Why this Georgetown House Sold for $500K Over Asking Price
Deciding on the right list price for your D.C.-area home can be complicated. It requires looking at several factors, including comparable home sales in your neighborhood and the current Washington real estate market.
Then, with a little luck, you’ll come across what’s known as a "motivated buyer."
That’s exactly what happened recently to the owner of a Georgetown home who walked away with $510,000 more than the $3.5 million asking price.
Real estate agent Alex Venditti, of the highly rated TTR Sotheby's International Realty, says he initially feared an uphill battle when listing the six-bedroom home, according to the Washington Business Journal. Why? Well, the style made it stand out in this brownstone-heavy, buttoned up neighborhood just west of downtown.
His worry, however, was for nothing.
Not to be out-bid
A homebuyer, who apparently had lost out to other bidders on a handful of home deals in the D.C. area, was not going to let this house get away.
"The guy had seen so many houses. He just did not want to play around or potentially lose again," Venditti told the Journal. "This was simply a matter of 'I want it.'"
A typical homebuyer escalation clause, which is where potential buyers say what they're willing to pay and how much over other bids they would go up to, often adds 3 to 7 percent to the first offer. This Georgetown sale represented about 15 percent over the asking price, reminiscent of the local real estate frenzy back in 2007.
And nothing says frenzy like an extra half a million dollars.
Homestaging helps sell the property
Like many homes on the market in the Washington area, though, the 5,000-square-foot Georgetown residence was helped along by a few fresh coats of paint and some professional home staging.
Those small cosmetic improvements to increase curb appeal and fix little things can help boost home sale prices.
It's a good idea to consult a local real estate agent knowledgeable about your neighborhood if you’re thinking about larger remodeling projects to help improve your home's resale value or curb appeal. Find out the typical resale price of homes in your area of D.C. or your suburban neighborhood, because it can be better not to have the most expensive house on the block.