Prices and reality

There are three similar houses for sale in Greenwich, all on the same street (just to keep my cellphone and emailbox less crowded today I won’t identify the street – these could be anywhere in town). One started at $3.750 million last spring and despite being a nifty house with beautiful grounds, is still unsold today after dropping a full million. Another started at the same price ($3.750) last September and has dropped to $3.5 and also remains unsold. Earlier this week the third house joined them on the market, priced at $4 million. I understand that every home owner considers their house to be exceptional but trust me on this – the age, architecture and state of renovations all appear to be roughly the same, and all are of very high quality. I wonder, then, at the decision to price the third house where it is, given the failure of the first two to sell at lower prices. But, as always, we’ll see.

And I note that another price reduction has been recorded today, again at an address I won’t give because the builder owner screamed at one of my colleagues and threatened to take their business elsewhere (funny thing, it’s not a Raveis listing) when I suggested, a long time ago, that it would probably encounter difficulty selling at its asked-for price. It dropped 25% today, which is too little, too late, but perhaps that builder will call back my colleague and apologize. You think?

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2 responses to “Prices and reality

  1. anonymous

    If nothing else, grossly mispriced houses serve to provide early warning to prospective buyers that any negotiations will likely be similarly emotional and time-inefficient….gotta value opportunity costs on both sides of any sale process…esp when many sellers, few buyers and much listed and “shadow” inventory

    • christopherfountain

      Yeah, they’re off-putting, Anon, and I try to steer my clients away from them. Why waste our time?