Market for Modern/Contemporary Homes

I have been looking for years.....the modern ones were overpriced relatively speaking....now that's not the case....if you tell me your price range I can give you insights.....mainly in eh

Looking at places in the $1.8mm - $2.2mm range, hoping to get in the $1.3mm - $1.7mm range now. Still finding them priced much higher than traditional homes and sitting on the market very long

I am curious, Apt Boy - have you actually bid/been rejected on any? I am not sure the listing price is even relevant these days - much less on a property that has been sitting for very long.

Have not made any "official" bids, but the generally attitude is that the houses are "special" and "worth the premium" and that owners "don't have to sell". I really don't have the time or energy to play these games, so I am like "fine, I really don't have to buy, here is my #, call me if things change"

At this point in the season, the summer is shot as you won't be able to close until August at the earliest. So, my plan is to wait until fall and hopefully the sellers will have a change in attitude.

Also, the various east end towns budgets are a mess. I expect major tax increases over the next 12 months.

"don't have to sell" is the most funny line brokers use. Your answer is the correct one Apt Boy. You don't have to buy. I have been waiting to buy out east for several years. I would say this demand to see all closed sales since 2005 in the area around a house your interested in. Look what people paid in 2005 -2006. Thats a starting point for what things should be trading at. Wait until you find something of perceived value. The summer rental market was and is a disaster. Taxes are certainly going up and people will need to sell, give it another year. Then they will have to sell.

look on hreo.com.....they list almost every house for sale out there......the brokers out there got stuck on a lot of houses ...... trying to flip them.....one broker i was using just bought land out there to build a house to sell over the next few years ( i thought she was crazy)......i think people out there are more willing to negotiate than years past....there is an inventory glut of people trying to rent out their homes so after this season if they didn't rent out their homes they will be even more willing to negotiate.....

yes, but i am more interested in feedback for Modern homes...there are tons of traditionals on the market that can be had for good deals, but it seems that modern homes are not seeing the same price declines...there are many homes that are listed as "Modern" but are really 1970's versions

In this market, what are peoples opinions of buying land and having a modern home built?

Apt Boy - if you do decide to make any low ball offers, will you please keep us posted how they go? I can't believe these brokers aren't calling you just to try and engage you in ANY bidding.

Will do...planning on seeing a bunch on July 4th weekend...I really think the brokers are more brain dead out there than in NYC...must be the leftover effects of the Shoreham Nuclear Power Plant tests

The low balls won't work.....I know I've been through it.....what is most amazing is the lack of quality in the contemporary homes.....there are plenty out there that were built 20-30 years ago and the owners have not done one upgrade......buying land is a tough one if you do this better have cash....not many banks out there willing to give loans on land deals.............

Assuming you can pay cash for land, is that market being flexible, or are sellers waiting it out? Before I spend time driving around looking at land, some intel would be great. Agreed, most "modern" are hardly so. My wife is in love with this:

http://www.jenniferpostdesign.com/index.html

It is rare to find this type of Modern out east. There are a few, but not many

Poll:

What should this go for:

http://www.corcoran.com/property/listing.aspx?ListingID=31188&Region=LI

i've seen this one......they rented it out for two months july and aug for 35k each month.....the lady added the back bedroom and extended the living room.....her and her husband do these things (flip them)....but they can hold out because they got 70k income to offset the carry......there is another one very similar to this one at the same price and the seller is NOT moving on the price.....

Ask me about any out there I've seen them all.....and talked to the owners and agents......

I was out east two weekends ago with friends looking to upgrade and was amazed on how many homes were for sale, yet at "don't need to sell" prices. I might be different than a lot of people, but if I was in my 4 million dollar summer home in the summer with my family and was asked to leave to have some buyers come in and I "didn't need to sell", I would not be dragging my family out so some strangers could walk through my home. Out of 6 homes, this happened in two of them. There are so many houses for sale it seems as if they were new development open houses. Also the brokers were saying that there are a lot of owners trying to short sale, but the banks won't return calls or work with them to make it happen. Has anyone heard this.

gumby - do you know about this one or is it too far east for you?

http://www.prudentialelliman.com/Listings.aspx?ListingID=H37669&rentalperiod=&SearchType=Broker_Current&Region=HNF&BID=121000

gumby - and this one? It has had a lot of press

http://corcoran.com/property/listing.aspx?Region=LI3&ListingID=18537

funny thing about the corcoran one....i know it all too well.....i bid on it several times and last year was actually called a bottom feeder by the broker (not the one at corcoran)......here's the scoop....it was built on spec by the owner who is an architect, he lives in the city and also owns another property (which he uses) out in eh......it was finished a year and a half ago nice finishes and such.....he resorted to renting last year and has tried to rent it out this year (not sure if it was rented out this year).....he bought the property with a house on it and tore it down and built the existing home....

here's the catch.....he bought and started building in 2007 the peak.....his scratch price was about 1650000 but add on carrying charges and it is creeping higher each day......i was told he can't afford to sell it below his price.......

I bid on it last year and again this year 30 percent below ask......and the broker gave me a bunch of crap about it......i finally contacted the owner himself but he showed no interest.......no counter nothing......so i moved on .....

good stuff...it has been featured in all of the magazines. I don't understand the "can't sell below a price", I guess he would rather be foreclosed on than to have a short sell. As an architect, business can't be too good and he probably has no financial sense to turn away a willing buyer without negotiating.

Maybe we will be fighting over it in the steps of City Hall!!!

Have you looked at all in Amanganset?

No only was looking in eh........i think by the end of the summer a lot of people will be more willing to negotiate.....if they didn't rent out over the summer they may realize the good times are over and be more willing to cut a deal....but the reality is a lot of people out there have money and don't have to sell......as was pointed out to me you are looking at one of the most expensive areas on the east coast....but that doesn't mean there isn't someone who has to dump their vacation home.......

"In this market, what are peoples opinions of buying land and having a modern home built?"

I did this about four years ago in order to build the modern house that I wanted, as opposed to settling for an ugly, unrenovated traditional. I figured I may be able to save some money as well. Boy was I wrong! After originally budgeting approximately $350K for construction costs, I ended up paying nearly double that. The difficult thing about building on the East End is that it is an isolated area with access issues, i.e., horrendous traffic. Additionally, there are few contractors who trek out there, especially anyone with experience in modern building methods. Accordingly, they charge a lot of money. The benchmark for building a decent, unspectacular traditional home is about $225-250 psf. A truly modern home will be easily over $300 psf. Glass is expensive! Accordingly, I think the premium price attached to modern homes vs. traditional homes is justified.

In the end, if you have a high tolerance for pain, stress and drama, and you want a modern house built to your specifications, by all means do this. But if you think you are going to save some money... it's not likely to happen.

Anyone considering pre-fab? It is not cheap but there are stunning, eco-friendly pre-fab modern homes.

What about this - don't know the location:
http://1townandcountry.com/html/expansion.jsp?innum=26474

Tina
(Brooklyn broker)

Pre-Fab - Definite option for Modern homes, and maybe the only way to go. We have seen some wonderful pre-fab moderns that can be customized. I also like the idea that they are built inside without enduring the weather and have strict quality control. Great resource:

http://www.fabprefab.com/

Tina, that one is on our list to visit...not as "Modern" as we like, but worth a visit

Heji - custom modern is not cheap, but given what is out there, it may be the only option

Where was that Tina suggestion? I am always suspicious of EH listings without a map as they are inevitably way up in the NE woods.

In the woods, especially at that price

As for your question about buying land and building, be careful. For myself, I built a steel and glass house in SH in 2001-03 that has been in mags. Until the bust it was very difficult to find deecnt contractors. Most of the best ones are working on $10 million plus stuff-my house cost about $1.5 million to build. At any price, very few could deal with steel construction. Permitting out here is a major hastle. Anyway, you should be sure you are willing to spend twice what "you're willing to spend" and have the process take twice as long as you think it will. Perhaps, this has all changed with the mini-depression we're in out here, but I wouldn't bet on it.

I think it makes sense to look for stuff already built. The hamptons are a disaster this summer-retailers struggling, rentals going begging, no houses selling. Just wait-it will pay-off. It did for me.

The property I own had a house on it. Originally, they were asking $425,000 for it. By the time I bought it, it cost only $212,500-of course, this was 1989-the last crash.

flat - thanks, do you have a link to some pictures?

www.hcandg.com/jul1506/waterfront.php

cool...not too many pics

happy to give you a tour when you're in the hamptons.

hejiranyc's comments are right on the money and answer the original question better than any other comment to this point, Modern construction costs more hence the higher asking prices. There are also far fewer new or recently built modern homes available than there are shingled McMansions. Supply of modern homes is far less than any other style. That Town and country house IS up in the northwest, I've seen it. The Prudential one doesn't even exist. It's vacant land with a set of plans.

flat - thanks for the invite

bud - but the questions is, the buyer base for modern is much smaller, so does that drive down prices?

Apt_Boy: have you checked out the "Houses at Sagaponac?" http://www.housesatsagaponac.com It is modern housing porn at its finest, and proves that the market for upscale, modern homes in the Hamptons is alive and well.

I do wonder whether there is a large buyer base for modern. My hunch is that people who are fans of modern architecture tend to be better educated and more culturally aware. Accordingly, they are more likely to be earning higher incomes. So even if the buyer base is smaller, my guess is that they have deeper pockets and are less likely to settle for something drab and unremarkable. Also, there is something to be said about the understated simplicity of modern design, which is quite relevant during these recessionary times. By contrast, there is nothing like ornate crown moulding, onyx counters and curved banisters to remind you of the vulgar go-go real estate bubble of the aughts.

I looked at those places on-line awhile back, but for some reason, did not like them...i agree that modern homes attract a different buyer, but that does not mean they will overpay

Gumby and crew...anyone seen this one, per hreo there is an open house Sunday...

http://www.prudentialelliman.com/Listings.aspx?ListingID=H30388&rentalperiod=&SearchType=quick&Region=HNF

Haven't seen this one.....looks nice.....at least redone recently and the price seems a reasonable place to start.....looks like it's up in NW woods......

long drive. I think this house will look dated in no time.

I have looked at plenty of these 70's and 80's "contemporary" houses, and they're surprisingly poorly built- badly insulated, warped siding, moldy, etc. Plus I think it's rather appalling when people take these houses and fill them with traditional/country furniture and finishings (check out that ugly bathroom!). Yuck!

If you don't mind being far from town and in a fairly remote area, I think the Springy Banks/Settlers Landing area is a very serene, tranquil area. I personally would need to be no more than a mile or two from a village...

Look at this bad-boy...

http://www.prudentialelliman.com/listings.ASpx?listingid=H11049&utm_source=Streeteasy&utm_campaign=corporate&utm_medium=listings

Apt Boy Isnt 5 Wigwam a better deal at 1.15? Has anyone seen it ?

Take a look at this crazy place...price has come down by a bit, but seemed over priced to begin with
http://www.streeteasy.com/hamptons/sale/258412-house-113-springy-banks-rd-east-hampton

They (over) paid $1.2 in 2007 ... I guess they haven't heard about the economic crisis?

http://www.homegain.com/homevalues/East-Hampton-NY/11937/113-Springy-Banks-Rd

Per listing above (113 Springy Banks Rd)...did they just buy the land in 2007 for $1.25 or did it include that Jungle Gym/Space Age Strip Club? And $4mm for that...best listing ever.

sunclaus1 - i do not see a listing for that address..send link

The whole gory story was published in the NY Times last year:

http://www.nytimes.com/2008/04/03/garden/03destiny.html

In a nutshell, they added on to an existing cottage on the lot. Between the cost of the property and construction, I think they easily sunk well over 3 million into this disaster. To add insult to injury, look what happened to the developers:

http://online.wsj.com/article/SB123785033607519075.html

Oy!

We aren't the only ones getting a kick out of this place

http://hamptons.curbed.com/archives/2009/07/07/thats_rather_epically_hideous_the_technicolor_dreamhouse.php?o=1

Anyone see this place, on market 10 months with big chop 4 months ago...

http://www.streeteasy.com/hamptons/sale/352231-house-1-fernwood-road-east-hampton

http://www.corcoran.com/property/listing.aspx?ListingID=44598&Region=LI3

I think it's kinda gross- it's one of those cheezy 1970's/80's "contemporary" houses. If you have the patience and the stomach for it, you may as well buy a lot and build on it. This flag lot is "south of the highway" and is asking a million. You could spend a million to build a pretty decent modernist abode and come up with something much nicer for about the same cost.

http://www.prudentialelliman.com/Listings.aspx?ListingID=H0344039&rentalperiod=&SearchType=li&Region=HNF&CallingPage=HNF

Sorry Apt Boy didnt get back earlier Was in PV,Mexico checking out Ocean Front scene Ok 5 Wigwam View Lane Corcoran clowns Web ID 21488..Oops they might be serious I see they CHOPPED 75K to 1.075
Any thoughts anyone?

5 Wigwam is kind of dumpy, looks like it needs alot of work...700k and it may make sense

Yipes! That place is full of hot, 80's trashiness! When I was looking in the Northwest Woods about 5 years ago, an 80's-style post-modern like this was asking around $700-750K range.

Just down the street, check out this incredibly ambitious flip:

http://www.zillow.com/homedetails/13-Wigwam-View-Ln-East-Hampton-NY-11937/32659254_zpid/

Bought in September 2008 for $925K, it is now back on the market for $1.65mio. I wonder how that strategy is working out!

Heji and Apt Boy..Another one on Wigwam also for sale This time 3 Wigwam asking 740K which i think is what you two are thinking about..I think 5 is easily superior to 13..At what price 5 Wigwam make sense to you Heji ??--3100 sq feet .89 acres ..

To be honest I'm not sure if either of those Wigwam View places make sense. Architecturally, I prefer 3 Wigwam, which has a kind of Breuer-esque boxiness to it, to 5 Wigwam, which has ugly 80's details (e.g., half oval windows). Unfortunately for 3 Wigwam, it looks like the exterior is in bad shape- I would imagine the siding is probably in need of replacement, which is perhaps a $20-25K job. And I personally hate the look of painted wood siding, so that may be a project for 5 Wigwam as well. Anyway you look at it, both of these houses are in desperate need of updating and renovation. The prices should reflect this, which currently they don't. That being said, I think the pricing is decent- perhaps another 15% chop would make them a bargain.

In Contract:

http://www.corcoran.com/property/listing.aspx?ListingID=31188&Region=LI

I hope the buyer ready for a big headache when the FALL Price Chops come..Sold for 780 in 06 ..Up in the NW WHY BUY there now ?? Not you is it Apt Boy??

Nope, not me...anyone have the inside scoop?

8 Todd Drive
SOLD
Oct 06, 2009
$1,900,000

Gumby...price chop on this one

http://streeteasy.com/hamptons/sale/430992-house-east-hampton

Anybody have more current thoughts on the market for modern? I agree that a lot to the old modern built in the 80s and 90s looks a bit tired and dated, but some of the new modern being built out there seems to be flying off the shelves? Am I wrong? I have personally been wondering how long people would put up with buying new traditional style houses for 4m that look exactly like the one next door.