Sandra Lee’s New Castle Home Reduced; Luxury Sales in County Slide
By Dan Murphy
The real estate market in Westchester County for luxury homes – those valued at more than $1 million – has begun a slowdown.
The reason for the large number of million-dollar homes on the market depends on who you speak to. Some believe the deduction limit on state and local taxes (SALT)of $10,000 on your federal taxes is the primary reason. Every million-dollar home in Westchester, whether it’s on the market or off the market, has a property tax bill of at least $20,000, and only $10,000 of that tax bill is now deductible – and that is not including your state income taxes.
Celebrities have always come to Westchester to purchase a home because of its beauty, great schools, and close location to NYC. Jay-Z and Beyoncé purchased a 2-acre, 15,000-square-foot home in Scarsdale more than 10 years ago, and Bill and Hillary Clinton’s purchase of their Chappaqua home in 1999 was another big sale in the county.
The next famous couple that seems to be a good fit for Westchester is the British royal couple of Meghan and Harry, officially known as the Duke and Duchess of Sussex. After announcing they were stepping down from their roles in the royal family, they have been camped out in Canada.
But Canada may be too boring for both Meghan, who will be re-entering the job market as an actress or fashion spokesperson at some point, and for Harry, who has spent most of his adult life in and around London.
The most royal-like location for a young couple with school-age children is Westchester. And the ideal home for Meghan and Harry may be a home recently occupied by another famous couple. Food Network host Sandra Lee’s home in New Castle is up for sale and has been reduced from $2 million to $1.7 million, and was recently taken off the market for a lack of interest or realistic offer.
Lee purchased the home in 2008 for $1.2 million. The other occupants of the home for more than 10 years were her then-boyfriend Gov. Andrew Cuomo and her three daughters, Kara, Michaela and Mariah.
The four-bedroom, six-bathroom Colonial-style home on Bittersweet Lane sits on 3 acres and has the security structure used to protect the governor that can be used for Meghan and Harry.
If the royal couple becomes serious about moving to Westchester, they are coming into a market that has too many houses for sale at more than $1 million and too few buyers. Real estate agents in northern Westchester have characterized the luxury market as “beyond weak,” and “there is a market shortage for buyers for million-dollar homes.”
The same can be said for real estate professionals in southern Westchester. “The first thing I hear from buyers is, ‘How much are the property taxes and how can I get them reduced?’” said one Sound Shore real estate agent. “There is fewer and fewer buyers willing to pay $35,000 per year in property taxes for a million-dollar home. Part of the reason for that is, in addition to the SALT deduction, the big money coming overseas to buy properties in NYC and Westchester has also dried up. China is no longer buying dozens of million-dollar homes in Westchester or apartments in NYC. And whatever happens in NYC is connected to Westchester.”
Lee’s property taxes, at $38,000, are considered cheap for a property valued between $1.3 million and $1.7 million. Usually, the standard for luxury Westchester homes is $30,000 in property taxes for every $1 million in home price or value.
For ultra-luxury homes in Westchester, priced at $10 million or more, the property taxes are $200,000 per year at a minimum. There is a property in Mamaroneck, directly on the Sound shore, with a property tax bill of $289,000, and the owners are seeking a tax reduction.
Fortunately, for the Duke and Duchess, Harry’s dad, Prince Charles, has agreed to pay for their expenses to relocate, including security and property taxes. Meghan and Harry might also want to find a more diverse community to live in… New Rochelle might be a good fit. The Clintons looked in New Rochelle before moving to Chappaqua.
Remember that the royals need at least 2 acres for privacy and security. If you know of a good home for Meghan and Harry, email us at dmurphy@risingmediagroup.com.
