Above Asking: $150,000 to $175,000 Over List

• July 17, 2013
• 7 Comments

by Shilpi Paul

In Above Asking, we sift through real estate records and highlight homes that recently sold for above their asking prices.

Rowhouse in Oft-Overlooked Truxton Circle

In June, we highlighted this property in our Multiple Bids feature. We figured that the bright rowhouse in Truxton Circle would attract quite a few interested buyers. Now that the sale has closed, we know that a bidding war ensued, and the final sale price is staggeringly higher than the original asking price. On July 12th, the home sold for just over $706,000, $176,300, above the asking price.

• Address: 401 R Street NW (map)
• Asking Price: $529,900
• Sale Price: $706,200
• Bedrooms: Three
• Bathrooms: 1.5
• Year Built: 1900
• Days on Market: 7

Competing in Mount Pleasant

Another property featured in Multiple Bids was this four-bedroom rowhouse in Mount Pleasant that caught our eye because of its low price per square foot, in-law suite, and location. Mount Pleasant now has a reputation where homes sell for six figures above their asking price. Add this one to the list; the home sold for an even $1 million.

• Address: 1718 Hobart Street NW (map)
• Asking Price: $849,000
• Sale Price: $1 million
• Bedrooms: Four
• Bathrooms: 3.5
• Year Built: 1927
• Days on Market: 7

This article originally published at http://dc.urbanturf.com/articles/blog/above_asking_bidding_wars_drive_prices_up_more_than_150000/7325

7 Comments

1. C said at 3:53 pm on Wednesday July 17, 2013:
   The Mt Pleasant home at the original asking/list price looks like it would have been a great deal. The final sales price, I'm not as sure. For a million dollars, it should be bumped into the "next" level or category - and , while nice, not sure it's quite there, in all aspects. There's definitely a lot to like about the place, though. When I say that I'm not sure the final sales price is as good a deal, I say this because the extra 151,000 is about competition not to lose out on the property; it isn't about the house/amenities. I understand how/what bidding wars are and that is what the market for this property did, so good news for the sellers.

1. Scoot said at 4:49 pm on Wednesday July 17, 2013:
   "Now that the sale has closed, we know that a bidding war ensued, and the final sale price is staggeringly higher than the original asking price." The original asking price was staggering low - $257/sqft. And to the above commenter, the original asking price would have been a great deal, and that's why it got so many bids to be brought up to a price that's actually commensurate with the neighborhood. I don't understand these listing agents who price homes too low only to start a bidding war. It seems like a waste of everyone's time.

1. DCShaw said at 9:08 pm on Wednesday July 17, 2013:
   It doesn't matter what the agent or the seller listed a house for, it is the buyer that ultimately determines the value. The house could have been listed at 500K, 600K or 700K it still wouldn't matter. Educated consumers make decisions that is right for them. (buyer or seller)

1. Anonymouse said at 2:53 pm on Thursday July 18, 2013:
   It does matter what the seller or agent lists the house for. Because if the seller or agent had listed 401 R St NW at a price closer to its actual value then we wouldn't even know about it because it wouldn't have sold for $176k over asking. I guess that's what happens when the housing market basically turns into eBay.

1. Joe Kim No Uh said at 3:21 pm on Thursday July 18, 2013:
   Anonymouse is right. Anyone who looked at that house in that location knew it was going for well over $600K. Think about it from the selling agent's perspective though. He gets to tell future prospects that he was able to drive buyers to put in 20 offers and beat the asking price by a billion percent. Hell, his client starts to shout from the rooftops to all of their friends that "THIS GUY KILLED IT FOR US." That sort of thing gets new business. Agents like to say that they set these low asking prices to create a "frothy auction." How are you generating any froth from a bunch of sealed bids with no 2nd/3rd round of back-and-forths? Is convincing 15 people to waste their time to put in offers that're destined to get passed over IMMEDIATELY really building value for your client? Or is it just an opportunity to help your sales pitch for your next prospect or massage your ego?

1. Ryan said at 4:12 pm on Thursday July 18, 2013:
   @Joe Kim No Uh - Do you think knowingly listing a house well-below it's final sales price is unethical? If so, then you're entitled to that opinion. I believe that it is just one way to get to a potential buyer's maximum willingness to pay. Also, the realtor is not forcing people to waste their time. The people bidding well below the market value for the home are possibly wasting their own time by not researching the market before making such a low offer, regardless of list price.

1. dcagent said at 7:52 pm on Thursday July 18, 2013:
   As an agent, I can say that in very active markets like we have now in DC it can be difficult to price a house. Many sellers and agents would prefer to let the market set the selling price, which obviously it did in these instances. That being said, it is frustrating for buyers in one price bracket to be competing with buyers in a price bracket above them.