[Paulson's Cottage, forever to remain this way; Photo courtesy Hamptons Real Estate Blog]
Here lies a 'Southampton cottage' recently sold by hedge-funder John Paulson in a price chop for the ages. Said '7,000 square foot, seven-bedroom, 7½-bath 1920s' cottage just sold for $9.99 million to a LLC after a $9.5 million drop. Put on the market in April 2008 at $19.5 million, the home fell to $16.9 million in August and to $13.9 million in October. Paulson isn't too concerned about finding a new pad though, he bought the Old Trees Estate in Southampton for $41.3 million in January 2008.
Reasons behind the dramatic drop aren't solely the economy and the state of the East End's real estate market. The 'low-ceilinged home on 3 acres includes a pool but not a tennis court', and it's landmarked, meaning no structural changes or add-ons. 'It's a tear-down that you can't tear down,' according to a broker with knowledge of the property, clearly reminding us that you can't judge a house by its listing photo.
And apparently, it's a big day in PriceChopping news, as Bernie Madoff victim David Silver's Sagaponack oceanfront is in contract for $6.9 million down from $14 million. Taking the chopping to heart, but not Paulson's Bigger is Better route, Silver has bought a more modest $2.4 million Sag Harbor bungalow.
· Stay-Mos [NY Post]
· John Paulson’s Southampton Estate – Price Drop $19.5M – $13.9M [HREB]