Lake Avenue spec house cuts price $945,000

A good start, I suppose. 542 Lake Avenue, the old Grannick property, has cut its price from $6.595 million to $5.650. Judging from the listing pictures it looks pretty nice, if a bit standard for these homes (I wonder:  if a tipsy Wall Street warrior came home to the wrong house and wrong family one night, would anyone notice?) but I confess I haven’t visited. This came on last April and I can’t see the point of wasting time and gas to see something that, as in this case, will still be around a year later and at a lower price.

I sometimes ponder why all spec builders insist on originally listing their projects at unattainable prices but I suppose that if they weren’t dreamers, they wouldn’t be building houses on spec.


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7 responses to “Lake Avenue spec house cuts price $945,000

  1. Anonymous

    Someone will end up buying this one from a bank @ 1/2 this price. Builders that got to the party too late all are going to get their faces ripped off!

  2. Inagua

    Face ripped off? It looks like the builder paid $1.5 million for the dirt (from Zillow) and at most $2.5 million on the house (my estimate.) If these numbers are close the builder could make a modest profit. What do you predict for a selling price?

    • I was thinking the same thing, Inagua – $1.5 for the dirt and I agree with your estimate of $2.5 in building costs. So if he sells it at $5 million – a not unreasonable guess -he’ll walk away with plenty of change on his pocket. Not as much as he’d hoped, certainly, but the days of Mark Mariani selling houses at a profit rate that allowed him to buy a Gulfstream are, temporarily at least, gone.

  3. Anonymous

    It may sell for 5 million, then again it may not. If the market drops another 20% from there then the builder will be flat and will not make a dime. It is going to be tough finding buyers in this price range this year.

  4. So Greenwich

    It looks sterile. CF – I like your comment, would anyone notice if a Wall Streeter was dropped off at the wrong house by the driver? Hmm . . . . I am thinking of Talking Heads “this is not my wife, this is not my life . . . .” — wonder if a Lake Avenue dweller was dropped off at the Round Hill equivalent – could be a bad result.

  5. Anonymous

    Grannick prop was prime dirt
    1500000 was a steal, even in 2010
    God would have smiled on the builder if he was more generous with the seller.
    The premium sales price is supposedly based on ‘location, location, location and park like level land and scenic view.