Don’t do it!

I posted an article Saturday from the New York Times about bidding wars returning to the Manhattan market. One couple profiled there had several price opinions for $1.4 million but they heeded the advice of another broker and set it out on the market at $1.1. A bidding war broke out and they sold for $1.6. That’s an excellent result for them, of course, but some buyer obviously got caught up in the frenzy and over-paid. In this market, that’s nuts. Judging from recent resales of older bidding wars here in Greenwich, it seems that no one who won such a war back then is still a winner today. Here’s just such an example:

19 Indian Field

19 Indian Field Road

This bungalow on Indian Field Road, one of our busiest thoroughfares and close enough to Chicken Joe’s to be considered part of Cos Cob, was listed for $749,000 in 2005 and sold for $770,000 to a lucky buyer. Early this year he tried to undo his purchase by listing it back for sale at $799,000 but found no takers at that price. Friday it sold for $600,000 (assessment is $579,000). Out-of-town broker and buyer, by the way.

Lesson for today: if you find a bargain that you want, and others want it too, don’t go overboard.



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16 responses to “Don’t do it!

  1. Cos Cobber

    Indian Field Road is one of those streets that the greedy gerrymandering zip code definers placed wrongly in Greenwich. Indian Field Road, Sachem Road and the few others in this area are not Greenwich, they are Cos Cob.

    One day we will restore are rightful Cos Cob borders!

  2. Anonymous

    Sellers or buyers of $1MM dumps tend to be losers in “war” of life; clearly not much of a bid for their talent at their day job

  3. Gideon Fountain

    A lot of the bidding-war winners I’ve seen over the years have ended up staying in the house they “won” so in those cases, I’d say they were justified in over-paying because they recognized that, for them at least, this particular house was irreplaceable.

  4. Cos Cobber

    Glenville and Pemberwick have nice zip codes and it does nothing for them. Moving Indian Field road to 06807 will give it both character and honesty.

    Btw, Do you remember that local RE columinst who back in about 2004, 2005 or 2006 said Greenwich RE does nothing but go up…or at least, hold its value. Anyway, what was that guy’s name? It was a weekly column and it was kinda of fun. I’m not thinking of Bud Dealy either. Chris…something.

    • christopherfountain

      Oh that guy stopped dropping acid, moved from Cos Cob and is leading a reformed life somewhere else.

  5. Cos Cobber

    I didn’t realize at the time, but looking back that chap Chris X was a talented economic fiction writer.

  6. Stanwich

    Yeah, that guy lost his job at the paper and had to move to a house on Owl Terd’s Creek. Life can suck sometimes.

  7. Greenwich Gal

    Anon, I have said this before and I will say it again – Anyone who can afford to buy a house for a million is no “loser.” Whether it is for investment purposes, a home or whatever – you don’t know. Your arrogance is astounding.

    • christopherfountain

      You notice, GG, that “Anonymous” is anonymous? If he actually gave his name I’d post the tax card information on hs house, if he actually owns a house, and we could all have good laugh. Of course, then he’d have to stop posturing about “losers” and Gulfstreams and we’d miss his inanity.

  8. Cos Cobber

    My guess is that anonymous friend is a 16yr old at Eagle Hill school who is plotting to be a modern Goldfinger. There is no way a REAL centamillionnaire would spend this much time on our little blog community. There are few arbitrage opportunities here. The ROI from this blog is extremely limited (sorry CF), particularly if you have a G550 burning fuel on the tarmac.

  9. Vineyard Vines

    anon rents, you know, b/c that is what big time risk arbitrage guys do.

    he spends a lot of time posting on here, I wonder how he makes sure the earth gets equal parts light.

  10. Greenwich Gal

    Hilarious insight, Cos Cobber! I can see him now – on his laptop, under the covers with his little flashlight, giggling from the purported havoc he is causing!
    By the way, CF – don’t you have an idea who the posters are by their internet address? Or are we all truly anonymous?

    • christopherfountain

      GG, adding an email address is an option and most readers don’t provide it unless they want a response from me. The IP address doesn’t locate the exact address so knowing that someone comes from optimum’s server somewhere in Connecticut still leaves posters anonymous. Besides, I don’t care. I did track down that angry drunken builder making threats against me late last year from his daddy’s house in Palm Beach, but that was just for fun.