I’m heading off soon on the Thursday open house circuit (and you thought this job was all about glamorous women and exotic locales) and one house I’d like to revisit is this one on Perkins Road. It seems to provide a good indicator of what’s happening in the market.
This was a tired old house in 2005 when it was put up for sale at $2.995 million, proving that, even at the height of the market, people could still manage to overreach, but it did eventually sell for $2.2 million 14 months later. That sale probably marked the high water level for Greenwich real estate in this cycle, at least. The new owners renovated it and put it back on the market in November 2007 for $3.6 million. A year and some months later, they have reduced its price to $2.75 million. It still hasn’t sold but I’m sure it will eventually. My question is, how much will all the renovation prove to be worth? I figure the sellers will need at least $2.350 million to break even on just the land purchase, leaving $400,000 to recoup the expenses of remodeling. That’s probably enough, but if the price drops much further before this place sells, someone will be left sucking wind.