Tag Archives: Sale prices falling

Put this in your comparable pipe and smoke it

477 Riversville Road

477 Riversville Road

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.

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2009 sales

Barring any last minute reports, today’s a dull day for real estate transactions, so I thought I’d look up what happened with the eight sales we’ve seen so far this year.

48 Parsonage Rd, new construction, sold for $6 million. (They asked almost $8) . Because it’s new there are no useful data on it so we’ll skip it.

4 Waterfall Lane sold for $900,000. It sold for $879,000 in 2004 which, adjusted per the CPI Index, was the equivalent of $982,00 today. And it’s 2002 sale price, pre-renovations, was $730,000, an inflation-adjusted $856,778 today.

14 River Lane also sold for $900,000. It last sold for $1.570 million in 2005.

14 Overlook sold for $1.550 million. Its $1.625 sales price, adjusted for inflation, would be $1.816. And its 2007 sales price of $1.896 needs no adjustment at all to detect a loss.

10 Shelter Drive sold for $1.762 million. There is no past sales history but it did ask for $2,993,000 back in 2006 and stayed unsold through many price cuts.

7 Gisborne Place sold for $2.2 Million. It sold for $2.860 in Jan. ’07 and $1.810 in 1999 ($2,300,000 in ’09 dollars).

2 Jofran sold for $2.850. Again there is no sales history but the selling firm reported a phonied-up “asking price” of $3.2. The house was never listed on the MLS and therefore never really exposed to the market so its selling price could be on the money or way off base one way or the other.

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