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Is $5.5M realistic for a 3 bedroom bungalow in Water Mill?

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location, location, location

We brought you the property at 9 Burnetts Cove in Water Mill in December when it was listed for $3.5M. We acknowledged that it wasn’t exactly contemporary, but we also pointed out that it sits directly on Mecox Bay and is next door to Flying Point Beach.

Here’s where things get interesting. The square footage on the house has not changed at all. With just half an acre of land, it still clocks in at just 2,000 square feet, which is pretty modest for the area. With 3 bedrooms and 1.5 bathrooms, this place isn’t exactly constructed for entertaining. The knotty pine interior has been swapped out for a crisp white which reflects a modern flow. And, the kitchen appears sleek with fresh cabinets and appliances. So, do these updates justify a new asking price of just under $5.5M? That’s a lot of dough to fork over for a bungalow. Then again, location is everything, and this place has a good one, especially if you have a deep love of paddle boarding. Again, we stress that there has not been an increase in square footage. So, what do you think, is a 57% price hike realistic?