GDoN Revisited 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: 1816 Irving St NW

Original List Price: $499,999.

List Price at Contract: $365,000.

List Date: 10/22/2008

Days on Market: 155

Settled Sales Price: $310,000.

Settlement Date:  07/06/2009

Seller Subsidy:  $9,300.

Bank Owned?: No. 

Type Of Financing: Cash

Listing History: No sales history info on MRIS, so was possibly an estate.  Tax records show a transfer with no price in April 2009, which also suggests that it was part of an estate.

Original GDoN Post is: Here.

Recent Listing is: Here.  To see pics, click the arrows on the main picture.

Despite the “needs some work” condition of this property, commenters on the original Good Deal or Not (GDoN) post for this property thought it was an okay deal for the neighborhood when it was listed at $499,999. One person noted that, “this is the kind of listing that has me worried about home values. when was the last time a house in any condition sold for less than 500k in mount pleasant? I certainly haven’t seen anything this low in mount pleasant since I have been paying attention to listings.”

Given the comments and the number of my own buyer clients who inquired about the house, it surprises me that it stayed on the market for as long as it did. As some of the GDoN posters mentioned, it is small and needed a lot of work. Even being small and in crappy condition, at a net a tad over $300,000., I’d say the buyer got a pretty good deal. Just to reassure everybody that the values in Mount Pleasant are not totally taking a nose dive, here are the two and three bedroom sold comps since the beginning of 2009. You’ll see that the next lowest sold price to this sale is greater by more than $150,000.

34 Comment

  • I would certainly say they got a good deal. It was small and will likely need at least 150k put into it. I also dont think this style speaks to everybody. But a bigger one of these 4 doors down sold for close to 700 a couple months ago I believe.

  • where are people getting all this money to buy some of these crappy houses from. Are the drug dealers or corporate thugs?

  • Vonstallin

    cant get a feel for the place…crappy pics

  • com·men·ta·tor, when I see cash sales of properties like this, I usually assume it was an investor purchase financed through a private equity (also known as “hard money”) lender. The best rehab financing deal for an owner occupant right now for this kind of property is the 203(k) through FHA.

  • That is an unbelievable bargain. Someone will make a boatload on this. You can’t get condos in worse parts of the city for this price.

  • Hipchick, do you know anything about 2456 Ontario Rd NW? I saw it on the June Sales report also, and it sold for $700k with a $140k subsidy. I’ve never heard of such a huge subsidy before. Do you know what could be the story there?

  • can we get a follow up post on this when the purchaser puts it back on the market in 3 months for 650k

  • Just re-read the original GDoN. I hope all the posters there who said $499k was a good deal (one even said it was a great deal) don’t provide professional investment advice. Or free investment advice.

  • Sorry, it was 2123 Ontario Rd that had the $140k subsidy.

  • I am amazed that they got it for that price. In fact I just can’t believe it. $310K? That barely gets you a decent house in Petworth. I’m inclined to think that this is an error or there was something else going on off the books. Or maybe because it was an estate sale they didn’t understand the market and just sold it to the first person to make an all-cash offer.

    Anyway that’s ridiculously low for that neighborhood even for a small house that needs a lot of work. That is the bargain of the century. It doesn’t look any worse than any other house that hasn’t been updated in a long time, really, I mean it has walls and floors.

  • Jamie, it was on the market for 155 days so I’m sure that anyone who was willing to pay more for it had a chance to. I think the issue is that it was in really bad condition — a gut job — as some of the commenters said on the original post.

  • I just went back and looked at the comments. Actually the giant crack that was noted running the entire height of the house would probably have scared me off too. But even a total gut job would be a good deal at 310K.

    I would love to see better pictures of the inside, though. One man’s gut job is another man’s restoration project. I wouldn’t gut a house that had decent walls and floors (e.g. hasn’t been destroyed by water damage from years of roof/plumbing leaks).

  • I was interested in this place and scoped it out. The photo above makes it look much bigger than it is. In reality it is attached on both sides; it’s hard to make out where the property line is but from a best guess the place looks to be tiny, as others have noticed. The back of the house makes it look like it needs a ton of work: broken windows full of leaves, etc. Doesn’t say much by itself but not a good sign. Also there is very little space in the back, just enough for some steep parking. All in all, still a good deal, but not puzzling. The best deals right now will be on unrenovated houses because banks aren’t lending more than about 90% of the current value. If you have the cash to do the renovations you won’t face too much competition.

  • aAnonymous Says:
    July 10th, 2009 at 12:20 pm

    Thanks for the advice, I have 40k in the bank and can’t and 130 salary, and can’t find decent value in this town. What is going on, are we looking at future fraud and collusion on housing prices in DC. seems that way to me.

  • Just talked to the listing agent for 2123 Ontario…$140,000. subsidy was a typo. The actual subsidy was a more normal $14,000. She’s amending it now.

  • Thanks, hipchick. As I said, it was bothering me since I saw it on the June sales post a few days ago. Although, I am a little disappointed as I thought maybe I had uncovered some kind of fraud… 🙂

  • Good deal, so long as there’s no rotting corpse smell coming from the basement.

  • There is a For-Sale by Owner in the 1300 block of Meridian Pl if anyone is interested… house needs quite a bit of work.

    Here’s the number is you are interested 877-926-1773

  • is you or isn’t you? proofreading on friday…

  • monkeyrotica, as far as I know, not on this one. I really need to interview and do a post on the people who did, literally, buy a house that had a rotting corpse in it…not a skeleton like on Florida Ave, an actual melting-through-the-floor rotting corpse. They got a fantastic deal around Georgetown/Fox Hall. Not my clients, but friends of clients.

  • omg, hipchick – you seriously need to write that up. Yikes!

    I think this house is an unbelievable deal. Sure, not everyone is up for whole-house renovations, but there are some serious deals in this market for those who are ready to take it on. This is one of the best deals I’ve seen.

  • Great deal, even with $150K rehab. But not for long. This is a price leader and more will follow. Bye-bye 2006. We’re going back to 1998 prices by 2012. Alt-A bubble pop a comin’

  • Visited it when it was on the market and I think it’ll take a good 200K-250K to get 600K resale out of it. It was that bad. Serious structural issues on top of a total renovation and wiring/plumbing. And that’s only what I could see with my eyes. Not sure that as PetworthRes says “This is one of the best deals I’ve seen” – there are place in Petworth much nicer and in better location for significantly less.

  • @ Jax,

    If it’s in Petworth, hard to see how it could be in a better location.

  • “Needed a lot of work” is a gross understatement. I saw this property and it was a total gut job and very small. Nice street though.

  • Nothing in all of Petworth is a better location than Mt Pleasant.

  • Not the case with this place, but IMO, being close (

  • looks like comment got cut off. Meant to say:

    Not the case with this place, but IMO, being close (

  • I think it’ll clean up good. it will take a lot of money, and patience to do a gut rehab in a historic neighborhood, and it’s hard to get financing for these days for a property in this condition. Good luck to the buyer. Now, get going!

  • “and it’s hard to get financing for these days for a property in this condition.”

    Actually, it’s not that hard, but you have to do it as a rehab loan.

  • I was one of the other bidders on this property. My offer was $350k all cash, and it was about three months ago. However, the seller rejected it at the time. They called me a few weeks later and asked if I’d honor my offer, but I’d already settled on another property in Capitol Hill by Eastern Market.

    That being said, $310K is a good deal. It will sell for 699k pretty easily renovated.

  • what banks are providing 203k fix up loans?

  • Naomi, most of the larger banks do the k loans, although I am finding that some only want to do the regular 203 (without the k), which is the streamline and less than $35,000. in renovation costs. You need to find a loan officer who SPECIALIZES in this kind of loan, otherwise you will have someone who has to dust off the manual and doesn’t know how to address the details and challenges that arise from this more complicated loan process.

  • i’m jealous. wish i was the buyer. helicopters and bullets in petworth are driving me nuts!

Comments are closed.