New York Real Estate Slashing Prices

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Never would the words bargain and Upper East Side come to mind in the same sentence, and yet it looks like department stores aren’t the only ones to post those flashy sale signs up. In fact, last week wealthy brokers were greeted by an email blast from none other than Sotheby’s International Realty.

And what you may ask did these brokers find? Real estate heaven, complete with treetop views, wood paneled living rooms, a fire in the hearth- basically a jewel of all that is elegance and refined living. Then written across the top in large red print, much like a little holiday Christmas bow were the words Price Reduction. Reduced to a mere $25.6 million (plus $8,422 for maintenance) was an Upper East Side jewel. Making it a total of 21% below its original asking price.

Yes, the reality for the New York wealthy is setting in. If they want to sell, prices must be dropped. The co-op listing posted by Serena Boardman and Eva Mohr is located at 960 Fifth Avenue. Shopping center magnet, Murray H. Goodman, hoped to sell the locale at $32.5 million.

Then again only a day after this price cut, another apartment also got the axe, this time the 1020 Fifth Avenue duplex dropped from a $50 million asking price in 2007 to only $34 million. The apartment boasts a total of 17 rooms, plus a solarium and large roof terraces. The staircase is carved out of marble said to be from the same quarry in Pietrasanta, Italy that Michelangelo used for his statues.  And still it is not really a loss, owned by the Kress Family since it opened in 1925; the house was original purchased for $150,000.

Brokers say it is just the nature of the beast. With fewer sales each year, the price cuts only reflect a reassessment of the market. Now that the luxury market is coming back, it is getting increasingly difficult to price out the value of apartments like these.

As if things weren’t complicated enough, co-op boards must also weigh in on acceptance and a low price can be damaging to the buyers chances.

Via: NY Times

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