Bank Owned bargain?

No pictures posted yet but Niagara Bank has put 17 Sherwood Avenue (just off Riversville Road) back on the market at $1.899 million, a tad less than the $1,999,999 mortgage it foreclosed on. I loved this house when I last saw it. It was built in 1787, updated but not ruined, in my opinion, over the years, and still retains 2+ acres of great yard and, if I remember right, a separate barn with, maybe, an apartment above? Don’t hold me to that last part.

The previous owner paid $3.150 million for this at the height of the market in 2007. That proved to be unwise but, depending on whether Niagara Bank is willing to take a hit, there could be a very good buy here. One way to find out, of course: make an offer – can’t hurt a bank’s feelings.

16 Comments

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16 responses to “Bank Owned bargain?

  1. It had a gorgeous kitchen and a beautiful swimming pool. Lovely grounds too. The upstairs was a tad choppy and the front room, in the oldest part of the house, was basically unused. No one comes in the front door, the way the house is situated, and is now configured to enter to the kitchen. There were TWO separate and unconnected spaces – unconnected to each other and unconnected to the main house. A whole lovely and open apartment, with a kitchen and a bath in the first building, then over the garage, a smaller apartment, but it was full of boxes when I saw it so I don’t remember what it had, amenities wise. I am sad this house is being foreclosed. The owners sure put alot of love and time into making this place very pretty.

    I have this vague recollection of something big being built on the other side of Riversville, something unfortunate, that might have made this sale more complicated.

  2. Balzac

    Greenwich Time reported recently two suspicious fires at the same construction site on Winthrop Drive:

    http://www.greenwichtime.com/policereports/article/Police-Two-fires-at-same-residence-suspicious-3810986.php

    Seems fishy indeed.

    • Angry subcontractor or quite possible, bored kids. Here on William Street we had the first crime since Rena Rieser’s jeep was stolen in 1984: two cars left unlocked (as they usually are) and change stolen. Moronic behavior, but whether that’s escalated to arson, who knows?

  3. AAnon

    Amazing how far house values have fallen, don’t know how people can recover from such a financial disaster.

  4. anonymous

    I tripped across an online news article about a broker I know in greenwich who put own house on the market for $3.8 in 2010; home is now $2.7. Paid $2.5 for it in 2004. If this broker can’t even market own home, what hope do the rest of us have for brokers marketing things properly?? Is it recommended in your industry to not sell your own home, for fear of not seeing the forest through the trees, as in this case?

    • Agents are notorious for overpricing their own homes, which is a mystery beyond my understanding. I’d ask them what they were thinking but it seems so rude to do so. Still, WTF?

  5. D

    Listing agent better update the listing – certainly not a central middle school location…

  6. Real Torme

    Brokers advise others to have someone else (i.e. a broker, and preferably the one giving this advice) price their house so it doesn’t become wildly overpriced or underpriced. Brokers then go out and price their own properties without any consultation at all. Guess what? Homeowners overprice their own properties whether they are in the business or not. It is impossible to be objective if you are the homeowner.

    The idiots who wrote “Freakonomics” spent a whole chapter on this – their point being that brokers intentionally underprice houses for “quick sales” but price their own at “market value,” without citing that these “market price” houses sit and sit and sit just like any overpriced product. Yeesh.

  7. Anonymous

    Pics are up now. How funny to see EOS’s (hey stranger!) comment as the first posted as I kept thinking as I looked through the pics “EOS would love this, it’s too bad she’s no longer interesting in moving across the border”.

    BTW, Zillow notes the 2007 sale but also a previous sale in 2004 for $4.9M. Wrong?

  8. And ‘hey stranger’ back to You!

    Thanks for the heads-up about the photos, although I’m sad to see the house is vacant. When I walked through it, it was happy, beautifully decorated, kids boots and jackets in the mudroom – life was good. Sigh.

  9. froggie

    no merritt noise here?

  10. froggie

    Chris what do you reckon something like this would rent for? Even at these prices does this make sense solely as investment property?

    • $9,000? To be conservative, because I haven’t seen it since the foreclosure and don’t know what shape it’s in, say $7,500. Whether that makes economic sense I leave to the readers because I’m a mathematical illiterate and you guys aren’t.
      UPDATE: You can use the rent vs. buy calculator link I have over on the right and play with numbers. According to that, a rent of $7,5000 makes this a better deal (for the tenant) than the owner for 16 years. At $9,000 per month, the line drops down to 6 years. How that applies to evaluating this as an investment decision, I leave to you.