Tag Archives: Price cuts

Price cuts

I won’t vouch for these new prices but at least the owners are getting serious. 142 Cat Rock, a really nice house, in my opinion, was purchased for $4,050,000 in 2005 and is marked down today to $2.995 million. There has to be some value there, don’t you think?

8 Sherwood Lane is not particularly appealing to my taste, but it has dropped from $5.8 million in 2007 to $3.8 today.

And then, just to prove that we still have stubborn sellers among us, 4 Old Camp Lane makes its return today, at $1.975 muillion. Each year, beginning in 2006, this house has appeared on the market. It asked $2.345 back then and, at least to my mind, its new price is not significantly different.

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So what didn’t the broker understand?

25 Dairy Road

25 Dairy Road

This house on Dairy Road, right across the street from the site of the Andy Kissel Massacree, was built in 2003, sold for $7.3 million in 2006 and put back on the market in April 2008, unchanged, for $10.5 million. Some of us – not just me, but several agents who saw it – weren’t taken by that price, as recounted here, when New York Times reporter Peter Applebome was invited in to take the broker open house tour.

The Greenwich market probably peaked in the fourth quarter of 2005 and has been slowing since, but this is the first time there’s a whiff of panic in the air.

After sampling the quiche and crudités at the lunch buffet in the empty kitchen of one of the new houses in the Golden Triangle area of Greenwich’s mid-country, the brokers wandered around with the air of picky estate appraisers.

Yes, it had the basics: 6 bedrooms, 7 ½ baths (it is practically illegal in Greenwich to build houses in which the future investment bankers of America don’t have their own bathrooms), master suite in the master wing, pool, spa. But at north of $10 million, in this market, well, maybe the closets were a tad small, the fixtures kind of ordinary, the mix-and-match exterior of stone and clapboard generic enough to be best described as neo-neo.

Mr. Fountain figured it would eventually sell for $7 million. Someone else said $7.5. The high estimate was $8, but she was talked down to $7.5 as well.

“It’s going to be an interesting market,” said one.

“It is an interesting market,” said a second.

“It’s going to be a challenging market,” said a third, and the escalation stopped there.

That was then – it took until today, but its price has finally been dropped to $7.750. Catch a falling knife, eh?

Similarly, another listing, this one at 591 Round Hill Road, was purchased for $4.584 million in 1998, placed back up for sale in 2007 for $9.5 million and reduced today (same broker – a busy weekend of client meetings?) to $7.150, a little below its assessed value of $7.277. My point, if I have a point, is that you can list your house at the highest price any agent promises you but in the end, you have to concede to the market. And the market isn’t rewarding silly prices right now. That was then, this is now.

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Sellers cutting prices – who’d a thunk?

Price cuts by sellers nation wide, according to Trulia.

The combined value of reductions was $27.1 billion in the year through July 1, Trulia said in its previous monthly report.

Sellers of higher-priced properties in states that haven’t been hard-hit during the housing recession may be “catching up with the rest of the country,” Flint said.

Discount Centers

Connecticut, Massachusetts, Rhode Island and Illinois had the highest share of homes with price reductions at 33 percent, followed by six states at 29 percent: Oregon, Washington, New Jersey, Minnesota, New Hampshire and Maryland.

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No contracts today but 19 insignificant price cuts and some retreads

There are a number of tiny price cuts today which will accomplish nothing but it’s interesting to see the cumulative effect of some of them. 17 Hendrie in Old Greenwich started at $7.750 back in April ’08 an dis down to $4.995 as of today. 361 N. Maple, an 1865 house not dissimilar to 357 Stanwich discussed earlier, also started in the $2.6 range and  is down to $2.0 million now. 6 Chieftans has never sold, I believe, but tried for $6.196 in 2007 and is back on today at $5.475. Assessed value is $3.4 – just saying …

212 Shore Road, that scrap of land overlooking Lucas Point Beach and Long Island Sound sold for $3.535 in 2005, sold again a year later for $4.975 and those buyers tried to keep that math going by listing it for $5.695 in 2007. Oops – the music had stopped by then. Today they’ll take what they paid for it: $4.975, but the funny thing about deals like this is that sometimes the record stops spinning clockwise and, after pausing, resumes in a counter-clockwise direction. Assessed value is $2.232. Again, I’m just saying.

There’s more, but nothing particularly noteworthy.

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A sale and a price cut

27 Ford Lane

27 Ford Lane

27 Ford Lane, new construction in Old Greenwich, asked $4.550 million, just sold for $3.576. The builder paid $2.085 for the land in ’07, so I wouldn’t call this a home run, but it’s a nice house and I think the buyer got a fair value. ML# 72676

3 Roger Rd (Lane? Off of Baldwin Farms) was renovated and sold for $4.595 million in 2002 and sold again for $5 million in August, 2005. That buyer has now dropped it to $4.195. ML # 73134

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Price reduction

502 Cognewaugh (ML # 72847) reduced to $5.495 million. Original price in 2007 was $6.995. Highest price ever paid on Cognewaugh was $5.250 in March, 2007, at the height of the market. This is a great house and should have sold by now but this is not the market to try to set a price record on a street (I’d mention a certain spec house in Riverside as an example but I think I’ll give that one a rest).

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Price cuts

15 Quail Road, listed at $6.250 in April ’06 has yet to sell and today took its fifth price cut, to $3.9 million. Not for nothing, but 70% assessed value is $3.502, so perhaps we’re getting somewhere here.

2 Le Jeune Court shows  the regrettable fortunes these days of previous winners of bidding wars. The place was listed for $1.1 million back in ’05, the present owner “won” with a bid of $1.2 and has now dropped his price to $998. Assessed value, $638,000.

44 Riverside Avenue, a nice house that, were you so foolish, you could open a window and pat the roof of trucks whizzing past on I – 95, sold for $890,000 in 2005. The new owner tried to get $1.075 million for it last year, perhaps hoping that the highway had shifted north and away from his house during his ownership, and today dropped it to $950. Assessed value is $840, which seems optimistic, to me.

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