A contract!

Nothing to send spec builders’ hearts soaring, I suspect, but 154 Cognewaugh (no details available on the Net because it’s a Sotheby’s listing) has gone to contract. This is a large new shingle style house built on land purchased for $1.4 million. The house was originally priced at $4.895 in July, 2007 and the builders have been adjusting their ambitions downward ever since. The latest price was $3.150 million as of January and I’d be surprised if the buyer bid full price. Even if he did, the builder will have just $1,561,000 left after deducting the land cost, commissions and taxes. If the constuction loan was at zero interest, then no problem.

The same builder, by the way, has reduced the price of another project, 137 Cat Rock Road, to $4.295, from its original price of $5.495. Like Cognewaugh, this is a beautifully crafted house and this one has a very nice, huge flat back yard and Mianus River Parkland behind. Nothing wrong with it that I can see that a stronger market won’t cure.

7 Comments

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7 responses to “A contract!

  1. Anonymous

    hey chris,

    gotta believe there are some local agencies that will soon be on the brink of collapsing. what’s your take on the staying power of both brokerages and brokers?

  2. Old Coot

    Cat Rock Road; a very cool name. Any explanation for it?

  3. CRB

    Cat Rock house has a weird master suite. Who needs a 15′x25′ closet 20′ down the hall from the bathroom and bedroom???

  4. pulled up in OG

    Not for the road in Cos Cob.

    Cat Rock is the huge outcrop on Riversville Road, on the right side after the entrance to Seton scout reservation. Not sure how much of it you can see nowadays, but it did look kinda like a cat.

    Leatherman territory.

    • christopherfountain

      I know the rock you’re talking about, Pulled up, but how did its name get transferred to a road so far east?

  5. SizeBuyer

    nice house, decent lot, tough road…

    not to make this blog personal…I was talking to my dad and he warned me to not get caught up in the price reduction nonsense. Meaning make sure you buy location first don’t jump on a house because it has been drastically reduced.

    And I will admit that sometimes I do let that get in the way of making good choice.

    • christopherfountain

      No question, Size, but there are some excellent land values and even some houses that are finally coming down to very good (or at least sane) price levels. If you find one of those, in a good location, then it makes sense to consider it. At the right price.
      As an example, and I use it only because I have lived there briefly and really like the neighborhood, Havemeyer Park is a teriffic spot for a modestly priced home. A $2.6 million home, marked down to “only” $2.1 (I’m tossing out a hypothetical here so if your house meets these crtieria, which I don’t believe it does, don’t get upset) is probably not a good buy because the location doesn’t justify that expense. Or, just to make my point, let’s say that a $4 million house marked down to $3 here would still be a bad buy.
      So the same location’s value can be good or bad, depending on price. Something cheek-by-jowl to the Thruway is never going to be a bargain, however.