GDoN Revisited by Hipchickindc – 914 3rd Street, NE


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 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: 914 3rd St NE
Legal Subdivision: Old City #1
Advertised Subdivision per Listing: H St Corridor
Bedrooms: 2 Baths: 2.5 Parking: Street Basement: Cellar, Unfinished
Living Area Square Footage Per Listing: 1050
Original List Price: $589,000.
List Price at Contract: $589,000.
Days on Market: 4
Settled Sales Price: $582,500.
Seller Subsidy: $2,000.
Settlement Date: 10/25/2013
Bank Owned? No Short Sale? No
Original GDoN post is: here.
The listing can be seen: here. To see pics, open the link above and click on the camera icon to scroll through pics.

Commenters to the original Good Deal or Not (GDoN) post seemed to think this was a “flip” (an investor property quickly renovated for re-sale). Rather, it appears to have been a savvy owner occupant sale, since the recent owners bought the property in 2000 for $82,000., prior to the resurgence of H Street and NOMA, but still very much close to Union Station. It was presumably in bad shape back then, as it looked like this in 2003, when it was unsuccessfully listed in 2002.

In the past six months, a number of small fee simple houses have sold in the immediate area. Agents like to market these homes as “condo alternatives” for good reason. Some buyers prefer the control over their own property and expenses for around the same price and size as a condo unit. Although when divided over two floors, the rooms tend to be on the smaller side, this house has the benefit of both a front porch and a private back patio area.

The listing agent was Wyvongela Watson of RE/MAX Allegiance. The purchaser was represented by Shawn Goldstein with Evers & Company Real Estate, Inc.

6 Comment

  • Way to take nearly perfect advantage of residence sale gain exclusion for a married couple (CPAs for sure).

    • LOL, great point! Though, had they sold it for a $509K profit, would have to pay taxes on the whole thing? Or just the $9K over the married couple exclusion?

      • Even if the net profit is $509K, the tax code takes into consideration money you put into the house to improve it. Say they put $100K into the house; that would then be subtracted from their net profit so it would actually be $409K instead of $509K. Also realtor fees, etc would be factored in, minimizing the profit margin even more.

      • Correct.

        I bet it’s a good feeling to only pay like $250 in tax on the sale of your $582K home, granted they needed to both live there in 2 of the past 5 years… i’m sitting for the CFP exam in 2 weeks if you can’t tell.

    • Interestingly enough, I don’t think the buyer is married.

  • You would only pay tax on the amount exceeding $500,000. So tax on the 9k gain. He is also correct, you get to subtract improvements, as those increase your basis. In principal, VERY few people pay this tax. If you are paying it, you likely sold your house for well over a million.

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