Chris, Other/Just Looking in Washington, DC

I recently bought a house in the Petworth area for $530K. I think I might have overpaid a bit. Any thoughts?

Asked by Chris, Washington, DC Thu May 24, 2007

Note: the house is 3 bedroom 3.5 bath. Very nice renovation and very close metro. Street is quiet but a little sketchy.

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purchased my home in 1991 at the top of the market.. and prices did go down for a short time but my home is now worth well over three times what I paid.. and I have had many years of tax benefits as well..I can't think of any other type of investment where a minimal amount of money allows you full priveleges of ownership.. including appreciation and tax deductions.. if you bought your home as a "home" and plan to be there at least 5-7 years you will be fine..
2 votes Thank Flag Link Sun May 27, 2007
Kaye Thomas, Real Estate Pro in 90266
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Interesting. Why do you think that you overpaid? When did you close? Was there a CMA done on the house? An appraisal for a mortgage? Real estate tends to appreciate over time. Even if you did actually overpay by a little, if you are there a while it should go up in value.
2 votes Thank Flag Link Thu May 24, 2007
Maureen Fran…, Real Estate Pro in Birmingham, MI
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Don't worry about your short term investment. Enjoy the long term benefits and you will be rewarded.
1 vote Thank Flag Link Thu May 24, 2007
Roberta Murp…, Real Estate Pro in San Diego, CA
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It's yours now-so my advice would be to settle in and enjoy your new home. A rising tide raises all boats and all real estate goes up over the historical period. If you love it and are planning to stay, you made a wise choice. Just think about tax time 2008.
1 vote Thank Flag Link Thu May 24, 2007
I think so too. You can get a really nice house off upper 16th street in the 600,000 price range. Nicer neighborhood and solid houses.
0 votes Thank Flag Link Thu Jun 9, 2011
Hey Chris,

For the few specs you gave in your question, it appears you didn't really overpay. That area has been up-and-coming over the last couple of years and if you are going to be there for the next 5-7 years, then you should be able to make a profit if/when you sell it. I have a client with a house in Petworth, with the same specs you mentioned, who will soon be listing slightly higher than what you paid and that's low for his neighborhood because he wants a quick sale. The DC market has never been as bad as the rest of the country since the bubble burst and, in fact, since January prices have been inching upward and we have even been seeing bidding wars again.

I believe you have made a good investment in the future and will find that, even if you did slightly overpay, it will be worth it in the long run.

Welcome to homeownership!
:)
0 votes Thank Flag Link Fri Jul 23, 2010
Yes, you overpaid tremendously. This trend of "urban renewal" has taken on a life of its own and because people are anxious to get back in the city they're paying entirely too much for attached row houses. There aren't many detached homes in the Petworth, Adams Morgan and Columbia Heights areas - all so called hot spots right now. I recently bought a detached home in the Marshall Heights area of SE DC (new construction) that has 4 bedrooms, 3 1/2 baths, large front and back yards, garage and basement and I paid $280,000. I'm also close to two metro stations and there's a bus stop a block away fro my house. I'm a native Washingtonian and have lived Uptown (Columbia Heights) all my life. I couldn't find anything resonably priced in that area so I had to go east of the river. I'm not upset because I truly found a gem and I'm not busting my budget. Good luck.
0 votes Thank Flag Link Fri Jul 23, 2010
Hi Chris,

I specialize in Capitol Hill, but I work a lot in the rest of DC (and only in DC). Are you south of the Georgia Petworth Ave Metro? West of Sherman Ave? If so, you are most likely just fine. Petworth is a location that has taken a big hit - it is the location in NW that arguably had the highest foreclosure rate. However, most of that inventory were homes that hadn't been updated. And they are clustered closer to Brightwood (i.e. north of Emerson St NW). I can site 4 comps that sold in Petworth near the metro at 599K with the same stats you provided above (on - 2 on 11th, and 2 on NewHampshire). Additionally, the effects of Columbia Hts is really moving north putting pressure on Petworth, even as developement around Petworth is also growing. My assessment is that Petworth will be one of the "bohemian" centers of the city as it is attracting artists, and independantly owned businesses.

Best of Luck,
Crystal Crittenden
Coldwell Banker
0 votes Thank Flag Link Tue May 26, 2009
Thanks for the responses. Very helpful. I plan to be there at least 4 years but probably will stay 5-6 years. Sounds like I should be okay. Especially with all the development going in a few blocks away.
0 votes Thank Flag Link Tue May 29, 2007
Chris, just went back to review some of my postings and wanted to say, Petworth is super hot! You made a good decision back in 2007! Hope you are well and love living in Petworth!
Flag Sat Jun 21, 2014
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