Real estate news (finally)

34 Boulder Brook

Nice house, great back yard, but it sold in 2007 for $1.750 million, which was rich, even then, and wasn’t going to get anything like that when it reappeared last year at $1.595. Assessment is $1.453, today’s price is $1.439,000. Worth looking at, if you like this neck of the woods.

Another approach to pricing may be to grossly over-price your property and let buyers think they’re getting a real bargain when they bid a fraction of its price. It worked up on Round Hill Road, where a $25 million ask was bought for something like $19 million, when $12 should have taken it.

58 Pond Place

This Cos Cob house is assessed at $560,000 but priced at $970,000, and it just sold for $855,000. Someone is convinced he got a real bargain, and good for him!

14 Augustus

Similarly, this home at 14 Augustus (I have no idea where that is) is assessed at $1.7 million, was priced at $3.850, and sold for $2.450.

So perhaps you should modify my long-standing advice and not price your house for what it’s actually worth: double that figure, then slash it in half and stand back while buyers collide on your stoop, waving fistfuls of dollars.

UPDATE: Oops! Of course I know Augustus Lane – I just didn’t recognize the picture. A very nice house on the approach to but not in, Belle Haven. $2.450 was a price that would have sold it long ago, but I’m glad for the owners’ sake they got it. Notwithstanding my somewhat tongue in cheek advice here, usually a horrendous over pricing results in a house selling for less that it’s worth, simply because it sits on the market so long that it looks distressed.

14 Comments

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14 responses to “Real estate news (finally)

  1. gideon fountain

    Good lord, man, don’t encourage sellers to ask ridiculous prices so they can then appear to take a “huge” amount off and fool all the bargain-hunters. The fact is, ridiculous prices get no bids. No exceptions, end of story.

  2. gideon fountain

    Not mentioning names, of course, but that Realtor’s “system” benefits no one except [that Realtor].

  3. It’s not that stupid prices get bids – I agree with you – but people love to see huge price cuts, so when the price drops in half, they perceive a bargain, real or not.
    Only works if you want to live in your house for a couple of years while keeping it show-room ready for strangers, 24 hours a day but again, we both know a realtor who manages to con his customers into doing exactly that.

  4. Tried and failed

    I see a huge price cut and I see a giant red flag, not a bargain. What do I not know about this house? What am I missing ? What’s the real story? Does my Realtor have a criminal record?

  5. hemp22

    Augustus Lane is on the Belle Haven Peninsula, across from the Homestead Inn.

  6. G'wich Transplant

    Nice street, but house has an odd layout. 2.45M, though, is still a good price for the buyer as the house is within walking distance to town on almost an acre with a pool.

    Can’t believe Pond Place sold for what it sold for.

    Is Boulder Brook really a land deal?

    • Boulder Brook a land deal? Not at that price – we have 9 Boulder selling at a loss, one spec house in foreclosure, another spec unsold and at least one more existing house (I don’t think it’s this one, but I don’t recall) in foreclosure. Plus the poor lady struck dead by a tree limb during the storm. The street is not doing well.

  7. anon

    Augustus was asking 2.4. Contract reported today.Price is much lower.

  8. Accolay

    That realtor wouldn’t be David Ogilvy, Chris, would it?

  9. Helsa Poppin

    In defense of Pond Place, it’s a nice peaceful corner of Cos Cob, with wide, walkable streets (the Pinetum is a hop skip and jump away) but very close to everything. Also I believe (but may be wrong) that some of the houses on this street are zoned for North Street School.

  10. Real estate is worth what someone is willing to pay for it.

    Every day people try to convince me that a building they are buying out of a foreclosure proceeding is worth twice what the bank is selling it to them for. They get mad at me when I will only lend to them based on the price not their idea of value.

    The price is the value.