GDoN Revisited by Hipchickindc – 714 4th 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: 714 4th St NE
Legal Subdivision: Old City #1
Advertised Subdivision per Listing: Old City #1
Bedrooms: 3 Baths: 1.5 Parking: Garage Basement: No Ownership: Fee Simple
Original List Price: $499,900.
List Price at Contract: $499,900.
List Date: 8/7/2014
Days on Market: 5
Settled Sales Price: $665,000.
Seller Subsidy: $0.
Settlement Date: 9/5/14
Bank Owned?: No Short Sale? No

Original GDoN post is: here.

The original listing can be seen here: here.

Commenters to the original Good Deal or Not (GDoN) post were spot on in noting that this property was listed low and ultimately sold for significantly above the listed price. Over the past six months, fee simple property sales within a quarter mile of the subject property have ranged in price from $470,000. to $1,050,000. An updated home on the same block as the subject property recently sold for net $738,500.

It is specifically mentioned in the listing that the property is being sold “AS IS”. This has been a topic of discussion before, and it can be noted that “AS IS” is not necessarily explicit code for “there’s something wrong with this property.” What it more typically means is that the seller or seller’s estate does not want to deal with deferred maintenance or picky repairs. In a situation where there is likely to be multiple offers, it is not unusual for buyers to pay for and complete a pre-inspection before even making an offer. Having an inspection report in hand, up front, allows the buyer to decide if they are comfortable moving forward without an inspection contingency despite knowing about potential repairs. Another option is to use a clause referencing the general inspection (as opposed to a full blown home inspection), in which the buyer has the opportunity to inspect, but agrees to not negotiate price or repairs any further. The buyer may void the contract within the timeframe of the general inspection contingency if they are not comfortable with any found defects.

The listing agent was Bradley Wisley of Long & Foster Real Estate, Inc. Joe Mascio of Real Living at Home represented the buyer in this transaction.

7 Comment

  • Even at the settled price, the buyers seem to have gotten a great deal. The kitchen could use a remodel, but it doesn’t look critical. The rest looks from the pictures to be in excellent shape.

    • Agreed. Walkable to Union Station and H Street, totally livable property with central air and parking? Wish this had been on the market when I was looking.

  • I would love to know if it was bought by a flipper or the person(s) planning on occupying it.

  • Wow. 5 days and $166,000 in escalation clauses. Well played!
    I wonder if anyone with a $500-550k budget really thought they had a chance at this.

    • There most likely were several people who did. My agent said that in cases like these, where there is a big escalation, there is usually someone out there who even tries to lowball the original offer, i.e. go under asking price, just -because-. No idea why, but apparently it’s super common. Wishful thinking, I guess.

  • The buyers overpaid. I looked at this during the open house. It was worth more than the listing price, but nowhere near the 33% markup paid by the buyers. It was in livable condition, but just barely. The only full bathroom was tiny and the shower was literally falling apart and appeared unsafe. The kitchen was both dated and in poor condition. The garage reeked of mildew and mold. The bedrooms had piping for gas lights, so I suspect the electric was not updated. With a bit of money and some effort, the property will be great, but the buyers will easily exceed the $738,500 paid for the updated house down the block before it’s in top shape. Maybe not a rip-off, but no spectacular bargain either.

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