Good Deal or Not Revisited-PoP Always Wondered Edition by Hipchickindc


In real life, hipchickindc is licensed as a real estate broker in the District of Columbia and Virginia, and as a real estate salesperson in Maryland. Unless specifically noted, neither she nor the company that she is affiliated with represented any of the parties or were directly involved in the transaction reported below. Unless otherwise noted, the source of information is Metropolitan Regional Information Systems (MRIS), which is the local multiple listing system. Information is deemed reliable but not guaranteed.

Featured Property
: 1300 Kenyon St NW Unit 2

Original List Price: $529,000.

List Price at Contract: $529,000.

List Date: 04/24/2009

Days on Market: 15

Settled Sales Price: $529,000.

Settlement Date: 05/22/2009

Seller Subsidy: $5000.

Bank Owned?: No.

Type Of Financing: FHA

Listing History: Purchased from the builder new in 2004 for $420,000.

Original GDoN Post is: Here.

Recent Listing is: Here. Click the main pic to see the rest of the unit.

Note that this is the second Good Deal or Not Revisited (GDoN-R) to have been active on the market for a very short period of time. This property sold at asking price with a $5000. credit toward the buyer’s closing costs. Real estate in DC is moving at a nice healthy clip as lots of buyers are taking advantage of sub-5% fixed rate mortgages and the $8000. Federal Tax Credit for first timers.

Built by Bogdan Builders, the four units in this condo originally sold in 2004. I love that the previous listing indicates the date and time that offers were due in by. For anybody that missed the insanity of the DC real estate market in 2004, people really were falling over each other to make offers on condos and they were rushing to make those deadlines. The purchase price for the brand new unit was $420,000., but remember that at that moment in time, Target was a mere giant hole in the ground. The buyer paid cash.

One thing that we see on this transaction that never would have happened in downtown DC for a new condo in 2004, is that the buyer used FHA financing. FHA allows the buyer to make a 3.5% down payment, rather than the 15% minimum now required for many conventional loan products for condos. Since none of the condos built in the early to mid-2000s needed to get FHA approval for the entire building, the lender uses a process called a spot approval to make sure the building meets certain criteria, such as a limited percentage of units owned by investors and appropriate reserve funds in place.

8 Comment

  • $529,000!!! Taxes $4320!!!! and a HOA of $270? And what do you get?
    I don’t know, because I don’t get it. My house, which is 2 blocks North on 13th St is about 4 times the size with a back and front yard and a garage and loaded with original detail and charm. I don’t think I could ask or get that price and I have no HOA and my taxes are $1600/per annum although I don’t know if a new owner would be reassessed. Anyway, I have no intention of selling as I have lived in this house since 1980 and intend to be carried out feet first, but not too soon I hope.
    Also, I hate, hate, hate the colors of the exterior of this building, which I think is actually quite beautiful. I cringe every time I drive by. The photos of the interior do not really give one an idea of the size or layout, except that I can see it is a standard sort of open deal with a kitchen incorporated as part of the living area, something I cannot abide, but alas, seems to the ONLY way kitchens are presented.

  • Hipchickindc–do you see many FHA spot approvals? I’m considering a condo in a non-FHA-approved building and have wondered how difficult the spot approval process is.

  • This is good for people to see, who think DC is in some major real estate depression. The DC area might be seeing 17-18% price drops overall, but DC proper and the DC area are very different. I know of houses around me that have gone on the market lately that have had multiple offers. Hard for renters to understand, but the market here is not terrible.

  • Hipchickindc – Do you have any info on FHA approval or other mortgage insurance for smaller unit buildings? I’m trying to buy a condo in a converted row house in Columbia Heights. There are two units total. It is not FHA approved, and from what I’ve seen it can’t be spot approved because of the number of units. Seems like this is a problem for a lot of the old row house conversions, but so far no one can lead me in the right direction. Any experience in this?

  • I have been involved in numerous FHA spot approvals. The process is both FHA and lender-specific. For some reason, the questionnaires from the lenders are not standardized (yet), but the general guidelines and requirements are similar. It’s helpful to work with a lender who is familiar with the process.

    If I am working with a buyer who plans to use FHA financing, I explain up front that they will not be able to purchase in properties like the one you describe, ATD. Regarding mortgage insurance, I am aware of only one lender who has a product that allows 10% down with no mortgage insurance. Otherwise, I’m seeing it on everything with less than 20% down.

  • hipchickindc, would you mind sharing the name of the lender who allows 10% down without any PMI. I am looking to buy but I would hate to use up all of my cash for 20% down

  • Call Bart McKenzie at 703-841-5045 and tell him Suzanne at Urban Pace suggested you ask about the ChiP loan product.

  • Hipchickindc,

    Thank you sooo much!!! I will follow up and mention your name

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