1434 S St NW Goes for $130,000 over asking price

A reader sends in word about 1434 S St, NW going for $130,000 over asking price. Apparently it was originally going for $949,500 and settled on 6/30/11 for $1,079,000 (more info here.)

Are you surprised that houses are closing that much over asking or do you think this one was under priced from the get-go?

51 Comment

  • What kind of idiot pays anything over asking these days?

    People in this area really do have too much money.

    • Uh, if the property was underpriced and there was competition?

      I’ve never said this before, but what an asinine comment.

    • A year ago I purchased a home for $5k over asking within the first few days my home came on the market. I am still convinced I would not live here if I did not put in that strong of an offer.

      This was after being in the market to buy for about 9 months and getting out bid by people that were offering about $10-$20K over asking and having cash to pay. This was in the Near north-east area. Some areas of DC are very competitive housing markets. Obviously there are some serious buyers looking for property around 14th st.

      I couldn’t compete with my meager FHA 3.5% down payment.

      • Yeah, it’s not like the buyer just decided to throw in an extra $130k they had lying around. You have to be very strategic when bidding in DC’s most competitive neighborhoods.

    • You obviously aren’t involved in real estate – I even buy properties over asking price when the numbers work out and I know what I’m buying.

      • me

        Yes, but- $5-20k over list price is one thing. $130k is a WHOLE ‘NOTHER ballgame. I don’t see how anyone would put their first bid that high, and I could only see it getting to that much over list price if there was a bidding war or some other competition.

  • Not surprised it went over asking. Seems to be great demand and low inventory these days which are pushing prices up.

  • I have no words to describe the awful decor. I have no idea why it would go for $130K more when the house needs to be gutted. I’m surprised it even appraised for that. All I can say is WOW! (congrats to the seller)

    • I don’t think you know what “gutted” means. Re-painting the walls for a few hundred dollars is not gutting.

    • What Kev29 said. If it were me, I might want to replace the carpeting with flooring and repaint some of the rooms (definitely the bathrooms), but this is not a house that needs to be gutted.

    • Someone watches too much HGTV….

  • It was an open market transaction.

    A good sign for property owners that have seen the value of their homes decline so severely in the past few years.

    Perhaps a sign of the times; they are a changing.

    That is a great street.

    • Things are improving, but not THAT much. This is an aberration and nothing to get your hopes up over.

      • Yep. It might just reflect someone who was revved up to buy this particular property or live on this particular street (which is a pretty nice one). I certainly don’t take it as emblematic of the broader housing market in DC.

        • Agree x 100. People are so quick to extrapolate from either a high-level pricing trends report (“DC average sales price rise 3%!”) or one-off examples such as this. I’ve encountered so many otherwise intelligent people who still seem to feel entitled to some ridiculous rate of return and so price themselves out of their pool of potential buyers.

          • It’s a 5-bedroom house in one of the most desirable locations in DC. Are people really so surprised that it went for over a million in the middle of the summer?

          • Agree as well – and am shocked as some of the finishes don’t look like a $1mil house.
            I’d think for that money you wouldn’t have to update bathrooms, kitchens or flooring in that neighborhood.

          • Obviously, updated bathrooms and kitchens are worth something, but the primary factors that go into pricing are location and square footage (including the lot to some extent). It’s very expensive to change the size of a house and even more expensive to move it. Plus, as to the latter point, half the value you’re paying in DC is for the plot of land on which the house sits.

        • There was more than one revved up prospective buyer on this particular property to achieve this result.

          As for inventory, the latest Delta Associates report ending June 30 shows new construction of homes including condominiums within the District of Columbia drying up within 12 to 18 months at current sales.

          So things are getting better and just may pick faster than you we think.

          • +1 I agree with all the other bullish opinions. I’d wager the buyers who bid this house up are people who’d prefer a Embassy Row 5 bedroom, but can’t afford one. This is their version of settling for a “transitional” neighborhood.

            The one thing everyone has to remember about this area is it’s relatively close to the White House. That is a very meaningful feature to some people who have a lot of money.

    • Property prices in 20009 have not been declining. The DC housing market has absolutely nothing to do with the rest of the nation. Just because there is competition for highly desirable homes in the District doesn’t mean that houses in Loudon are going to start ticking up again.

      • Exactly.

      • Nobody said that housing prices in DC are declining. This sale price simply isn’t indicative of the level of growth in DC. We aren’t even close to being out of the woods yet with this economy.

  • I think that area between 14th and 15th, R and U (borderstan) was undervalued in comparison to, say, one block up (between 15th and 16th), especially given the ongoing development of every square inch along 14th. The 1400 block of S, Swann, and T are going to continue to have insane appreciation. I never understood why those blocks were going in the 700s and 800s while the 1500 block was 300k more.

    • Because, as Tres sorta said, this WAS a transitional neighborhood. Used to be you didn’t go “on the other side” of 15th St. because 14th was so skanky. Now that block is equidistant, sorta, from Dupont, Logan, and U St. I think that’s a pretty kick-ass neighborhood, especially for hipsters with money.

  • This makes me very happy!!

  • I’m not particularly surprised.

    In relative terms, it sold for just about 13% over the list price, which is definitely not unheard of. In my zip code in June (according to the handy monthly Excel sheet that Kevin Wood does for PoP), the average was at least 100% of asking, with some homes throughout the range up to 144% of the original list price on the high end.

    • I agree that this is not surprising or unusual. I bid on a house in 2009, when the market was even worse, and it sold for more than $200k over asking.

      • Yup, we bought our house at the tail end of 2009 at 130% of asking after being outbid on a similar scale on every other property we were interested in. To be sure, our home is in a totally, totally different league compared to this million dollar home (as in take our house and quadruple it), but the month-to-month stats for small areas around the city still tell a pretty rosy picture on the whole, particularly relative to the rest of the country.

  • Is anyone surprised that homes in Dupont sell for over a million? Do you really think there are boundaries between neighborhoods that are set in stone? C’mon.. wake up. The inner city is coming back to life all around, and everything close in is being bought up and rnovated while the burbs are turning ghetto. DC today — and, more importantly, of tomorrow — is not DC 1985. Buy now before it’s too late.

    • +10000000000

      DC finally has everything (except government) going for it and has the potential of becoming a real international city. It has the architecture, parks/trails, museums, restaurants and landmarks that make it an incredible place to visit and now, more than ever, live in.

  • See what can happen when a neighborhood is NOT ruined by a massive entertianment complex?

    Previous Post:
    “Post Office (14th & T) withdraws ABRA application.”

    This post:
    “1434 S St NW Goes for $130,000 over asking price”

  • FYI, records show the seller bought the house in 2001 for $250,000.

  • homes are oftentimes underpriced in order to receive multiple offers and encourage bidding wars

    • I assume that is what happened here considering how over the list price this ultimately sold for.

      • Right. I imagine there are a lot of people looking in this neighborhood who are drawing the line at $1 million. So their searches are coming up with nice 2 or 3-bedroom homes, or maybe something a little bigger that’s closer to Shaw. Then when a 5-bedroom comes up on their radar they get worked into a frenzy, decide they have to have this house, and end up bidding more than they had originally considered paying for their new home.

  • I don’t know about owners working themselves up into a frenzy. I’ve been looking for the last couple of months and places in the Logan circle area are going from the 800s for 2-3 bedroom to up to 1.5 million for larger places. Interesting enough the 1.3s and 1.5s are selling as fast. What seems to be selling are the lower priced places. The lot is huge on this house with a backyard and two car parking (no car port). Think the owner was smart to price around 1 million. Think that what the house is worth. You get a great block, 5 bedrooms, parking and front and rear outdoor space.

  • I love that block of DC. Nice deep front yards with lots of trees. There are a few other blocks which have a similar vibe: S street between 11th & 13th (a few of the homes across from Garrison with deep yards) and T between 13th & 12th.

  • Correction to previous comment. S street between 13th & 12th (not 11th).

  • Hey, I used to live here in a group house in 1985!

    I’ll bet there are fewer rats in the house now.

  • The listing price is but a starting point of negotiations and in some cases might as well be $1. Sometimes the price goes up from the listing price, and sometimes it goes down. The buyers determine the price and in this case the starting price was clearly too low.

  • The price is not out of the ordinary. It was just priced very low to begin with. It took 2 months to sell so obviously there was a substantial bidding war.

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