Imagine, for a moment, that a cruel twist of fate has caused you to spend your days on this earth pondering the question of what properties are worth in Greenwich, Connecticut. And that, after quite a bit of this, you have things pretty well figured out. Then a sale occurs which throws off your calculations. The price is 10-20% higher than it “should” be. You, and the other thinking brokers (oxymoron?) scramble to explain it, rationalize, justify, or repudiate.
When the first such sale occurs, it will be said that “The buyer was crazy!” or “Well sure, but it was one of those amazing houses built by Doron Sabag and Jim Hoffman. Buyers won’t pay that kind of price for an ordinary house!” Unfortunately for these explanations, another sale usually turns up immediately that is also “too high”, and then another, and another. Here are five examples of sales in the last year that surprised the broker community. There are more, but they haven’t closed yet. When they do, I’ll re-visit this issue.
All of my examples happen to be in the Riverside and Old Greenwich sections of Greenwich. The phenomenon of surprisingly high sale prices is rarer in the rest of town, but there’ve been a few. I’ll show you those tomorrow.
* “Game changer”, like “perfect storm”, is only the latest of the almost instantly tiresome clichés that sweep the nation every year. Remember “at the end of the day”? Always hated that one.