3 Years After Our Last Chatter And Still No Buyer: A 3-Bedroom Rowhouse At 4050 N. Paulina In Lakeview
We last chattered about this 3-bedroom vintage rowhouse at 4050 N. Paulina in Lakeview in March 2010.
See our prior chatter here.
The main discussion focused on whether or not this property was in the Graceland West neighborhood and not so much the price.
Back then, it was subject to lender approval.
It is STILL on the market 3 years later and, from the pictures, looks pretty much the same inside.
The rowhouse is attached to one other unit and was built in 1892.
It has a unique 2-story living room with a second floor loft.
There are also 4 stone baths and a “partial” finished basement.
The kitchen appears to have black appliances.
Central air, 2 fireplaces and a 2 car garage complete the picture.
The rowhouse is also only about a 5 minute walk to the Irving Park Brown Line stop.
However, the listing now also says that the rowhouse has “minor water damage” and that it will need “some” but “not much” work. (See the pictures.)
It also says “Amazing value here.”
Who’s at fault when a property is on the market for 5 years?
Will this stay listed until the bank finally takes possession (but when? It’s been 4 years since the lis pendens) and re-lists it for much less?
George Patrick at Koenig & Strey Real Living now has the listing. See the pictures here.
4050 N. Paulina: 3 bedrooms, 4 baths, 2 car garage, 3500 square feet
- Sold in May 2006 for $575,000
- Originally listed in December 2008 for $969,000
- Reduced numerous times
- Lis pendens foreclosure filed in February 2009
- Was listed in March 2010 for $575,000 and “subject to lender approval”
- Was under contract in September 2012
- Recently re-listed for $519,000
- Taxes now $8801 (they were $7974 in March 2010)
- Central Air
- 2 fireplaces
- Bedroom #1: 18×12 (second level)
- Bedroom #2: 14×9 (second level)
- Bedroom #3: 13×10 (main floor)
Redfin comments from April 2011 say significant water damage and shows this still as a short sale.
Who is willing to do the work needed here AND deal with a short sale? My guess is it didn’t sell when it was last under contract either due to the bank not accepting the price or being to difficult/slow in the process.
This is a sad situation. No one is willing to put up with the pain of this as a short sale but the bank refuses to take the pain of foreclosing and selling at a loss. Therefor, the house sits with water damage and likely is growing mold which is just going to lower the value more.
I was jsut about to say “what’s the catch” and then Benj’s comment about water damage…
I would think this place should sell for $500k. If this place is worth $900k post renovation, even if it ends up being a full-on gut job with mold remediation, I would think $400k would still leave some meat on the bone when done. It may not be enough for a flipper, but if you had the means, the time, and the budget, it could be a good deal on someone’s future dream home.
If I’m really itching to live in a SFH, have $400k in cash for updating plus $100k for a down (i.e., on this $500k place), I’m think I might be looking at move-in-ready places listed at close to $1 million in, say, Evanston, before buying into a water/mold adventure in this location.
“have $400k in cash for updating plus $100k for a down (i.e., on this $500k place)”
It’s probably more like $700k in cash, or a track record to get a construction loan, with the goal of making a 20% return in ~6 months.
” I might be looking .. in, say, Evanston”
We all know what you think, Smithers.
This place has the advantage of being a blank slate. If you want the granite counter tops YOU choose, and the wood floors YOU choose, and the cabinets YOU choose, this place would allow that. With a move-in ready place you are living with someone else’s design choices. Don’t get me wrong, a project like this is certainly not for everyone and I’m sure that is part of what is lowering the price.
What’s the land cost here? (Land cost being land + shell of a building you would have to design within, this being a row home)
If they had priced this correctly in 08, they would seemingly have had none of these problems because they would have sold it.
It being a project isn’t what is killing this place. I think it is the combo of being a project and a short sale. What is the likelihood of not only finding a buyer that is willing to take on the project but one of those that is also willing to deal with the bank’s BS in a short sale?
banks being unreasonable: TELL ME ABOUT IT!
I looked at this place. Only 2 beds ups which is not a killer for me but may be for others. Also the front and back stairs are shared with the attached home and there is no yard in the back to speak of. Its a large garage with odd driveway/easement issue for the neighbor.
This is going to go to a contractor with an in at the bank for $450M +/-