Are these H St. NE / Capitol Hill houses priced appropriately?
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Anonymous
I'd be curious if some of the homes going under ask are being sold to cash buyers or people who have funds for large down payments. Some sellers will accept a low offer if it's all cash with a short close. It's just a low stress transaction with fewer hoops to jump through because you don't need bank approval. If your are trying to free up equity for a purchase, or relocating, it can sometimes be worth it to take a below-ask cash offer if it speeds up the transaction, limiting costs like staging (which can actually be quite expensive, especially for a 3-4 bedroom house). There's also just a lot of benefit in certainty, especially in the current market where there may be fewer buyers total, so if someone withdraws an offer it can pose significant difficulties. Other buyers might assume something is wrong with the house even if the issue had to do with buyer financing or cold feet over their mortgage payment. |
Anonymous
| Are people aware that interest rates have almost doubled in the past six months and prices have not yet adjusted? |
Anonymous
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Let’s play “Why aren’t these homes selling” All north of H and under $1 million.
1. https://www.redfin.com/DC/Washington/905-K-St-NE-20002/home/9903999 2. https://www.redfin.com/DC/Washington/241-K-St-NE-20002/home/9890845 3. https://www.redfin.com/DC/Washington/1316-I-St-NE-20002/home/9912374 4. https://www.redfin.com/DC/Washington/921-L-St-NE-20002/home/9903904 5. https://www.redfin.com/DC/Washington/914-Kent-Pl-NE-20002/home/9903862 For 1 property I have my suspicions as to why it’s struggled to sell, but a few seem like good bargains for the area. |
Anonymous
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Here are my theories:
1. https://www.redfin.com/DC/Washington/905-K-St-NE-20002/home/9903999 -- teeny tiny (like smaller than a lot of condos) and no parking. The location is really good IMO -- that's far enough off both H St and 8th to avoid the unpleasant aspects of the commercial corridor, but it's a really lovely block and you have great proximity to Whole Foods, the streetcar, restaurants, etc. So I think it's really the size and that it's hard to justify 900k for something that small, especially with no parking/yard (though the deck is nice). Also, the target buyer pool for smaller homes is shrinking faster than for others because these are more likely to be first-time buyers, who I think are much antsier about rates and not overpaying. 2. https://www.redfin.com/DC/Washington/241-K-St-NE-20002/home/9890845 -- right next to Indigo and that big patio, it really scares off buyers and I get it as I would not even want to share an alley with a bar or restaurant do to noise/trash/pest concerns. Bummer because I think it's a cute house and that's an amazing commute for someone who works in NoMa or on the Hill. 3. https://www.redfin.com/DC/Washington/1316-I-St-NE-20002/home/9912374 -- I don't know, this seems like a great investment, a bit of a blank slate but still that's the appeal. Still totally livable so you could buy and fix up as you go. Surprised they haven't gotten a bite at at least 799/800k 4. https://www.redfin.com/DC/Washington/921-L-St-NE-20002/home/9903904 -- this pops up in my suggested homes on Redfin constantly and every time I think about how ugly the finishes are. I absolutely hate the flooring, it gives me a headache. A shame because that income unit would be nice. Although this is not my favorite part of this neighborhood. But I really think the design choices are turning off buyers. 5. https://www.redfin.com/DC/Washington/914-Kent-Pl-NE-20002/home/9903862 -- Fantastic investment opportunity but I think it's listed too high because it needs A LOT of work. Tons of potential though. I'd pay no more than 700k and would want it for closer to 650k (or lower?) because the cost of renovations are so high right now. It needs a new kitchen, overhaul current bath and add a second (powder room bare minimum), total systems overhaul (HVAC alone is going to be $$$), plus a major exterior facelift especially of the back. |
Anonymous
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1. Priced too high out of the gate. It could have easily sold if priced around $840 when listed. Now interest rates have increased and it sits. I’m surprised the sellers haven’t adjusted the price more at this point.
2. Agree with pp, it struggles due to its location next door to the Indian restaurant. 3. Close to a busy intersection but I’m also surprised it hasn’t sold yet, especially considering it has a garage 4. That flooring is hideous. The investor/developer must have been drunk when selecting. 5. Ugly exterior might be deterring buyers but I think it’s a bargain |
Anonymous
Anonymous
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Adding some context with BRs/BRs/square footage/price:
3BR/2BA, 1088 sf, $895,000: 1. https://www.redfin.com/DC/Washington/905-K-St-NE-20002/home/9903999 That's a lot of money for just over $1000 sf. 3BR/2BA, 1402 sf, $849,900 (listed at $965,000 on 5/31/22): 2. https://www.redfin.com/DC/Washington/241-K-St-NE-20002/home/9890845 I kind of like this one. Hope you like the smell of Indian food, though (it's right next door to Indigo). 3BR/2BA, 1120 sf, $805,000 (listed at $850,000 on 7/23/21): 3. https://www.redfin.com/DC/Washington/1316-I-St-NE-20002/home/9912374 They've been trying to sell this for over a year now. Again, this seems like a lot of money for a little over 1100 sf. The current pictures don't look awful, but they don't great, either. I wonder ho bad it looked when it listed. Also, it's a bit too close to Florida Ave. IMO. 3BR/3.5BA, 1782 sf, $984,900 (listed at $999,000 on 8/11/22): 4. https://www.redfin.com/DC/Washington/921-L-St-NE-20002/home/9903904 That floor hurts my eyes. It's an ugly flip too close to Florida. It's also fairly short, with a combo living/dining room, and one of the 3 BRs is in the basement. Asking just under $1M in August was optimistic. 3BR/1BA, 1200sf, $715,000: 5. https://www.redfin.com/DC/Washington/914-Kent-Pl-NE-20002/home/9903862 The price is a lot better for the square footage. Again, though, it's pretty close to Florida Ave., and I expect that the market softened there more quickly than it did in Capitol Hill proper. Window A/C, and that stupid oval window Home Depot door will never look right in a Capitol Hill (ish) rowhome. From the photos, it looks like it needs a lot of work. This is a flip target in a market that's no longer so attractive for flipping. |
Anonymous
This is a beautiful block, close to Barracks Row, Eastern Market, Trader Joe’s, Whole Foods, the gym and the freeway. Also inbound for Brent. |
Anonymous
| Eastern Market has great pull and for good reason. |
Anonymous
Also, the house presents really well and has parking. The only thing it really lacks is a basement. $1.075M for 1,500 sf in that location was good pricing. |
Anonymous
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Well-priced houses that show well will have few problems selling, even with the market in a downturn.
But as we've seen with numerous houses brought up in this thread recently, your house is no longer going to fly off the market if it has some flaws. And I'm seeing a whole lot of obviously flawed houses in this area just languish on the market these days. Last year they would have been gone in a week. Those days are over, for now. |
Anonymous
Anonymous
Anonymous
The initial asking price on this was actually $985k on May 5, so it's had about $85k in price cuts. It was originally listed more honestly as a 2BR/2BA. There was some discussion of this house upthread (e.g.: https://www.dcurbanmom.com/jforum/posts/list/1485/889341.page#22751188). Narrow house with kind of a weird layout and small BRs. Possibly a bit close to 8th than most would like, either. Not sure why this one hasn't sold yet. $1.15M doesn't seem ridiculously overpriced for 2178 sf in Capitol Hill. The interior isn't my style, but I don't imagine that's why it hasn't sold. Maybe 8th Street hits again? I'd have sworn we talked about this one before too, but I can't find it. $1.35M doesn't seem like it was that much of a stretch for 2567sf and an attached garage. The weird corner layout and lack of private outdoor space might be turning some people off. A $15k price drop from $1.29M to $1.275M probably isn't going to be enough to renew interest, though. Ah, yes. This was the subject of the extended discussion on how important powder rooms are in DC: https://www.dcurbanmom.com/jforum/posts/list/1575/889341.page#23084586. Me, I think it's just too close to H Street. |
Anonymous
The sellers screwed themselves by listing at a much too optimistic price. $1,475,000 for 1800 sf that looks like a generic flip? Yeah, no. $1.25M is closer, and it might have sold quickly if that was the initial asking price. But now that's it's been sitting so long, it needs more price cuts. I'm not one to say, "Price. It's always about price." But in this case...yeah, it's about price. |