Friday, August 24, 2007

Friday Question of the Day

How come this house hasn't sold yet? I love this house. It is located right off of New Hampshire on 7th Street. It is a very good looking house as you can tell. The flyer says it has 5 bedrooms and 3.5 bathrooms. Is the asking price of $599,900 insane?

21 comments:

GuinnessPhish said...

yes, the asking price of $599k is INSANE

they would have a buyer instantly if they offered it for $450....hell...even $500k is possible...

pauper said...

It's the waiting game though. If the seller has the time, they're going to try to get as close to the $599K as possible. I'm sure most offers, if any, are coming in lower. And, while it looks great on the outside, there could be some big issues on the inside. I think buyers are a lot smarter these days.

Invisible Sun said...

The market is the problem not the home. A year ago, it would have been snapped up the 1st day on the market and FOR MORE than the seller's asking price. Now, it's a buyers market....

Mr. 14th & You said...

Yes, $600k is too high, IMHO. Doesn't mean someone won't offer it (in which case, you could argue, it *isn't* too high), but I'm not certain there is sufficient demand for $600k houses in Petworth to justify the price.

Which leads to my other theory about why the house hasn't yet been snatched up: it's a 5 BR house, which means (ostensibly) it's designed either for a family with children, or a couple who like having a significant number of rooms to put stuff into. As to the former, I don't think Petworth is high on the list of destinations for families looking to raise children. To the latter, the people looking for that type of home--and with that type of income--would likely be looking in other more established neighborhoods for their residence.

In short, the house may simply be too big. 2-3 BRs, even at an inflated asking price, might very well draw more offers than a 5 BR, no matter how lovely the house is.

mradequate said...

even my friends are having trouble selling and financing. but 599K for petworth is just asking for 11 or 12 months on the market.

Jason said...

I have not seen inside of this house.
If I interpreted correctly this house has an in-law/rental suit which has two bedrooms and a bath room. That leaves the main unit to have three bedrooms and two 2.5 bath.

So a small family can live in the main unit, and rent out the basement unit. The house was totally renovated, so $599 is not too high and it looks nice on the pictures on the MLS listing.

The problem might be the following.
The house is one of the highest price house in the neighborhood, so it has to compete with other houses in this bad market. Also, appraisal might come low, if someone once to finance it, since appraisal always based on similar house value sold in last 3 to 4 month within a few blocks.

Another issue might be, which I seen in many renovated house when I was looking for house, the house probably was renovated with a small contractor who done bad craftsmanship that really shows.

Third thing would be the house is empty. Only a few people have very good imaginary vision. So without furniture a potential buyer will not understand how it will look like when he/she woul move in. A few pieces of furniture may help selling this house.

By the way, I am not a real-estate agent, nor an interior designer.

Shaw Rez said...

5 bedroom house, to me, means 5 tiny bedrooms with small closets, versus a house with a master suite and decent sized bedrooms/closets. That's not likely to be a good fit as is for the average buyer in DC spending 600k on a place. But probably not a bad price given how attractive and well kept it appears; I bet the right buyer just hasn't seen it yet.

petworthian said...

It's not so much the asking price as the financing. Mortgage lenders are in dire straits -- that's why the stock market plummeted last week. Lenders can't get anyone to buy the paper on their mortgages, so they don't get enough capital to make more loans. (That's an oversimplified description, but that's the basics.) Essentially, credit has dried up, so it's not a good time to get a mortgage. And since a $599K asking price probably means a buyer would have to seek a jumbo mortgage (unless it's someone with a whole lotta cash on hand), that makes it worse. Even if the seller drops the price, the house will likely remain on the market until the credit crunch eases up.

pauper said...

Well put pethworthian...Those jumbo loans are RICH, one reason being that Freddie and Fannie can't buy jumbos from the lender to free up more capital to lend.

Anonymous said...

I saw the house when it was renovated, before it was bought by the present owners. It is lovely. Plus, it has an attic space, accessible by a staircase inside the master suite, plus parking in the back with an automatice gate. No, I don't know the owners. Truth is, the market is bad and an empty house (if this is so as someone said)is not going to cut it in this environment.

odentex said...

$599K seems high in this market. Who knows, houses in PW may be a $1MM before too long... or not.

Mr. 14th & You said...

"So a small family can live in the main unit, and rent out the basement unit. The house was totally renovated, so $599 is not too high and it looks nice on the pictures on the MLS listing. "

Here's the thing, though: the house may be lovely, but the neighborhood is still not "there". It's the same thing in Shaw right now--property owners seem to think that simply owning a house in D.C. entitles them to riches beyond belief. I have very little sympathy for property owners whose properties sit on the market for months on end largely due to the inflated asking price.

I can't comment on the in-law suite because I know nothing about the house, other than what was posted here.

Anonymous said...

We recently saw this house during an open house. I was not impressed with the renovations. The rooms were also small and the renovated attic space seemed to be completely unusable. It was very hot and stuffy and the ceiling was too low to stand in comfortably. The house also has virtually no backyard. Given these factors, I think the house is overpriced.

EmoEmu said...

The house is wildly overpriced. The market is not what it was last year or this spring for that matter. Why are people going to pay 600k to live in an "up and coming" neighborhood when they can buy in an already established neighborhood in the same price range?

Kelly said...

I think in December of 2005 it wouldn't have seemed so crazy, but now it doesn't seem priced to move. Under "normal" mortgage terms (by normal I mean 10% down 30 yr fixed, not the crazy stuff over the last 4 years), you'd need 90K in cash to cover the down payment and closing, and a 200K income to buy the house.

I know people in DC make a lot of money, but 599K to live in what a lot of people would consider to be a "transitional" neighborhood seems pretty high. I am bummed because I really like the transitional-ness of PW, but I could never buy here.

Ms. Tart said...

Maybe it's haunted!

Christina said...

If the house is not selling, the $599K price is, by definition, too high. It doesn't matter if the house would have sold for $750K the day before yesterday...the day before yesterday is not now. I don't know if the asking price is insane, but it's not the right one, at least, not if the owners are looking for a quick sale. Maybe they don't care.

Toby said...

Absolutely, it's too much in today's market, which is all that matters. Forget about what it would have sold for a year and a half ago. Why pay that kind of money and be able to hear gun shots at night, if you leave your windows open? It's an ugly truth, but it's real.

Lola Gets said...

Yes, yes it is insane.
:)
L

Anonymous said...

"I know people in DC make a lot of money, but 599K to live in what a lot of people would consider to be a "transitional" neighborhood seems pretty high. I am bummed because I really like the transitional-ness of PW, but I could never buy here."

I hear you Kelly, my husband and I make good money, better than average I'd say. But we just can;t afford a half a million dollar row house. Who has that kind of money for a starter home?

Alex said...

According to the District Extra in today's post a house near us, 727 Rock Creek Church Road, recently sold for $600K. The house is huge.