Here’s an eye-opening price drop

317 Stanwich Road sold in 1995 for $1.8 million. The new owners did extensive renovations over the years and put it up for sale in January 2008 for $3.850 million. I thought at the time that they might have trouble getting their price because, although I liked the house, it has a quirky layout and there are two unbuilt-on lots next to it that, one day, will cause some construction havoc. Not fatal, but enough to affect its price. The market agreed with my assessment and the house didn’t sell despite a number of price reductions. But today it was marked down to just $2.250 million. Even ignoring the inflation of the past 14 years, that’s a remarkable price, in my opinion. Shape of things to come?

UPDATE: A reader asked about the owners applying for a sub-division of this land and wondered whether that accounted for the price drop. In fact (I just checked, I didn’t notice this before) the land has always been listed as:

“2.9 ACRES IN 2 ACRE ZONE SURROUNDED BY LAND TRUST. TAXES ARE AN ESTIMATE BASED ON DONATION OF 1 ACRE OF ORIGINAL 3.9 ACRES TO GREENWICH LAND TRUST.”

Assuming that the donation has not yet been made, I interpret that to mean that you can keep all 4 acres and pay higher taxes or go with the plan and sit on 2.9. Either way, that donation has not played a part in the reduction in asking price.

6 Comments

Filed under Uncategorized

6 responses to “Here’s an eye-opening price drop

  1. InfoDiva

    Now this one is interesting. The tax man assessed it at $2.6 million. And that was supposed to be 70% of market value.

    This is going to be quite a bumpy ride.

  2. InfoDiva

    Just did a little more research and learned that the owners of 317 Stanwich applied for permission to subdivide the original 3.9 acre property. Perhaps the price reflects that fact?

    • christopherfountain

      I’ll check – I thought it was 2.9 acres. Perhaps they’ve spun off an acre. More soon.

  3. Anonymous

    I honestly believe that the market has an almost 50 per cent price reduction to endure. That doesn’t make me happy. I want a home and I don’t wish to be ‘terrified’ wondering how low prices will go. No one can bank on staying in any house for 5 years so that argument is irrelevant.

    The condo I live in is for sale for $1.4 million. There is no way it’s worth more than $800,000 and that’s coming from someone who loves it. It has no intrinsic value. Not waterfront!
    The market just talked itself up to levels which were always going to be unsustainable. Homeowners do not have the equity they thought they had in their properties.
    I read somewhere on your site or one of its links that the true price level may lie at 1999 levels. I believe that’s probably correct.

  4. Stanwich

    Although this is in my backyard, I don’t know which one 317 is. There are a few homes back there with a huge moon scape of a building lot as well. I remember you had written a post about a house with a funky layout a in that general area but alas, since you moved from the other blog site, I am too lazy to go review the post. Perhaps a link to the listing would sort things out….pretty please!?