Good Deal or Not? Pricey in Petworth Edition


This home is located at 3925 7th Street, NW:

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The flier says:

“Spacious semi-detached home with basement rental ($1050/month) just 2 blocks from Petworth Metro & the close to Columbia heights Shopping District. Two car garage, nice backyard, next to recent new development! Grab your agent and go take a look!”

You can find more info but oddly only two photos here.

Well, the one interior photo does look nice… The asking price is $639,999. But I noticed that the 2008 DC tax assessment is only $513,070. Is it common for the DC tax assessments to be much lower than the asking price?

14 Comment

  • Very few houses in Petworth ever sold for that much even when the market was great. The median home price in Petworth is $375K. They won’t get anything near that price. I have to wonder about the agents who will go along with a listing price like this?!?!

  • “Is it common for the DC tax assessments to be much lower than the asking price?”

    Yes, it is common in DC to see that.

  • It’s not unusual to see listing prices well above tax assessment, but these days, sold prices tend to be lower than assessment (as well as lower than Zestimates).

  • That said, this is a big house near the Metro, so I could see it going for anything up to $525k which would still be above assessment and its Zestimate.

  • Okay, sorry for posting 3 times, but this house:

    is a really good example of how overpriced the above house is. Better location, and since there are photos you can tell that it’s nice… now asking $595k. They’ll probably end up getting something lower than that, but it’s much more realistic… and below the tax assessment of $661k.

  • Without getting into which is the better deal (cause without more/better interior photos how can you really judge?), I can see the PoP GDON appealing to some people more than the house listed by anon 1:48 p.m. because it is semi-detached. And for me, who hails from the hot azz South, the air conditioner sticking out of the top window of the second house would be a turn off.

  • Based on Comps in the neighborhood, this looks like’s it’s 20-30% high. That’s assuming that the rest of the house looks as good as the one interior photo they have and the remodel was high-quality and not a cheap flip.

    But, people still have a tough time taking a loss or realizing that their homes aren’t worth what they hoped. If they want to sell, they’ll come down eventually.

  • I think there are better deals in the neighborhood, but it sounds as though it has a legal basement unit. A house with a legal rental unit is always going to appraise for more than an identical house without the legal unit. Even the house cited in Anon 1:48 will appraise for less because it is a “in-law suite” which indicates it probably doesnt have the certificate of occupancy.

    I think that it is priced fairly well considering what it will probably appraise for, but Im not sure people are looking for units with rentals these days

  • For this house to have a CofO, wouldn’t it need a front entrance from the basement?

  • Where are you getting your comps? Fully restored houses in this section of Petworth sell for 600,000+ if they are over 3000sf. On Zillow I found 1 house on Randolf near Warder that sold for 675,000, another on Quincey the sold for 575,000, another on Park Place for 629,000, another on New Hampshire near Taylor for 625,000. I think 639,000 for a corner house this large is a deal, even in this market.

    North of Grant Circle is where Petworth is still cheap.

  • Nate – you can rent out a basement even if it has no front entrance as long as there are stairs on the inside that the tenant can use in case of a fire

  • If this apt rents for 1050/mo say that would cover $125k of the mortgage. Then there’s over 500k for a house where you don’t have access to the basement. As I said earlier the median home price is 375k and from looking at the photo this is an average pw rowhouse. It’s at least 200k overpriced.

  • ColorMePetworth – I live in PW south of Grant Circle, about a block away from this house. Fixer uppers are selling for the low to mid 300s; renovated houses maybe the low 400s, although I haven’t seen any sales in the 400s recently. Yes, a few houses in the neighborhood have sold for more, but a couple years ago and not recently. I see no indication that this house has been completely renovated – the front yard is the first place I see zero effort. I’m not sure where you get that it’s 3000 Sq ft – I saw no way that house is any more than 1800.

  • I think PetworthRes has it right (although I’m not sure about “at least 200k overpriced”; I think maybe just 100-150k). Also, ColorMePetworth, I couldn’t find any of the houses you cited — do you have links or addresses?

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