GDoN Revisited by Hipchickindc – 22 16th Street, SE

Hipchickindc is a licensed real estate broker. She is the founder of 10 Square Team and is affiliated with Keller Williams Capital Properties. 10 Square Team is a princeofpetworth.com advertiser. 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: 22 16th St SE
Legal Subdivision: Old City #1
Advertised Subdivision per Listing: Capitol Hill
Original List Price: $589,900.
List Price at Contract: $589,900.
List Date: 09/19/2012
Days on Market: 11
Settled Sales Price: $589,900.
Seller Subsidy: $4,477.
List to Net Sales Price Ratio: 99.24%
Settlement Date: 11/02/2012
Bank Owned?: No Short Sale? No
Type Of Financing: “Unknown”
Original GDoN post is: here.
The listing can be seen: here. To see pics, click on the camera icon after opening the link.

A few weeks ago Good Deal or not Revisted (GDoN-R) focused on a property nearby, a tad further north of Lincoln Park. Although both areas are generally referred to as “Capitol Hill” or “East Capitol Hill”, as it were, this property is closer to the Stadium Armory Metro and is located in the southeast quadrant.

This property is somewhat intriguing because of the mention of “a $28k solar panel system which saves $100 per month in electric”. This particularly interests me as I’ve recently been involved in some discussions with real estate professionals regarding how green features contribute to overall property value. It’s a conversation happening within the professional associations of appraisers, real estate agents, multiple listing system designers, lenders, home inspectors and energy auditors, as well as being an area of interest for many buyers.

The challenge at present is for the various entities to come up with a shared system of quantifying the features and the value that is added. So far, the most practical system that I am aware of is that used by energy auditors in the process of evaluating improvements to be financed by an FHA Energy Efficient Mortgage or EEM. In that case, the auditor rates the property based upon the cost savings per month over time (as mentioned in the listing for our subject property, for instance). I’m sure we’ll continue to hear more about the impact of energy efficient improvements upon the value of properties as the systems for evaluating them become more consistent.

The listing agent for 22 16th St SE was Rod Rochowiak with Stages Premier. Robert Crawford with Coldwell Banker Residential Brokerage represented the buyer.

8 Comment

  • Spending $28,000 to save $100 a month on the electric bill is a pretty stupid proposition. Speaking as an environmentalist, this is disappointing because there’s vastly more cost effective ways to reduce your carbon footprint.

    • T, that is certainly part of the conversation regarding how to value these types of improvements. In some cases, there may also be grants or other incentives that factor into the up front costs.

      In a recent energy audit that I attended, most of the recommendations from the auditor related to sealing and insulating.

    • If the panels last 30 years, which they should, you end up saving $8,000 over that time period. In addition, many states and the federal government provide very nice tax breaks for people investing in solar for their homes. So I do not think it is a stupid proposition. I do agree though that energy conservation is a more cost effective way of limiting your carbon footprint.

      • Do you think it’s reasonable to believe these panels will last 30 years and incur no maintenance costs? Trust me, you’re not saving $8,000 and I bet it’s easy to lose the value of whatever tax credits are out there too.

        • A majority of systems are guaranteed to last 25 years and in most instances last close to 40. Yearly maintenance, usually just involves 8 hours of cleaning and inspection of the panels. However, you will likely have to purchase new inverters at least once during the lifetime of the system which could cost a few thousand dollars. The federal tax credit is 30% of the cost with no upper limit. There are other alternatives like solar city which lease the panels to you, if up front cost is an issue. I am not saying that solar is the right solution at every location (south facing roofs with no sun obstruction are key) but it is something that should not be dismissed as “stupid”.

        • Sorry, the above post was from me.

      • “Saving” $8,000 across a 30 year period from a $28,000 up front investment is a huge money loser in finance terms. TVM FTW.

  • First, I doubt the owners actually paid $28k. Given the DC solar rebate (expiring this year, perhaps being renewed), federal taxcredit and selling of solar credits (Pepco is obligated to do renewables and thus buys house solar), this was probably installed at a cost of below $12k, maybe even lower. Second, we’re taking resale here so is it a plus to have it already there–I would think any home buyer would appreciate $1200 in utility savings, maybe more as elec costs rise.

Comments are closed.