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Hey guys, NYC is a very unique market with coops and condos and relatively opaque market data. How do professionals go about doing CMAs and initial pricing reports for seller clients? What tools do you use? Any good samples we can take a look at?
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Please see below for a sample Comparative Market Analysis, also known as a CMA for a property in NYC. Please note that most CMAs you'll see these days from agents will be much shorter and more casual, and will rarely be this detailed. It's up to you on how much work you put into it, but if you have the time, why not blow the seller away? Why not put more effort into it vs the other guy? The worst that can happen is that the seller thinks you work a bit too much :-)
Hi Frankie – we are fortunate in that your building (and neighboring complexes) offer us a large number of recent and highly relevant comps to analyze. The comp set below makes the case to value your unit between $1.2-1.3m ($1,418-$1,536ppsf). Although there are some outliers which would value your apartment below $1.2m, the majority of the comps support a sale price north of $1.2m. You will face some headwinds on/above $1.25m from the comps of #17N, 400 CPW #7K, #2J and #7X.
I will ring you at 3pm to discuss further and answer any questions you may have.
How does that sound?
Overall UWS Market (1br condos between $1-1.5m):
Active Listings: 26 (Average PPSF: $1,396)
In-Contract: 12 (Average PPSF: $1,579)
Sold in Past 90 Days: 13 (Average PPSF: $1,529)
Active Comps:
#11V (1br)- $1.095m ($1,294ppsf), 33 days on market: [link redacted] - this is a critically important comp as it’s the same line and a fairly fresh listing (33 days on market). It’s important to note that the square footage marketed on this listing is just 774, even though it’s the same line and the room dimensions from the floor plan are the same as for your unit. If we adjust size to 846, the PPSF is $1,294.
Although this listing has terrible photography, we can see that the bathroom was gut renovated. The kitchen, however, is not up to the same standard as that of your apartment. Adjusting $3k per floor and $15k for renovation condition (in your favor) would imply a PPSF for your unit of $1,276ppsf ($1.08m). Math: [($1.095m-$30k+15k)/846]*846
382 CPW #14 (1br) - $1.315m ($1,597ppsf), 64 days on market: [link redacted] - this unit is 823 sqft as per NYC Dept. of Finance, however it’s being marketed as 876. The PPSF at 823 sqft is $1,597. Adjusting $33k for floor and another 1% for Central Park view generates a PPSF valuation for your unit of $1,542 ($1.304m).
382 CPW #17N (1br) - $1.3m ($1,547ppsf), 70 days on market: [link redacted] - this is a fully renovated unit with a private balcony. Adjusting $3k per floor yields a PPSF valuation of $1,490 ($1.261m) for your unit (not factoring in balcony).
400 CPW #7K (1br) - $1.275m ($1,413ppsf), 116 days on market: [link redacted] - adjusting $18k for floor and $40k for condition (in your favor) yields a PPSF of $1,438 ($1.216m).
In Contract Comps:
#7S (studio) - $750k ($1,388ppsf), in contract after 48 days on market: [link redacted] - adjusting $50k for condition, $18k for floor and making 2% adjustment for studio vs. 1br generates a PPSF of $1,477 ($1.250m) for your unit.
372 CPW #10 (1br) - $1.35m ($1,640ppsf), 13 days on market: [link redacted] - this is a fully gut renovated unit with park views and a 130 sqft terrace.
#2H (1br) - $799k ($1,138ppsf), in contract after 46 days on market: [link redacted] - although it’s effectively an unrenovated unit, this apartment was priced completely out of line with the building comps.
#18J (2br/1ba) - $1.125m ($1,365ppsf), in contract after 47 days on market: [link redacted] - this unit is 824 sqft as per NYC Dept. of Finance (listing is marketed as 876 sqft). Adjusting $3k per floor and $50k for condition (with additional 1% haircut for Central Park view) generates a PPSF of $1,350 ($1.142m) for your unit.
Sold Comps:
#2J (1br) - $1.2265m ($1,488ppsf), sold for 1% below asking on 8/30/17: [link redacted] - this is a gut renovated sponsor unit with a private terrace. At $1,488 ppsf your unit is priced at $1.259m. Since this is not a ground floor unit and there is outdoor space, it makes a convincing case that you should not expect to sell above $1.259m.
#7X (1br) - $1.3286m ($1,472ppsf), sold for 1% below asking on 6/22/17: [link redacted] - this unit is fully renovated and it has a desirable, open layout along with multiple walk-in closets and a terrace. Adjusting for floor only generates an asking PPSF of $1,471 ($1.244m), however there needs to be a clear basis between 7X and your unit to reflect the layout, terrace and closet space.
#17S (studio) - $800k ($1,478ppsf), sold for asking price on 10/3/17: [link redacted]
#5J (1br) - $999,999 ($1,213ppsf), sold for 9% below asking on 8/31/17: [link redacted]
#5V (1br) - $764k ($1,087ppsf), sold in an off-market deal on 9/15/17: [link redacted] -
That's pretty insanely detailed. Wow! Here's another one I've seen that is quite complex as well. It was for a friend's apartment in prime SoHo. Address redacted / changed for privacy.
131 SoHo Street 3B - $3.75 mm- 1710 sq. ft - $2,193 ppsf
*No active sales or rentals in building*
Active Comps
311 W Broadway #3B (2 BR 3 BA) - $4.2mm (2,110 sq. Ft - $1,990 ppsf) 198 days on market
This is a great comparable to look at as it consists of a very similar layout than that of your unit. We can cancel out the smallest bedroom in your unit with the additional bathroom in this unit leaving us with a 2BR 2BA. If we follow the price per square foot of this unit and applied it to yours we’d be looking at a listing price of $3.40mm. It is also important to look at common charges & taxes. I am unsure as to what you are paying monthly but if I had to guess based on the listing from 8 years ago, somewhere in the $1,800-$2,000 range. For this unit, the costs are $4,800. This justifies a greater ask for your unit as the occupants will save roughly $35k annually. Using a 10 x multiple, I took $3.4mm + $350,000 which brings us to our ask of $3.75mm.
109 Greene St #14A (3 BR 2.5 BA) - $4.99mm (2,352 sq. Ft - $2,125 ppsf) 527 days on market
I will start of by saying that I feel the ask for this unit is too high, hence why it has probably been on the market for a year and a half. Nevertheless, it is an important comp to look at for a few reasons. They have valued the price per square foot at $2,125 which is still less than what we are asking for ($2,193). The taxes and fees in this building, however, are very high at $6,263. Given your building’s taxes are a third of that, our higher ask is validated. The locations for both units are the same and they are only two floors apart. There are not many units currently going for over $2,200 ppsf and those that are have had some pretty extensive work done which is why it is important to stay below that number.
In Contract Comps
None
Sold Comps
123 Sullivan St #2 (3 BR 2 BA) - sold for $3.70mm 4 months ago (1,648 sq. Ft - $2,245 ppsf)
This is the best comp we are going to find. It is nearly identical to your unit and sold just under four months ago for the same ask I feel we should be at. The square footage is roughly the same, however, your unit has a more open living/dining room area which gives off the feeling of more space. The taxes and fees in this building are higher ($2,849) although, extra amenities such as a fireplace and private balcony certainly make up for that discrepancy in price. Location for both units are prime.
505 Greenwich St. #PHD (3 BR 2 BA) - sold for $3.85mm 5 months ago (1,595 sq. Ft - $2,413 ppsf)
We must first note that this is a very Western SOHO location, certainly not as prime as your unit. With that in mind, we must still factor in the $250,000 worth of upgrades this home came with. In addition to a being gut renovated, there is also a massive private balcony (44’ x 10’). The monthly charges are $5,396, however, the building does have a full time doorman as well as other amenities including a gym and terrace. Still, those who are willing to pay these higher fees are more than likely looking for a building that comes with all the bells and whistle. In this case, the amenities and massive renovation along with the private outdoor space does justify the higher price per square footage despite the space being slightly smaller.
63 Greene St. #4D (3 BR 3.5 BA) - sold for $4.45mm 8 months ago (2,407 sq. Ft - $1,848 ppsf)
This unit is certainly larger so to most effectively compare the two, let’s begin by taking out 1.5 bathrooms (that should bring us closer to your unit’s square footage). We are now left with a 2 BR 2 BA. If we deduct the difference in sq. Ft between your unit and this one, we are left with 697 sq. Ft. This number multiplied by $1,848 ppsf comes to $1.29mm. This brings the listing price for this unit down to $3.16mm. The location for this unit is prime, (as is yours) and it features a very modern open layout. Keep in mind that the original ask for this unit was $4.5mm but sitting on the market for well over a year surely convinced the sellers to come down. Lastly, the monthly costs for this unit total $5,027. These higher fees support a lower ask as many buyers do factor this in when making offers. With all of this in mind, I believe our ask of $3.75mm at $2,193 ppsf is the best we will get (assuming there are no additions/renovations we
don't yet know about).Comment
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Here is a sample CMA my friend did recently, addresses changed around so it's just hypothetical, but very well analyzed pricing analysis:
99 John Street PH2 - $1.40 mm - 1,034 sq. ft - $1,353 ppsf
Active Comps
99 John Street #1810 (1 BR 1 BA) - $ 1.2mm (958 sq. Ft - $1,252 ppsf) 54 days on market
This is a great comp to look at as it is very similar in both size and layout as your unit. At $1,252 a square foot, the asking price for this unit would be raised $95k to $1.295mm if we were to add the additional 76 sq. ft your unit has. Nevertheless, your unit is a penthouse which instantly makes it more valuable. Additionally, you have triple city exposure with oversized windows. I would value that all at around $100k. With a listing price of $1.40 mm, we are asking $105k over this unit’s ask (at the same size). Given that you are hoping to sell rather quickly, it is important to stay in a reasonable ppsf range.
59 John Street #8B (1 BR 1.5 BA) - $1.095mm (964 sq. Ft $1,135 ppsf) 73 days on market
Another great comp to look at as it is in a neighboring building with very similar amenities and monthly fees. The difference in square footage between this unit and yours can cancel out the half bathroom leaving us with a 1 bedroom 1bath. The $263 ppsf difference can be justified by the penthouse exclusivity as well as the city exposure your unit gets but I am not sure we can justify much more of an ask unless there have been some upgrades or revelations we do not yet know about.
In Contract Comps
99 John Street #2101 (1 BR 1 BA) - $995k (770 sq. Ft - $1,292 ppsf - 170 days on market
Also located in 99 John Street, unit 2101 is made up of 770 sq. ft and is valued at $106 less per square foot. The unit is smaller and not as exclusive as yours, however, the open flowing kitchen floorpan in this unit is often desirable than a closed off kitchen. Additionally, we must note that this unit dropped this ask by $85k or 7.9% nearly ten weeks ago.
Sold Comps
130 Water Street #6/L (1 BR 1 BA) - $989k (816 sq. Ft - $1,212 ppsf) - sold after 98 days on market
Located right nearby in the Financial District, 130 Water Street is also a full service condominium that comes with similar amenities at a reasonable monthly cost. For this unit, the ppsf was valued at $1,212 and sold in a little over three months. We must consider that this unit has been practically gut renovated and features an open layout with corner exposure. There is no question that this unit was priced to sell but it is still crucial to keep our ppsf ask below $1,400 to receive competitive offers and get this sold in the time you were hoping.
20 Pine Street #910 (1 BR 1 BA) - $1.13 mm (1,101 sq. Ft - $1,025 ppsf) sold after 174 days on market
Another full service condominium with even lower monthly taxes and common charges. This unit is nearly identical to yours as it features similarly high ceilings. The only difference is that it is technically a studio but with the layout and space, a simple wall or partition would turn this into a true one bedroom. It is important to note that the original ask for this unit was originally $1.295mm (12.7% higher than what it sold for) Even at $1.295mm, we are still looking at an ask of $1,176 ppsf.Comment
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Here is a sample I did for a client looking to sell a studio / 1 bedroom in the West Village. He ended up going with a friend of a friend, ugh ... so here's the work I just did for nothing. Hope it's helpful for you newbies!
Hi Mark – we are fortunate in that your neighboring complexes offer us a number of recent and highly relevant comps to analyze. The comp set below makes the case to value your unit between $639,333 - $654,376. Although there are some outliers which would value your apartment below, the majority of the comps support a sale price north of $600k.
Overall West Village Market (1br co-op between $600-$700K):
Active Listings: 3 (Average PPSF: $1,550)
In-Contract: 1 (Asking $635,000)
Sold in Past 90 Days: 4 (Average closing $654,376)
Active Comps:
41 Perry Street #4B (1br)- $620,000 ($1,550ppsf), 452 days on market: this unit was listed originally at $649,000 dropping to $620,000 in March. It has a low maintenance of $792. It has pets allowed on a case by case basis. The unit can be used only for primary owners or pied-a-tier.
https://streeteasy.com/building/41-perry-street-new_york/4b
15 Jones Street #3B (1br) - $649,000, 1 day on market: this unit maintenace is $833. It has two nice sized closets that are customed designed and thebathroom has been updated including a newly reglazed tub. They do allow sublets in this building as well.
https://streeteasy.com/building/15-jones-street-new_york/3b
344 West 12th street #4D- (1br) -$649,000, 27 days on market: the lowest maintenance of the three, $654. This unit has a renovated kitchen with a breakfast bar. There is a current $69.66 monthly assessment. Subletting is subject to board approval.
https://streeteasy.com/building/344-west-12-street-new_york/4d
All three of these units do have smaller bedrooms and living room space then your unit (compared to the floorplan on StreetEasy).
In Contract Comps:
55 Morton Street #7F (1br) - $635,000, in contract after 29 days on market: High maintenance $1,466. They do have an easy approval process and welcome investors.
https://streeteasy.com/building/53-morton-street-new_york/7f
Recorded Sales in the past 90 Days
51 Morton #5D - 1br Asking $635,000 - Sold for $640,000 12 weeks ago. 45 days on market. The maintenance was $694. Unlimited subletting after 2 years. This unit did need some TLC.
204 West 10th Street #22- 1br Asking 649,000- Sold for $645,000 2 weeks ago. 107 days on the market. The maintenance was $665. Renovated Kitchen and excellent condition bedroom.
15 Jones Street #5c - 1br Asking $640,000- Sold for $661,505 in Janurary. Only on market for 28 days. The maintenance was $809. Brand new kitchen with high end appliances. Sublet after 3 years of living in unit.
45 Perry Steet #6- 1br Asking $640,00- Sold for $671,000 5 weeks ago. On market for only 18 days. High maintenance $975. Has a monthly fuel charge of $80.73
We can call you at 3pm tomorrow to discuss further and answer any questions you may have. We hope this helps you in making your decision. Please let us know if you have any questions at all.
How does that sound?Comment
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Here's a sample CMA my friend received from her agent. She's buying a place and has been raving about the quality of her buyer agent, and showed this to us. Impressive in detail I'll give them that. Addresses changed around for privacy of course, don't want to mess with her deal!
212 East 55th #2D
Price Comparisons
212 East 55th #2D- $1.599mm (estimating 1,200 sq. Ft) $1,333 ppsf
*I think that $1,200 ppsf is the range we want to be in* - $1.44mm
Active
200 East 57th #4N - $1.695mm (1,500 sq. Ft - $1,130ppsf)
This unit is in the same building as #7F and has been on the market for 4 days. The price per square foot
is lower and the space is bigger. Both units consist of a two bed two bath although there is more space for
the third bedroom in this unit. The maintenance in this unit is about two hundred dollars less per month
but that is offset by it being on a lower floor which is often valued lower. In terms of modernity, both this
unit and #7F have new appliances and are move in ready. We will see what the market feedback for this
unit is but I think it is competitively priced at $1,130 ppsf - I do not anticipate this sitting on the market
for too long.
300 East 59th #1606 - $1.5mm (1,300 sq. Ft - $1,153 ppsf)
This building is one block east which will inevitably drop the value. Both this and #7F are close in size
but this one is a 2 bed 1 and a half bath as opposed to a 2 bath. This unit is unique in that it has two
private balconies and panoramic views surrounding the unit. Maintenance, however, is still reasonable at
$2,733. To be honest, I think it is well priced, especially given the high end renovations but it’s been on
the market for 199 days! It still stays within the $1,150-$1,200 range we should be in.
Sold
300 East 59th #2101 - $1.50mm (1,250 sq. Ft - $1,200 ppsf)
This is a great unit to look at as I feel that it falls right within the offer price range we want to be in. The
unit sold only $50k less than ask in 42 days. The kitchen is not open like #7F but that is offset by the
huge private balconies on the 21st floor. The maintenance is significantly lower at $2,184 which could
validate a higher ask but I think that it was competitively priced and the sellers could have gotten away
with $1,250/$1,300 ppsf.
245 East 54th #17F - $1.65mm (1,400 sq. Ft - $1,178 ppsf)
Also one block east of #7F, this unit similarly sold for just $50k below ask in a month. This space is
virtually the same as #7F but higher up and with a lower maintenance of $2,344. It came renovated with
high end appliances. There is also the ability to convert a part of the living/dining room into a three
bedroom like #7F. At $1,178 ppsf, I am not surprised that it sold as quickly as it did.
These are just a few of the units I came across when searching past and current sales within a two-block
radius of #7F. I think that a sale price of $1.44mm would be reasonable. It appears that the majority of
recorded 2 BR 1.5/2BA sales and current listings in the area fall within the $1,100-1,400 ppsf range.
Let me know your thoughts!Comment
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This article provides a good overview of: a) how to select the right comps, and b) how to make appropriate valuation adjustments to the comps: https://www.hauseit.com/how-much-is-...-worth-in-nyc/Comment
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