GDoN Revisited by Hipchickindc – 1321 Fairmont St NW #301

The Listing can be seen: here. To see pics, after opening the listing link, click on the main pic and scroll through.

This multi-unit building in Columbia Heights was updated and converted to condo ownership in 2004. Unit 301 sold in January 2005 for $197,760. less a closing cost subsidy of $7948. Given that this studio unit shows in tax records as having a total living area of 385 square feet, it’s not surprising that the owner may have outgrown it within a period of five years. The property was listed for $161,000. on the 15th of April, just in time for the Federal Home Buyer Tax Credit contract deadline.

Continues after the jump.

The Seller’s 2005 Boom era financing necessitated going the route of the dreaded short sale. A short sale means that the current market value is less than the amount that the Seller owes the mortgage lender. In this situation, the contract must be written “subject to third party (bank) approval” and, depending on the bank, can be an extremely frustrating process for all concerned. Buyers entering into a short sale process must be prepared to be extremely patient. Note that the closing timeframe for the above-mentioned tax credit was extended by Congress, in part, to accommodate the longer process of this type of transaction.

The combination of location, price, and the rush to beat the tax credit deadline resulted in a ton of interest. Listing agent Monica Youngling with Prudential Carruthers reported that three offers were received. She was kind enough to share that, even with a competitive bidding situation, the bank countered above the highest offer.

I’m curious if any PoP readers have experiences with short sales in DC? We’re seeing fewer of them downtown than in the surrounding ‘burbs, but they are definitely part of our current real estate culture.