GDoN Revisited by Hipchickindc – 1873 Monroe St NW

Hipchickindc is a licensed real estate broker and a professional artist. Her official real estate bio is here and her art website is here. 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: 1873 Monroe St NW

Legal Subdivision: Mount Pleasant
Advertised Subdivision per Listing: Mount Pleasant

Original List Price: $749,950.
List Price at Contract: $749,950.
List Date: 03/10/2011
Days on Market: 17

Settled Sales Price: $749,950.

Settlement Date: 05/25/2011
Seller Subsidy: $15,000.
Bank Owned?: No Short Sale? No
Type Of Financing: FHA (See below for more thoughts on financing and pricing of this property)

Original Good Deal or Not post is: here

The listing can be seen: here. The virtual tour can be seen here.

I don’t know if it was on purpose or not, but this home was priced just about 3.5% above the loan limit for FHA in the DC area for a single unit. Higher pricing would have potentially pushed this property out of the realm of FHA (which allows a 3.5% down payment) and potentially into Jumbo financing territory. True, a lot of buyers in this price range plan to make a substantial down payment. Considering that this home did go under contract in 17 days to an FHA buyer, it does, however, highlight how important it is to consider how financing options can affect pricing. These are especially crucial issues to consider as we are potentially facing a significant drop in the ceiling for conforming loan limits in October, which will affect both buyers and sellers.

Continues after the jump.

1822 Monroe St NW sold for $749,000. at the end of March 2011 (incidentally with a conventional loan). 1863 Monroe St NW, which was entered by the agent “for comp purposes only”, sold for $575,000. in December 2010 (although there was little information on the listing, the price may be reflective of condition.) In the past six months, homes in Mount Pleasant of similar size to the subject property sold for an average of $664,073. (considering a wide range of conditions). The highest sale price within the past six months in Mount Pleasant for a similarly sized home was $822,000.

This particular home sold back in 1992 for $138,600. In 1997, well known Mount Pleasant agent Linda Low with Long and Foster listed the home. The buyer’s agent in 1997 was Alix Myerson, also with Long and Foster. In 1997, it sold for $186,000. Alix Myerson then listed the home in 2004. At the time, she was representing the seller and was the only agent involved in the transaction. It sold for $630,567., which was more than $30,000. above the list price. In 2011, Alix Myerson again represented the seller. Kudos to Alix for having participated in four sides worth of transactions on this property.

3 Comment

  • I like this block a lot. I lived a couple houses down a while ago, and other than some drug dealing and the occasional gunshot, it was very peaceful and calm around there.

  • Argh. Changing the requirements for conforming loans is a bad idea. Put ’em back where they were in the 90’s — no need for tougher standards than those that worked in the last part of the last century. Typical overreaction. If anything, this will depress prices.

  • Tres, I agree. Bad idea. Any Realtors who read this thread, please pay attention and RESPOND (will take you two seconds) to the Call for Action coming out very soon from NAR on this issue (as well as the flood insurance one)!

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