What’s Selling Well In Greenwich Right Now

75 Rock Maple, Greenwich (off Stanwich Road), $5,695,000. Came on May 24th, already has a deal! This was a very smart asking price. We’ll have to wait for the closing, but I won’t be surprised if it had a little bidding war.
List: Helene Barre
Sell: Max Wiesen

You want the truth? You can handle the truth, so here it is: houses priced $5,000,000-6,000,000 are trading quite nicely, thank you. How many? So far this year, we’re up to 11 closings, with 6 more pending. For all of 2016, we had a total of 12, so there, my friends, is another clear indicator of that “zippy” market I talked about..

There is a theory among brokers that these $5M-6M buyers are “yesterday’s $10M buyers” who are now spending less not because they don’t have the dough, but more out of a sense of caution. This could be true, I’m not sure, but as I wrote yesterday, I’m certain some percentage of $10M buyers just aren’t here anymore. They’ve stayed in Manhattan or they’ve gone to places like Florida.

Now consider this: If all the Greenwich property owners with houses on the market for $10M+ (there are 41 of them) suddenly decided they needed to sell RIGHT NOW, they would need to slash their asking prices by millions. That would quickly drive down the price of all these houses presently selling in the 5’s and 6’s.

But guess what? High-end Greenwich property owners almost never really “need” to sell. That’s why we have so many on the market celebrating their 5th anniversary, 6th, 7th, all the way up to a few that have been on for FOURTEEN YEARS. So all you sellers in the $5M+’s? Relax, your market value is safe.

 

 

 

 

Is This A Zippy Market?

1 Bramble Lane, Riverside, asking $4.295M, now has deal, my guess, closes around $4.150M. Back in June, 2008, the builder unloaded it for $4,050,000, probably thinking he’d made a narrow escape, but Riverside hung in there!. Can any other part of Town promise that kind of hold on value? List: Russ Pruner  Sell: Barbara Wells

Those who know me well, know that I don’t throw words like “zippy” around lightly. No, I understand the significance of the word, and only use it when absolutely justified. Therefore, let me state for the record that we are experiencing a ZIPPY market!

Am I aware that the dominant political party in Hartford has taken us down the road-to-ruin, to the point where our finances now resemble pathetic Puerto Rico and Illinois? Yes, I am aware. If you actually add up all the (un-payable) billions and billions and billions we owe to the municipal-union pension funds, the State of CT is already effectively bankrupt. Not pretty.

And yet… people clearly still want to live in Fairfield County. Why is this? Are they unaware of the impending doom? Do they think a (Republican) savior will emerge?

Who knows. What I do know is that last year, as of this date, we’d had 89 closings. This year, same time period, we’re up to 169 (plus another 73 pending). That’s serious improvement.

The fly-in-the-ointment *? Of course, it’s the super high-end, just 3 sales this year for $8M+. 3 sales! Now we only have to get rid of the other 68 sitting on the market and we’re home free!

So why do Greenwich sales start to dwindle down when you pass the $6M mark? The reason stated above, certainly, but added to our miserable State financial picture, there’s the State’s continuing “war on the rich”, and the very, very rich don’t have to take it. If you’re a poor schlub barely making enough to spend $5,000,000 on a home, your work probably still ties you to the New York area. But I guarantee you that the $20,000,000 buyer is not tied to the New York area. And for now, that’s who’s leaving. You might think of them as canaries in the coal mine…

 

*how often is this a problem?

Finally, An End To Waterfront Hegemony!

41 Meadow Wood Drive, Belle Haven, ask $9,000,000 (started at $29M seven years ago, by golly!)

Yes friends, it’s happened at last! Finally, finally, finally…a truly big sale (ask was $9,000,000) has occurred and it’s not on the water!

Wait..what? It is?? Oh, crap.

Truth is, I just wanted to use the word “hegemony” in a sentence, but of course this is waterfront, that’s all that’s selling in the $6M+ category. Will this situation ever change?

Now THIS Is More Like It…

200 Guards Road, Conyers Farm: as good as it gets. last ask $17.5M. List: BK Bates

200 Guards Road, Fabulous house on 31 acres in Conyers Farm: as good as it gets. Last ask $17.5M.
List: BK Bates and Michelle Tesei

Was it only last Tuesday that the Connecticut Post was telling us about the latest Hartford plan to drive out the last remaining profitable business in Connecticut? I believe so, but perhaps because this particular tax plan is actually opposed by the Governor (is that possible?) maybe we can limp along for another year, by golly.

Anyway, today’s big news is that a deal has been struck for a spectacular Conyers Farm property which was asking $17,500,000. A previous broker started it at $27,895,000, carried it through two price reductions over the next year and nine months, but ultimately was shown the door.

I’ve heard it a hundred times, from brokers like Julianne Ward and others, it’s better to just say no to a listing that you know is grossly overpriced. Instead of taking the listing at a crazy price, what you do is this: Make an impressive presentation to the sellers, and include in that presentation a skillful defense of your recommended price.

You will (likely) then be rejected by the sellers, who will instead give the listing to the broker with the crazy price, BUT, a year or two down the road, the sellers, realizing you were right all along, will call you up and appoint you as the second listing broker. That’s where you want to be, that’s how this game is played.

On the other hand, it can be hard to resist one of these big “trophy listings”. After all, your firm gets lots and lots of advertising value from it, you get the prestige boost, which can lead to other big listings, and hey, there’s always the possibility you’ll persuade the sellers to g-r-a-a-d-u-a-l-l-y lower the price, who knows?

I have no idea how things went down with this particular listing, it’s entirely possible that first asking price was the owner’s idea to begin with. In any case, this is a very significant and useful sale. It shows continuing life in the high-end, and in particular, the backcountry high-end.

List: BK Bates & Michelle Tesei

Biggest Sale Of The Year?

60 Oneida Drive (within the Indian Harbor Association neighborhood), asked $21.9M, sells for $19.250M.

60 Oneida Drive (within the Indian Harbor Association neighborhood), asked $21.9M, sells for $19.250M. List: Shelly Tretter Lynch  Sell: Anne Ward

What? It’s January, for heaven’s sake, yer telling me someone can’t top a lousy $19,250,000 sale before December 31, 2017?? Yes, that’s what I’m saying and I base this prediction on my recent conversations with high-end buyers and fellow brokers.

Bloomberg estimates “equities’ global market value has jumped $2 TRILLION since the election”., so our high-end buyers are feeling confident of the future, right? The answer is yes and no. They are confident of the national economy’s continued improvement, but they are uniformly concerned about Connecticut’s economy and its tax picture. Not one buyer or broker I spoke to expects (those idiots in) Hartford to do anything but more harm to Fairfield County.

General Electric’s recent departure is certainly the biggest “canary in the coal mine” so far, but plenty of lower profile financial services companies and hedge-funds have also cleared out, not to mention a gun company or two.

So, as Connecticut’s Governor Malloy and his legislative allies proudly maintain our fair state’s “business unfriendly” atmosphere, most expect it to get worse this year. And let’s not forget our big, fat estate tax, which chases away older zillionaires on a regular basis.

So yeah, it’s great to see such a big land sale, it’s encouraging, by golly. I just wish it was the beginning of a trend.

Note: that address-link for 60 Oneida Drive works better on your desktop than your mobile device.

What’s Become Of The High-End Market?

piercephoto

2 Pierce Road, Riverside: asked $12,000, got $11,500 1st year, $12,500 2nd yr., $13,000 thereafter. Listing agent Gideon Fountain   Renting agent: Julie Lowe.

See that rental above? It rented quickly and easily, hooray! And lots and lots of other properties in town are renting quickly and easily, in all price ranges, isn’t that wonderful?

You sense my sarcasm… I don’t mean to sound ungrateful, but this business is about selling stuff. Rentals, as I’ve explained previously, are all well and good, but sales, my friends, sales, that’s why we’re here!

To be accurate, properties are selling right now at a very nice clip, but there’s a price-ceiling that we can’t seem to crack; that ceiling starts at around $4,500,000. Below that number, plenty of sales, above, almost nothing.

And it’s not just Greenwich. Fellow brokers up the line, in towns like Stamford, Darien, New Canaan, Norwalk, they all report the same thing, little or no high-end sales (in Norwalk, that high-end starts around $1,500,000). Perplexing.

Pictured below is what I’d call a typical sale these days. Perfectly nice house, with what I thought for sure was a smart asking price, yet it took NINE MONTHS to get a deal. Anyway, plenty of these “cheapie” sales, but not enough of the big stuff…so far.

55 Wesskum Wood (on the hill overlooking Binney Park), Riverside. Asked $2.895M, Got $2.650M. List: Heather Platt Sell: Jill Miller

55 Wesskum Wood (on the hill overlooking Binney Park), Riverside. Asked $2.895M, Got $2.650M. List: Heather Platt Sell: Jill Miller

 

 

 

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.