Builder Homeruns

I suppose as risks go, building a luxury spec home in Greenwich isn’t that scary, right? Yes, the land will cost you, and the building will be more expensive (even if you import out-of-town subcontractors) but in the end, at least you know there’s a genuine living/breathing market here, with a good supply of rich people who will step up and buy your product.

Even so, some builders will make money in this environment, some won’t. Here are three examples of what I call “homeruns”, because the land was cheap, and the final selling price was high.

Example One

20CarrigleaAfter2

20 Carriglea Drive, off Riverside’s Indian Head Road. Sold in November for$6.4M.

20 Carriglea, the before picture. Wetlands, "3-bedrm septic", plenty of builders turned it down, too bad for them!

20 Carriglea, the before picture. Plenty not to like here: wetlands, limited building area, “3-bedrm septic”. Lots of builders turned it down, big mistake! Sold for $1.8M, July 2013.

Example Two

105 Shore Road, Old Greenwich. Asked $4.950M, went to contract mere days after first broker open house (closes soon, I will update)

105 Shore Road, Old Greenwich. Asked $4.950M, went to contract mere days after first broker open house (closes soon, I will update)

105 Shore Road before. Cute, yes, but ready for replacement, take my word.

105 Shore Road before. Cute, yes, but ready for replacement, take my word. Sold for $1.7M, May 2014.

25 Lockwood Avenue, Old Greenwich. Asked $4.195M, attracted multiple bids and closed December 30th for $4,150,000.

25 Lockwood Avenue, Old Greenwich. Asked $4.195M, attracted multiple bids and closed December 30th for $4,150,000. Land was bought direct, I’ll look up price at Town Hall and update this post.

Note: If the above links get disabled by MLS, I will replace them with links for the Houlihan Lawrence website, which remain active indefinitely.

9 thoughts on “Builder Homeruns

  1. Alright, two posts in a span of days. Yee-haw.

    Have you noticed more spec builders are refraining from posting their spec builds until completion? There are many houses under construction in Cos Cob and the eastern part of town that I know are specs w/o listings yet.

    • Cobster:
      Builders used to give away the “bump” that buyers could take advantage of. You could buy a newly constructed house, add paint, decorating, and furniture, and voilà! you could sell a year later for a $500K profit. Nowadays, smart builders don’t put the house on the market till THEY have decorated and even staged the place.

      • Interesting – I think builders are withholding listings to avoid the dreaded ‘stale’ listing. Nothing is more of a bummer than having a preconstr listing become a constr listing, then become an almost completed listing followed by a completed listing that is now 8 months old. Bottomline, houses that MLS late (post CO) have pop as a fresh listing.

      • Cobby:
        Unquestionably, “staleness” can be deadly on the real estate market, but I think builders who list early, with just drawings instead of photos, for instance, get somewhat of a break from buyers. There is an understanding that, when the project was nothing but a hole in the ground, it wasn’t really expected to be snapped up by a buyer.

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