One sale, one big contract

71 Richmond Hill Rd

71 Richmond Hill Rd

This house on Richmond Hill was originally listed for $4.050 million in 2003. It disappeared after a year and came back on in 2008 asking $3.975. It sold yesterday for $2.5 million. Assessment was $2.898.

On a brighter note for home sellers and as noted yesterday, 67 Harbor drive in Belle Haven, listed for $11.9 million has gone to contract at a price, I am told, in excess of $10 million. When I wrote in praise of this house a few months ago I said that one broker had wanted to list it at $19 million. Congratulations to the owners for not being snowed by a ridiculous price opinion and instead, pricing it right and selling it. That is the objective of listing your house, right?

5 Comments

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5 responses to “One sale, one big contract

  1. Anonymous

    Belle Haven sale is ~$5.5MM/ac; not bad for a small lot; makes that proposed $20MM ask even more ridiculous vs eventual clearing price

    Credit/blame always lies with owners, not advisors; up to owners to choose competent advisor and decide whether to follow advice

  2. Andrew

    Sales like 71 Richmond, 88 and 99 Richmond (all sold this month for relatively low prices) give the current fair value for land of 4+ acres off Riversville north of the Merrit. All imply land value of about $250K per acre.

    Yet you see properties like 11 Hycliff, 42 Richmond, 614 Riversville (and others in that area) still asking too much.

  3. Real Estate Expert

    Anonymous, you are underestimating the persuasive skills of a typical “super-broker”. The super-broker is in the business to promote his/her business first. Selling your house is a distant second. Over-pricing is part of super-brokers’ strategy because it achieves the following:
    1. They win the competition to get the listing.
    2. The high price gives them PLENTY of time to advertise it for maximum publicity for themselves.
    3. They have plenty of time to work on the seller to g-r-a-d-u-a-l-y reduce the price, and finally…
    4. They can sell it to their own client for far less than that original crazy asking price.

    That’s the business model and it works very well for the broker, not so well for the seller.

  4. Anonymous

    $25o an acreK? I don’t think so!!

  5. Andrew

    Anonymous: you do the math:

    88 Richmond probably sold at 5. So 10,000 square feet at 400 per square foot gives you 4 million for the house that comes with 4.4 acres backing into 5 acres of conservation land.

    99 Richmond: sold for 5.9. 13,000 square feet at 360 per square foot (4 years old house) gives you 4.7 million for the house that comes with 4.12 acres backing into many acres of conservation land.

    71 Richmond: sold for 2.5. 7500 square feet at 250 per square foot (14 year old house) gives you 1.9 million for the house that comes with 4 acres (interior lot, wooded).

    Now you look at 42 Richmond that is asking 2.5 million for teardown 1300 square feet house with more than 2 acres in the back that is a combination of wooded/wetland. And has the house next to it right on the border!! You buy 4+ acres to have some privacy and space.