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GDoN Revisited by Hipchickindc

by Prince Of Petworth February 26, 2010 at 11:00 am 15 Comments

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In real life, hipchickindc is licensed as a real estate broker in the District of Columbia, and as a real estate salesperson in Maryland. 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 Properties: 4714 15th St NW

Original List Price: $629,000.

List Price at Contract: $629,000.

List Date: 10/20/2009

Days on Market: 25

Settled Sales Price
: $629,000.

Settlement Date: 12/29/2009

Seller Subsidy: $15,375.

Bank Owned?: No

Type Of Financing: Hmmm. Type of First Trust Loan says “Other”.

Original GDoN Post is: here.

Recent Listings are
: here.

While a few posters came to the house’s defense, the general consensus of PoP commenters on the original Good Deal or Not (GDoN) post was thumbs down on the recent renovation. More than one person suggested that the property would sit on the market and sell for substantially less than list price. Having toured the property during its pre-renovation state, my only objections to the post-rehab photos are that a) I’m not a fan of photos with mops and cleaning supplies showing up in photos to be used for marketing and b) I have an aversion to modern gas fireplaces situated in corners. Someone apparently found the work to be acceptable enough to ratify a contract less than a month after it hit the market and paid a net to list price (sales price less subsidy=net divided by list price) of over 95%.

As was mentioned in the GDoN comments, 15th Street is a pleasant tucked away residential street within easy proximity to the major thoroughfares of both 14th and 16th Streets. Those who place great value upon Metro access may not like the location, however, being close to Rock Creek Park is a huge perk for others. The house was recently sold as a foreclosure in June 2009. Continues after the jump.

Tax records indicate that the property was purchased in 2001 for $163,900. less a $4900. subsidy from the Seller. At the time of that transfer, it is noted that the home had been a rental property. It is mentioned in that listing that “Rear enclosed porch structure has pulled away from house”. Unfortunately, the then-new-owners borrowed upon the equity in the property and ran into some difficulties. Wachovia took possession of the house on New Year’s Eve 2008 for $403,000.

Following foreclosure, the house was first listed in February of 2009 for $389,000. During the 49 days that the first listing agent represented the asset, the price was ultimately lowered to $338,900. Normally, this price would be considered an excellent deal in this location. I understand, though, why it may have scared more than a few brave would-be renovators. I recall touring the property with an architect client and that we both spent the entire visit with dropped jaws and looking for duct work. The listing from that time period clearly states that the property has “no heat”. That, in and of itself, is not at all unusual for many of the properties I sell to clients who rehab them. What was unusual was that someone had put in all new dry wall and done finishing work, but had not thought to address the question of heat source prior to closing up the walls. Bottom line…it all needed to be ripped out. Despite looking superficially like someone had done a lot of work, in reality, the property was a shell. Another agent took over the listing, priced it at $285,000. and it was under contract in three days, to ultimately sell at that list price to a cash buyer.

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