The Smart Way to Buy Real Estate in the Sullivan County NY Catskills

Sullivan County Real Estate for Upper End Buyers

The "upper end" of the Sullivan County property market ranges between $500,000 and $800,000 for non-lakefront properties, and somewhat higher for private lakefront or riverfront properties, with the top end 'trophy' properties climbing upwards of $1 million. In the under $1 million range, a buyer can still own a property that evokes an "Oh, Wow! This is spectacular!" response. In contrast, in the Hudson Valley, the upper end starts at $800,000 and "Oh, Wow!" property rises into the stratosphere. Within this range are beautifully set contemporaries, private lakefront homes, lovingly renovated farmhouses with views on acreage and riverfront estates. What we don't have are historical landmark houses (those gracious large Colonials overlooking the Hudson) or many stone houses — Sullivan County was settled later than Orange or Ulster counties, when building had advanced from stone to frame construction.

Moving beyond the mid-range, here are some of the options generally available:

Farmhouses with Acreage

There are usually a few farms for sale with 50 to 150 acres, with asking prices from $400K to $1 million. Often these properties have a rundown or unrenovated farmhouse. The house itself may not be in the most private setting (farmers generally wanted to be close to the road.). Some buyers of these old farms subdivide off and sell the old farmhouse and barn, and then build in a more private location on the remaining land. Occasionally, though, you can find an old farm where the farmhouse is set well off the road. These are generally more expensive. An area of particular appeal for this type of property is around Fremont Center and Callicoon Center, an area some call 'Celebrity Gulch' because of the number of celebrities who have purchased old farms in the area.

Renovated Farmhouses

The decade from 1999 to 2009 was the golden age of farmhouse renovation in Sullivan County. Compared to areas further east, Sullivan had a largely untouched stock of old farmhouses. The timing was perfect, with magazines like Country Living were popularizing farmhouse chic and New York City professionals on the prowl for their own farmhouses to renovate. The result is that Sullivan County has excellent examples of fashionably renovated farmhouses, many of which have graced the pages of those magazines. Few are on the market at any given time, but those that are can be surprisingly well priced, particularly compared to more noted famhouse-chic areas like Columbia or Dutchess counties. Expect to pay in the $400,000 range for a nicely done smaller farmhouse on 5 to 10 acres, up to $1 million + for a fabulously renovated larger "Love, Valour and Compassion" type farmhouse on 50 or 100 acres.

Contemporary and Modern Homes

While Sullivan County has a good number of 'contemporary' homes in the "cedar vacation chalet" style, we have very few modern homes, in the sleek "architect modern" vein. Buyers looking for striking modern architecture will likely find more examples further east, in the Hudson Valley and the eastern Catskills around Woodstock and Saugerties.

Contemporary homes here typically have an "outdoors mountain" feel, with lots of wood and expanses of windows open to views. They can range in size from more modest homes in the 2,000 to 2,500 sq. ft. range, to larger "family estate" sized homes as large as 6,000 or occasionally 8,000 sq. ft. Larger contemporary homes with substantial acreage, and possibly river frontage or a large pond can run into the multi-million dollar range, but there are less opulent examples without "estate sized" acreage priced well under $1 million.

Private lakefront

The biggest difference between the modest range of lakefront homes and upper end lakefront is the amount of acreage and privacy. In the moderate range, up to $500,000 or $600,000, houses are generally on smaller lakefront parcels under an acre with less privacy. To get an "On Golden Pond" type setting with more lakefront privacy, you're starting at about $600,000 and can rise into the $2 million plus range for a top end home at the Chapin Estate.

Our two top end lake developments are the Chapin Estate, featuring larger, often Adirondack lodge style, homes fronting one of two motorboat lakes, Swinging Bridge Reservoir or Toronto Reservoir, and Black Lake Estates, an older lake development on a lovely, private non-motorboat lake. In 2009/2010, asking prices for lakefront homes at Chapin have ranged from $795,000 for a 2 bedroom, 2,400 sq. ft. home on the Swinging Bridge side to $3,199,000 for a 5,200 sq. ft., 5 bedroom 6 bath home on Toronto Reservoir. Expect to pay in between $1 million and $2.5 million to be on the lake here. Less expensive non-lakefront homes are also available. Current Listings of Homes for Sale at the Chapin Estate.

Homes at Black Lake are not as large or grand as houses at Chapin. While more modest, many have lovely "On Golden Pond" settings. Houses on Big Black Lake itself (there are also two smaller lakes in the community) rarely come on the market. Expect to pay $700,000 to $1 million for a house with about 2,500 sq. ft.

Kenoza Lake, between Bethel Woods and Jeffersonville, is a newer gated lake community on a smaller, 90 acre non-motorboat lake. There have not yet been any resale homes on the market here yet, but a nice selection of 5 acre lakefront parcels are available for someone who would consider building. Expect a lakefront building parcel here to be in the $300,000 to $400,000 range.

Many of our other lakes have a handful of very nice upper end properties on them, interspersed with more modest properties. So an upper end buyer shouldn't just limit their shopping to the upscale gated lake communities. If you're interested in lakefront, I've written a page with much more information on lakefront homes in Sullivan County.

Riverfront Homes

Private riverfront, whether in the western part of the county on the Delaware River or in the northeast on the Beaverkill or Willowemoc, is very limited, due to a combination of factors. There are now significant development restrictions to protect the rivers, and along many rivers, the road runs between the homes and the river itself. While we have a lot of rivers coursing through Sullivan County, riverfront property is surprisingly scarce. On the big 3 trout fishing rivers — the Beaverkill, Willowemoc and Neversink — can be near impossible to find.

Lew Beach

While there is an actual hamlet of Lew Beach, a crossroads with a post office northeast of Livingston Manor, the term from a real estate standpoint generally applies to properties in the Beaverkill Valley that are part of the Beaverkill Valley 'community' developed by Larry Rockerfeller. The "Lew Beach" community crosses into 3 counties (Sullivan, Ulster and Delaware) and parts stretch almost as far as the Pepacton Reservoir. The Beaverkill Valley community comprises a few thousand acres, most of which is protected greenspace. Dotted among the greenspace are 50 or so private residences, on parcels ranging from about 5 to 50 acres. There are extensive covenants to protect viewsheds and ensure privacy. Home ownership here comes with membership in either the Stream Club or the Mountain Club, which provides access to the thousands of acres of protected land for hiking, cross country skiing, pond swimming and private fishing along the Beaverkill River, as well as the facilities at the Beaverkill Valley Inn and members-only club in Lew Beach. There is a strong shared belief in environmental protection among the homeowners here. Lew Beach is a paradise for fly fishers, with some of the best fishing on the Beaverkill.

Lew Beach is very private and very discrete. However, it is not gated. And while most homeowners here are quite wealthy, conspicuous displays of wealth are frowned upon, and the houses themselves, most of which are tucked into the mountains, are often quite modest. There is a strong bent here that if a house is too big, it can overpower the land.

Finding and buying a property here is, well, a bit of an undertaking. You don't just ask to have some listings sent, pick one or two, and then make a quick drive up to see them. You're asked to come spend the weekend at the Beaverkill Valley Inn, to get a feel for the place, and in the course of the weekend, see a few homes. The Beaverkill Valley people want to make sure there's a good fit, and any prospective homeowner shares the vision of environmental protection of the area.

There are very few houses on the market at Lew Beach, and they range widely in price. In 2009, there was one home sold in the $1.5M range, and another just south of $500,000. A good range to think about for property here is $750,000 to $1.25M.

Values and Appraisals

Very few 'select' properties are sold here each year, making it much more difficult to establish value based on a comparison of comparable sales. Higher end properties, particularly larger farms, private lakefront and estate-like properties, are priced and sold more like fine art than more pedestrian homes. If you're planning to use mortgage financing, and are purchasing a property above $500,000, there is a very good chance that 1) an appraiser is unable to find sufficient comps for an appraisal and 2) if the property can be appraised, the appraisal will come in below, sometimes well below, the agreed on selling price. As a result, buyers of more expensive properties should be prepared to put down a substantially larger deposit than the standard 20% or pay cash for the property. There are private mortgage lenders who do lend beyond appraised value, however, and individuals with high net worth can often get financing from their own private banking sources. I'm not saying its impossible to finance these properties, just that buyers should be prepared to bridge an appraisal gap.

Buying Land and Building

There are some estate-quality parcels here, and Sullivan County is one of the only places within a couple of hours of Manhattan where you can still find a 100+ parcel. Buyers are often surprised that larger parcels on the market are often priced more per acre than smaller parcels. Larger parcels (50 acres+) are typically priced at $6,000 to $8,000 an acre for nice land with 'features', like rolling farmland, hills with views, ponds, etc. Flatter woodlands, land that is more difficult to build, or large parcels that front on a main road, can be priced lower, at $3,000 to $5,000 an acre. And then there is what we call 'billy goat land', property that is rocky, very hilly and wooded, often with quite steep slopes and difficult access, that has been primarily used for hunting. This type of property, while possible to build, is very difficult and is usually priced around $2,000 an acre. 5 or so acre lakefront parcels range from the mid $200's on a smaller lake to as much as $800,000+ at Chapin.

Anticipate construction costs in the $200 per square foot range for higher end construction. Custom homes with very high end finishes and touches like peeled log railings, massive stone fireplaces and hand made tiles can run much more. It's quite possible to put up a house with nice natural finishes inside and out, but without over the top detailing, under $175 per square foot.

 

David Knudsen
845-468-5710
email: davidk@beechwoods.net

 

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