most possible for his/her client--the seller--the agent doesn't want to overprice the property, either. So many listing agents--especially in situations where comps are difficult to come up with--don't have a problem showing (and justifying to) the buyer's agent the justification for the listing price.

Another comment: When you're dealing with a mixed-use property (residence plus rental, for instance), sometimes you have to break the two apart. Look at the value of the residential portion. Then look at the value of the rental property.

And just an additional side note: Mitchell offers some very good advice, but I respectfully disagree with him on one point. And that's how to use a multiplier to determine value. A lot of experts do just as he suggests--both in valuation of properties and in valuation of other things, such as business valuation. But what really matters isn't the raw (or gross) rent rolls. What matters is the return on investment.

Simple example: You have 2 buildings, each with rental income of $50,000 a year. Using a gross rent multiplier (let's pick "10"), that might suggest each property is worth roughly $500,000. However, let's say one is individually metered, with the tenants paying the utilities. The other isn't; that's the landlord's responsibility. Let's say one is in good condition, and is running about $5,000 a year in maintenance and repairs. The other one is running about $10,000 a year in maintenance and repairs. One has some pay washing machines and dryers in the basement--yielding $500 a year in net profit. The other doesn't.

As you can see, one building is likely to be more profitable, from a rental standpoint, than the other. So the real question isn't how much in gross rentals the properties bring in, but what the net is. Then you apply a multiplier to those numbers for a more accurate valuation.

Hope that helps.
0 votes Thank Flag Link Mon May 23, 2011
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
Contact
Dear Nicholas:

Often times active listings are overpriced and simply will not sell. The properties that are priced correctly usually sell very fast. You should always find out how long the property has been on the market. If it has been out there for a long time (6 months or more) than it is probably overpriced. Now just because a home has been sitting for a while does not mean that owner will take less, if the owner is not motivated to sell, he or she may want to hold out for their price. However, often times an overpriced property sits without even getting any offers. Most buyers know it is overpriced and do not even bother to make an offer. If you see a property that meets your needs but the price seems to high, simply make an offer of what you feel it is worth. You may be the first or only offer on the table and if you catch the owner at the right time, you may just be able to make a deal.

Also, certain properties command a premium and cannot be compared to the "comps." Examples of this would be if the property is in a high demand location, or if it has been completely renovated. Also with multi-family homes you have to look at the rent role and expenses to see how much of a money maker it is. Often times investors will look at the "rent roll" and do a quick calculation to get an idea of value. Depending on where in Brooklyn you are looking, the value may be 8 to 15 times the rent roll.

If I can be of further assistance, please let me know. Good luck!

Sincerely,
Mitchell S. Feldman
Associate Broker/ Director of Sales
Madison Estates & Properties, Inc.
Office: (718) 645-1665/ Cell: (917) 805-0783
Email: MitchellSFeldman@aol.com
0 votes Thank Flag Link Mon May 23, 2011
If looking to buy, do consider working with an agent of your own, he/she can provide suitable listings, comps--recently sold similar properties in the immediate area, any necessary information, schedule showings, etc.; your agent will be your best guide. Be aware that a mortgage pre-approval letter is required in order to determine your price range and for any offers to be taken seriously.
0 votes Thank Flag Link Mon May 23, 2011
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