Selling 2 1/2 Years After the Developer Slashed Prices: 659 W. Randolph in the West Loop
In June 2009, we chattered about the massive developer price cuts in the new construction building R+D659 at 659 W. Randolph in the West Loop.
Someone who went to the sales center the weekend after the price cuts were announced called it a “madhouse” and they apparently had 35 contracts the first weekend.
See our prior chatter here.
The 05 tier, which was a 1-bedroom plus den with two baths unit, had the following reductions:
Tier 05: 1 bedroom plus den, 2 baths, 988 square feet, North facing
- Old Price: $409,000-$421,000
- New Price: $293,000-$301,000
- Parking included
- Assesments of $370 a month
Flash forward a little over 2 years later and one of the 05 units on the 14th floor is back on the market.
From what I can tell, it was originally listed at $377,000 in May 2008 (that might not have included the parking) and then was reduced in the developer price reductions in June 2009 and sold in August 2009 for $332,382 (included the parking.)
The listing says it has “tons of upgrades”.
The kitchen has white cabinets, stainless steel appliances and black counter tops. There are also dark hardwood floors.
The unit has central air and in-unit washer/dryer. Parking is included in the price.
There was a LOT of chatter on these price cuts on the old post which is fascinating to read now. Many of you thought the lower prices could be the “floor.” Many of you thought the prices weren’t bad for a new construction west loop 2 bedroom. Some of the bulls actually mocked Bob for saying that a 1-bedroom with parking in the West Loop would someday be just $200k.
JPS said:
“These prices are decent for where the market is *right now*. The problem is that the market is nowhere near the bottom yet. So if you don’t have to buy *right now* you are better off waiting. Buying now is still knife catching.”
Jason E said:
“In terms of inventory, there will be no buildings built non rental for five years or more in that area. There is no better time to buy new construction at the right price. I feel it is the right price. My purchase is valid. If I am wrong I will pay the price. But that is the game. I just called over there and spoke to my guy.”
And then he followed up with:
“It is a solid buy. I won’t think much about it for the first two years. The real growth will happen in years 2-5. But if I had to get out, I think I could clean with some profit in 1.5-2.”
Unit #1405 has been reduced $16,000 since March 2011. It is now listed for about $33,000 under the 2009 purchase price.
It appears several 2/2s are under contract in the building and those are currently listed under their 2009 purchase prices as well. We’ll have to see what they close for.
What does everyone think 2 1/2 years later about the 2009 “deals” in this building?
What will this 1-bedroom plus den end up selling for in 2011/2012?
David Bovyn at Kale Realty has the listing. See the pictures here.
Unit #1405: 1 bedroom, 2 baths, den, 988 square feet
- Listed in May 2008 for $377,000
- Reduced in the developer price cuts in June 2009
- Sold in August 2009 for $332,382 (included the parking)
- Originally listed in March 2011 for $318,000
- Reduced
- Currently listed at $299,000 (includes the parking)
- Assessments of $427 a month (includes heat, gas, doorman, cable, pool, exercise room)
- Taxes of $1974
- Central Air
- Washer/Dryer in the unit
- Bedroom: 12×11
- Den: 10×9
Where is KingHippo??? Didn’t he buy there?
Lots of people on the old 2009 thread were buying in this building.
It’s kind of quaint now to look back and think many people thought the 30% price cuts from developers were steals. Many buyers actually rushed out to purchase these units (even though we were in the middle of the Great Recession.)
It is not turning out well for those who have to sell just 2 or 3 years later. I think most people have underestimated this housing bust. They truly did think that in 2 or 3 years they’d be “fine.” Heck, even those buying right now probably believe that within 3 to 5 years they’ll be “fine.” Will they? I personally believe it will take even those buying right now 10 years just to break even.
Jason E needs to give “his guy” another call.
this is one of the most depressing places ive seen on here. i would never live here. it is also overlooking the kennedy, which is almost as bad as living on the el. only way id ever buy this is if it returned >5% as a rental. is there anyone who would purchase this as a primary residence?
this building is awful.
I feel bad for anyone that has to sell these days, it must be very stressful!
Thankfully I don’t ‘need’ to move for a looooong time
Wow, that’s annoying. I can’t tell from the pictures which is the owner’s unit and which are common property. Why does one overlook a parking garage of some sort? Is that pool table really in the one bedroom or is that part of the common area? It looks like three different apartments. wTF?
Unless you are a long time owner with lots of equity willing to sell at market price. The homes I’ve seen in those situations go under contract in just a few days. Like clio said, if you’re not getting 10 phone calls, 5 showings and 2 offers in a week, it’s overpriced. You’ll get some lookieloos if you’re overpriced but maybe not even that. it’s really not that bad of a market, it’s high pricing that makes it slow. Funny how lower prices seem to bring out buyers, even back in 2009.
“Sonies (November 22, 2011, 8:53 am)
I feel bad for anyone that has to sell these days, it must be very stressful!
Thankfully I don’t ‘need’ to move for a looooong time”
I actually feel bad for people who bought here in 2009, thinking they were getting a good deal. The seller in this case will be lucky if he/she gets above $200,000 for this unit.
“It is a solid buy. I won’t think much about it for the first two years. The real growth will happen in years 2-5. But if I had to get out, I think I could [come] clean with some profit in 1.5-2.”
::headdesk::
Also speaking of “madhouse” sales for this building; wasn’t this the building where the developer wanted to lease out/sell the remaining units to the “mentally impaired”, thereby getting the government to subsidize the loss? Whatever happened with that? I’m trying to find it on google but I can’t. Either way, I bet the existing buyers LOVED the idea.
“I actually feel bad for people who bought here in 2009, thinking they were getting a good deal”
why do you automatically feel bad for them? Doesn’t anyone on this site value family, friends, love, excitement – or does everyone believe that money is the only thing by which to judge someone? Do you feel sorry for the loser with a wife and baby living in a crappy dangerous rental bc he is too cheap to pull the trigger to buy something? Good god – y’all deserve each other
It’s painful to read those all those earnest first time buyers discovering the detriments of living in a commodity, medium-quality new condo building developed and sold by folks who have no reason to care about their reputations and just want to try to avoid being ruined by the housing recession. But, those kinds of lessons are experiences best learned firsthand. I just wonder if that person actually lost his $22k earnest money because he was too uninformed about his rights.
“I just wonder if that person actually lost his $22k earnest money because he was too uninformed about his rights.”
Looks like he ended up being one of the biggest winners in that thread.
yeah kinghippo bought one of the PH’s, which if I were to ‘redo’ my condo shopping experience would probably be the only floor I would buy on as they are usually unique
“Doesn’t anyone on this site value family…”
Coming from a divorcee, whose kids are at boarding school on the E Coast?
“why do you automatically feel bad for them?”
I feel bad for them because they were trying to do well for themselves and lost. They thought they were getting a good deal, but were wrong. They also didn’t price this place at a ridiculous premium over the 2009 price, but I can’t imagine this place going for more than $225,000 on a good day. I feel bad for them because in my imagination they are normal people who made a mistake. Of course, I’m projecting how I would feel in their situation.
“I feel bad for them because they were trying to do well for themselves and lost. They thought they were getting a good deal, but were wrong.”
NOT EVERYONE BUYS REAL ESTATE TO MAKE MONEY !!!! Good God, what is wrong w/ you people? So frickin obsessed with “getting a deal” and “making money” – don’t you realize money is secondary – it is a tool to improve your life. There are many aspects to real estate – the financial aspect is only one part of it (and NOT the fun part)!!!
“Coming from a divorcee, whose kids are at boarding school on the E Coast?”
Get your facts straight – one is in college on the east coast – the other is in a private school in LA – and yes, I DO value family.
“and yes, I DO value family.”
I’m sure you do. What’s the going rate you get an hour, for your daughter?
But Clio you are contradicting yourself, I thought real estate only went up up up?
$300+/sf? yikes.
Clio, there’s not making money in real estate and then there’s losing $100,000. If I was forced to sell now, I would hope that I had enough equity that I didn’t have to bring anything to the table. Having to bring $100k to the table is something most middle class people can’t afford, so if the person lost a job and has to sell, then it’s devastating.
I’m incredibly judgmental of people who bought at the peak of the bubble, with no money down and are now whining about how they want to move, but can’t…. I feel sorry for people who worked hard to save 20% and are now set to lose way more than they can afford. Obviously, I don’t know these particular sellers. Maybe they were greedy and bought with no money down. However, I feel bad for people who do everything “right” and still lose a devastating sum of money.
Clio: how about not losing money? I don’t care if I make a red cent on my home. My priorities are: 1) having a nice place to live, 2) not losing a bunch of money and 3) being able to move if I need to. 2 & 3 are linked: if I lose a lot of money, it’ll be harder to move on from the property, even if I can sell it.
Remember the days when clio was convincing us that if you strategically walked away from an investment that it would haunt you for decades, make you feel like less of a man, make you stressed, etc. Apparently people only stress about their life decisions when clio deems those decisions as able to create stress.
Losing your shirt because of a bad RE purchase? Don’t worry about it! Unable to move because no-one will buy your place and rent won’t cover it? Quit whining!! Walk away from a property because it doesn’t make financial sense? You will take the pain and stress to your grave, you POS.
See how this works?
Until last year, I never lost a cent in real estate. However, at this point, I have probably lost more money in real estate than anyone on this site – I think the key is to NOT let it get you down and don’t let it scare you. Money comes and goes and you cannot let it completely control who you are or the way you think. Of course you have to be sensible and practical, but I find way too many people scared out of their mind about everything – to the point that they won’t take ANY risk. That is dangerous….. so my advice is to take your losses with a grain of salt (like a runner who falls and scrapes his knee). Get up and try something different. This is life, after all – one big adventure!!!!
“I’m incredibly judgmental of people who bought at the peak of the bubble, with no money down and are now whining about how they want to move, but can’t”
You misspelled “everything.”
“However, at this point, I have probably lost more money in real estate than anyone on this site”
[i may regret this, but…]
How about as a percentage of your net worth? Can you even contemplate being in a situation where your (as yet unrealized) real estate losees were 150% or more of your (on-paper) net worth? How would you feel then?
You are in a very fortunate position, having sufficient assets to “afford” a significant loss on your real estate holdings. The *vast* majority, even (or, perhaps, especially) among posters here, could not.
“You are in a very fortunate position, having sufficient assets to “afford” a significant loss on your real estate holdings”
It is not “fortunate” it is well planned. I am sick and tired of everyone telling me how “lucky” or “fortunate” I am. I bought all my real estate with over 20% down, never lied, never cheated, never tried to get rich quick and still suffered much more loss than losers who bought with nothing and walked away – so no, I am not “fortunate”, I am honest and upstanding –
You also completely lack empathy. I think there is a medical term for that, no?
“Wasn’t this the building where the developer wanted to lease out/sell the remaining units to the “mentally impaired”, thereby getting the government to subsidize the loss? Whatever happened with that? I’m trying to find it on google but I can’t. Either way, I bet the existing buyers LOVED the idea.”
This was the the building; however, the plan to sell to mentally impaired but that idea was squashed by the alderman.
“You also completely lack empathy. I think there is a medical term for that, no?”
Yeah – “attorney”
“How about as a percentage of your net worth? Can you even contemplate being in a situation where your (as yet unrealized) real estate losees were 150% or more of your (on-paper) net worth? How would you feel then?”
Like an asshole for even allowing myself to ever do anything that could have gotten me into that position in the first place. I’ve said before, if you take all your savings and put it into a down payment, leaving yourself insignificant other assets, you are a fool.
Why all the fighting? How about some constructive and thoughtful observations on the notably well formatted post that Sabrina started the conversation with? She should be insulted. Nobody is even making any useful points.
How much does psychology have to do with pricing? If the developer discounted another 30% today would it cause the same kind of excitement?… I am betting yes. People are inherently bad at putting value on things, so they rely on comparable products. The sales in 2009 isn’t the result of a dumb populous as much as a savvy marketer.
Personally, I think the unit is pretty nice. I could see it holding it’s value at around $260 – $275.
” I am honest and upstanding”
“G, I accept your bet”
Clio doesn’t get anything right.
G –
stop being immature –
First of all, you never won the bet (oh God – get ready for useless old data and comments being reposted)
Second of all, the bet was that I would allow Sabrina to ban me – she never did. If she does, I will stop posting. For someone who is so detail oriented, I am shocked you didn’t catch this technicality!!
” I’ve said before, if you take all your savings and put it into a down payment, leaving yourself insignificant other assets, you are a fool.”
Yeah, but there are lotso folks who were reasonably prudent about their eggs (sub 10% dps; not all their liquidity) who, thru a combo of the RE crash, and the employment market, are f’d.
clio: keep up that hand waving! Avoid! Dodge! Respond with righteous indignation! Bring up new points! Pretend that only YOUR point matters!
Whatever you do, avoid actually participating in the conversation taking place at ANY and ALL costs. You just wouldn’t be a good shill otherwise.
Of course there have been lies:
TftInChi (September 9, 2011, 8:27 am)
clio: “Still own it……”
You were either lying then (when you said you lost money on it) or you are lying now (when you say you’ve never lost money on RE). You get to choose which way you lied, I suppose, but either way you are a liar.
It really isn’t worth talking with you anymore. All insults, bluster and lies. Awful.
—
clio (November 22, 2011, 11:21 am)
“You are in a very fortunate position, having sufficient assets to “afford” a significant loss on your real estate holdings”
It is not “fortunate” it is well planned. I am sick and tired of everyone telling me how “lucky” or “fortunate” I am. I bought all my real estate with over 20% down, never lied, never cheated, never tried to get rich quick and still suffered much more loss than losers who bought with nothing and walked away – so no, I am not “fortunate”, I am honest and upstanding –
and never attempted to cheat…
clio (November 12, 2010, 11:55 am)
“Why not just admit this isn’t a good idea and we can move on”
uhhh because it IS a good idea and I still am looking to buy a one bedroom so I can rent it to this girl – and no frickin stupid ass condo assoc. is going to stop me with their idiotic rules. Believe me, I can find a way to get around the rules. It really isn’t that hard.
chichow – what the fuck is your point? how does what you posted about me prove I lied (which I never have)? Just SAYING something and posting some random past comments does not fool anyone – you are insulting their intelligence!!!
“First of all, you never won the bet”
Clio doesn’t get anything right.
REgarding the property.
I’m thankful that I don’t have to see the R+D659 advertisements anymore on various CTA buses.
I haven’t been in a unit. What’s the feeling on finishes? Slightly better than rental grade?
yet another thread devoted to Clio…sigh
chichow – I am actually impressed and flattered that you pay so much attention to what I post!!! Do you have a folder of my posts? Good God – please don’t tell me you have a room in your rental apt filled with my pictures/posts with toy lamborghinis and candles!!!
Regarding prove I lied:
would you then prefer postings of ccrd records as they show up for St. Charles / Palmolive / American Invesco properties listing prior purchase and latest sale prices that would relate to your posting below?
“clio (September 8, 2011, 6:34 am)
“1 doctor here knows everything about real estate. 2 docs can’t be wrong you IDIOTS and MORONS!!!”
G – I have NEVER lost one penny in real estate – not one (and have owned scores of properties). Even buying 5 properties since 2005, I haven’t lost one cent. I own several American Invesco units that are worth WAY more than what I paid for them. Why? Because I bought the right properties at the right price. Again, it isn’t that hard.
“Also speaking of “madhouse” sales for this building; wasn’t this the building where the developer wanted to lease out/sell the remaining units to the “mentally impaired”, thereby getting the government to subsidize the loss? Whatever happened with that? I’m trying to find it on google but I can’t. Either way, I bet the existing buyers LOVED the idea.”
It is. The developer’s idea went no where. Apparently the the developer spoke before reading the legal documents for the condominium. Also, the alderman, Burnett, took the side of the existing owners.
“yet another thread devoted to Clio…sigh”
Completely true and so regrettable. Isn’t there any way to keep him from taking over each thread? I don’t mind him making relevant comments about the featured property, but when each thread disintegrates into an argument between him and someone else on a totally unrelated topic, it dilutes the quality of the entire site.
“. Isn’t there any way to keep him from taking over each thread?”
sabrina could ban me…….
You guys took the troll bait hard, just ignore him
This is a one-bedroom, and unless it sells for $200k, I think it’s still correct to mock anyone who thinks things are going that low. They’ll have to knock another 33% off the price to get to those levels!
Was this unit’s sale price in 2009 is above the advertised prices Sabrina listed earlier in the post?
“Tier 05: 1 bedroom plus den, 2 baths, 988 square feet, North facing
Old Price: $409,000-$421,000
New Price: $293,000-$301,000
Parking included
Assesments of $370 a month
…Sold in August 2009 for $332,382 (included the parking)”
I ask because I bought a tier 19 (and I’m very happy here) which is basically this unit facing south and minus a bathroom (955 sq ft). It cost me less than the advertised prices above, which makes sense, but MUCH less than the quoted sales price of this unit. That doesn’t make sense. I also purchased after the price cuts, but before this unit sold. Did prices actually rise in Summer 2009? I don’t understand how the 2009 sales price is that high.
To follow up on my comment, this unit should have sold for right around $300k after the price cuts in 2009. Are we sure that sale price is accurate? It’s currently listed at almost $300k, so unless the sales price is accurate and this person managed to pay well over what the developer was asking in 2009, they didn’t lose much money, aside from fees and such.
“should have sold for right around $300k after the price cuts in 2009”
“The listing says it has “tons of upgrades”.”
“they didn’t lose much money, aside from fees and such.”
They haven’t sold yet, but they will lose ~20% of the original purchase price if they are lucky enough to get a buyer soon.
“You guys took the troll bait hard, just ignore him”
thank you!
G,
I don’t see that many upgrades here. This place got the premium kitchen appliance package and an upgraded sink, and it looks like they may have repainted. I don’t consider that “tons of upgrades”. It’s pretty standard for the building.
If they sell at $299k, they’re at 10% off the purchase price (not 20%). However, the purchase price is inflated. This person apparently paid over $50k more than I did for a unit with 33 more square feet. And they did this 1-2 months after me. Does that math make sense to you at all? Those are some pretty valuable squared foots!
“If they sell at $299k, they’re at 10% off the purchase price (not 20%). ”
Who said it was 20%, David? I said they will be lucky to lose ~20%.
“This person apparently paid over $50k more than I did for a unit with 33 more square feet.”
And 1 more bathroom. And upgrades. Higher floor, too?
“Does that math make sense to you at all? ”
Yes, since I never subscribed to the theory that the 2009 prices were the “floor.”
The old thread shows how much the time frame on real estate purchases has changed. In 2009 buyers still had a 2 to 5 year time frame on the purchases. Given the transaction costs and the stagnant/declining market that is just not realistic anymore. Now people are looking at a 5 to 10 year time frame, which is why demand for 2/2s has been drying up.
“If they sell at $299k, they’re at 10% off the purchase price (not 20%).”
But, you are forgetting the transaction costs on the buy AND sell side.
G, you’re assuming they sell for $270k if lucky? Ok.
The upgrades are not worth that much. They’re 2 floors above me…$4k difference from the developer there ($2k/level). The extra bathroom is ok, but that means they have two bathrooms in a 1br unit and less living space.
All that said, the developer’s listed price ranges actually lined up exactly with the units that were for sale. I checked back then. Perhaps this unit was under contract when they published those ranges but then ended up not selling. Who knows. Even if this place was the $301,000 unit mentioned in that range and they excluded the price of the “upgrades” which had already been installed, do you think that appliance and bathroom sink package is worth $30k more than the base package? I hope not!
chuk, I’m not forgetting them. I’m just talking about the value of the property itself. I mentioned those fees explicitly earlier.
“Now people are looking at a 5 to 10 year time frame, which is why demand for 2/2s has been drying up.”
I’m curious about the demand part of this. Assuming no one wants to buy the 2/2 to live in themselves, but instead choose to rent it, SOMEONE still has to own that 2/2. So whether the demand comes from 10 homeowners that want to buy to live in, or 10 investors that buy to rent to homeowners to live in, you still have a demand of 10. Albeit the prices the investors are willing to pay is likely lower, because it is purely a financial decision, and not an emotional one (as it should be).
From a pure occupancy standpoint, I don’t see the demand increasing or decreasing. But I believe the ownership % will shift from homeowner that lives there, to investor that rents it out.
Unfortunately, I think that the government credits for purchases during 2009 pushed a LOT of people into buying property who really should not have been buying property and had not idea what they were getting into. They envisioned that they were getting “something for nothing” with that $8k or whatever it was, and that pushed them off the sidelines and into whatever unit they could get qualified for. I looked through some of the sales for this building, and there is a pretty significant amount of activity by folks who were likely first time buyers and trying to get that credit by closing by the end of 2009. A building like this, close to downtown, probably had a lot of transient professionals and students who thought that three years would be the perfect time frame and they would come out $30k or more ahead after transaction costs. Every single one of these people would have been better off waiting.
It’s easy to say that now, and people buy real estate for different reasons at different times, but it seems to me these folks are just the suckers at the other end of the spectrum from our own homedelete. He’s so terrified of “losing money” by not buying at the bottom that he will almost never buy, while these people needed just a whiff of a deal (a relatively small amount off inflated bubble pricing and a small handout from the government) to get greedy and pull the trigger during what appeared to be a frenzy of activity, despite a lot of evidence that these purchases were not that well thought-out.
I would expect that, like folks I know who took advantage of that credit, almost everyone regrets making a purchase based on that not even five figure sum. Many of them were also in these big buildings, which commodifies their purchase even more. If you look at the 2011 sales closely, they are almost all sales of the small units at bulk pricing, and I would question whether any of these units have actually traded on the open markets between traditional buyers and sellers.
This building is a great example of real estate marketing getting ahead of real estate reality. Overall, the outlook for the buyers in this building looks very grim, but these folks will earn a valuable lesson and hopefully have enjoyed living there. It looks like these sellers will be bringing money to the table for any closing under $275k, and I’d be surprised if there were a buyer for this unit above $230k. I don’t see any 2011 sales for anything other than the smallest units, and those look like bulk sales with one exception.
Who said it was 20%, David? I said they will be lucky to lose ~20%.
“G, you’re assuming they sell for $270k if lucky? Ok.”
Geesh, when did I say anything like that. See above. If they sell at $290k, they lose $41k from the purchase price and at least $20k in fees. That’s close enough to 20% for me.
“The extra bathroom is ok, but that means they have two bathrooms in a 1br unit and less living space”
How much less was your tier than this one when you bought? I hear you about the “upgrades” but, perhaps, the “discounted” prices quoted in 2009 were base prices even though they knew that “upgrades” would be tacked on that were already in place? Didn’t someone mention that happening to them in the prior thread?
Btw, how are those water infiltration issues with the building? Still a problem?
“He’s so terrified of “losing money” by not buying at the bottom that he will almost never buy,”
HD has a plan that is working well: rent a decent place for cheap, save money, pay down high interest debt and wait out the ongoing price declines. If we are supposed to consider him “extreme” then our economy is truly fucked.
“HD has a plan that is working well: rent a decent place for cheap, save money, pay down high interest debt and wait out the ongoing price declines. If we are supposed to consider him “extreme” then our economy is truly fucked.”
I could not agree more. People have gotten so used to buying what they can and should not afford that a responsible behaviour sounds extreme to them.
Sure, if he actually ends up buying a place any time soon. More likely, he’ll be waiting for another four years because he’s so averse to putting his money at nominal risk that he’ll prefer the devil that he knows of renting and being sure he won’t lose any money.
The people that bought were consumer sheeple plebescites. The same morons who fall for these black friday x% off sales when in reality the merchants mark up the merchandise ahead of time and its never nearly as cheap as the best price online. If I ever buy a condo I am going to pick a building with a minimal amount of plebescites as they spell trouble for the HOA
“pay down high interest debt”
Only “high” compared to current money market returns.
“The people that bought were consumer sheeple plebescites.”
Bob–
Haven’t you in the past criticized people for using SAT-prep words incorrectly?
Or is that intended as an neologism, but was accidentally an actual word?
“The people that bought were consumer sheeple plebescites”
That word, I do not think it means what you think it means.
Also high interest rates because we’re in a deflationary debt spiral so you add the depreciation amount to your nominal interest rate to arrive at the real interest rate.
Err deflation amt my txt editor sucks
I don’t know the latest on the water infiltration issues. The board had a firm come by either late last month or earlier this month to find and repair them. There was a $10-27k difference between this tier and mine when I purchased (I assume because there was a floor mismatch in availability at that time. That leaves about $20k of the purchase price for this unit unexplained. Perhaps any unit with “upgrades” (though they called my unit upgraded as well) had $20k tacked onto it above what they were listing things…but I don’t know. I’m not saying that the current ask is off or even low enough. I wouldn’t be surprised if it goes a bit lower. However, I think the 2009 purchase price is high based on my purchase experience. The price itself is strange. What’s the $382 for? Every single unit I saw was rounded to the thousands.
David, I think that you are too caught up in the original list prices. I am sure that buying a condo from a developer like this is like buying a used car. Some buyer goes into the sales office, runs into some sales agent from a brokerage which is taking both sides of the transaction, the buyer tells the agent their budget is $300k and they let slip that they will pay up to $30k for upgrades, because they want it nice, and they get a unit that already is built out and suddenly, oh yeah, it has $30k worth of upgrades.
Anyway, hindsight is 20/20, but props to Bob for calling that the smaller one bedrooms and studios would be around $200k after two years. The real valuation question is how much a larger 1BR or 2BR is worth, and there haven’t really been any market sales to compare it to (although I didn’t look that closely).
Is the building still nice and are the facilities good? What percentage of the units are owned by a bank or bulk real estate holding company, what percentage are actually occupied and what percentage of those are renters?
The building is under over 85% owner occupied last time I heard (a couple months ago), and none of the units are owned by the developer or bank. The developer did a deed in lieu of foreclosure after their plan to sell the units in bulk to the mental health/addiction center fell through. The bank turned around and auctioned the units off to some other company which then sold them all individually. The facilities are pretty good. The pool is fairly small, but it’s always kept clean, etc. The gym is also small, but they have TVs hooked up to all the equipment which is nice. The party room has also been kept up well. Overall, the building is very healthy. All they need now is someone to rent out the commercial/retail space on the first level.
“If I ever buy a condo I am going to pick a building with a minimal amount of plebescites as they spell trouble for the HOA”
Bob, why do you want a board president with no accountability? Why shouldn’t he (or she) have to obtain board and, in extraordinary circumstances, owner approval?
+1 Joe. You beat atfo with that one 😀
Bob for the millionth time you moron, we are not experiencing deflation (except in real estate pricing)
“Bob for the millionth time you moron, we are not experiencing deflation (except in real estate pricing)”
Youswoop, Groupon, and all the rest of those things are proof of deflation, not inflation.
Groupon is not a form of deflation. It is marketing and promotion of business.
In some cases business owners are using it a s a desperation play especially for an out of touch business that is overextended and looking for a short term “hail mary” solution. I will accept that this type of owner could be considered as one who is using a deflationary strategy to create some revenue.
However if used properly it is actually a way to take an under utilized time period or dated seasonal product and maximizing some additional revenue. That is not deflationary at all. Think Raging Buffalo snowboard park. Todays swoop is for a short season product. They are using the promo to get new people there asap in order to get REPEAT users during what is likely a 90 day seasonal business. Note that they are not allowing it to be used on the 15 peak days aka school holidays that they will naturally sell out. That is not deflationary at all. They are EXPANDING their market by adding users to slower periods of time when their resources are not at capacity. That is called GROWTH! A++++ for them!
I live here and love my home. Building is great, staff is always helpful, no problems with the people living here – most everyone is kind, clean, nice. (minus the 1 couple that smoke on our floor – stinks up the hallway at times — renter). But i’m happy with our purchase as we made it for the long term. The only issue i had with the building was the internet and we now have VERY fast internet as of this week. i get 40-50+mb up/down with upgrade possible to 100mb up/down. NO MORE AM3! YES!
The condo board has done a great job too. so dont feel sorry for everyone in this buildng b/c some of us are happy with our purchase. btw king hippo is my neighbor i’ll let him know he’s presence has been requested on cribchatter! lol
So, does a Fiat/Alfa dealer in the ground floor help, or hurt, the condos?