My New York Magazine Interview

I'm excited to announce that I was recently interviewed by New York Magazine regarding my last CO-OP sale. To read a print version of the article, you can check it out in the Real Estate Properties section titled "Home Economics - Does renovating your kitchen pay off?"

The article compares two identical units for sale in Riverdale: 

Both located at 511 West 232nd St. Bronx, NY 10463.  Listing Agent: DANIEL SASSE 

Market Conditions:

My listing had a serviceable, builder-grade (formica, vinyl and laminate) dated kitchen featuring full-size appliances, above the range microwave, and dishwasher. The other unit had a renovated kitchen with ceramic tile floor, cabinets, granite counter tops and stainless steel appliances. 

My strategy:

My seller did not really want to invest into a kitchen renovation but, would have it if it would of brought a higher return. What would bring my seller the greatest return and quickly (as our unit was vacant and the seller was not interested in renting). The market was saturated with renovated one bedrooms. I did not want to go toe-to-toe against the other unit.

I estimated that the comparable unit had invested approximately $25k into their kitchen. Should my seller should invest $25k on a new kitchen, too? I would raise the price thus, attracting the same buyer (who would more than likely look at both units).Would they pick my unit over the other? 

It was clear to me that the downside to renovating out weighed the up side. If I mirrored the competition... I would then create more competition thus, competing against myself.  Not to mention - what if the buyers taste does not match the sellers taste? A kitchen is a very personal space. What if my seller picked cabinets that were too light or too dark? I knew my kitchen was functional and It had a few years. It could even be done in stages. But, now, I appealed to both deep pockets and to a DIY fixer upper buyer.

Outcome:

Both units sold. Mine for $189k, $25k less than the other unit. However, we did not have to invest the $25k into the unit or go through the ordeal of a time consuming renovation. Kitchen usage vs. aesthetics in the New York City is somewhat of an anomaly. 

But, remember we are talking about a grand art deco with plenty of space and Riverdale!

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