I’m off to see, among other houses, 173 Stanwich Road as a potential rental for a client. I liked this contemporary back in 2003 when it sold for $1.980 million but its fate after that illustrates what happens when good houses get bad prices.
The 2003 buyer made some extensive renovations to this property but he seems to have been a big fan of electronics and spent hundreds of thousands (my guess) wiring for and installing lots of gee-whiz gadgetry – TVs in every room, surround sound, who the F knows what else. He then priced it at $3.925 million in 2005 and must have been disappointed when he discovered that buyers didn’t care about his toys. It didn’t sell until 2007 and even then only fetched $1.7 million, and that was when the market was still strong. Ouch.
The new owners have been wiser, and their rental price of $12,000 is probably reasonable – I’m about to find out.
Moral: don’t over price your house in any market, weak or strong because the longer it sits the more buyers will assume there’s something wrong with it and will be pay less and less, if anything at all, as the months and years tick by. This especially applies to sellers who think that, if they just wait long enough, someone will show up who is willing to pay a premium above market price because he likes the house so much. That buyer, if he ever existed, hasn’t been seen around here in years.