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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: 4824 7th St NW
Original List Price: $165,000.
List Price at Contract: $165,000.
List Date: 10/12/2009
Days on Market: 4
Settled Sales Price: $151,155.
Settlement Date: 12/01/2009
Seller Subsidy: $0.
Bank Owned?: Yes
Type Of Financing: Cash
Original GDoN Post is: here.
Recent Listing is: here.
To better understand this property, please indulge me for a moment while we take the time machine back to the DC real estate market circa 2005/2006. Up to approximately that point in time, property values had escalated for several consecutive years, at an unreal pace. Lenders were bending over themselves to lend money to pretty much anybody who could fog a mirror, including investors. Down payments were non-existent or very low. In cases where down payments were necessary, it was possible for investors to cross-collateralize off of equity in other properties. In this climate, the price to acquire shells (and otherwise crappy properties) went through the roof. (Note that the subject property was purchased in 2006 for $375,000.)
From about 2006, the investor market dropped back considerably. As prices began to fall on fully renovated properties, investors could not make the numbers work. For a while there, I expect that the majority of properties purchased with renovation in mind were bought by end users (owner occupants). Some folks at the time blamed speculators for both driving up the market prices, and for the bust after they all dropped out of sight. Continues after the jump. More… »
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