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A 700 Sq. Ft. Cottage On Sag Harbor Cove Asks $2.9M

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While the brokerbabble goes out of its way to champion this 700 sq. ft., two-bedroom cottage as-is?calling it "adorable," "charming," and noting that the living room is "a great place to hang out and watch old movies or read that book you've been meaning to finish"?the $2.9M listing ends on a more realistic note: "The offer also includes an option with the seller building out a 5,000 +/- sq ft 2 story house with pool." Meaning: Yeah, we know this is a teardown, but we don't want to come right out and say, "This is a teardown."

Oddly, prior to being taken off the market in May (after being listed for sale since August of 2010), the owners were asking $2.75M for the place. Guess someone's feeling mighty optimistic these days.

· Listing: Village Waterfront With Dock [Brown Harris Stevens]