He’d better hope so

36 Dawn Harbor came on the market today at $7.350 million. That’s a lot. Only two non-waterfront houses in Riverside have sold for more than $7 million, and one, 89 Indian Head Road, was in 2001, when the first stirrings of insanity were first being felt and other, at 35 Club Road, sold direct to a person with more money than brains who really, really wanted to live on Club Road and paid a “make me move” price to the owner who’d just built it. I don’t think Dawn Harbor ignites the same passion, although it is a very nice street.

The carrying costs of this puppy must be $350,000 per year, or thereabouts. Here’s to a quick sale.

16 Comments

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16 responses to “He’d better hope so

  1. AJ

    Are used houses like used cars? Is my $5 million discount already factored in, and I would have had to pay $12.35 if the place was brand new?

  2. Inagua

    Looks like this guy bought the dirt for $2.6 million and then built the house for about $2.4 million. So he’s in at about $5 million ($6 million max if he got fleeced by the builder) and now that the market is down by maybe a third he wants a big profit. This is delusional greed on a scale that suggests a total disconnect from reality. How can a broker in good conscience let a guy price a house so far off the market? Did any brokers bother to go to the open house, if any? The house is worth maybe $4.5 million on a very good day.

    • Nah, Inagua, it was the builder who bought the land ($2.6, actually, in a bidding war!), spent that $2.4 million you mention but then sold the package to the current owner for at least $7 million. So yeah, someone got rich on the deal, but not this guy (and by the time he pays off the huge mortgage so improvidently extended by a lender, he’ll be lucky to walk away with only a modest loss – say, just under a million?

  3. Inagua

    Chris, thanks for the correction. I am sorry for the guy who bought this at the top, but I am glad for his sake that you seem to think he can get $6 million. I think it is worth considerably less. Please keep us up.

  4. Riversider

    Chris, how do you know he has a huge mortgage? Is that public knowledge?

  5. AJ

    CF isn’t that Connecticut Business Journal newspaper still around? I seem to recall they came out every week with closing prices and the amount of mortgage taken on all real estate sales of the week with back issues available at the library on microfiche.

  6. Real Estate Junkie

    So, how big is the mortgage on this place? Now you have me curious, and I’m too lazy to go to Town Hall.

  7. Looking in Riverside

    This house looks incredible. It is expensive but it is almost an acre in Riverside and very close to the water. That is valuable. This builder does high end work which is apparent in the photos. I only wish I could afford this beauty.

  8. jeremy jones

    Inagua-
    Your math seems a bit optimistic.
    Land = $2.6mm (what’s fair value now? $2mm?)
    Build Cost (8800ft * $300-400/ft.) = $2.7-3.5mm
    Architect/Landscape/Site Engineer/Permits/etc.(15% of build) = $300-450k
    Pool = $100-150k
    Hardscaping / Landscaping = $150-200k (this is probably quite low)
    Total Cost = $6mm (abs. min) – $7mm (more likely) – $7.5mm (prob. max)
    This excludes financing costs (money is cheap, but it still isn’t free) and any overages, unknowns, etc. No way this cost less (even for a builder) than $300 a foot . . . It’s not all basement. More likely towards $400+.

    $7.35mm is probably pretty close to a fair replacement value for the house assuming land value hasn’t decreased. I”m not saying this is what I’d rebuild there, but for saving 2+ years of headache in building, the price doesn’t seem crazy to me. If land value is now $2mm, then probably worth high $6s. Again, $7.35mm ask doesn’t seem crazy. If no one wants what is built, then that’s a different question. Clearly people are still building in the neighborhood.

  9. AJ

    It’s a nice looking house, but it’s still easily spottable as a reproduction, and not the real thing. For $7.35 million you think you’d get real stonework and not veneer on the exterior of the house. I like the butler’s pantry: I’ve never known anyone in Riverside or OG to have a butler, and I knew some of the people who lived in some of the best properties in town. What’s with the library? No books. Not much of a reader I guess. A lot of people do fall for the reproductions though. We have a 1600s Québec style reproduction that Tim horton’s built as a doughnut place in town in order to fit in. Someone wrote in to the local newspaper to complain that how dare they take a heritage building and turn it into a doughnut shop? I had to laugh because the dormers looked like they were made of cardboard from a least a mile away. And the veneer stonework didn’t even come close to resembling period masonary. We do have people here who not only can do period stonework but also mix up period mortar. I guess you can fool some of the people some of the time.

  10. Real Estate Junkie

    That’s the MORTGAGE?!? Holy sh*t. I mean, I know that’s not uncommon for Greenwich, but who in their right mind would want that kind of debt? Even if you could afford the payments? For a freaking HOUSE? What did they put down – 2 dollars? And, let me guess, Patriot National Bank gave them the cash? Ow is right.

    I’m feeling much more responsible and grown-up all of a sudden. Yeah for me!

  11. Inagua

    Jeremy – You must be right because Chris is almost up there with you, while I am considerably below both of you. Perhaps I was over-influenced by the fact that the entire place reeks of pretentious bad taste done on the cheap.

  12. Cos Cobber

    REJ, you have no idea if they are sitting on 100k or 100MM in cash….If you have 100MM in cash, then lever up on the house if you wish….and if you have better ROI opportunities elsewhere.

  13. Real Estate Junkie

    I know, Cos Cobber. But still. Its more fun to think he doesn’t have $100MM in cash and has a gigantic mortgage.