Deed Analysis, February 10 - 27 East

Real Estate News

Real Estate News / 1416441

Deed Analysis, February 10

author27east on Feb 7, 2011

13 Diane Drive
Unincorporated East Hampton $680,000
21 Diane Drive
Unincorporated East Hampton $1,935,000

These homes are located in the Hampton Oaks subdivision in the Northwest Woods of East Hampton. The subdivision, which has two community tennis courts, consists of three streets with approximately 50 homes and was developed circa 1980. Most lots sit on approximately half an acre up to three quarters of an acre.

13 Diane Drive, which was built in 1988, is typical of many aging homes in Northwest. It is a contemporary saltbox, 2,000 square feet, with a double-height dining/kitchen/living room with fireplace, one bedroom downstairs and two bedrooms, which share a bath upstairs.

Depending on size, condition and location, homes here have been selling in the $600,000s in this market. Often they are located on half-acre lots, but because this house is on three quarters of an acre, has a pool and access to the community tennis courts, it sold in the high $600,000s.

21 Diane Drive, just down the street, is a 4,800-square-foot traditional home built on speculation in 2009. It contains six bedrooms, 5½ baths and a two-space attached garage. The large great room, paneled den, chef’s kitchen, coffered ceilings, double-height entry and baths with oversized tubs and glass enclosed showers are all attractive and typical of mid-range speculation houses.
What makes this house unusual is its location. At almost $2 million, it appears to be the highest price ever paid for a home in this subdivision. Last year, a new modern home sold in the same neighborhood for $1.9 million.

While East Hampton has an extraordinary range of home values—from $400,000 to $40 million—it is very unusual for a home to sell in a sub-$1 million neighborhood for twice that value. Is it a good idea to own the most expensive house on the street?

Most real estate professionals will tell you that from an investment perspective it is best to own the least expensive house on a street, or, even better, raw land. This is because land has the potential to appreciate, while structures tend to depreciate in value as they age. In addition, raw land and small older homes have much lower taxes and maintenance costs than big new homes.

From a strictly financial perspective, 13 Diane Drive may be a better investment than 21 Diane Drive, although 21 Diane is a lovely home which offers far more to its owners than 13 Diane. Only time will tell if 21 Diane is an outlier (too expensive for its neighborhood) or ahead of its time and the first of many $2 million homes in Hampton Oaks.

337 Paul’s Lane
Bridgehampton, $2,750,000
28 Baiting Hollow Road
East Hampton Village $2,900,000

These homes were built in the late 1970s. The Paul’s Lane house is a three-bedroom contemporary in the center of Bridgehampton south in a fairly busy location. The Baiting Hollow house is a gambrel-roofed barn-style traditional located in the Georgica neighborhood.

Both of these homes are tear-downs and two more examples of one of the strongest market sectors. Vacant land and tear-downs sold briskly throughout 2010 south of the highway and show no sign of stopping.

If accurately priced, these properties should sell quickly and easily because post-crash land values south of the highway are well established. Both are on 1-acre lots, and as these transfers and many others show, these lots tend to be worth around $3 million, sometimes $4 million, depending upon exact location.

You May Also Like:

Quail Ridge Residents Scramble After Apartments Are Purchased for Redevelopment | 27Speaks Podcast

The tenants of Quail Ridge — the two dozen studio and one-bedroom apartments spread over ... 3 Jul 2025 by 27Speaks

Water Mill Property Where Hal Buckner and Dorothy Lichtenstein Left Their Marks Is for Sale

A Water Mill property that hosts a former dairy barn turned artist’s studio and a ... 30 Jun 2025 by Brendan J. O’Reilly

Sundays on the Bay Hits the Market

Sundays on the Bay restaurant and marina on Dune Road in Hampton Bays has hit ... 29 Jun 2025 by Staff Writer

Hamptons Rental Market Remains Alive and Well

To paraphrase Mark Twain, reports of the demise of the Hamptons summer-rental market are greatly exaggerated. “Any hint that the Hamptons rental market is anything but robust is completely wrong,” said Corcoran associate broker Gary DePersia in East Hampton. An interesting dynamic is stirring in the Hamptons vacation-rental market. Although there has been an unprecedented rise in short-term rentals and the aftershocks of the COVID-19 pandemic linger, it has been a bumper crop year for Wall Street, interest rates have remained steady and a new breed of demanding customer is emerging. Despite it all, the Hamptons vacation-rental market remains as ... 19 Jun 2025 by Joseph Finora

Jon Vaccari Joins Noble Black & Partners at Douglas Elliman

Jon Vaccari, a longtime resident of Sag Harbor, has joined Noble Black & Partners at ... 18 Jun 2025 by Staff Writer

Appeals Court Sides With Landowner Over Southampton Village ZBA

Southampton Village has lost an appeal that sought to reinstate a Zoning Board of Appeals ... 12 Jun 2025 by Brendan J. O’Reilly

Last Parcel of Startop Ranch in Montauk Sells

The last plot of land at Startop Ranch in Montauk, 107 Startop Drive, has sold ... by Staff Writer

Hamptons Real Estate Roundtable, Memorial Day Weekend 2025 Edition

With Memorial Day weekend about to kick the Hamptons into high season, The Express News ... 22 May 2025 by Moderated by Brendan J. O’Reilly

Au-Delà Real Estate Vows To Go 'Beyond'

Au-Delà Real Estate, a new boutique real estate firm based in East Hampton, is now ... 20 May 2025 by Brendan J. O’Reilly

AI Helps Rental Seekers Find Homes That Match Their Aesthetic Preferences

Consumers increasingly have an expectation of superior, more personalized service based on their own particular ... by Steven Loeb