Sale and an eve-of-foreclosure price cut

Two bits of real estate news.

Boyd Lane10 Boyd Lane, that cul du sac off of Riverside Lane north of the Post Road, sold for $2.178. New construction was selling here in NoPo for around $1.8 at the height of the market in 2007 – we’ve exceeded that now. Not my cup of tea, but apparently Cos Cob School is a real draw for some people.

47 N. Stanwich

47 N. Stanwich

The owners of 47. N. Stanwich Road has been fighting off the foreclosure of at least one, possibly two Washington Mutual mortgages ($1.6, 2004, and an earlier one from 2003 for $921,000, unless it was rolled into the 2004 mortgage – in those days of easy money, probably not), since the beginning of 2012, but a motion for summary judgment hit the docket last week and there seems to be a new seriousness of purpose: it came back on the market in May after expiring unsold in December 2012 and just dropped its price today to $2.399.

That’s still too high, in my opinion, for a so-so 1979 builder’s special in the hinterlands (although it does have Parkway and Central as its school district), but it’s a far sight better than its laughable price of $3.925 million back in 2005, or even the $3.450 the owners were seeking in 2010.

Too bad it took the pending loss of everything to bring reason to this situation, but as Dr. Johnson observed almost 250 years ago, “Depend upon it sir, when a man knows he is to be hanged in a fortnight, it concentrates his mind wonderfully.” And so it goes.

17 Comments

Filed under Back Country, Buying/Selling Greenwich Real Estate, Neighborhoods, pricing

17 responses to “Sale and an eve-of-foreclosure price cut

  1. Cos Cobber

    CF, there is no new inventory in the market – i looked over the MLS over the weekend, we have cleared all the old spec and there is very little new spec under 2.5MM.

    • Indeed, the days of bargain specs are, at least temporarily, over. There were some real bargains out there on houses that were either already in the clutches of the lenders or about to be, but those are gone, and the curtailing of bank funding for new projects from 2009-2011 stopped the pipeline from refilling. But take heart, even as we speak there are builders busy planning, even building new homes in marginal neighborhoods and/or committing to building costs that depend on what will prove to be unattainable selling prices, so look for a fresh crop in, say, late 2014 and continuing through 2015.

      • Will they continue to build hugely expensive houses on terrible lots?

        • Of course! Drive our fringe areas and you can trace the waves of expansion and contraction of decades of bad judgment by our builder class. The come during the good times, fail during the bad and either they bounce back later like a Joe Palooka punching dummy or other dummies take their place.

        • cos cobber

          No – they won’t – because cheap doesn’t really sell and the marginal cost to ‘do it right the first time’ isn’t the deal breaker for now. If anything we have seen land prices take the hit before build quality is reduced.

        • Richard asked whether “hugely expensive houses” will continue to be built on marginal land: I assured him they would and really, you do too, albeit by ruling out cheaply built construction. If a builder’s going to go bust, why not do it in a flamboyantly excessive burst of folly?
          Bless their hearts.

  2. CEA

    $1.6 + $0.921 = $2.521. On a listing of $2.399. IF that is the case, doesn’t this have to be listed as a short sale? If it’s not, then the first mortgage was rolled into the second.

  3. Anonymous

    Cannot tell from the tax card. Sometimes one mortgage is paid off and not filed with the town. Need to look at the listing information to find out the mortgage amount. Assuming it was a failure to record the release of mortgage, the seller’s attorney will take care of that at the closing.

    For those of you who do not typically go to this area, it really is a straight run up Taconic from North Street. Maybe 5 minutes more than the middle of mid country if that, and no hills, turns or anything like that. Furthermore, the area is very beautiful. In short, this looks like a good buy.

    • It’s not a good buy at $16 million (let alone $45 million, where it started), and you certainly won’t be getting it for a million. My guess is they’ll get a bid around $9 million, and that won’t meet the reserve, so you’ll have another chance at this next year.

  4. BigMike

    The house on Boyd is a Pre fab.
    It explains that hideous roofline over the garage

    Lets do some math:
    Land was bought for 562k
    A 4000sq.ft prefab with foundation poured and delivery runs $150/sq.ft
    …that’s 600k

    Upgrade kitchen and baths and finish basement 200k max

    So, into it for 1.4
    Sell for 2.178

    Clear 778k

    Not bad

    • BigMike

      And the description reads
      “On end of quiet cul de sac in the heart of riverside”

      ….in the heart huh?? And off to CC school and CMS they go

      Woops!

      • If the house is in “Riverside”, however nebulous that claim is for this portion of the district, and if the heart is where the home is, then surely it can be said that this house is located “in the heart of Riverside”.
        I’m a little surprised that you can’t speak Realtorese by now.

        • BigMike

          CF,
          I understood it.
          Just pointing out the shady practice of deception in those parts
          We know a few families that bought on riverside lane but didn’t do their due diligence on the school district designation of that area.

          We stayed far away from that area

          Buyer’s should Beware.

          And I should get in the biz of flipping with Pre fabs

      • Cos Cobber

        Yes, but its also difficult to find a new house anywhere in town for 2.2 and under regardless of district. And Cos Cob schools are fine – we just have apartments…. It will be interesting to see if the scores improve in the coming years as there are a lot more young professional parks in the Cos Cob district than years ago. Althought, some do opt for Dundee or Stanwich.

      • AJ

        How’s this for a description for a cottage for sale in upstate New York ? Here’s the ad: “SALLY IN THE OCEAN, SALLY IN THE SEA, Sally bought this cottage, one, two, three. And why wouldn’t she purchase this 2 bedroom cottage. Its interior is tongue and groove pine walls & ceilings. Full kitchen with…” I’m confused: this place is about thirty miles west and ten miles south of the Thousand Islands, and nowhere near the sea.

    • Cos Cobber

      based on my experience in the market, your numbers are correct.