The Big House

808 North Street

808 North Street

No, not where Bernie Madoff’s headed, this is a 15,000 sf  biggie built in 1997  on 4.5 acres way up North Street. It sold in 2000 for $11.3 million, just 43 days after being listed for $11.970. The buyers tried unloading it for $13.9 million in May ’04 and when that didn’t work “renovated” it and put it back on the market last May for $12.490. It has a new broker and a new price today: $11.750. Adjusted for the inflation that’s taken place in the past nine years (that purchase price would be about $14,000,000 today, according to this inflation calculator), and adding in the cost of those renovations plus taxes and commissions when this does sell, I wouldn’t call this a home run on the investment front, but then, how’s your stock portfolio doing? Pretty spectacular house, judging from the pictures.

4 Comments

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4 responses to “The Big House

  1. anonymous

    Housing usually does OK over 10+ yr holding periods…and it is a useful inflation hedge if we face the wrath of severe inflation in coming yrs, after the current deflation threat subsides

    Am impressed that houses don’t depreciate over time down to land value….buy vs build cost comparisons are arguably a more fundamental way to value houses

    The market phenomenon of buyers willing to pay so much for used houses (vs equivalent new houses) has always struck me as an amusing, long-running Ponzi scheme of some sort…but Bernie lasted many decades, right?

  2. anonymous

    Having never been in a house that size (Newport mansion tours excluded) what is all that space used for? Are there like 15 bedrooms? If so, who sleeps in them?

    Let’s say a buyer and their two kids move in. Do they each get wing? Are there intercoms to communicate?

    I am not trying to be funny, just can’t imagine what the dynamics of occupancy are at these places.

  3. Anonymous

    Chris, this is a very old listing (over 1 year). Use to be with another broker and now with Ogilvy. I’m sure you knew this. What gives?

  4. Anonymous

    Oppsss. Perhaps I should read the posting first! Sorry! 🙂