Close the Books on 132 2nd

Posted by Dave Fratello on Thursday, January 14th, 2010 at 4:40am.

There once was a buyer for 132 2nd who had agreed to pay more than $6.0m – $6.225m, in fact. However, that off-market sale flopped when the buyers moved on a 16th St. home instead.

The most recent buyer has just closed on 132 2nd for a lot less: $3.3m.

Yes, that's nearly $3m less than the big-fish-that-got-away deal 2 years ago.

The gradual, inevitable fall of the market price for 132 2nd has been chronicled here at MBC over the past year. (See "Riches Slip Away.")

One of the outstanding questions, after that flirtation with a big payday, was: Would the sellers ever get realistic about the true current value of the property?

They did.

After an unsuccessful effort to sell publicly for $6.0m in 2008, they brought it back in March 2009 at $4.5m, and even dropped to $3.795m. That's where the listing last stood before a buyer came in – and took almost $500k more off the top.

The secondary question was whether the sellers would get more than they had paid for the property in 2005.

They did not.

In April 2005, the owners paid $3.5m. The new sale price is down some from that (-$200k/-6%), pushing the value into, perhaps, late 2004.

Yes, that off-market offer in 2008 was overheated, though some say a market price is whatever a willing buyer will pay to a willing seller. The afterglow of that pot-of-gold-in-hand surely contributed to the home's chasing the market down over the next 2 years.

They say buyers should beware. But sellers, too, need to know when something's too good to be true.
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