Historic Gaslight Court 2-Bedroom Closes: 1407.5 N. Wells
We finally have a closing price on the 700-square foot 2-bedroom vintage unit in the historic Gaslight Court complex at 1407.5 N. Wells in Old Town.
See our prior chatter here (where some of you guessed at the ultimate closing price).
Unit #3E: 2 bedrooms, 1 bath, approximately 700 square feet
- Sold in January 2002 for $190,000
- Was listed in February 2009 for $256,000
- Reduced
- Was listed in April 2009 for $249,900
- Sold in June 2009 for $235,000
- Assessments of $234 a month
- Taxes of $2616
- Central air/Spac Pac
- Washer/dryer
- No parking
- Balcony
- Ken Marier at Sudler Sotheby’s Realty had the listing.
Probably paid 15-20K too much, but oh well. It’s not like they have anything to lose with the 96.5% FHA loan and tax credit combo.
Something isnt right with this. STUDIOS are 700 square foot, how did they squeeze in 2 bedrooms??
Something isnt right with this. STUDIOS are 700 square foot, how did they squeeze in 2 bedrooms??
Ever been inside a mobile home?
TINY.
I was 5% off on my guess, do I win a cookie?
You win an almost non-functional Verne Troyer sized bedrooms and bathroom! Oh wait thats this lucky owner.
I don’t think this buyer purchased this place for the space. It is most likely a single professional who is more interested in location. nothing wrong with that, just different priorities.
IMO the buyer purchased this to be part of the “I’ll buy anything just to say I OWN and you RENT” endangered species. Personally, I would rather save for a couple years, try to get a promotion at work and buy a big boy/girl condo.
Save? Who does that anymore?
Looks like our current Treasury Secretary is part of the RE disillusionment crowd!
http://money.cnn.com/2009/06/03/real_estate/Geithner_housing_market/index.htm?postversion=2009060314
Poor Timmy is renting out his home at a loss! After reading this I realized as a country we are in much deeper doo-doo than I thought.
> IMO the buyer purchased this to be part of the “I’ll buy anything just to say I OWN and you RENT” endangered species. Personally, I would rather save for a couple years, try to get a promotion at work and buy a big boy/girl condo.
Which is about the same as the “I am so smart because I am going to wait to buy a place when its better” crowd.
“Which is about the same as the “I am so smart because I am going to wait to buy a place when its better” crowd.”
Well brad even you must admit these days the trend is clearly in our favor.
Well when you have a group of people like westloopemo who frequently disparage and degrade ‘renters’ there will always be people out there willing to pay a tidy premium to own. The mindset in pretty entrenched in our collective psyche and even major shocks to the system like the foreclosure and credit crisis is only slowly changing people’s thinking. I know couples in their 30’s who have been foreclosed upon and cannot wait until they again qualify to take a mortgage because of the stigma people like westloopemo attach to renting. This discrimination and bais is as insidious as it is harmful.
Oh homedelete, grip a freaking grip!!
The point I make over and over again is that in order to have your own independence when you reach retirement age, you HAVE to be the owner of your own home.
I know several of my long term tenants who would be owning their own homes now had they not played the same game many here are playing….pushing ‘that waiting to rent until conditions improve game’ until they in essence have paid the amount I would have had financed on a mortgage. They lived under that same rock thinking ‘one day’ a low rate and affordable mortgage would have fallen in their laps. Granted in some ways it could have in the past 4 or 5 years, so in that respect, they did make the right decision to NOT buy. But in the end, they are living month to month with no equity in anything…whereas if they had purchased 30 years ago, their living expenses now would be minimal. You can’t live for today only while ignoring what is going to happen to all of us eventually. We will be out of the job market and those who had not build a nest egg…and a nest of their own will be SOOL with nothing but an aged car to call their own.
If you look at some of these properties that have been featured on this forum, you will see prices are falling to affordable levels. As first time buyers you don’t really have the ability to be able to capture your dream house…3/3.5, 3000 sf, huge yard, updated everything, great location, perfect neighbors, etc. Instead you do have to compromise and pick up what you can in your price range (and in Chicago, if you cannot afford a place for $250-300k, you’d better relocate while you are young enough to a city where that amount would get you a dream home) and do what you need to customize it to get most of what you are seeking.
I do not attach ANY stigma to renters whatsoever. I provide a great number of homes to rent for those who refuse to buy their own. There is absolutely no bias (not bais) or discrimination whatsoever. You do not know me at all to be able to throw such a callous and false statement out there to make an invalid point….keep moving…..OK off my soap box now and off to NYC for some R & R.
“As first time buyers you don’t really have the ability to be able to capture your dream house…3/3.5, 3000 sf, huge yard, updated everything, great location, perfect neighbors, etc. ”
Hmm…for me within 5 yrs barring any v-shaped recovery in housing and if I keep a job: check, check, _maybe_ a small yard, check, good not great, can’t control but seem nice enough.
Know how this would be possible for me? Foreclosures.
Good luck on your doom and gloom outlook that would enable you to buy your first dream house!!
In summary, westloopelo wants us to respect buyers because he is one, says he does not stigmatize renters, and then in the same post proceeds to do just that. He also believes we should not make assumptions regarding someone’s motives for buying a home, but once again in the same post states that the only reason anyone would ever rent is because they are too poor or too fearful to buy a place.
Westloopelo, there is a word that describes you. It begins with hypo, and ends with crite.
HEHEHE @ Pete
I don’t need nor want respect from anyone on an anonymous message board…don’t flatter yourself.
I don’t stigmatize renters at all. All I am saying is that there are people here who are not buying because they think the prices will fall to unheard of levels then, and only then, will they feel confident that they are getting THE deal of the century and jump on board. In the meantime, these same people are pissing away a ton of cash ($18,000/yr easily in Chicago) that could be used to purchase an asset that you could have for the rest of your life. Sure homeownership comes with a whole set of rules (and bills), but in the end you have something to show for it all. I think for the next 5-10 years that dream of buying and flipping for 100% profit are over, so the only reason to buy would be to secure shelter for yourself for years to come…not too hard a concept to grasp, right?
That is the part that I do not understand… sure you can view the purchase of a home in the same manner in which you view purchasing stocks, there is always a risk. But buying stocks will only yield you a small rate of financial return on your investment, maybe. While the purchase of a home will provide you not only a roof over your head but ownership of an asset that we all know will be worth more than your initial investment. Will you see growth in the next year….three years….five years? Perhaps not, but in that time frame the money you wasted in rent payments is just that, wasted money.
I totally understand the fact that many people (esp those with a small amount to put into a downpayment/taxes/maintenace) are weary of buying anything right now. For sanity’s sake I have to see the light at the end of the tunnel…and there will be recovery in the near future. All my life savings is tied up in Real Estate so if anyone should be afraid of what the future holds it should be me!!
Not to throw stones at a few people I have supposedly insulted or stigmatized, but I am at a place where I can wait it out without a financial crisis happening in my life. I imagine that is what is causing a few of you to judge and feel anomosity towards me.
Sorry for the difference between our lives, but I have been on both sides of the fence and just by luck of the draw (and 30 yrs of working my ass off 24/7) did I end up where I am now. Don’t hate me because of it.
Here’s to kool-aid: the cause of, and solution to, all of life’s problems.
Also have to disagree with westloopelo.
Buying a house often provides the illusion of savings. In olden days when people put down 20% and took out 30 yr fixed rate mortgages, the process of paying it down was forced savings. Yes, it’s nudge that forces you to save! In modern times, that philosophy was abandoned so the belief that house is way to build equity (save) is a joke. Folks are living hand-to-mouth to afford a house they shouldn’t be in. The fact that a renter isn’t building any equity just means they too are living beyond their means. It’s idealistic but a renter should still have a cushion to put away at least 10% of AT salary – that’s my view.
As far financial returns of housing, the returns you are citing are purely a function of leverage. You are borrowing so much money! Buying a house is like buying stocks on 10:1 margin. The only good news is you don’t market-to-market values and banks are slow to ask you for additional maintenance margin. Don’t kid yourself in to believing in great returns. Long-term academic studies on real estate indicate that housing provides a return similar to long-term bonds (inflation plus about a 3% real return).
Kool Aid….where’s the freaking Grey Goose??
GLS- sure the returns on housing may not be great..those days are over. But to make sense of what I believe in, you have to view it as still having a roof over your head when you retire…for many that is a HUGE thing, wise investment in the meantime or not.
Hey G – There are 12 (under $1.2 million) attached 4 bedroom properties in the Lincoln School district that have come on the market in 2009. 2 of the 12 are have sold and 5 of the remaining 10 are under contract. Average market time of 61 days for the active and 91 days for the contingent. Nothing closed or was contracted prior to March.
What would you have to say about these stats? 🙂
Hey G –
🙂 🙂 🙂 😉 😉 😉
What were last year’s stats like?
It’s the spring/summer selling season. Some properties are selling. No doubt about it.
But these stats tell us nothing because they’re given in a vacuum. It would be like saying that Lincoln Square is doing well because 8 out of 15 units at 4451 N. Hamilton (that I posted on yesterday) have sold within 3 weeks. Compared to what?
Also, I think it’s pretty funny that you’re basing the “health” of the market on 12 properties in the most expensive zip code. That, unto itself, tells you how rotten it still is out there.
or it tells you that I work and live in one area and specialize in it. I have told you for the past year that the market is good in LP and you and your pals have denied it. Just admit you are wrong.
and by the way… the percentage of properties under contract tells you everything about a particular area. If 0 of the 12 were under contract it would be bad. If 60% of them are sold or under contract it is good. This statistic tells you if pricing is supported at its current level or if an adjust up or down would be supported. I would not expect someone who writes a “end of the world” blog to know this so condier it a free lesson.
LOL!
Really? It is “good” if last year at this time 24 homes were for sale in the same zipcode and 12 of those were sold or under contract?
Would that mean 2009 numbers meant a “good” market?
I don’t think so Steve.
Your numbers are silly.
The LP market has retreated back to 2004 pricing. Other parts of the city are now moving lower- so in that respect it is “good” relative to other areas. But if you bought in 2004 and you’re now taking a loss in Lincoln Park, I doubt you’d find that the market was “good.”
Also, the continuing drop in sales indicates that prices will continue to slide.
You are just dumb Sabrina. So you are saying that the fact that all these units are being snatched up means nothing and the more important figure is the number of units available?
I know a few really popular buildings in the gold cost where units never come on the market. Does the lack of inventory mean prices are declining in these popular buildings or does it simple mean that no one is selling?
If I wanted to sell my 4 bedroom in LP I would do it now as the stats indicate buyers are out in full force. Why does low inventory and high demand lead to lower prices. Please explain your logic???What do you see Sabrina? Let’s hear your uneducated opinion so we can all feel just a little bit smarter about our own.
It amazes me that people can write a blog with so little understanding of statistics an how they drive pricing.
I am now convinced that G, Sabrina, And HD share a studio in Albany Park and could really use some more space.
I only have the energy to pull one comp from today’s closed list –
1881 N Poe St #1 – purchased in 2005 for $430k and sold today for $490k.
2004 must have been higher than 2005? You are funny!
What stats indicate that “buyers are out in full force”? Continuing year over year declining sales?
I wish you would show us the “stats” Steve. Because otherwise, it’s jibberish.
And as for showing me some “comps” about properties that sold for more than prices in 2005 or whenever- for every comp you can show me that sold above, I can show you one that sold below.
It sucks if you’re the one that sold below.
Prices are falling Steve. Nationwide. No town or zipcode is immune. Price declines aren’t as severe in certain areas as others, that’s true. But it’s still a depreciating asset.
Buyer beware.
Sabrina – Here is where you are wrong. The people picking up the pieces today (in the less than desiarable areas) have a great chance to make a killing on their purchase. Those of us in the highly stable and demanded areas will continue to see pricing follow the inflation curve. Where do you get 2004 pricing for LP? Let’s here it with some sort of suuport.
Tell me again how 50% of listed properties being under contract is a negative statistic? Please, I am so curious…
Reader beware. We have some serious low education level reading for you. Stupid is as stupid does. Doh!
Steve.. the market still sucks. Money being pumped into the economy to increase home prices is all going into the wrong places (commodities/stocks – unintended consequences once again) 1 in 9 people in the US are on freakin food stamps now. I read yesterday that the average gov’t benefits being received by the American household will be 17,000 this year. INSANE!!! It can not keep up. I remember seeing 3,000% inflation before. I remember the causes. I saw this movie before. The world will not finance American “needs” forever, countries will focus on it’s own needs and stop financing some white trashs “needs” for 2 cars and a flat screen. No where in the world does a country get away with this for long. Those lower middle class buyers will not come back. It will get MUCH worse for them.
“Steve Heitman on June 4th, 2009 at 11:23 pm
Reader beware. We have some serious low education level reading for you. Stupid is as stupid does. Doh!”
Like presenting one very small set of market data with no historical context, yet still declaring a definitive conclusion about the market?
Besides, SHill, you were most recently proven very wrong about your April claim that May LP sales would increase YOY (later weaseled down to include “or remain flat”). They fell 30%.
Why would anyone think you know anything if you missed that by so much? It sure isn’t hard to predict one month out when you have the data.
I’m at a loss to take any of your poorly researched claims seriously anymore. I doubt anyone else I respect here does either.
“1881 N Poe St #1 – purchased in 2005 for $430k and sold today for $490k.”
A 2/1.5 for almost $500k? A half block off of Clybourn. Sounds brilliant.
After reading this forum day after day I am left wondering if anyone in Chicago is currently purchasing a home for shelter instead of wondering how this investment would make them money in a few years as though they were playing in the stock market? According to the regulars here, every would be buyer sits in front of his/her computer attempting to see if they can ‘make money’ from their home in a few years. I seriously doubt this is the case.
As I keep stating, yes of course there are fewer sales, but there are still sales. Those sales are not second or third homes for the purchasers, they are primary residences for the buyers.
I read several similar RE forums from other cities, NYC’s being the most interesting as they keep the focus on comparing the units that are currently on market. While there is some talk of where the market is heading, the conversation is more about a comparison of units that are for sale and what you can expect for your money.
Too often on this site the conversation revolves around how much money one could make on the purchase then sale of their home a short time later. Housing is not about making money, it is about shelter, right?
When I buy homes to rehab, I look at that units’ improvement potential and whether or not the time and effort I would put into it would grant someone a nice place to live. If I succeed in my job, the sale or rental falls into place later. Perhaps the luxury granted by having money allows people to focus on what is important instead of stressing over how much you might lose by making a poor choice.
Purchasing a home is not about investing money in hopes of huge returns at a later date, it is about securing a place of your own to live. Sure it is important to know where your home stands in a financial sense, but the main focus should be on what one could do to increase comfort, usability and finally what would increase the value.
We purchased not for shelter but for fun. I expect to loose some money even if we hold on for five years. But it was money sitting around doing nothing, and we’ve worked for a long time. We raised the kid, and devoted ourselves to our previous jobs, so now it’s time to enjoy. And, we are. Chicago is great for weekenders.
Luckily, as westloopelo says we now have the luxury in our dotage to not stress over how much we might loose.
As an aside, my wife grew up poor. Do you have any idea how it makes her feel about herself that she can now afford a second home? That alone is worth the money.
Thank you Steve for your post! It confirms my suspicion that I am not the only poster here who purchases with little to no regard of the earning potential of their home. If your heart is in it and you do the best you can with what you have, the rest falls into place.
Your home should be enjoyed and the process of buying it should be a stressfree adventure…and it is if you go into the process with the idea that you are doing something for yourself as a reward for a life time of hard work.
Congrats to both of you for rewarding your hard work! And yes, I can imagine how your wife feels being able to own a second home. I have seen many times the feeling home ownership brings to those who never thought it would be possible…it is a huge accomplishment.
you forgot about me westloop. Would rather die than rent!
Looks like unemployment is improving at least. Better buy now or be priced out forever! 8)
“Like presenting one very small set of market data with no historical context, yet still declaring a definitive conclusion about the market?”
It was a simple point that markets in perfect locations are holding up just fine.
I was one month off on my data G. May contracts were flat from 2008. I guess June #’s will be in line.
Those rents sure will be high once inflation takes off. Ouch!
“After reading this forum day after day I am left wondering if anyone in Chicago is currently purchasing a home for shelter instead of wondering how this investment would make them money in a few years as though they were playing in the stock market?”
Well since this forum is mostly full of arm chair real estate gurus, the sample is skewed quite a bit. I purchased for shelter, but I wasn’t going to get ripped off at 2006 peak pricing.
So we waited a bit, and found a desperate seller who aggressively lowered their prices enough and wanted to get out bad enough that they hit a price level that was affordable to us. Yeah we probably could have waited another year but I really didn’t feel like throwing another $18k to my landlord.
We love the building and the location and couldn’t be happier, and could really give two craps about whether or not it appreciates because we will worry about that when the time comes to sell. But for now, I will enjoy tricking out my place with a nice home theater system and a nice 10′ projection screen to watch!
We were lucky to also find a desperate seller just a few blocks away from Sonies. Alas, we didn’t know about the divorce which could have probably saved us another$10,000. Even at the price we paid, we apparently though we ruined the comps for the whole building. LOL.
Let’s get this right: “Even at the price we paid, we apparently ruined the comps for the whole building.”
“Looks like unemployment is improving at least. Better buy now or be priced out forever!”
Much improved. 16.4% U6… lovely!
Go ask for that raise!!
btw.. Sonies I used to have a nice super high end Stewart screen that i threw my projection on. Needed a retractable one for here in Brasil so just got a MUCH less inexpensive Elite motorized screen. Not exactly running things down here through my foroudja 5000 scaler to compare but I have to say for the price. Unbelievable purchase. Highly recommend it… but they don’t make 10″… 🙂
my bad.. you said 10’… this always happens to me when i run out of weed. Damn it!
oh boy… much less inexpensive. i am retarded!
Yeah i don’t think it would be worth it to have a projector for a 10″ screen! lol!
I can get a pretty good 1080p projector for about $2m now. I have such a massive wall in my living room it will be perfect. The 50″ dlp i have just seems so small against the wall. I plan to get a nice remote electric retractable screen, that will run me about $900, but will TOTALLY be worth it!
Sonies.. Totally!!!! and since it’s your place, you can mount it wherever the hell you want!!!!
Die before renting!
“Perhaps the luxury granted by having money allows people to focus on what is important instead of stressing over how much you might lose by making a poor choice.”
westloopelo, I do not have nearly the resources you do, but I am starting to learn this lesson. In things beyond even real estate, this is so true.
““Perhaps the luxury granted by having money allows people to focus on what is important instead of stressing over how much you might lose by making a poor choice.””
You think so, WL?
You think that there’s a difference b/t losing $100k when you have $10mm+ in assets and losing $10k when you have no assets makes a difference?
The first is annoying and the second means bankruptcy, worrying about feeding your kids, having your utilities shut off.
Not that I think that (1) anyone here really fits the 2d category or (2) that someone in the 2d category should be buying a house, but Yes, without question, one of the luxuries of having money is not needing to worry about losing your security b/c of one poor choice.
OK making a bit of headway in the buying for shelter/paying your own mortgage vs buying strictly as an investment with the idea of 100% profit a couple of years down the road. And of course I remembered you Ze…just was addressing Steve A. 🙂
btw.. westloop.. Am I the only one that everytime I hear anyone boasting about LP, I think of it as Brooklyn Heights is to NYC?
Just not as nice.
“I think of it as Brooklyn Heights is to NYC?
Just not as nice.”
Comparative lack of hipsters in LP = nicer.
hipsters in brooklyn heights????????????? been quite a while since you’ve been there huh? Bob Dylan days still?
Yeah its been awhile. I had just heard reports of a hipster invasion in Brooklyn but forgot that part is right across the river.. sorry.
no prob.. all the best to everyone!! … heading out finally… beautiful here.. we had a cold snap into the 60’s the past few days. Hilarious seeing scarves, hats, and people literally shivering.
“It was a simple point that markets in perfect locations are holding up just fine.”
Except for the simple fact, SHill, that you didn’t make that point at all without historical context or what they are actually selling for.
It is obvious that data interpretation is not your strong suit. There is no other way for you to have missed that May sales call. Really, you’re 5th grader could have called it right had you showed him the data.
“wondering if anyone in Chicago is currently purchasing a home for shelter instead of wondering how this investment would make them money in a few years as though they were playing in the stock market?”
No, WL, that’s what the bubble buyers were thinking, and they massively overpaid in the process. That speculation was a major cause of runaway prices. They are gone and sales have predictably collapsed.
There will always be buyers who are unconcerned about losing their money (not the bank’s – that’s history.) Heck, I even bought another place with this knowledge in 2008. We just are a very small % of the market as sales numbers confirm.
The simple fact remains: buying RE today as your primary “road to wealth” is a mistake, because you will get better prices in the near future and save by renting along the way.
If you don’t mind losing money, go for it. But the sales numbers do not lie and they clearly show that most buyers realize that today’s prices are still too high. It sure won’t be “I can afford to lose” buyers that save the market, because they will always be few.
It won’t be buyer capitulation that will get sales going again, either.
I lurk here
—originally posted by westloopelo—
After reading this forum day after day I am left wondering if anyone in Chicago is currently purchasing a home for shelter instead of wondering how this investment would make them money in a few years as though they were playing in the stock market? According to the regulars here, every would be buyer sits in front of his/her computer attempting to see if they can ‘make money’ from their home in a few years. I seriously doubt this is the case.
As I keep stating, yes of course there are fewer sales, but there are still sales. Those sales are not second or third homes for the purchasers, they are primary residences for the buyers.
I lurk here regularly and have only posted once, but I probably qualify as a classic “knifecatcher” in that I bought my condo in 2006 – the height of the market – for nearly half a million, and I have no hope of recovering my investment in the next several years. I have no parking, which only confirms my foolhardiness. On the plus side, I don’t have an ARM, so I do have some control over my mortgage expenses.
I couldn’t be happier with my decision. Every night when I turn off all my lights I stand at my bay window and look out into my neighborhood and remember once again how glad I am that I bought my home. Last Friday I mentioned to one of my neighbors how much fun I have by going out for a drink in my neighborhood and walking home amidst the visitors that come every weekend, and I meant every word. I can’t describe the joy I feel in my house.
I have no intention of selling my place. I did not buy it to turn a profit – it was an opportunity to live a life that I wanted to live. My home gives me shelter and I now have a home that is large enough to allow me to welcome guests and give them more privacy than the pull-out couch in my living room.
I waited many years to be able to buy something that met my requirements and was something that I could afford. But I also admire anyone who purchased a small place and traded up when they outgrew their home or could afford something that better met their needs. Everyone has a different life situation and what worked for me might not work for someone else.
Buying a home, for some people, brings an intense feeling of satisfaction. I realize it isn’t the right decision for everyone, but it’s impossible for renters to understand the connection that homeowners feel.
My impression from months of reading this blog is that many of the derisive comments about owning vs. renting come from the fear of making a mistake – of entering into a commitment only to learn that a better deal was just around the corner. The commenters are paralyzed by indecision, fearing that whatever they decide will be wrong. They blame the market, the banks, the stupid owners, everyone but themselves, for causing a situation that prevents them from purchasing. There is also an element of finding comfort in the misfortune of others, where posters congratulate themselves on their wisdom of avoiding the downside that comes with taking a risk, conveniently ignoring the attendant upside that could just as easily have occurred.
Buying a home is a very personal decision, and each purchase brings with it a story that is unique to both the buyer and the seller. It is not reasonable to generalize, but it appears to make many of the regulars here more comfortable about their own decisions if they denigrate the decisions made by others.
So be assured that this blog is not representative of many owners in Chicago. Instead it’s dominated by a few strident voices that finds comfort in arm-chair quarterbacking while other people choose to actually play the game.
—originally posted by westloopelo—
After reading this forum day after day I am left wondering if anyone in Chicago is currently purchasing a home for shelter instead of wondering how this investment would make them money in a few years as though they were playing in the stock market? According to the regulars here, every would be buyer sits in front of his/her computer attempting to see if they can ‘make money’ from their home in a few years. I seriously doubt this is the case.
As I keep stating, yes of course there are fewer sales, but there are still sales. Those sales are not second or third homes for the purchasers, they are primary residences for the buyers.
Sorry about the double post! My fingers slipped.
Sparkly,
Thank you for your honest and upfront post relating your story and how you viewed your home purchase before and after the fact. It was extremely refreshing to hear, given the state of the RE industy today. I too think it more accurately reflects a high percentage of buyers in the market now.
Most of the people who buy my renovated homes do so for the reason of obtaining and enjoying their home for years to come as shelter and not as an investment. Most of them occupy their homes until their family expands for what ever reason…children, parents and other family members or they gain enough equity to be able to reasonably trade up to a larger, more expensive home.
On another thread a regular contributor to this forum accused me of being both not practical nor conventional. In large part this is true in one aspect. Strange as it may seem, I make a point of contacting the new owners of my renovated homes after they move in and get settled. Many of them are shocked that I do this, but I do so with the understanding that since this is the largest single purchase you make in your life, you want to be reassured that your decision to buy was the right one. Also I do so to make sure my work is appreciated and allows me to use the feedback I receive for use on future projects.
I have to say, I have made many friends utilizing this practice of a follow up after the sale. One couple I have kept in contact with for close to 20 years and have helped with their decisions to upgrade their original home and also when they were ready to trade up their home. Actually they purchased another of my rehabbed homes and are happy they did so…in this case a bit of PR on my part did wonders for my business. I have also had many referrals due to my interest in the purchasers satisfaction.
I have mentioned on this forum a few times that I do not buy property with the sole intent of reselling after a poorly done rehab for as much money as I can get. My focus, after providing as much house as possible for the new owners, is to help improve the quality of homes in neighborhoods that have fallen into a state of disrepair. Many times these homes are the only ones on the block in need of a bit of TLC to get them back to the condition of the surrounding homes.
To me, nothing is more satisfying than completing a project on a block of other well maintained homes…bringing a solid house back to the condition that is not only appreciated by the new owners, but is also greatly appreciated by the other residents of that block.
Very seldom do I go into a new project and only consider what kind of profit I will make at the end of my work. I go into it with the mindset that if I and my crew do the best work possible with quality materials, the end profits will be more than acceptable to me. So far after 25+ years in this business, I can count the few projects that did not yield a profit for my company, so it is clear that I am approaching my job in the right way.
So I guess the reason for telling my tale is for those who are considering the purchase of any property, put those negative thoughts of the owner and their agent trying to take you for a ride and draining every penny of your hard earned money on the back burner. Of course, don’t erase these thoughts totally, but there is more to completing this transaction than speculating on the background and motivation of the seller. Not everyone involved in this industry is a greedy crook who turns out substandard work only for the profit potential.
Perform the due diligence needed to assure yourself that not only will you be happy with the end product but also that what you are buying will be an asset rather than a liability for years to come. Also it is a great feeling knowing the money you are spending for shelter will go towards your own home rather than paying for someones elses growing portfolio.
Even in the extended period of an uncertain market and economic turmoil, if done correctly you can make this wise decision to finally buy your own home and have it work in your favor.
Thanks again to those who responded to my question wondering if people were buying for shelter rather than doing so as if they were playing the stock market…it makes my job a bit more rewarding knowing this still holds true.
Curious Westloop.. which part of NYC did you live?
Oh and Westloop.. For your survey, this Friday I am buying so that I can have a place to get away from it all.. City boy buying his farm… ROFLMAO!!
SO many areas in NYC!
Started with a portion of my grands UES triplex while in college and from there I was all over the city.
Let’s see, the highlights….Tribeca, (when it was still ‘undiscovered’, very affordable and the true loft craze was starting) many places in The Village (fav was on Bleecker and 11th…still own this unit as rental prop) UWS in a huge 5 floor brownstone that I rehabbed for a family but was allowed to live in during the work), three places in Chelsea when the galleries (and gays) started to populate the area and it was still very affordable for large spaces, a brief stint in Harlem, (never again I don’t care if it is THE area now!!) and currently I maintain a huge loft in the Meatpacking District not far from the Gansevoort and finally, the High Line.
The current loft, I have to say, is my over all NYC favorite as I bought at the right time and was able to combine three spaces into one huge loft. It has increased in value from the overall investment for all three units by close to 500%. I believe I will hold onto this unit and will eventually retire there in a few years. This area is growing and improving on a major scale now in large part to 1) the last of the real meatpacking industry has finally left the area freeing up many unique buildings/tear down spaces for the starchitects that are leaving their mark in a huge way. HL23 is my dream development and perhaps in a few years I can get in on a resale. http://www.hl23.com/#/The%20Building 2) since the High Line project has finally come to fruition, the property values are skyrocketing, even in this market, and I can probably expect an even larger profit IF I decide to move onto HL23 which I would not leave if I was able to get a space there.
So yeah, I have been all over Manhattan and in many of the cities’ most unique spaces. I think we attempted to compare NYC to Chicago and confirmed the fact that there will never be a reasonable comparison between the two cities. I try and get back to the city at least twice a month and can’t wait to complete my projects here so I can make it back on a permanent basis. While Chicago will remain a great place to visit, I personally cannot imagine ever living here on a permanent basis.
Did you live in NYC as well? And if so, which part and how did you like it?
My first apartment was in the early 90’s on Duane St. Duplex with terrace that I paid 250k for. About a block from my all time favorite restaurant (Bouley) You can guess how that one worked out. 🙂 Moved up a few blocks to SOHO (West B’way and Prince)where I stayed until I left NY. Basically you struck me as a Chelsea guy for some odd reason. I do want to make meatpacking jokes but I’ll leave that alone.
Absolutely loved the city. Avoided like the plague anything above 14 St. Born bred and raised there so I couldn’t walk a block without bumping into people unless I lived downtown in the 90’s. Just was endless stress. Fights on way to work, fights at work, fights buying subway tokens, and worst of all insanely overbearing parents. I do miss the 1-800-the-pope though… nothing better than the delivery bikers getting you weed in under 15 minutes 🙂
I am alot like you, nothing but great things to say about Chicago but didn’t want to stay. Not returning to NYC either though although I get propositioned to return weekly. I am never ever leaving Rio. This place is going to pull a Sydney (post Sydney Olympics) in a few years and become one serious high priced city. So obvious it is painful.
Funny Westloop.. this was on front page down here today.
http://oglobo.globo.com/viagem/mat/2009/06/09/nova-york-ganha-novo-parque-urbano-no-meatpacking-district-756258973.asp
Word is spreading just as the appreciation on my loft is!
I am the opposite of you though, I love all those quirks about NYC that make it…NYC. I usually avoid anything below 14th Street now (other than my baby loft) as that area is making huge strides, not all of them positive, in a total make over of the FIDI portion of the city. It seems the longer the WTC project gets pushed back into oblivion, the desire to be a part of that area is increasing.
There are so many mega luxury units going up now or are in the planning stages that people are risking everything just to be a part of it all. I learned early on about NYC property, never be the first in any newly gentrified neighborhood or new development until you see how it turns out. Lesson learned the hard way!