Sold in 81 Days Almost $100k under original asking

1411-D-Street-Northeast

Good Deal or Not Revisited (GDoN-R) is a weekly post that reviews the settled sales data of a recent individual real estate transaction in the District of Columbia. Each post is a snapshot of the real estate market at a particular moment in time. GDoN-R generally posts on Friday in the late morning.

GDoN-R has been written exclusively for PoPville since 2009 by Suzanne Des Marais. Suzanne is a practicing Realtor with the 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: 1411 D St NE
Legal Subdivision: Old City #1
Advertised Subdivision per Listing: Old City #1
Bedrooms: 3 Baths: 1 Parking: Street Ownership: Fee Simple
Original List Price: $559,500. List Price at Contract: $510,000.
List Date: 11/10/2016 Days on Market: 81
Settled Sales Price: $462,000.
Seller Subsidy: $0.
Settlement Date: 3/1/2017
Transaction type: Standard

Original GDoN post can be seen: here.

The original listing can be seen here: here.

With high demand in the DC real estate market from both investors and owner occupying buyers, sellers can have great expectations. This property was originally priced very optimistically at $559,500., which is higher than what some nearby updated homes have been selling for. You can see recent sales activity in the immediate area here.

It’s useful to note that, while it may seem to sellers and prospective buyers that everything in DC sells above list price, the recent average list to sales price ratio in this area is slightly more than 5% below list price. That said, the listings in this sample were exposed to the market at the end of the election cycle, and through the cold months and holidays.

With the early Spring weather, we’re seeing an early Spring market, which means more listings launched, and a renewed sense of purpose among buyers who are hearing continuing reports of expected increases to mortgage interest rates.

The listing agent for this property was Norris Dodson III with Long and Foster Real Estate, Inc. Joseph Bernstein, also with Long and Foster Real Estate, Inc. assisted the Buyer.

7 Comment

  • Seems like the asking price is pretty arbitrary. I bet it’s a case of a a lot of owners just pushing their luck with insanely high price expectations. That being said, home prices can’t keep rising forever – especially in this Trump environment where the Federal government could really cut back spending and hiring (already happening).

  • This seems about right. Also, did anyone else notice 1320 Florida NE finally sold? I am pretty curious about what that went for, given the condition of the property and the market next door.

  • I don’t know if it’s a sign for the larger market, but it’s definitely a good deal for this particular buyer. It went under contract for $50k less than the tax assessed value! Wonder if there was something horrible uncovered during inspections or if not enough interest was generated by the terrible photos and the owners ended up having to sell to flippers?

    • Tax assessments aren’t generally a good indicator of market value. More likely, this house was vastly overpriced rather than someone getting a ‘good deal.’ Price anchoring is a thing, but it can only get you so far.

      • Actually, tax assessments aren’t generally a good indicator of market value in DC because they’re too *low*, being based off long-ago sales prices and minimal increases, not because they might be artificially high. An overly optimistic listing wouldn’t affect the existing tax assessment at all.

        • Eh, sometimes assessors go overboard, or go lazy. I once had an assessment come in for far more than my home was worth. The assessor just looked at the wrong things, I guess (I had ample comps to show it was worth nowhere near that much). In this case, the assessor may have just filled it in with the value of nearby, updated properties, and overvalued it that way (it is listed as being in “average” condition, which it is not, so this is my money for how it got over-assessed). I challenged my assessment and won, but this appears to have belonged to an older gentleman, so it might have gone unchallenged because of a lack of (a) skill; (b) will (he was already paying only a fraction of the assessment, so why bother); (c) care (those managing his affairs didn’t pay attention). It was sold by the bank, so there might not have been anyone helping, at all.
          .
          The relationship between assessed and market value can be tenuous in any direction.

        • That’s sometimes the case, but not always the case. An assessor has no idea of the interior condition of the home, and something in exceptionally poor condition can easily be overvalued. It looks to be the case here.

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