Friday, October 31, 2008

672 Page: Price Reduction Update

The price on the 672 Page Street flat has been reduced to $599,000 -$40,000 less than the original list price. My suspicion is, in addition to the general economic slump, the glut of condos currently on the market in the mid-Market and Hayes neighborhood are putting downward pressure on TIC prices. At The Hayes, located at 55 Page, prices have also fallen on several unsold units. A one bedroom with a small study and a private terrace is listed for $523,000. The Hayes building is solid new construction, with a gorgeous shared roof deck, a doorman and a fitness center.

I wouldn't trade my TIC for a unit at The Hayes, but I bought into my building back in 2000. A TIC made a lot of sense back then for a first time buyer in a highly competitive market. At this point I've used equity to trade up to a larger unit within my building, my fractional mortgage is almost paid off and my property taxes are relatively low. Plus over the years my TIC partners have become neighbors and friends. (I was just invited to my first floor partners' wedding.) So I'd give up quite a bit, personally and financially, if I chose to move to a condo now.

However, if I were a highly qualified buyer looking to purchase a home today I would be more inclined to play hardball negotiation at the condo complex of my choice and compare that with what the TIC market might offer me. I'm not saying condos are always preferable to TICs. If you love old architecture, the building with vintage mosaic floor tile, coved ceilings and redwood framing is more likely to be a TIC. If you want the most square footage for the price a TIC is likely still the way to go. Working with TIC partners is probably no more or less aggravating than dealing with the members of a condo association. (On second thought condo associations may be more of a hassle, as they tend to involve a larger number of owners.)

Whether its a TIC or a condo or any other property, there will likely be some good deals to be had for savvy buyers in this economic climate.


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