Why some multimillion-dollar homes in Bergen County linger on the market for years

North Jersey has some of the priciest homes in the state and a busy luxury real estate market.

But a handful of properties in the most rarefied category, those priced well into the millions, have lingered on the market, some of them for years.

In Mahwah, for example, an $18.9 million home has been on the market since 2016, and in Alpine, a $15 million estate has been listed since 2017. Also in Alpine, the $33 million Stone Mansion has gone unsold since 2010.

Jeffrey Otteau, president of Matawan-based Otteau Valuation Group, said that overall, New Jersey had a strong year for home sales in 2019, with 119,384 sold, the most in 15 years. Of those, 458 sold for $2.5 million or more.

But he sees trouble brewing for higher-priced homes. Those selling at $2.5 million and up have been on the market for an average of 15 months in New Jersey.

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High-income households are leaving New Jersey at a rate of 500 a month, he said.

"The consumer, the purchaser, the user, the buyer of high-value homes is deciding to go somewhere else and buy there. That's the No. 1 concern," Otteau said.

He cited statistics from United Van Lines showing that 46% of New Jersey residents leaving the state make $150,000 or higher.

But not everyone shares his view.

Vicki Gaily of Special Properties, a division of the real estate firm Brook Hollow Group Inc., based in Saddle River, is the broker for the two of the nine highest-priced homes in Bergen County currently on sale: 200 Stabled Way in Mahwah — listed at $18.9 million — and 116 E. Saddle River Road in Saddle River (also known as Mill Pond), at $11.5 million.

The Stabled Way property is a 46-acre horse farm owned by Amy Towers, an influential philanthropist previously married to billionaire hedge fund manager Larry Robbins, and it offers a house with 10 bedrooms and 14 bathrooms and amenities such as a 20-stall barn and an outdoor infinity pool.

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It was put up for sale in 2016 originally for $35 million, which made it the second-priciest home in Bergen County at the time. It was relisted with a nearly 50% price cut on Jan. 24 after being off the market for three months.

Mill Pond is a 14-acre estate that holds a 3,000-square-foot French chateau, a nine-stall barn and a 2-acre aerated pond, and it has been on the market since August. The owners are listed as James and Colleen Wood, who purchased the home in 1995 for $5.3 million. James Wood was the CEO of A&P supermarkets who died in 2015.

In the case of homes in the $10 million-and-above bracket, Gaily said they can be a tough sell. She has sold only two homes in the past 20 years with a $10 million price tag.

“I think when you start dealing with properties that are, let’s say, $5 million-plus, the air gets thinner,” Gaily said.

However, she said she found success last year selling homes in the $3.5 million to $8 million range, raking in $50 to $60 million in sales. She said 2019 was a booming market for home sales in that price range when compared with the period from 2008 to 2018, and she sees that continuing in 2020.

“I think the thing that I am happiest about is since 2008, we have had more traction within the past year than we have had for a long time,” Gaily said. “I think it’s a sign that the economy has improved, and people are more confident coming on board and writing the checks.”

The New Jersey Multiple Listing Service lists 18 homes sold in Bergen County last year for $3.5 million to $8 million.

Gaily's firm sold a Franklin Lakes home at 17 Shinnecock Trail with seven bedrooms and 12 bathrooms in August for $7.9 million.

An 11-bedroom, 18-bathroom home at 887 Closter Dock Road in Alpine sold for $11 million in April, only to be relisted this month for $21.5 million.

Here are some of the highest-priced homes on the market in North Jersey and when they were listed for sale.

10 Farmstead Road, Mahwah - $16.7 million; $72,600 in annual property taxes. Listed for sale September 2018.

12 The Esplanade, Alpine - $15.1 million; $39,821 in taxes. Listed for sale September 2017.

24 Cambridge Way, Alpine - $12.9 million; $63,563 in taxes. Listed May 2019.

1 Alford Drive, Saddle River - $12.5 million; $43,162 in taxes. Listed November 2018.

38 Rio Vista Drive, Alpine - $12.5 million; $65,734 in taxes. Listed April 2018.

200 Stabled Way, Mahwah - $18.9 million; $105,155 in taxes. Listed January 2020.

116 E. Saddle River Road, Saddle River - $11.5 million; $88,728 in taxes. Listed August 2019.

887 Closer Dock Road, Alpine - $21.5 million; $163,276 in taxes. Listed February 2020.

18 Frick Drive, Alpine - $32.9 million; $276,545 in taxes. Listed in 2010.

The property tax situation

The Stone Mansion in Alpine, at $32.9 million, is the highest-priced of the homes listed publicly in North Jersey.

The 30,000-square-foot Stone Mansion boasts a ballroom, a "martini parlor," a 65-foot saltwater pool and a heated driveway. It also has a tennis court, a wine tasting room, 19 bathrooms and gilded chandeliers.

But the home has been on the market since 2010.

The owner and developer of the home, Richard Kurtz, said last month that the annual property tax bill of $276,545 has been an impediment. “It hurts when selling it, because people don't want a $300,000 tax,” he said.

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The other eight homes have tax bills ranging from $17,898 to $162,247.

The $10,000 cap on federal deductions of state and local taxes hurts New Jersey residents, who have to contend with high local taxes.

Otteau said the cap, which took effect in 2018, dissuades would-be buyers of luxury homes.

"It really caused high-value home buyers [to think], 'Do I really want to step up in value? — because the price isn't going to go any higher. In fact, it will probably lose value after I buy it, and I can't deduct my taxes anymore,' " Otteau said.

Gaily, however, is not as worried.

"I don't feel the SALT cap affects the higher-end luxury market as much as it affects the lower- and mid-tier price points. In 2018, buyers were holding back because the effect of SALT was an unknown," Gaily said. "When taxes were filed last April 2019, and people knew where they stood financially, it was no longer an unknown and the market opened up."

Ricardo Kaulessar is a local reporter for NorthJersey.com. For unlimited access to the most important news from your local community, please subscribe or activate your digital account today.

Email: kaulessar@northjersey.com Twitter: @ricardokaul