One of the most difficult things to do in this market is to figure out where prices (values) are.
Seeing median prices fall to 2005 levels doesn’t necessarily mean that properties should be selling for 2005 prices, although it’s clear that buyers would like to see that, if not 2004 or 2003 values.
So, Paulson buys this house in 2006 for $12.75M and has it offered for $1.02 above that price. The estate areas always hold their values better than other areas, so it makes sens for an offering price…let’s see where it sells…
Paulson Southampton House
John Paulson in Southampton, Estate of the Day
Paulson bought the home for $12.75 million in 2006 so when he put it on the market in April he priced it at $19.5 million, anticipating a tidy profit. No takers so in late August he dropped the price to $16.9 million. In October he finally got a nibble but he had a buyer with a signed contract walk away from the deal. Paulson really needs to unload this puppy so now it is down to $13.9 million which means he resigned himself to not making a huge profit on the sale.
See whole post here
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