January 28, 2005

$25,000,000 gets you . . .

Not too much, judging from some recent new construction I saw. Lots of stonework, naturally, high, high ceilings and a peckerwood-panelled library, but I was hard pressed to see what set this house apart from others costing half as much. It sits on less than two acres of land and, to my taste, is merely a very large compilation of all the current building clichés. It does have a massage parlor in the basement, in case the buyer’s Wall Street career collapses and he needs alternative employment but is that enough to justify its price? I thought not, and was relieved to think that I had just saved $12,500,000 by liking other, cheaper houses more. On the other hand, and to be fair, some other agents who saw the place liked all its bells and whistles and even its architecture. So if your end-of-year bonus was really, really special and is now burning a hole in your pocket, go take a look: it might be just the house for you.

$6,000,000 Houses

The old rule of thumb in the building business is that the land should comprise a third of a house’s sales price. As more and more building lots sell for $2,000,000 and above we can expect to see an ever-growing inventory of $6,000,000 houses. Will they all sell? Twenty-six new houses (built in 2003 or later) were listed for sale in 2004 and eleven of them sold or are currently under contract. That leaves fifteen unsold and, judging from the construction activity around town, there are more coming to join them. I hope they sell quickly, but I wouldn’t want to be a builder paying interest on that kind of investment; it would seem to lead to sleepless nights.

In Old Greenwich

Betty Moran has a new listing at 201 Shore Road that is a great example of how to modernize an old Victorian. Originally built in 1894, a series of owners have expanded and updated the kitchen and added air conditioning all without losing any of the original grace of this house. It has a half-acre yard and is part of Lucas Point, one of the niftier micro-communities in town. $3,220,000, which seems about right to me.

And on the River

Joe Williams listed 42 Carey Road recently for $895,000 and had an accepted offer within days. I liked this house a lot, as it sits directly on the Mianus and is flanked by town parkland. Less than two years ago it traded for $750,000 and, other than removing a dog washing room, seems unchanged. That’s a better return than many investments.

Statistics

I attended the Riverside Association’s annual meeting recently and was handed an information sheet from Randy Keleher (nice marketing move, Randy) that compared last year’s appreciation in Riverside real estate to that of the rest of the town. Both are impressive, unless you are trying to buy a house. There were 137 single family sales in Riverside last year compared to 89 the year before (town wide: 841 vs. 770). Average closing price for Riverside was $2,306,249, an increase of 52% from the year before and median price was $1,680,000, a 27% increase (town wide, $2,207,476 – 24% and $1,495,000 – 30%). This place isn’t getting any cheaper.

Bad Agents

Recently an agent “accidentally” contacted another agent’s client. If this were the first (or the second or the third) time this particular agent violated the Realtor Code of Ethics his story might be believable; as it is, I suspect that he was fishing for business. This kind of aggressive behavior impresses some people because they think that the agent will show the same aggression in selling their house. In fact, the aggression is solely directed toward benefiting the salesman and you the seller are not likely to gain anything from dealing with such a person. Hurrumph.

Disgruntled Reader

Mr. Hans Isbrantsen has written to complain that my idyllic memories of growing up in Riverside omitted the thugs and bullies who used to prey upon us at Ada’s Lousy Shop and the streets around town. “I still remember,” he writes, “that a trip past St. Paul’s church was fraught with danger and not to be taken lightly unless you were on a fast bike”. Gee I don’t know, Hans, maybe they just didn’t like you.

January 21, 2005

Paging Sylvester McMonkey McBean

In a development that can’t possibly be of interest to anyone but the incestuous group of Realtors in town, we’ve had a sale/merger of two chain stores in town. One group of the merged agents is delighted with their new cachet. The other group is appalled. At least, that’s what I conclude after noticing the alacrity with which the first group began identifying themselves with the second group—within hours of the announcement of merger—and the deafening silence from the second group. There are excellent agents at both companies (although there are at least two fewer at one of them, as of this writing) but I’ll bet that the founder of the first firm would be disappointed to learn how quickly his agents are abandoning his name.
All of which brings to mind Dr. Seuss’s story about Star-bellied Sneetches: “Now the Star-bellied Sneetches had bellies with stars. The Plain-bellied Sneetches had none upon thars. …. Because they had stars, all the Star-bellied Sneetches would brag, ‘we’re the best kind of Sneetch on the beaches.’ ” Readers are referred to the full poem for a complete discussion of the philosophical and economic ramifications of this merger. Not to give away the ending, but Sylvester McMonkey McBean turns out to be entirely willing to apply or remove belly stars as the whim and the wallets of both kinds of Sneetches dictate.

Get a Horse!

The new owner of that eighty-acre parcel in Conyer’s Farm recently applied for a continuation of its tax treatment as farm land ($2,000 an acre) instead of residential ($300,000). The town’s appraisor went up to the property and counted only four horses which, in his opinion, did not a horse farm make so he denied the application. That’s a difference in the annual tax bill of around $120,000.00 . Anyone capable of earning the money to buy this place for $45,000,000 certainly doesn’t need business advice from me (my dog doesn’t need business advice from me) but wouldn’t it make sense for him to buy a dozen old nags and hire someone to look after them? Instant farm, instant saving. As for myself, I’m looking into expanding my pumpkin patch in Riverside.

New Listings

As happens every January, the new year has seen the beginning of the spring market. Several nice houses came on this week, including Wilson Alling’s at 10 Copper Beech, a good house on an undivisible 2.28 acres. A comfortable residence as is, on beautiful grounds, it would be perfect for a couple looking for one-floor living. Or the buyer could add a second floor; the street would certainly support the expense. Asking $3,150,000. Eight Serenity Lane (Betsy Johnson) is asking $2,100,000 and again, I thought that a good deal. Serenity is one of those side streets off of Mimosa, sort of, and its one acre lots offer more land than comparable houses in Riverside or Old Greenwich. This house was renovated in 1999 and was bright and cheerful even on the dank, foggy day I viewed it. Moving down the price range, Carolyn Anderson has a listing for $1,220,000 at 248 Stanwich Road. It’s small: just two bedrooms, but in beautiful condition and sits on over an acre in the woods. Nice house. Not in the woods and certainly not in the same price range, Vicky Harris has returned 41 Tomac Avenue to the market at $2,995,000, which is $500,000 less that its last appearance, this time with a new kitchen. A neat old house from 1907 and nicely renovated, right on the Innis golf course. For new construction fans, Russ Pruner’s listed what was once Rocco D’Andrea’s vegetable garden and is now a huge, beautifully built new house at 35 Lockwood Road. No yard to speak of (no rutabagas anymore, either) but lots of interior space, including a basement dance floor large enough to accommodate the entire Round Hill Community Center’s Saturday night contra dance. $2,995,000.

Where did you go? Out. What did you do? Nothing.

The Lockwood Road property reminded me that, long ago, suburban families wanted large yards for the kids to play in. This seems far less important now, and I’m not sure why. Perhaps the children are all so busy with their travel team sports that, when they get home, they just want to wander off to the media room and play video games. Or possibly the little darlings are busy in their bedrooms cramming for the SATs. Regardless of the reason, the market preference is clearly for larger houses at the expense of a yard. Builders have long since noticed this; I’m slower on the uptake, probably because of my fond memories of playing baseball in my parents’ back yard.

January 14, 2005

What If?

Way back in 1978 when Saturday Night Live was still funny they ran a skit called “What If”. A panel of experts was told “ tonight’s question, like all our questions, comes from a Mr. Kevin O’Donnell, age 10, a paperboy from Alton, Illinois.” Kevin asked what would have happened had Superman fought for the Nazis —the humor lay in the experts taking the question seriously. Garrett Morris, resplendent in a general’s uniform, stroked his chin and ultimately concluded that things would have gone very badly for the Allies unless we’d developed a Kryptonite bomb. Residents who miss the good old days of SLN might want to drop in on our town’s Planning and Zoning Commission, where questions like Kevin’s are addressed at each session. The latest comedy-fest saw the Commission entertaining a complaint from the mother of a seven-year-old boy who, it turns out, likes to play by the water on East Point Lane in Old Greenwich. An applicant wanted to install a dock on his property (down and across the street) but the mother was concerned: what if, she asked, her boy happened to be playing on the waterfront during a hurricane and the dock blew on top of him? Instead of suggesting to the frightened parent that she keep her child inside during wind storms the Commission members straightened their uniforms, stroked their chins and proceeded to deny the application in order to keep the young toddler safe.

Everyone enjoys a good bit of amateur comedy and the P&Z offers the best entertainment in town, but these volunteers are hardly cost free. Their decisions, seemingly based on nothing but thin air and gossamer wings, delay construction and expose the town to the costs of litigation. It doesn’t have to be this way: the P&Z’s own Board of Appeals seems quite capable of rendering intelligent, defensible decisions, so what’s with the Commission itself? Greenwich deserves better.

Who’s That?

A number of readers (well one, actually) asked about the “Trustees”, usually lawyers, who regularly appear in the real estate transaction pages. Rather than stumble my way through an explanation I called local real estate wizard Tom Ward and made him do my work. The purpose of these trusts, in a word, is privacy. Some folks are appalled to learn that the price they pay for a house is a public record and so they take title in their lawyer’s name instead of their own. I had assumed that use of these trusts was limited to celebrities and recluses but Tom mentioned another user, the young over-achiever who doesn’t want his boss to know that he can afford a better house than his chief executive. According to Tom his firm, Ivey Barnum & O’Mara has a standard three page trust agreement for exactly this purpose and there’s no extra charge for its use. Title is officially taken in the name of the Trustee while the equitable ownership rests with the buyer. Often, after a few months have passed, the Trustee will quit claim the property to the owner for a peppercorn as consideration and it’s as though it all never happened. The most common difficulty in using a trust arises when a lender makes rude noises about the Trustee signing the underlying promissory note. Tom has surely grown wealthy from his vast restaurant holdings but he’s not that generous; an educational phone call is in order. All in all, given the complexities involved with having a third party on all your documents: insurance, tax records, loans, etc., I’d suggest that you relax, take title in your own name and hope that your nosey neighbors will forget what you paid for your house when they turn to their next favorite section of the newspaper, the police blotter.

Nice Houses

Nance Minchin’s new listing at 33 Morgan Avenue in Glenville is nifty little updated cottage right on the Byram River. In the two years the present owners have lived there they’ve completely renovated the house, adding central air, a new kitchen and all sorts of good features. I expect that they’ll earn a decent return on their investment. It has just two bedrooms and a bath, which is a mite small for a large family but not for a young couple. And, as noted, both the street and the lot will support an expansion. Priced at $795,000, I liked it a lot.

Cate Keeney’s listing at 16 Suburban Avenue in Cos Cob is just as nice, albeit without a river in its backyard. Updated in 1996, good location, all for $775,000, which probably means it will be gone by the time this is published.

If so, and you want to spend a little more, you might consider Carol Clarke’s listing at 60 Shore Road in Old Greenwich. A fabulous 1860 house with high ceilings renovated kitchen (among other rooms) and deeded water and mooring rights. $3,395,000, which might get you a kayak thrown in if you dicker.

For What It's Worth January 7, 2005

Don’t Hang Up

I recently received a call from a potential buyer inquiring about some new construction she’d seen advertised. I knew the house well and we made an appointment to view it. Although (I thought) I made clear that it wasn’t this firm’s listing, the buyer later called back in a bit of a snit to cancel our appointment. She had “discovered” she said, that another firm held the listing and she would be seeing the property with that firm. I gave up arguing for a living some time ago but I still think this woman made a mistake, and here’s why: a listing agent owes a fiduciary duty to her seller, not the buyer, and cannot tell the buyer that there’s a better house just around the corner or anything negative about the house at all. A buyer’s agent can. I happened to think that the particular house the caller was interested in was over-priced and had made arrangements to show her five additional houses, three of which were not yet on the market. Had she liked any of them she could have saved herself around a half million dollars. Or not, but at least she’d have seen a wide range of new houses instead of just one.

Which is not to say that you should never view a house with its listing broker. If you want to see one specific house the listing broker may be the best person to show it. Often, the listing agent knows more about the house than anyone else (but not always. When I called to check the progress on one bit of new construction I was told that the “sides” were going up within a week. Some of us refer to that part of the structure as walls.). And of course, we all love to sell our own listings because we get to keep the entire commission instead of splitting it with another agent. But most people want to see several houses before buying so that they can compare them. A buyer’s agent can do that and give some guidance by, for instance, suggesting that one house is over-priced, or that the street it is on isn’t as quiet as a street around the corner or that a nicer house is about to come up for sale. The seller’s agent can’t do that. So if you’re looking to buy a house, my advice is to find an agent who knows the market—all of the market—and don’t limit the advice you can receive.

Price Record

The beautiful new house at 30 Arch Street (overlooking Binney Park) just sold for $4.125 million. I didn’t see the inside but those agents who did report that it’s fabulous. The same builder sold something similar and right next door for around $3.4 million last year so I can’t say that I’m astonished at this price, but it does put a new perspective on what new houses can sell for, even in Riverside.

Google

Because I’m so special (or because my cousin Henry edits the Science and Circuits sections of the New York Times, take your pick) I’ve had the opportunity to try the beta version of Google’s Gmail the past two months. So far, it’s great. There’s unlimited storage and messages are linked in “conversations” so that you don’t have to prowl all over creation looking for lost correspondence. And it’s free. Look for it, I think, during the coming year.

Here’s an Opportunity

A Ms. Clare Cooper Marcus conducts counseling services for people having difficulties with their homes. This involves role playing sessions between the owner and the house with Ms. Marcus playing the house. “I’ve always been sensitive to the needs of houses,” says she. “Having a home respond usually relieves a client’s anxiety and stress within the first hour.” One hundred dollars an hour plus, presumably, travel time, as the good doctor is based in Berkeley California, where else?

Salesman of the Year

I recently learned that a Realtor in Rye was conducting a house tour when he and his clients discovered the owner conducting a final nap in his arm chair. When you’ve got to go, you’ve got to go, I suppose, but I’m terrifically impressed that, once the excitement died down, the agent sold the house to those customers. No word whether the corpse was part of the deal.

And Finally

The last two items may make you want to engage in the latest craze to be imported from our left coast, a feng shui inspection. Just such an inspection was among the contingencies in a house deal this year, the first in town that I am aware of. The house passed but the deal fell through anyway: bad roof.