anyone knows what's going on with this CCDC listing?

[Anonymous]

Anonymous wrote:I saw the house and the agent explained the circumstances. I won't share here, since the reasons are personal, but they made sense for why they would need to sell it so soon. It's a great house but does need work.

11 days on market and 6 open houses so far, not looking good. Personal circumstances notwithstanding, no one pities anyone enough to buy their mistake. It will be interesting to watch.

[Anonymous]

Anonymous wrote:I saw the house and the agent explained the circumstances. I won't share here, since the reasons are personal, but they made sense for why they would need to sell it so soon. It's a great house but does need work.

Correct since here on this anonymous area of the Internet we have not hear of divorce, job loss, death, sick child,etc.

I am definitely waiting for the very personal reason LV increase the price by so much.

[Anonymous]

Nice area. Great house. But they definitely overpaid even in a hot market. It’s not worth 1.7 even in this market.

[Anonymous]

It looks like they also considered renting the house to tenants: https://www.apartments.com/3615-kanawha-st-nw-washington-dc/clznmqg/. The rent is also overpriced, but it seems they first considered retaining ownership.

[Anonymous]

$7950 FOR THAT PLACE?!?!? Omg, those people are delusional.

[Anonymous]

We live a block away in a similar but slightly larger and more updated house. The price seemed way high to me.

[Anonymous]

I rent a 1950 unrenovated house in CCDC. This is a larger 3/2, but I would say $4500 tops for rent. Renters don't like unrenovated spaces. $7950 probably covers the mortgage and taxes.

[Anonymous]

Anonymous wrote:I rent a 1950 unrenovated house in CCDC. This is a larger 3/2, but I would say $4500 tops for rent. Renters don't like unrenovated spaces. $7950 probably covers the mortgage and taxes.

$7950 covers mortgage and taxes on a $1 million mortgage, so that would have required a down payment of approximately $650,000. Even assuming that's the math that the sellers are using, it still doesn't really work, since monthly interest on that $650,000 in a risk-free money market account is about $2500. So really, the sellers would need more like $10,500/month just to break even if renting it out.

In short, this market is brutal if you end up buying then need to rent it out or want to resell. Prices are just way too high to make it work.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I rent a 1950 unrenovated house in CCDC. This is a larger 3/2, but I would say $4500 tops for rent. Renters don't like unrenovated spaces. $7950 probably covers the mortgage and taxes.

$7950 covers mortgage and taxes on a $1 million mortgage, so that would have required a down payment of approximately $650,000. Even assuming that's the math that the sellers are using, it still doesn't really work, since monthly interest on that $650,000 in a risk-free money market account is about $2500. So really, the sellers would need more like $10,500/month just to break even if renting it out.

In short, this market is brutal if you end up buying then need to rent it out or want to resell. Prices are just way too high to make it work.

You are taking into account the opportunity cost of the downpayment! I rarely see people do that.

There is also the tax deduction from mortgage interest, which may make the numbers work better.

[Anonymous]

Anonymous wrote:I saw the house and the agent explained the circumstances. I won't share here, since the reasons are personal, but they made sense for why they would need to sell it so soon. It's a great house but does need work.

Wait wait wait....their agent disclosed the seller's personal information to you? That is just bad business on their part and decreases the seller's negotiating power, I'm sure the sellers would not be happy to know this. And I hope they're reading this and fire the agent.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I rent a 1950 unrenovated house in CCDC. This is a larger 3/2, but I would say $4500 tops for rent. Renters don't like unrenovated spaces. $7950 probably covers the mortgage and taxes.

$7950 covers mortgage and taxes on a $1 million mortgage, so that would have required a down payment of approximately $650,000. Even assuming that's the math that the sellers are using, it still doesn't really work, since monthly interest on that $650,000 in a risk-free money market account is about $2500. So really, the sellers would need more like $10,500/month just to break even if renting it out.

In short, this market is brutal if you end up buying then need to rent it out or want to resell. Prices are just way too high to make it work.

You are taking into account the opportunity cost of the downpayment! I rarely see people do that.

There is also the tax deduction from mortgage interest, which may make the numbers work better.

This is not as great as it used to be. Buyer can only deduct the interest on the first $750K of their loan amount. Assuming 20% down that means the interest on remaining $610K is not deductible.

[Anonymous]

If the owners become landlords, then the mortgage interest is considered a business expense? Are there any limits on the deduction in this case?

[Anonymous]

Anonymous wrote:If the owners become landlords, then the mortgage interest is considered a business expense? Are there any limits on the deduction in this case?

talk to your accountant

[Anonymous]

Anonymous wrote:

Anonymous wrote:I saw the house and the agent explained the circumstances. I won't share here, since the reasons are personal, but they made sense for why they would need to sell it so soon. It's a great house but does need work.

Wait wait wait....their agent disclosed the seller's personal information to you? That is just bad business on their part and decreases the seller's negotiating power, I'm sure the sellers would not be happy to know this. And I hope they're reading this and fire the agent.

It was probably a lie. You really think the agent will tell someone, "Oh, they found a house they liked more, so they're ditching this inferior one"? No, instead the agent will concoct some "personal" reasons that no one can actually verify. Sellers probably know full well what's being said.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I saw the house and the agent explained the circumstances. I won't share here, since the reasons are personal, but they made sense for why they would need to sell it so soon. It's a great house but does need work.

Wait wait wait....their agent disclosed the seller's personal information to you? That is just bad business on their part and decreases the seller's negotiating power, I'm sure the sellers would not be happy to know this. And I hope they're reading this and fire the agent.

It was probably a lie. You really think the agent will tell someone, "Oh, they found a house they liked more, so they're ditching this inferior one"? No, instead the agent will concoct some "personal" reasons that no one can actually verify. Sellers probably know full well what's being said.

But that makes zero sense, Listen to what you just said. Let's say the agent is concocting a story and let's say the sellers are aware of it - the buyers are NOT aware that it's a lie or story line or whatever. And that is all that matters.