Jordan Schwartz and his wife, Asako Yamamoto, are willing to take on a home and fix it up. But a four-level house they checked out in Cleveland Park needed more than just a slosh of paint.
Schwartz rattled off the changes he would make to the house, which hadn't had a major makeover since the late 1960s: "Start with the floor, get rid of the shag rugs. . . . Redo the kitchen, replace the mirrors, tear down the doors and let in some light."
The couple, both economists who work downtown, estimated that it would cost $400,000 to $500,000 to redo the house, listed at $1.995 million. They agreed: too much hassle, too much money.
In the past few years, homes in the Washington area have been selling so quickly, and for so much, that it seems many sellers don't think it's worth the trouble to polish up a place before putting it on the market. Tired houses that need work will still sell for more than they would have previously-- even if they look a bit run-down or 1970s à la "Brady Bunch," but not in a good way.
The phenomenon can prompt the question among home shoppers: "How can they possibly charge that much for that house?"
Would-be buyers coming out of three open houses on a recent Sunday said they would not take on what they considered costly projects that would require redoing nearly everything. Many said the cost of the house plus what they would have to pay for renovations was too much.
"A year ago, it would have sold already," Schwartz said, gazing at the Cleveland Park house, which was originally listed in June at $2.3 million. The house eventually went under contract after being on the market 59 days.
The reactions from the open house visitors may have reflected personal taste or implied that some houses are flat-out overpriced. But they may also underscore what some evidence shows could be a slowdown in the long-overcharged market.
For instance, figures from Metropolitan Regional Information Systems Inc., the region's multiple listing service, show that homes in much of the area are staying on the market slightly longer. In Fairfax County, for example, the average home remained on the market 17 days in July, compared with 15 in April and May and 16 in July 2004. It's unclear whether such slowing is insignificant or whether the market is finally beginning to stabilize.
One commonplace occurrence during the market's hottest times was that many buyers waived their right to a home inspection because they feared losing a bidding war. "For about a year, the agents very honestly -- and it was honest -- told people if you put in a contingency, your contract would not be considered," said J.D. Grewell, president of J.D. Grewell & Associates Inc. in Silver Spring and a member of the American Society of Home Inspectors.
In the past three months or so, however, buyers have been seeking home inspection contingencies, Grewell said, particularly for homes that appear to have problems.
Jane Gruenebaum, for one, said after looking at the house in Cleveland Park that she wouldn't go any further without an inspection.
