Sure it’s a deluxe apartment in the sky on the 20th floor of Executive Towers located at 1020 Grand Concourse and sure it’s a rather decent commute into Manhattan on uber crowded subways but at $575,000 asking price for this 2 bedroom 2 bathroom apartment is not supported by the market data of closed sales not even by a long shot. (Only one sale for a co-op is recorded as having sold within the past year for over $400k).
Call it “Gentrificationitis”.
Once an area becomes infected with gentrification or the beginnings of it anyway, homeowners begin to think their properties are worth far more than they really are due to all the hype and speculation by real estate agents and developers.
Another factor can be that perhaps home improvements were made, as appears to be the case with this unit, however, something we stress over and over again in the real estate appraisal industry is that simply because you made $100k in improvements, you are not going to get that when you resell the property. In fact, you’ll be lucky if you even get a fraction of it at closing.
This unit was purchased back in March for $380,000 in average to fair condition and got a full renovation, however, sales data from within the immediate area do not come even close to the listing price of $575k. A similar unit within the building, 16U with two bedrooms two bathrooms and great views also on a high floor, sold for $380,000 in February of this year.
If the seller doesn’t budge on the sales price, an eager buyer would have to put a substantially larger deposit on the property or buy it in an all cash transaction.
Prices are rising on the Grand Concourse especially below 167th Street but they haven’t increased $195,000 in 6 months—not even close.
Curious at what the unit looks like? Take a look here.