Hamptons houses under $1 million hard to find unless buyers willing to compromise

The Hamptons market heated up through the winter and spring, just in time for new homeowners to enjoy their digs for the summer.

This spring, the median home price in the Hamptons rose to $2.2 million, a 16.1% increase from that time last year, according to a report from real estate analyst Jonathan Miller and the Hamptons Real Estate Association.

Still, a number of abodes closed for under $1 million — a rarity both on the East End and Long Island at large, real estate agents say.

For those in search of a Hamptons home, the price point is hard to find because many of the smaller homes have been torn down and replaced or converted into luxury parcels, while plenty of homeowners are still unwilling to part with their low mortgage rates, said Michael Daly, an agent with Douglas Elliman Real Estate in Sag Harbor.

"For years, you could sell your home here and move to other places that had significantly lower priced real estate," he said. "And while people still can sell their properties here for a significant gain, the fact that prices have doubled in some areas of Florida and the Carolinas make it less appealing to move."

At this price point in the Hamptons, homebuyers often search for a long time — and if they are successful, the house usually needs work, real estate agents say. For seasonal dwellers, that could mean not having renovations in time for the summer, while those hoping to break into the area as full-time residents might be more willing to wait.

Often, something turnkey comes at a higher price: "It's just a matter of, do they want to walk into something that they don't have to do anything to, or walk into something they're willing to work on?" said Daniel Whooley, of Kerrigan Country Realty.

Nonetheless, some rare, move-in ready homes were listed under $1 million in the Hamptons this year and sold relatively quickly.

Price drop, then a deal

Community

Westhampton Beach

Sale price

$975,000

This three-bedroom, two-bathroom home in Westhampton Beach closed for $975,000 in April. The house spans more than 1,500 square feet, sitting on a 0.73-acre lot.

When it was first listed in July of last year, it was priced for over $1 million, said Whooley, the listing agent and property owner.

He saw the selling points in the expansive lot size and the house's positioning: "It backed up to town property," Whooley said. Additionally, the roof and solar panels had been recently updated, and the property included an electric car charger.

As autumn approached, Whooley knew he had to lower the asking price. Then, a first-time homebuyer came along to seal the deal.

"It was a good time for them, getting in before the new season started," Whooley said of the April closing date. "And it was fine for us."

The house is in the Westhampton Beach school district, and the taxes were listed as $5,336.

Home prices vary throughout the area, Whooley said: "The closer you get to Main Street and Dune Road, it just keeps going up."

And for buyers who want something move-in ready, with no immediate renovations needed, "they'll definitely have to spend over $1 million."

The 'hot market' of Hampton Bays

Community

Hampton Bays

Sale price

$900,000

This three-bed, two-bath home in Hampton Bays was popular while it lasted, ultimately closing for $900,000 in May. The taxes were listed as $7,454.

The home was fully renovated less than 10 years ago, said listing agent Constance Porto, of Douglas Elliman Real Estate. This was the second time she sold the home.

"The first owners put in a new kitchen and bathrooms," she said. "The second owner put in the upstairs loft and the outside shower."

There were several offers, which almost resulted in a bidding war, Porto said. The loft space and potential to add a backyard pool drew people in.

The listing went live in January, but because of how treacherous the season was, prospective buyers didn't come knocking until the snow was gone. "Normally, we're very busy in the winter," Porto said.

The property is in the Hampton Bays school district and sits on a 0.24-acre lot.

Hampton Bays is a "hot market," Porto said, becoming more desirable to homebuyers because of its accessibility, while still being on the East End.

"Sunrise Highway actually ends at Hampton Bays," she said. "It's the last exit, and then becomes a small, two-lane highway with lights, and it gets very congested. People don't want to sit for two hours to get to their beach home."

A buyer-seller 'match made in heaven'

Community

Hampton Bays

Sale price

$725,000

About ¼ mile from East Landing Beach, a three-bed, two-bath home sold for $725,000 last month. The home is in the Hampton Bays school district and the taxes were listed as $6,423.

"We reached an offer for asking price in our first week, by a local buyer," Daly said. He co-listed the Hampton Bays property with Susan Kane, of Douglas Elliman Real Estate. "It was really a match made in heaven."

The house was listed last December before landing an offer and going to contract in February. The seller needed some time to clean out the house before closing, Daly said.

"I did a lot of research on it, and I felt that price was valid," he said.

When a bid comes in so promptly after a house goes on the market, sometimes a seller has second thoughts and wants to wait for more offers, Daly said. In the meantime, listings that are overpriced risk sitting on the market, facing price reductions and getting stale.

In this case, "it was the right buyer, right time, right price," he said, later adding, "When you price something correctly, this usually happens."

'My phone didn't stop ringing'

Community

East Quogue

Sale price

$775,000

This legal two-family home in East Quogue was "very rare and very hard to obtain" in the Town of Southampton, said listing agent Doreen Gabrielsen, of Daniel Gale Sotheby's International Realty.

Sitting on a 0.72-acre lot, the house features four bedrooms and three bathrooms. The taxes were listed as $7,985 and it is in the Westhampton Beach school district. The sale closed in February for $775,000.

"It needed the right buyer, because it needed a ton of work," Gabrielsen said.

The house was listed last October and from that point forward, "it was crazy," the agent said. "My phone didn't stop ringing."

Gabrielsen had about 20 potential buyers come to the open house, and the home went into contract "within the first 30 days," she said. It was originally listed for $829,000.

The home would have "gone for a million or a little over a million" if it were in better shape, Gabrielsen said, noting that it needed updates in the bathrooms and kitchen, and some TLC on the siding.

But the location moved things along: East Quogue is sandwiched between Westhampton Beach and Hampton Bays, so "it's a very good area if you're a beach lover and bay lover," Gabrielsen said.

Two homes, under $1 million

Community

Flanders

Sale price

$825,000

Two legacy homes were handed down in the same family over the years in Flanders.

"The original two-story farmhouse was built in 1900," said listing agent Anthony Lubrano, of Coldwell Banker Reliable Real Estate. "And the second house, which was ranch-style, was built in the 1950s."

The taxes were listed as $8,712, and the property is in the Riverhead Central School District.

The 1,029-square-foot farmhouse features two bedrooms and one bathroom, spread across two stories. The ranch includes one bedroom and one bathroom, spanning 890 square feet. The farmhouse sits on half an acre, while the ranch is "set back on a 0.44-acre lot," according to the listing.

Both houses needed work and were missing some certificates of occupancy, Lubrano said. After consulting with the seller, "we wound up listing the homes together as a package," he said. "And due to the high demand for houses in that price range, both houses sold for $825,000" total, Lubrano said.

The houses were listed in March for $775,000. Within 24 days, there were multiple cash offers made on the property, Lubrano said. Without those issues, "the houses would have sold for more. It was a pretty good deal for the buyer."

The deal closed in June, and there is significant potential for expansion on the property, which sits "on the fringe of the Hamptons," the agent said.

Even with the work needed, the listing was an anomaly in the area, Lubrano added: "It's difficult to find a house under a million, quite frankly two."

Move-in ready

Community

Hampton Bays

Sale price

$905,000

This three-bed, two-bath ranch in Hampton Bays closed for $905,000 in June. The house was move-in ready, said listing agent Lauren Battista, of Brown Harris Stevens.

"It was maintained, but a little dated," she said.

The seller added new appliances, tidied up the landscaping, power washed the exterior, painted the interior, installed a modern light fixture to replace an older chandelier, revamped the front porch and refreshed the bathrooms by adding new vanities, mirrors and a new toilet in one, Battista said.

The house was built in 2000 and sits on half an acre. The taxes were listed as $7,060.

After one open house and some showings, there were several offers over the asking price, which was $875,000. It was listed in April and sold last month.

The turnkey quality of the home seemed to draw in prospective buyers: "A lot of people don't want to do a lot of work" on their home purchases, Battista added.

And the seller's hard work and motivation made the sale easy.

"It's nice when someone puts the effort into it, and gets it ready to go," Battista said.

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