After buying at peak, Rhode Island governor faces a big loss
This is the second blog in my series, Gubernatorial Real Estate Follies.
OK, just kidding. Still, last week I took a look at Gov. Deval Patrick's on again, off again hunt for a buyer for his $1.9 million Milton manse.
It seems only fair then to note that he is not the only New England governor who can't seem to come to grips with the reality of a down real estate market and find a buyer.
In fact, Rhode Island's Lincoln Chafee will likely take a big hit on his Providence home - that is if he can find someone to buy it.
Chafee, then a U.S. senator, shelled out $939,000 back in August, 2006 for a quaint, seven-bedroom Victorian in Providence's upscale College Hill neighborhood. Built in 1886, it includes nice touches like the original stained glass and woodworking.
But the house has proven to be an albatross for Chafee, who bought it just months before the former Republican was booted from the U.S. Senate in the fall of 2006 by Democrat Sheldon Whitehouse.
When he ran for governor as an independent last year, his opponent criticized Chafee for applying a residential homestead exemption on his Providence home that allowed him to cut his taxes, when in fact his primary residence was in Warwick.
With prices having fallen more than 30 percent from their peak in Providence, Chafee put his Providence home on the market for $889,000 back in February.
He has since dropped the price twice, to $829,000 and now to $799,000.
With the exception of a $930,000 house a few doors down, it is still by far the priciest house on the block. You have to drop down to $718,000 before you get to the next most expensive home in the neighborhood.
Apparently, Chafee tried to sell back in 2009, but couldn't find a buyer then, either.
He may be a shrewd politician, but when it comes to real estate, Chafee made the mistake of buying like a Democrat.
