Comments on DC Home and Condo Prices: Madrigal Lofts: The Bond Trader Discount™

I'm a current unit owner in Madrigal and got a pre...

2008-08-19T15:39:00.000-04:00

I'm a current unit owner in Madrigal and got a pretty decent deal myself buying last year. Of course the deals are even better now due to the market changing. But I actually know Matt and he did get one of the lease desirable units. To each his own and great deal for him. I am going to selfishly note that I do hope the deals aren't to the detriment of current owners. And to date about 116 units have not just sold but conveyed. :-)

Connor's response really lacks any substance for m...

2008-06-03T15:14:00.000-04:00

Connor's response really lacks any substance for me. It just seems like wishcasting.

The way I see it is that it is possible to get good deals. But it's certainly not across the board. I see two primary strategies. You can keep an open mind and not lock into any particular property so that your detached and ready to pounce on closeout sales when a builder is trying to move his last couple units. You can also target the *least desirable* units in the building and lowball. A unit may be undesirable due to size, mediocre floorplan, features, view, etc.. Either way you are making some compromise to get those financial gains whether it be on the unit or the location. At these stakes those compromises can certainly be very wise. During the height of the bubble these opportunities weren't presenting themselves because there was more demand than supply. They do exist now.

But I think it's irresponsible to characterize that the majority of units in any building can be negotiated down 15% by merely being persistent. It's not that macro nor is it that simple. I know I've submitted offers 3-5% below list price that have been rejected...

Keith,

I read that article with interest ov...

2008-06-02T15:38:00.000-04:00

Keith,

I read that article with interest over the weekend. I think you are right about the barn door. The Barn door is WIDE open and hanging on its hinges.

The anonymous posters above sound like they may have a vested interest in this property... So I would not be surprised to find these comments came from within the Madrigal Sales office or an owners condo.

Either way, I can imagine many sales offices accross the district will see potential clients walk into their offices with this article in their back pocket. Expectactions have shifted and this will encourage buyers to be more assertive and demanding. Buyers now 'expect' to get 15-20% off the asking price. This article is the proof that it can be done. Details about the actual condo sold (i.e. trash chute, no balcony, etc...) will be back in the empty barn!

The 'expectations horse' has left the stable...

Thanks for the comments.

The Recorder of De...

2008-06-02T09:35:00.000-04:00

Thanks for the comments.

The Recorder of Deeds shows about 80 units have sold. In the post, I was referring to sales listed in the District's sales database. Never the twain shall meet...

He didn't get too good a deal. The unit he bought ...

2008-06-02T08:17:00.000-04:00

He didn't get too good a deal. The unit he bought is the smallest in the building (you can tell by the price). As I understand things, they weren't selling at all.

The developer has publically been running its "Mad Money" discount since Presidents Day, which has seen incentives of $60-75k for most of the units in the building. It's not at all surprising that they'd be willing to offer $60k on the units that are moving the least.

Also, last I heard the building is over 90% sold. About 90-100 contracts have closed and another 140-150 units are under contract. The building has 259 units. Call the sales office and ask, they'll share this info with you.

My hunch is that Mr Watson bought a unit ending in...

2008-06-02T08:06:00.000-04:00

My hunch is that Mr Watson bought a unit ending in "22" which all have the JR 1-BR Anerio floorplan. If I'm correct about this then he's embellished his story about how much he shaved off the sales price through bargaining. Just browse your sister site DCCondoprices.com and you'll see that two of these Anerio units previously sold in the 280K range and the one that sold for 310K was on the 12th PH floor. These units are the smallest in the building, the only ones without balconies, lack the elevated loft aspect to the BR, and share walls with Elevator 3 and the trash chute.

I hardly believe that the barn door has been blown open by this revolutionary bondtrader who turned the real estate world on it's head with his patent pending "buy low, sell high" philosophy. Signs point to this being just another purchase at the established price range for a given floor plan. Seems pretty immature on his part to put his ego first by boasting and sensationalizing the facts.