GDoN Revisited by Hipchickindc – 311 Rock Creek Church Road, NW

Voted one of the best real estate agents in DC by the Washington City Paper Readers’ Choice Poll in 2009, hipchickindc aka the not-so-hip Suzanne Des Marais is an Associate Broker with Urban Pace. She lives (and sells a lot of houses) in Bloomingdale, but works all over DC, with everyone from first time buyers to highly regarded developers. 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: 311 Rock Creek Church Rd NW

Original List Price: $529,000.
List Price at Contract: $515,000.
List Date: 05/07/2010
Days on Market: 51
Settled Sales Price: $495,000.
Settlement Date: 07/26/2010
Seller Subsidy: $10,000.
Bank Owned?: No Short Sale? No
Type Of Financing: FHA

Original GDoN is: here.

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

The comment that stood out to me most from the original Good Deal or Not (GDoN) post was this from an Anonymous commenter: “Having recently been in the market trying to find a renovated rowhouse in the Petworth area for $500k or less, I would pay $500k for that place in a heartbeat.” I understand the sentiment and I think it is reflective of how significantly our inventory of available homes for sale has gone down in the past year.

Continues after the jump.

The recent sales in this location also tell an interesting story. Here are all of the fee simple (houses) properties which have sold since February of 2010 within a quarter mile of this property. You’ll notice that it’s a real mix of prices, which expresses the range of conditions of property currently in the neighborhood. While this was the highest settled price within this location recently, the number of sales of homes in need of renovation may suggest that soon we will see several properties fixed up in the immediate area. These may be owner occupied homes or they may hit the market as investor re-sales. Ironically, while the owner occupied fixed up homes are great for the neighborhood, it is generally the quickly turned around investor rehabs that drive the prices up by creating sold comps.

I also looked at all of the fee simple homes in Petworth that have sold since February 2010 for a settled sales price of over $475,000. Frankly, I was surprised to see only five, including the property profiled here.

14 Comment

  • $500k to live in shoot-em-up-ville DC, you’ve got to be kidding!

  • I think the comment that stands out the most is MK’s, where he said “Hopefully someone can get it for in the $490k’s.” He missed by only $5K.

  • Aheh…yeah, I watched this one with great interest as we back onto them across the alley.

    With regard to “creating comps”: this also sold for just over 10% less than the previous sale in 2006. So the comp, in my view, establishes declining prices. I think the sellers wisely cut their pricing aggressively, just in time to get it moved before things fell off the cliff with the expiration of the tax credit.

    The comment that stood out to me in the original GDoN was the person who called it spot-on at $495k. The house right next door is listed for $420, though it does not have nearly the reno job.

    There is a flip underway at the corner of Taylor and 3rd: larger house, fantastic yard, and quieter street. I think that will be very interesting to see.

    • My memory is bad! I should’ve looked at the original posting to see that it was “490s” not “495”.

  • It’s also interesting that only one of those 5 houses, 709 Shepherd, is super close to the metro (3 blocks) – the rest are probably between 0.75 and 1 mile.

    I’m trying to squeeze out some hope for selling my not-that-renovated house for over $400K, sigh. So we’ll keep renting it out.

    I’m getting the impression that there are getting to be more group houses in the neighborhood than there used to be – maybe indicating that there are a lot of people that wish they could sell but can’t. I remember how Mt. Pleasant was so FULL of group houses in the 90s and early 2000s – maybe a result of a previous real estate boom (80s) and bust (90s)?

  • Also interesting to watch will be the two total renovations happening on Marlboro.

    • You’re right – I forgot those. They are smaller though.

      I want to know what’s going to happen with the house on the corner of Marlboro and Shepherd – the one with the gutter in the front yard. Looked like a move-out or eviction of the Marlboro-facing unit.

  • bfinpetworth

    We looked at this house before making an offer on our house on 5th St. I really loved this house but my partner didn’t like the floor plan as much as in the one we bought. But the renovation on Rock Creek Church was probably designed by an architect – very distinct architectural features that you don’t find in even the best flips. A very clever master bath design that I’ve not seen anywhere else. I’m glad those women were able to sell it, but I know they were underwater and lost money on that house.

    Captcha: is euwearme

  • bfinpetworth

    There is also a new flip happening on Allison between 5th and Illinois.

  • Not sure how accurate the Federal/Colonial designation is but it would seem that this is a variety of housing stock not only based on bedrooms/bathrooms, but also based on longitudes and latitudes of the street. The cross streets tend to command higher prices. Two things to note, the average/median list price is below the average/median sold price, which is better than the reverse because buyers are bidding up prices more than sellers are reducing them. The average days on the market was 16. The bottom of the range almost all sold within 10 days, which leads me to believe those houses reflect the amount of work required and were probably snatched up by mostly investors. As mentioned, these will probably re-enter the market in the next several months-year. Those flips probably require $50-100k of work with mechanical, plumbing, and electrical upgrades occur with your standard finishes. Then factoring transfer taxes/closing costs/commissions and hopefully a profit, those houses should/could/might resell to reflect prices in the top half of the range. There are 7 units likely to get flipped, probably others in progress and 36 units with the “Petworth” designation on RedFin in 20011. Of those 36 units, days on the market range from 1-289 days, with properties further away from Grant Circle seemingly on the market longer because of less demand and high listing prices, likely due to its proximity to the metro/development.

    The big question is how much the tax credit accelerated the market demand. In this market it equates to 2% of the upper range purchase price of $425k…probably not that big of a deal, especially if the house is move-in ready with mortgage rates at 5%. Now you probably won’t get all new furniture, but if you are willing to pay $425k and can negotiate 3% (12,750) off, you are making out better anyway.

  • PetworthRes, you may want to hang in there for at least a couple of years to see what Georgia Ave development brings. I’m pretty sure value will go up. Way up.

  • There is a flip on 3rd & Farragut that is shaping up quite nicely. It will be interesting to see the price of this one considering it is not “walking distance” to the metro.

  • I did the renovation work on that house back when it sold in 2006. I think it sold for $565k. It was designed by an architect (3DG) and we were really happy with the details we were able to put in there.

    I feel sorry for the owners who took a substantial hit on that sale. With fees and expenses and such it was nearly $100k.

    I later sold a house around the corner for $615k. I think that was the very peak of the housing market. It has pink stucco. yeeeeeuuuck.

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