'Other Hampton' Is In

This is the fifth article in a series examining various aspects of real estate on the South Fork.

"For many years it was the other Hampton, the last resort if you wanted to be on the East End," said Frank Newbold, a managing partner with Sotheby's, about Sag Harbor. Now, as other villages get more and more crowded, it seems that Sag Harbor has become the desirable alternative - popular for some of the very things that once put it at the bottom of an East End real estate shopping list.

"People used to look down their noses at Sag Harbor as a sort of blue-collar town," Scott Weiss of Harpoon Realty said last week. "It has come all the way around almost to where it was in the whaling days - diverse, very cosmopolitan. It's fascinating."

But, Mr. Newbold said, many feel Sag Harbor retains a rural character despite this, and the rural feel is what buyers want. "And," he added, "it's a fun town."

Fixer-Uppers

David E. Bray, a principal and managing director of Allan M. Schneider Associates, agreed. "Everything you like about it, they like about it," he said, pointing to the historic houses, the walkability, the waterside, and the community feel of the village.

In Sag Harbor, as in its neighbors nearer to the ocean, the sales market for houses and a limited supply of land has been booming. A house in the historic district can go for anywhere from $195,000 for an older fixer-upper to over $1 million for a large Victorian treasure.

But those fixer-uppers are getting fixed up fast. "There aren't many left," said Kathy Kingston of Harbor Cove Realty.

Antiques Attract

Their mid-range is from the high 200s to about $350,000. "We have a lovely Victorian house for $290,000," Mr. Bray offered.

According to Ernest Schade, the owner of Robertson Realty, "if it's not historic, you might find the occasional bargain of $150,000."

Outside the heart of the village, in Noyac or elsewhere, a two-bedroom ranch will go for $150,000 to $160,000.

According to Mr. Weiss, "whatever is on the market and is realistically priced is selling."

Most people know what they're looking for before they go through the door of the real estate office, he said. Many want an antique. "Instead of putting one on your shelf, you live in it," remarked Mr. Bray.

Catching Up

Those buyers may get lucky, because at any moment there are at least half a dozen historic Sag Harbor houses on the market, Mr. Newbold said. This spring, in fact, there seem to be many more - a drive through the village turns up hardly a street without one or two For Sale signs.

Not long ago, Sag Harbor was considered cheaper than its fashionable neighbors by the ocean. Now, prices have caught up. Mr. Newbold said houses that were being offered for $250,000 a few years ago were on the market for $495,000 this year.

Some buyers are surprised by the prices, brokers said. Even those who pay cash (and quite a few, apparently, do) have a budget.

"It's really a matter of education," Mr. Bray explained. "If you haven't lived here before, you need to be introduced to what's available at what price."

Wild Water

Sales of houses on or near the waterfront have been "wild," Mr. Weiss mand have soared. Any spot with a water view in Sag Harbor, brokers agreed, is both very expensive and very much in demand.

That includes neighborhoods like Redwood, a peninsula that juts into Sag Harbor Cove, where there are newer houses, and old resort-colony areas like Ninevah and Azurest on the bay.

Harpoon Realty recently sold two modern houses in Bay View, another small peninsula across the cove from the village between North Haven and Noyac, for $325,000 each. One of the buyers tore the existing structure down and put a traditional shingled house in its place.

Who's Buying?

Vacant land, which is hard to find within village boundaries, can start at $75,000 for a half acre. On the fairly new Archibald Way, off Jermain Avenue - an area without water views, but within walking distance of the commercial area and at the edge of the historic district - land sold slowly for a number of years. Now there are only a few lots left, Mr. Weiss said, and the asking price for a half acre is $110,000.

And who's buying?

Mr. Schade said it was people looking for "second homes, retirement homes, vacation homes."

"We draw writers, people in communications, fashion, advertising," Mr. Bray said. "The professional taste-setters," Mr. Newbold offered.

"If the other villages are Uptown, Sag Harbor is Downtown," he continued. "They like the funkiness, the quaint, old-time, small town feeling. The anchors of the community underlie that."

Priced Out

Indeed, the village still has many of its longtime businesses. In fact, small shopowners priced out in other places still find Sag Harbor a feasible alternative, although commercial prices are starting to push the envelope as well.

For example, the building at 29 Main Street that used to be home to Helena's restaurant recently sold for $747,000. Another Main Street commercial building is on the market for $1.1 million.

Mr. Weiss, a longtime Sag Harbor resident, mentioned a new worry that has been familiar for at least a decade in the villages to the south. "The hesitation is when it starts to get too expensive for the working people to live here," he said. "For $150,000, they can barely do it. It will be a loss if these people can't afford to live in the community anymore."

There are still plenty of year-round renters in Sag Harbor because of the number of small houses and apartments there. They pay $800 to $1,500 a month and "when they find a good place at a reasonable price, they stay put," said Mr. Newbold.