How Real Estate Gets Sold

17 Hemlock Drive, central ("in-town") Greenwich, last ask $6.995M, now has deal.

17 Hemlock Drive, central (“in-town”) Greenwich, last ask $6.995M, now has deal. List: Marjorie Pastel   Sell: Julie Chen

At first blush, this might look like a disappointing result. It started at $11,000,000 a little over a year ago, had three price reductions, down to $6,995,000, and finally, finally gets a deal.

So, did the broker over-price it or was it the owners? I don’t even care, because either way, that one-year process is completely normal, particularly in this price range. Even if the broker had recommended an initial ask of $6.995M (which might have triggered a bidding-war), there is no way on earth the sellers would have agreed to it and, in fact, they probably would have given the listing to a different broker!

As a broker, you get absolutely nowhere in this town by suggesting a sensible asking price. There are exceptions, of course, like the case last month where a broker recommended an asking price of $4,200,000 to a waterfront seller. The seller thought that was “too high”, and told the broker to list it for $3,700,000, and guess what?  A bidding war erupted, and it’s selling for…$4,200,000!

But that sort of seller is as rare as can be. Greenwich sellers, you’ll recall have three favorite sayings:

We don’t need to sell!

We’re in no hurry!

All it takes is one!

That’s simply a fact of life around here, and brokers have had to adapt to it. You price where the sellers tell you to, and you “try” that price for as many months as they can stand. Eventually they get sick of the process and, if you’re a good broker, who’s been communicating market data to the client the entire time, you are still there when they’re ready to cut the price!

All indications suggest listing broker Marjorie Pastel did everything right.

 

2 thoughts on “How Real Estate Gets Sold

  1. Unless this neighborhood is considered a little less than perfect, or low ceilings, or road noise, or no flat lawn… this seems like an amazing buy.
    Am I wrong?

    • Joh-m:
      I think so, too. And no, the neighborhood’s fine, plenty of other mansions, no road noise, house does not have low ceilings, and there’s plenty of flat lawn. The “problem” is that this place really is a castle, with multiple floors, bedrooms, wings, and, you know, castle-stuff. It’s a good thing it is located close-to-town, that’s probably what saved it.

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