This spec project on Riversville is reported as under contract today for around $4.75 million. A client of mine almost had it for a price that would make this one look like a gross overpayment, but regardless, this sale is not going to be good news for other spec builders. Six acres, 8,000 sq. ft. above ground, at least 3,000 more in the walk-out, finished (with fireplaces, theatre, nanny quarters, etc. basement), high quality construction and all in all, a very nice house. When a spec house on Beechcroft sold for $2 million less than another spec house across the street, the agent for the higher- priced house was furious at my suggestion that his listing had just taken a serious hit. Well, that higher-priced house isn’t quite so high now – it was reduced a week or so ago, and it remains unsold. And now comes this. Appraisers have to use actual sales when calculating the value of a specific property, and as sales like this join the data bank, they’ll crowd out all the hoped-for asking prices of similar houses available from other builders.
By the way, at this price, the builder will be lucky to pay off his $4 million mortgage and recoup a tiny fraction of the extra millions he put into the project. He’s got another house, also listed for sale, at 223 Stanwich Road and I wouldn’t be all that surprised if that, too, goes at a very low price. Which again, isn’t going to help prop up Greenwich house prices.