A landlord who owns two houses on my street has recently put his houses up for sale. He originally bought the houses for $80K and $139K and is now listing them for $390K and $450K. I think that is a tad too much. Not only because it’ll make my assessment go up, but if anyone hasn’t heard there is a slow down in the RE market. Knock off about $50K from both of them to be somewhat ok.
Both places still have renters in them. There has been some gossip/rumor on the street that these are Section 8 houses. One house’s residents are pretty good, don’t make a lot of noise, not a lot of traffic going in or out, no people hanging in front, in essence they fit in. The other house, well they are much, much better now as opposed to when the residents first arrived.
So the $840,000 question is if the houses sell, will they remain rentals?
Let me throw in a pitch to encourage you to buy one of these houses (when the price gets lowered to something reasonable) so you can live on my block. One, we have a wonderful little block, where if you do stuff in your yard, you will totally make friends with your neighbors. If your interests include cycling, motorcycles, gardening, construction, or your toddler/baby, you will find friends. It’s not too hard to find a parking spot (but not super easy either). The lower priced house has some decent yard space, and a rear yard that, if you have no plans to grow anything back there, you could turn into a parking spot for a compact car.
Tag: Real Estate
Death & Taxes
Everyso often, but not that often, someone mentions how property taxes are moving long term families out of gentrified areas. And then I counter with the fact there are oldtimers who aren’t paying that much in property tax, so that can’t be the reason. And to prove it I have about 5 or so properties I know of where the longterm owners pay a very small amount (between $180-$400 a year) in property taxes for houses assessed at over $300K.
I was looking at the Dc.gov site at the property of one such house (to prove the above point) and noticed (or more like remembered) something. The owner of the house, paying at a reduced rate, was sorta dead. This person kinda died a few years ago, but even in death, the owner gets the Real Estate taxes paid. In this case the dead pay less than $300 pa, a fair price for someone who can no longer make a living.
I checked to make sure the deceased was actually dead, and not just a figment of my sketchy memory, piled together by fragments of idle small talk. So I took the name listed as the owner, wandered over to the Social Security Death Master Index (a very useful genealogical resource) and plugged in the name, and came up with one DC deceased match. Also checked the Washington Post obit archives to confirm the date, they want $2.50 or something like that for the whole obit, so I passed.
Now you might be wondering if I might be passing this on to the DC tax office, and the answer is no, not right now. Let me explain why. I have a strong feeling that the deceased failed to leave a will, and there more than likely is no obvious single heir to the estate (no surviving spouse, but several children & siblings). Which then probably means the family might be fighting amongst themselves about who gets what, and if the house is paid for with no mortgage, this fight can drag out for years.
As a homeowner, I do have a will, and in the event I should die before I get around to changing it, the house goes to a dear friend of mine….. I need to change my will, anyone care to recommend a good lawyer?
1227 First Street NW
Okay, once again because all the cool kids are doing it, another vacant house. This also has been bought this year, so the pitiful state that it is in *might* not the new owner, Ms. M. B. Jackson’s fault. Ms. Jackson of McClean, VA acquired the house in May 2007 for an unknown amount. The unknown makes me wonder if it was a transfer, tax sale foreclosure, or something else. According to the DC.Gov tax assessment site, the place is assessed at $248,570, for 2007, and will go up to $296,570. The $570.00 at the end of both prices make me wonder if the assessor just decided, “OK, add $48K, viola!” Anywho, there is an interesting “Special Assessment” dated 7/30/2004 and 12/13/2007 for $62,213.03. I wonder what that’s all about.
It was built sometime during the turn of the century, as the DC government lists it as being built in 1900, which means they have no clue. My census of 1900 notes aren’t revealing any residents of the 1200 block of 1st, and my maps (which I admit neglects the Hanover/MVSQ crossover area of the TC) don’t show anything, so I have no clue either.
Vacant house
Well, because all the other cool blogs are doing it, I present to you a vacant house. It is 219 P St NW, built in 1906, currently owned by a Mr. Crespo of Dunn Loring, VA, who bought the place February 2007 for $265K. All this is on the DC.Gov website, and since the current owner has had it for less than a year, I’m going to go easy and not post the other public information.
I debated about blogging about specific vacant houses in the TC. There are a number of vacant houses in the TC, like the rest of Shaw, but not all of them are obviously vacant, and I didn’t want to attract any great amount of attention to those. So I’m going with the obviously vacant, and 219 P is with it’s busted windows and ratty looking yard.
As far as taxes go, it’s had its woes. Currently it is assessed at $270,600, but will jump to $354,020 in 2008. looking at it’s past tax bills and payments, whoever owned it previously let the tax bill get up to $8K in 2005 and 2006. There is a Clean City bill for $70.00 and a 1998 trash bill of $613.87. Hopefully the old obligations were cleared up when the property changed hands.
Musing thought: DC Should stay out of Real Estate
Not even going to touch the corruption in the Tax Office, but I wonder if a public tarring and feathering, or stocks with rotten tomatoes provided to DC citizens for throwing would be too good….
Anyway, one of the other things brought up in the BACA meeting on Monday was government seizure of property (houses) that were unabated nuisances. Someone pointed out that when the DC government then takes ownership of a property that doesn’t improve matters. The theory is that the city takes over the property and some competent 3rd party, usually a socially acceptable non-profit, will take over and fix up the property (because they usually need work), sell it or grant it to some deserving family, the end.
But the theory doesn’t always work. Sometimes the city just holds on to the property for-like-ever letting it rot from the inside out as vagrants or stray cats use it, occasionally coming by to mow the lawns. Or it does get into a partnership with a nonprofit, and some of them actually get to work and fix up the properties so they are fit for human habitation. And then there are others who can’t get their act together and the house just sits, and rots from the inside out. Or they take their sweet molasses in winter time to fix up the property. Also there is perfectly innocent crap that just happens, like running out of money.
Just selling it off offers no promises either. Buyers could just sit on property like investors have done and continue to do.
So the next time someone comes up with the brilliant idea that the city or government should take ownership of property, know that it sounds great in theory but in years of practice, sucks.
Ye shall know them by their works, or lack thereof.
Dead Body in a bathtub lottery
In yesterday’s Washington Post there was the District of Columbia Notice of Real Property Tax Sale (J section). It lists the properties for which taxes or other things owed to the city have not been paid and their liens are up for auction. As you may remember the Tax auction was how Edmund A. Wilson lost his house. But he had left this earthly plane (or is it plain?) without notice and material things like houses probably meant little to him afterwards. Yes, he was the dead body, found in the bathtub, when the new owners took possession.
The tax sale is from July 10 till all the tax liens have been auctioned off. Most people, particularly in this Real Estate market, like ninety someodd percent, pay their delinquent taxes or what have you. The tiny percentage of properties where the owners don’t pay their taxes are up for foreclosure. The problem with foreclosure is that there might be a huge mortgage on the property or other liabilities, would would need to be paid by the foreclosurer. But sometimes, like the lottery, you win big, and you get a property.
Since more than likely one won’t get a property at auction the reason to participate is the interest rate. According to what I could pull out of the tax sale rules (pdf) interest accrues at 1.5% per month. My poor math skills tell me that is 18% a year. Not bad considering my credit union is offering about 4.5% on a 6 month CD. But, that is only on the taxes owed, not the amount you bid over, or that nasty $150 auction fee added to the bidding. Because the auction room includes idiots who believe they will actually get a house with the auction (no just a lien) they tend to bid the properties above an amount that would give back a decent return in interest. But not for all properties, so it is possible to make a little money on the tax sale.
I’m debating about participating this year. I have to see what extra money I have laying around that can be tied up for 6 months. Last year I bid but didn’t get anything because the bids went above a decent rate of return (is that the right term?) and I wasn’t going to bid just to bid.
Update: I noticed that the DC.Gov doesn’t have the list of properties up and there doesn’t seem to be an electronic version of it on the Post or Times websites. There are several properties owing the tax man. 1419 and 1421 3rd St are on the list, so is 206 Bates, 1504 1st St, 142 Bates, and many more. Let’s say, more than I’d rather list.
Real Estate Agents on Crack again
There is a house at 1611 New Jersey Avenue for sale for, get this, $798,000. Crack, crack, PCP with an LSD chaser Crack is what the Realtors are smoking. And they must be giving it to their buyers. Yeah, it has 3 bedrooms and 2 baths, and I’m quite sure they are big and everything, but $800K? I know this place has no parking. For $800 grand you should have parking and your own personal crack ho. For less you can get a 5 bedroom 4 bath at 34 Quincy for less than $500K, or at $500K 69 Florida Ave. With the extra $300K you could buy an extra condo or for a tad more 1647 New Jersey Ave (a 2 bedroom 1 bath) for $310K.
Please stop the maddness, just say no to the real estate crack.
11/29/05
2 anon comments are 2 too many
Funky peace house for sale
632 Q St. is up on the block for 1/2 a milllllllllon dollas ($500K). Crack. Serious crack the Realtors must be smoking.
Nothing wrong with the peace house. I call it the peace house because of the big honking peace sign that has been hanging on the outside for the past year or two. But really.
I remember thinking, seeing a bike locked to something that they really need to lock both the tires. Well parts began to disappear from the peace house bike, till one day the whole thing went away. But the thing that bugged me, long standing X-mas lights.
So enquiring minds want to know. Will the peacenixs remain in the peace house? Will they remain as renters? Will the lights come down?
Realtors on Crack
I’ve been looking at what’s for sale in my section of Shaw. And I must say someone has been smoking some serious crack when they thought of the prices for some of the homes.
Let’s look shall we.
MLS #:DC4805985 – 611 S St.- I pass it all the time. It is close to the metro, about one block, so yes, that counts for something. But 335K? It’s a little wooden detached (it’s wood, everything else is brick) with no basement. Nothing special about the house, slightly on the ugly side. I remember when it was around 100K 3 years ago.
MLS #:DC4795165 – 1254 NJ Ave. It’s short, it’s got a big front, it’s $695K. Over half a million dollars and you’re still in the hood! On a busy street… over 1/2 a mil, crazy crack.
MLS #:DC4790758 -1718 4th St- On a block I don’t even like walking down in the daytime. Nearly 1/2 a mil at $485K. Yes, nice rehab, but for that price?
Serious. Crack.