Sold in Eight Days for $600,000

gdon-r

Suzanne Des Marais is an associate broker with Bediz Group, LLC at Keller Williams Capital Properties . 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 and/or Smartcharts by Showingtime). Information is deemed reliable but not guaranteed.

Featured Property: 913 11th St NE

Legal Subdivision: Old City #1
Advertised Subdivision per Listing: Old City #1
Bedrooms: 3 Baths: 2 Parking: Street Ownership: Fee Simple
Original List Price: $575,000.
List Price at Contract: $575,000.
List Date: 09/18/2016
Days on Market: 8
Settled Sales Price: $600,000.
Seller Subsidy: $0.
Settlement Date: 10/17/2016
Transaction type: Standard

Original GDoN post can be seen: here.

The listings can be seen here: here.

The original Good Deal or Not post for this South of Florida Ave (do we still say So Flo?) house in NE near H Street…in need of a bit of work…drew a total of 46 comments.

Indeed, it sold $25,000. above list price, and is reported as a cash transaction in the multiple listing system.

Want to see what the subject property might look like after renovation? You can check out the pics from this late September 2016 sale of 929 11th St NE, which settled just shy of $900,000. Entered for comparable sale purposes only (so no pics to see), 931 11th St NE settled for $915,000. on the 3rd of this month.

The listing agent for this sale was Lawrence Garrison with Exit First Realty. According to the listing, Lawrence Garrison also assisted the Buyer.

49 Comment

  • What does it mean when a house is entered in the MLS “for comp purposes only”? I have seen that a couple of times and it confuses me.

  • People must really want to live near H St. I don’t get it, but all power to the seller.

  • 931 is a bad comparison. It is an end unit with a huge yard and is bigger. I hope to god that they do not do a popup and turn it into 2 or more condos….although I did hear that developers got it.

    If they do, which I hope they don’t, I hope it is tasteful like the one done at 900 11th street.

  • Sigh. Another “cash transaction” means another row home loses a chance to be restored as an actual row home and will turn into a pop-up with 3 condos instead. It’s better than dilapidated buildings, but man I wish regular people could get more of a chance to restore row homes properly instead of being outbid with cash by developers.

    • After the R-4 downzoning, only two units are allowed on an RF-1 under 2700 square feet.

    • HaileUnlikely

      I agree, though am not the least bit surprised. For the record on the original GDoN I argued that this was potentially a good deal for somebody who wanted to buy it as their home (not an investment) and basically everybody disagreed (I bought a home in worse condition than this and understand what is involved).

    • It was not priced for regular people in the condition that it was in

    • Well, it won’t be three condos, because a) zoning won’t allow it without a special exemption and b) the third unit IZ requirements for 3-unit conversions in a property like this rarely pencil out.
      .
      Honestly, estate sales are probably better off left to developers because a house in this shape probably has surprises that could very well financially ruin your average homeowner.
      .
      I kind of think the pop-up bubble is bursting a bit, at least in my neck of the woods. 750 – 850K popups are just sitting on the market for months now (granted, it’s the slow season, but they weren’t exactly flying off the market in the spring, either). I would not want to be buying something like this if my financing plan is contingent on unit sale prices of 900K/780K or whatever.

  • Yikes, did anyone see the last post on the GDoN post? *shudder*.
    .
    But yeah, this doesn’t surprise me at all considering the shell next door to me sold for $650K almost two years ago and it’s an identical floor plan. I’m a few streets further west, but on the same number block as this house.

    • I did! Was wondering if DC required disclosures of people dying in the house? I doubt it.

      • why would they. these are 100 year old houses, its probably safe to assume many people have died in all historic homes

    • In case anyone else was wondering what was in the last post on the original GDoN thread: “The previous owner died in the house and was found by a cousin many days later.”
      .
      IMO, it’s not really a big deal if someone died in a house unless they weren’t found for a while, and even then, it’s probably only significant if, say, the body was on the hardwood floors (vs. in a bed) for several days.
      .
      It used to be more common for people to die at home. Given how much of D.C.’s housing stock is 100+ years old, I imagine many houses had people die in them at some point.

      • My Grandmother died in hers. I remember getting the call and having to leave work. I got there just after they took the body away.

      • yeah, but it was never common to be found dead many days later. I don’t mean to be overly crass, but I left a package of Steak-umms in a dorm refrigerator over christmas break one year and they turned off the power. I had to throw the refrigerator out.

        • Comment Artist

          This is why you’d want to know. That dead human smell has a way of permeating just about everything after a while and is very difficult to get rid of.

    • When looking at houses this summer, my wife and I found one that seemed underpriced. Requested the disclosures and found out the owner had been killed in the house by her adult daughter, who was still on the run. House still went above asking though…

      • Northern CoHei has a funeral home converted into condos and people swarmed for them….. think that’s much more of a turn-off than an elderly person dying in their residence …

  • Lion of LeDroit

    The area just north of H Street NE and south of Florida Ave NE is the probably the most undervalued sub-market in the central core of DC at the moment. The $/sq ft in the area are currently half or less than half those of Logan Circle’s $/sq ft for comparable housing stock, with a brand new Whole Foods, REI flagship, a streetcar that is almost certainly going to extended to Georgetown along dedicated lanes, tons of retail/density/boutique hotels along H Street NE, Benning Rd, Union Market and Florida Ave coming online in the next few years. Having lived in DC since 2000 and seen the transformation of Logan Circle, U Street, Penn Quarter, Shaw, Bloomingdale, Eckington, Trinidad, and on and on, I’m struck by the consistency of commentary by certain individuals who’ve make the same proclamations of “how could anyone pay THAT much to live HERE” over the years, whilst prices continue to steadily rise across the core of the city and those same individuals end up showing up late to the party and overpaying with the rest of the peanut gallery.. H Street NE, along with the entire inner NE DC core, will be a LOT more expensive in 5-10 years, and a large rowhome convertible to two units at $600k will seem like a bargain basement steal, even without a pop-up addition. The demand for housing has dramatically shifted amongst both the young and the old (see, for example, the moribund housing market in Potomac at the moment), and there are only so many old rowhomes in the central core. Even presuming mature rates of demand growth, it’s all gonna get a lot more expensive in the medium- to long-term. Roar.

    • Really, the housing market sucks in Potomac? I knew the outer burbs were suffering, but I thought the close in ones were still strong. The thing about GDoN is it’s based on opinion. In my mind, a 600k fixer upper in this condition will never be a good deal. A beautiful house for a million dollars in a good neighborhood is also not a good deal to me because I don’t want to pay 1 million for a house. However, I understand people that make these purchases and for *THEM* it’s a good deal.

      • +1

        Decent area but a 600k shell is just not a good deal for me personally. I wouldn’t want to convert it to two units but rather rehab it to a single family row home.

        • Lion of LeDroit

          I understand the sentiment, but that sentiment is precisely why developers in DC are able to charge absurd $/sq ft for flashy, finished condo conversions or new-build units replete with builder-grade finishes (see, for example, the Lock 7 development nearby at 13th and Florida NE), while unrenovated rowhomes in the same location are being sold off to developers (and savvy homeowners) at relative bargain prices. Gut-renovating a rowhome will run you about $100-150/sq ft in DC even at retail rates, and many of the unrenovated homes in the city need far less work to turn them into lovely properties for a homeowner.

          You really can’t think of a house as a $600K purchase: you have to consider its per unit value, and determine whether the expected returns (both current and future) are in line with the equity/debt you put into or extract from the home. Very different to pay $600k in cash for a place than to finance it and use the delta to renovate the home. All of the upside goes to you, rather than a developer :).

      • “the housing market sucks in Potomac” – sort of an overstatement. There was an article in the Washingtonian saying the older Potomac people are having difficulty selling there $10 million dollar estates so they can buy their $10 million dollar condos in Bethesda. If I could choose between buying in Potomac and buying in DC, I’d choose DC every time.

    • “Even presuming mature rates of demand growth, it’s all gonna get a lot more expensive in the medium- to long-term. Roar.”

      Agree to an extent. This is an interesting discussion, because from my perspective, at a certain point if gentrification has spread so far that my only affordable option is Ivy City, people will look for something in, say, Alexandria instead. Eventually you’re far out enough in DC that commute becomes comparable, plus safety and amenities, etc.

      • I think it’s a bit disingenuous to call ivy city far out. I guess it depends on what you do/where you go, but it’s about equidistant to downtown as petworth, which is clearly seeing tons of gentrification. And it’s really close to shaw and everything that’s going in bloomington/eckington. Granted, it’s not served as easily by public transit, so from that perspective i guess it’s “far” unless you bus/bike.

        Anyway, stupid bone to pick but I think Ivy City will take off in a few years too with all the development happening around it.

        • I think Ivy City’s main disadvantage isn’t location; it’s available building stock. It just doesn’t have the number of good looking rowhouses other close-in neighborhoods have. It does have some good potential for industrial-inspired warehouse conversions, but I think the # of folks wanting a cute rowhouse with a yard > people wanting to live in an old tire warehouse. But, I have been wrong about things before.

        • You’re right Ivy City isn’t that far out from DC’s core but it is with regards to desirable amenities which makes a difference. Plus, like the eastern edge of H St.(please don’t give me “but we have the streetcar” bit), it is isolated from the Metro

      • Exactly. You can get to a place like Metro Center from Del Ray significantly as fast or faster than you can get there from many parts of NE.

        • Between the hours of 2am and 5am maybe… Otherwise 395 is a total shit show in both directions. I know because I live in NE and frequently go from downtown to del ray. There’s nothing easy about it. Going from downtown to NE can be quite simple if you are well versed in alternate routes and thinking on your feet.

      • Lion of LeDroit

        Understanding that it’s difficult to convey a nuanced analysis in a tit-for-tat comment forum, I generally believe (based on available demographic data, housing demands trends, and certain technological change) that most desirable coastal U.S. cities (i.e., NYC, SF, DC, Charlotte, Seattle, etc.) that are relatively dense, walkable, and replete with retail/amenities are going to remain extremely desirably by those at the top of the income ladder (which, in this country, is not an insignificant number of people, in absolute terms) for at least a generation. DC in particular has, I think, been undervalued relative to its peer group of cities: $/sq ft in DC have historically remained at a small fraction – say 20-30% – of the same metric in NYC or SF (and are still, today, trading at 50% of that relative value), whereas a world-class city (which, I think, DC is becoming) will eventually settle somewhere at 60-75% of $/sq ft of NYC or SF in the long-term. This is, obviously, my opinion, and based in part on “soft” metrics (i.e., when does a city start to have a “world-class” restaurant scene, when do foreign buyers start seeing a city as a desirable place to park cash, etc.), but I don’t think it’s particularly hard to see where DC is headed in the medium- to long-term.

        Ivy City, I would note, is a bit of a red herring, as its a formerly industrial area that will never have the same cache or appeal as Alexandria. It will likely remain a strange sub-market with high-end apts and great amenities, with a small subsidized housing stock lining its periphery. Union Market (post-development), Brookland, Capitol Hill East, Navy Yard, etc. are better modes of comparison for that type of discussion, but I’d note that they’re (and Ivy City certainly is) still closer to the core of DC than Alexandria for commuting purposes. I’d be willing to bet (and indeed, I have bet!) that the desirable, urban areas of the DC region all get more expensive, including Alexandria and NoVa, over the next decade.

        • I do not think anyone is arguing the desirability of housing in DC but rather would/could they themselves pay 600k for the house above that sold in 8 days. For some it just is not feasible to do so and would rather put that 600k on another property in the District instead of this shell. More power to the person or entity that can turn this property into something nice.

        • What do you think of Bellevue’s slowly rising market?

        • I’d actually posit this as a reason for buying in Baltimore, specifically close to the MARC, in neighborhoods like Bolton Hill, where you can get 3,500 sq/ft recently renovated brownstones for around $600k, or Tuscany-Canterbury, where you can get 2,500 sq/ft renovated Tudor-style rowhomes for $500k, in a 9/10 school district within walking distance to restaurants, parks, 3+ private schools, Johns Hopkins, and Loyola.

    • Let’s see what happens when interest rates go up.

      • Ok. We’ll revisit this discussion in the next 5-10 years, maybe.

      • Yup that renovated flip you picked up at the far end north of H St. for a bargain at $900k won’t have much upside when you’re asking the equivalent of $1.1M in todays market with 5 years of wear on cheap construction in a marginal neighborhood. To each their own but not for me

    • I agree with this view entirely!

  • (do we still say So Flo?) SodoSopa. I thought we stopped doing this? It’s embarrassing

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