$10K Reduction on a Luxury 2/2 in Lakeview: 3535 N. Reta

We last chattered about this 2-bedroom unit at 3535 N. Reta in Lakeview in June 2010.

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See our prior chatter and pictures here.

The unit has upgraded finishes you may not find in a typical north side 2 bedroom unit including crown molding, a tray ceiling, and solid core doors.

The kitchen also doesn’t have just any stainless steel appliances, it has Subzero and Bosch plus a wine fridge.

The unit has natural stone baths with a steam shower.

It is now listed for $50,100 under the 2006 purchase price.

Is there no longer a premium for upgraded finishes?

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Matt Garrison at Coldwell Banker still has the listing. See more pictures and a floorplan here.

Unit #2: 2 bedrooms, 2 baths, 1 car parking, no square footage listed

  • Sold in May 2006 for $480,000
  • Originally listed in January 2010 for $475,000
  • Reduced
  • Was listed in June 2010 for $439,900 (parking included)
  • Reduced
  • Currently listed for $429,900 (parking included)
  • Assessments of $150 a month
  • Taxes of $6620
  • Central Air
  • Washer/Dryer in the unit
  • Bedroom #1: 17×12
  • Bedroom #2: 12×12

81 Responses to “$10K Reduction on a Luxury 2/2 in Lakeview: 3535 N. Reta”

  1. You can argue all you want about LP/LV 3 flats, but when you see the finishes in this particular unit, it’s easy to understand why this appealed to a buyer. Granted, you still have no idea on the quality of the construction, but it certainly is an attractive unit that has been staged well.

    I sold my 2BR/2.5BA in LV in early 2010 for this unit’s initial ask in Jan-2010 and my unit wasn’t nearly this upgraded. My unit had MUCH more character, but my unit also had GE Profile appliances and ceramic tile compared to sub-zero and natual stone. Maybe Sabrina is right that there is no longer a premium for these types of upgrades.

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  2. I really do not think that there is much of a premium for these type of upgrades in a 2/2. Again, market is flooded with these units. Agree that it is staged well and looks nice. Guessing it sells for just about 400

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  3. Personally I think this is a great unit. Unfortunately 425k is a ton of money for the people that a unit like this actually appeals to.

    No one wants to admit it, but 400k is a lot of coin these days.

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  4. I tell people that my generation, aka the next generation of buyers, has student loans, daycare, credit card debt and stagnant/reduced income.

    It’s not that buyers wouldn’t pay a premium for these types of upgrades…it’s just that there are so few who can….

    The ponzi scheme is over…

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  5. I think that this is a great deal. I am not sure you could reproduce this type of unit for this price.

    I bought a very similar unit from a develper in LP in 2005. I didn’t want anything finished because I thought I could do it for cheaper than he could. I ended up paying about 350k (a deal as the other units were going for 440-480) but ended up spending a little over 150k in upgraded – very much like the unit pictured here. In addition, it took almost a year to complete. I totally underestimated the time and expense involved with renovating in the CITY. Right now it is rented for 2500/month (yes, I am losing a about 1000/month – but that, of course, is my problem)

    My advice to anyone looking (and wanting a nice place) to grab this unit – I really don’t think you can get a better place for cheaper (and don’t make the mistake I did by buying something cheaper and thinking that you are going to renovate yourself!!!)

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  6. Well, there is another ponzi scheme still alive…it’s called Social Securty.

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  7. Clio – the cost to replicate this unit is irrelevant to what it is worth today.

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  8. “Clio – the cost to replicate this unit is irrelevant to what it is worth today.”

    That’s absurd. And beneath your usual flippant points.

    It may not necessarily be the same, but if it costs more to duplicate, then someone (who may not exist) looking to get this would be willing to pay something close to the replacement cost. If it costs *less* to duplicate, only those in the midst of a mania would pay more for used than new–and the second we’ve just been thru.

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  9. “Clio – the cost to replicate this unit is irrelevant to what it is worth today.”

    do you mean that just because it costs X to replicate these finishes that it doesn’t add X to the value of the property when said finishes are replicated?

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  10. thanks anon – I truly believe that “replacement costs”/”new construction” costs DO matter. Obviously, if new construction was cheaper than buying older units, EVERYONE would build new. In my experience when new consr. costs begin creep over 25-30% of similar sized pre-existing units/housing, the pre-existing housing begins to look more attractive to buyers. That is just based on experience (no hard data – sorry).

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  11. The cost to replicate is “irrelevant” to some buyers, but not to others. If you’re a buyer looking for this type of product, and this unit is below what it would cost you to purchase a unit today and replicate these finishes today, then the replacement cost value is absolutely relevant.

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  12. Personally, I really like these finishes, and I dont think there are a ton of units that are finished this nicely in this area. There is a certain wow factor to these finishes that adds value (not sure if the wow factor is worth whatever the extra costs were, but they do add value). I think a sub-$400K basis would be a good deal for this place.

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  13. “I truly believe that “replacement costs”/”new construction” costs DO matter.”

    Of course they do. As does what the seller paid for it, what they owe on it and what their overall financial situation. And what other properties nearby are lsited for and what they have sold for.

    No single thing is determinative, but it is all *relevant*.

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  14. you could FHA this place for 15k down (probably 10k of closing costs)

    4.5% 30 year fixed

    PITI+PMI = $2754 /mo with about $450 a month of that going to principal

    seems like a decent deal to me on a nice place in a good hood

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  15. also those taxes are probably without the homeowners exemption so you can probably knock off at least 1k

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  16. “also those taxes are probably without the homeowners exemption so you can probably knock off at least 1k”

    Nope, it includes the HO. But b/c the house is new, the 7% cap doesn’t help

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  17. “PITI+PMI = $2754 /mo with about $450 a month of that going to principal”

    probably the best reason to buy this property!! Renting a similar unit would probably be 2000-2300 – so it may make sense to someone who wanted to live in this area. Also, remember that the 450/month going to principal will only increase in amount (while your overall payment stays the same) – even in 5 years you will definitely be ahead (as opposed to renting)

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  18. Schaumburg called,
    They want their wretched – eyesore red brick white cinder block monopoly house back.

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  19. No, Clio – the cost to replicate this unit is irrelevant to what it is worth today.

    What is relevant is what someone is willing to pay.

    Said another way by ‘tay’ above, “(do you mean that) just because it costs X to replicate these finishes that it doesn’t add X to the value of the property when said finishes are replicated?”

    If it were such a great deal the someone would have ‘snapped’ it up by now.

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  20. I think we are kind of running around in circles, here.

    What someone is willing to pay IS indirectly tied to replacement/new construction costs. In any event, the fact that somebody hasn’t ‘snapped’ it up doesn’t mean that it is not well priced. It simply means that the right buyer hasn’t come in yet and perhaps the sellers are not absolutely desperate.

    I hate when people think that just because a property doesn’t sell in a matter of minutes/days that it is not well priced. Come on!!! That is such B.S. – I can’t take it!! When I talk to potential sellers, I always remind them that, in this market, it could take several months to sell. If they are in a social/financial need to sell faster, then we adjust the price accordingly. However, I wouldn’t advise people out there to slash prices on their real estate just to “make the sale” (especially if they can hold on for a little longer).

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  21. James said:

    “Schaumburg called,
    They want their wretched – eyesore red brick white cinder block monopoly house back.”

    Maybe I haven’t spent enough time in Schaumburg lately but wtf are you talking about? It sounds like you are talking about LP/LV housing, Schaumburg (or the burbs in generaL).

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  22. *not Schaumburg (or the burbs in general).

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  23. Put down the kool-aid clio, take the straw from your mouth.

    Holding on longer is bad advice because you’re encouraging your clients to essentially chase the market down.

    YOu and I both know there is a standoff between buyers and sellers going on right.

    Buyers won the last battle in 2008. I assure you they will win this battle too.

    “I hate when people think that just because a property doesn’t sell in a matter of minutes/days that it is not well priced. Come on!!! That is such B.S. – I can’t take it!! When I talk to potential sellers, I always remind them that, in this market, it could take several months to sell. If they are in a social/financial need to sell faster, then we adjust the price accordingly. However, I wouldn’t advise people out there to slash prices on their real estate just to “make the sale” (especially if they can hold on for a little longer).”

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  24. “What is relevant is what someone is willing to pay.”

    And people will pay the same amount for something that could be replicated for less and for something else that would be more expensive to replicate. The cost of the materials has *nothing* to do with what people will pay, because people are f’ing morons.

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  25. Given rising wages and a market that is on a recent tear (don’t ask me, ask Bernanke), Clio might have the right strategy:

    http://www.bloomberg.com/news/2010-08-02/bernanke-says-consumer-spending-will-accelerate-as-household-incomes-climb.html

    Commodity prices in certain segments are up huge. Wheat, a proxy for all food commodities, is up 50% in 3 weeks. Clearly there must be deflation going on — unless of course you want to eat or do anything that requires petroleum.

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  26. “Holding on longer is bad advice because you’re encouraging your clients to essentially chase the market down.”

    yes and no – IF sellers don’t have an urgency to move (for a job/education/health/etc.) and they can ride out the market (which may be 2-3 more years, why not? What do they have to lose? On the other hand, if there is an urgent need to sell or, if they cannot afford their property, that is another story. I have many clients that have listed their houses/condos but are in no rush to sell. These are great units that usually have very high end finishes. It doesn’t cost to keep something on the market and there is always a chance that someone will like their unit/house (for whatever reason) and buy it. Of course, these properties are unique and high end – I am not sure if the same strategy would work for a property like the one presented here.

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  27. But Bill Gross sez “blabbidy blah blah blah”

    (nevermind you he’s a 100% bonds guy)

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  28. Perhaps I should have made my point more clear,
    What the Fck i am talking about Tay-
    is how Fcking hideous and Wretchedly ugly that piece of “real estate” is.
    The use of “Schaumburg” in my parable is relevant here because as most people with some semblance of taste have known for years, Schaumburg and places like it are synonymous with bad taste, cultural bankruptcy, ugly sprawling wastelands of shopping malls and a bewildering array of thoughtless architecture carelessly tossed between countless other examples of phenomenon directly traceable to the decline of America.
    The tragic thing is is that sometime in the early 90s a decision was made in the city of Chicago to take a wrecking ball to any and all architecture that is:

    a: historically significant
    b: aesthetically pleasing

    and replace it with things like you see in the above post.
    Things like the above mentioned piece of festering and sorrowful corporate excrement even now attempt to pass themselves off as “Luxury Housing” are nothing more than a cruel joke played by greed driven developers upon the unsuspecting home buyer.
    These bland – monolithic urban prison cells you see in the post above are an insult to the architectural heritage of this once great city. No one gives a rats ass if someone tried to dress this pig with cheap moulding or a sub-zero.
    Lipstick on a bland PIG. If myself or anyone I know where to ever sustain the type of brain injury necessary to facilitate the cognitive decline required to even consider purchasing this or any other shlt box like it I would have no choice but to begin mourning process for the loss of any and all dignity.

    Adieu

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  29. “Matt Garrison at Coldwell Banker still has the listing.”

    I love it — “still” has the listing.

    “you could FHA this place for 15k down (probably 10k of closing costs)”

    Can you can get FHA financing on a three flat condo?

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  30. I like you, James.

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  31. “and replace it with things like you see in the above post.”

    Yes and Mies van der Rohe is really appealing too. In my view, to each his own. These look a lot better than the 2 flat frame POS with vinyl siding that preceded it.

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  32. “Can you can get FHA financing on a three flat condo?”

    I’m sure there’s some way around the rules and as long as the other 2 units are current I don’t know why you wouldn’t be able to. But i’m no mortgage guy so ask one of them.

    and LOL @ James’s comment… good stuff

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  33. “(nevermind you he’s a 100% bonds guy)”

    Except that he started an equities practice, failed and now is trying to start one again. He also thinks there will be deflation, but then again, he is a bonds guy…

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  34. No, you CANNOT get FHA on a 3 unit complex, unless the rules have changed since last summer.

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  35. “These look a lot better than the 2 flat frame POS with vinyl siding that preceded it.”

    Vinyl siding? Those were the classy, updated places. Most of them had the asphalt-roll siding, often in faux-brick.

    And these are (generally) better looking on the exterior, but in many, many places a missed opportunity.

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  36. James is my hero.

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  37. I also agree w/James – however, being the debbie downer that I am, I also have to point out that you usually need to have money to build something aesthetically pleasing or to renovate/restore some of the “architectural gems” that have since been demolished. Of course, then you all would be complaining about how expensive everything is (or how the previous owners “overspent”, etc.)- seriously, when are you guys going to realize this?!!!.

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  38. “seriously, when are you guys going to realize this?!!!”

    Just after I get the bill for the replica of the cardinal’s house and realize I can’t afford to live in it.

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  39. There’s plenty of affordable “architectural gems” on the south side, why don’t you scoop em all up?

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  40. James,

    def an obnoxious way to make a simple argument, but in general i agree. Hard to really hate on the ‘burbs too much when the same is true in all of Chicagoland.

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  41. -def an obnoxious way to make a simple argument-

    We live in a society where it is way more important to be polite than to just
    tell the fckin truth

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  42. “My advice to anyone looking (and wanting a nice place) to grab this unit – I really don’t think you can get a better place for cheaper”

    My advice to anyone is to consider the source. To use an analogy I saw on Shark Tank your dollars are like your army, if you’re winning the war you’re supposed to come back with more soldiers.

    You, clio, keep sending your army out and losing, to the tune of $1k/month. You’re essentially subsidizing someone else’s rent for a substantial amount of money because you bought at the top.

    I would say your opinion doesn’t matter, but it actually does: I want to be doing the opposite of what you think.

    If clio says now has never been a better time to buy and he bought in 2005 very near the top and is hemorrhaging money, its all the more reason to stay put.

    Theres no rush so long as there’s clio’s out there hemorrhaging money: he might be able to cover his nut but trust me folks enough of them won’t be able to.

    Why not rent from the clio’s of Chicago instead and enjoy a huge rent subsidy?

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  43. “Why not rent from the clio’s of Chicago instead and enjoy a huge rent subsidy?”

    -good advice — for now. The one thing to always remember, though, is that you don’t know the bottom of any market until it starts to turn around. Unfortunately, at that point, it is usually too late to get in at the ground level. There are a lot of people w/ cash and set financing just waiting for this bottom – as soon as they smell the market turning, the deals will be snatched up and regular folks will be left out in the cold (the same concept holds true in the stock market).

    I know that people think that the general population cannot be that stupid and won’t buy into this psychology, but it DOES happen. Again, just look at the stock/bond markets.

    …. and, no this isn’t wishful thinking because I own a lot of real estate – it is the truth. Don’t take my word for it – take a look at the history of decision making in the public and the way it has worked to shape our economy!!!

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  44. “Unfortunately, at that point, it is usually too late to get in at the ground level.”

    If I miss the bottom by even a few months its not like the stock market–I’ll probably pay less than 5% over bottom pricing–and even that’s being generous.

    I’ll know we’re in for a bottom when we have sequential year/year gains in two months worth of pricing after the government stimulus was removed. So next July at the earliest but unlikely. We could’ve been closer to Chicago’s true bottom but the NAR does not like Realtors(tm) and decided to prolong the pain by advocating the tax credit and pulling demand forward.

    No real hurry: those Option-ARM reset charts are going to explode through mid-2012. Heck given the wide pricing gap between distressed and non-distressed listings its likely you can already get bottom pricing or better in foreclosures. But that’s only IF you’re not picky as there’s far less to choose from.

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  45. I have to agree with Bob on timing “the bottom.” While it’s true none of us will know it when it happens, the housing market, if it follows historical trends and bubble history, will trade sideways for years. It’s not like the stock market where suddenly you can turn around and it’s up 20% in a month.

    Chicago real estate has only appreciated about 1% to 3% a year- historically.

    Also, rememember, there have been periods where there was no appreciation at all (the mid-1980s come to mind when there were 6 years in a row of no appreciation.)

    Personally, I don’t know many people “waiting” on the sidelines with masses of cash to deploy into real estate when it hits bottom. I know a lot of people buying up foreclosures and flipping them right now. They don’t seem to be waiting.

    Don’t forget, at the true bottom of an asset class bust, no one wants to buy the asset. In 1980-1981 they hated stocks. At this bottom, they will hate real estate equally as much.

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  46. ““PITI+PMI = $2754 /mo with about $450 a month of that going to principal”

    probably the best reason to buy this property!! Renting a similar unit would probably be 2000-2300 – so it may make sense to someone who wanted to live in this area. Also, remember that the 450/month going to principal will only increase in amount (while your overall payment stays the same) – even in 5 years you will definitely be ahead (as opposed to renting)

    Actually- if you plug the numbers into the NYT rent to own calculator that is linked to on this site in the blogroll, it tells you that it is still better to rent than to buy for the next five years (even with 1% to 2% price appreciation and equivalent in rents.)

    It’s only in years 7 and 8 that it is better to buy this property. I used $2300 a month as the rent.

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  47. “those Option-ARM reset charts are going to explode through mid-2012.”

    Interesting on an “error” regarding OARMs in the widely disseminated CS reset chart (which was not adjusted in the 1Q-10 chart):

    http://healdsburgbubble.blogspot.com/2009/05/reset-chart-from-credit-suisse-has.html

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  48. homedelete “I tell people that my generation, aka the next generation of buyers, has student loans, daycare, credit card debt and stagnant/reduced income.”

    Would that this were the only problem of the current generation and all workers right now, as at least I’d feel some control over managing my money and investments. The real threat is job loss.

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  49. “Actually- if you plug the numbers into the NYT rent to own calculator that is linked to on this site in the blogroll, it tells you that it is still better to rent than to buy for the next five years (even with 1% to 2% price appreciation and equivalent in rents.)”

    I don’t get this – it doesn’t make sense to me.

    If PITI and PMI are 2754 w/450 going towards principal, it is kind of equivalent to paying 2304/month in rent. How, then, if appreciation is 1-2% (for both) could it possibly make more sense to pay 2300/month in rent? I am probably missing something, but I can’t figure it out!

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  50. “If PITI and PMI are 2754 w/450 going towards principal, it is kind of equivalent to paying 2304/month in rent. How, then, if appreciation is 1-2% (for both) could it possibly make more sense to pay 2300/month in rent? I am probably missing something, but I can’t figure it out!”

    The calculator is pretty advanced. It actually calculates closing costs (when you buy and when you sell), among other costs (renters insurance, maintenance costs for when that furnace or that dishwasher breaks down etc.)

    That’s the thing most buyers forget. When you go to sell- it’s about an 8% hit just between the realtors fees, the transfer tax and other closing costs.

    Even if you see 2% appreciation per year, it will take you 4 years just to pay for the closing costs (if you use a realtor at 6%.)

    There are also opportunity costs lost by the downpayment (the calculator figures this out as well.) I used just 3.5%, as if you were using an FHA loan.

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  51. thanks sabrina,

    you are totally right about the “hidden costs” of home ownership. actually, renting is sounding better and better!!!

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  52. James, that post is one to be proud of (I take your “Adieu” as an ode to Chicago architecture, which has been sacrificed to the hungry gods of stainless steel + granite + cherry, “outdoor space,” and central air).

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  53. “you are totally right about the “hidden costs” of home ownership. actually, renting is sounding better and better!!!”

    PLay around with the numbers in the advanced panel a bit. Changes in small assumptions can make a big difference–for example, is the cost for the *buyer* really 4%?

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  54. There may not be a premium for high-end finishes but they could make the difference between units they sell and units that don’t….

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  55. You’re right anon (tfo)- it does depend on what assumptions you plug in. There is the “advanced” features that let you change a lot of the figures.

    Yeah- not sure that the buyer’s costs are 4%- but they are higher than most people assume (between inspection costs, attorney fees, closing costs).

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  56. finishes sminishes this is still a second floor cave with people clomping on your head or through your bedroom to get to the deck.

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  57. homedelete: Off topic, “the aldercreature” of Uptown is retiring! Naturally I thought of you first. You must be so happy!

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  58. “Interesting on an “error” regarding OARMs in the widely disseminated CS reset chart (which was not adjusted in the 1Q-10 chart)”

    Not so sure I buy the blogpost and they only reference GoldenWest/Wachovia/WFargo.

    None of these banks had a presence here so I think the problems in IL are likely on the balance sheet of other banks, and thus, the CS chart seems more credible. Also I never remember hearing about any bank outside of CA that had OARMs with a 10yr recast period, everyone else was 5. IIrc they stopped originating OARMs in 3Q07 which leaves 3Q12 as when the recasts are all pushed through.

    Sounds like WF’s problems in 2012-2017 are CA specific and I hope they get liquidated instead of bailed out if they need help.

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  59. “upon the unsuspecting home buyer.”

    I think you meant undiscerning home buyer. I say caveat emptor, beotches!

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  60. Gosh it looks like they were so proud of themselves they built another identical one right next door.

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  61. “homedelete: Off topic, “the aldercreature” of Uptown is retiring!”

    Wow. Now who will the whiners on Uptown Update hate on?

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  62. ive seen a handful of option arms in I’ll ranging from small homes in the south suburbs to million dollar loans against homes in wicker park. They’re here and the affect the market. But they’re the most likely to have been modified pursuant to a loan mod by now.

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  63. Our 4 unit condo, built in 2005, is very similar to Reta except we for one major component. We have an actual “front porch” off the living room of each unit. We have each installed one of the big Webers as there is a gas line to the outside. Even with the grill, there is plenty of room for 2 chairs, a table and a lounge chair. There is also a deck off the MBR.

    Our building’s owners include 3 married couples,2 of whom have babies, and a single woman with a roommate. We are loacted 3 blocks from a major “L” stop and a block away from #8, #22, #36, #151, #77, #156.

    It appears there are plenty of reasons to remark on our common and crappy building, our poor choice of living environment, or whatever else you can find to ridicule.

    Each unit was sold and bought again in 2008 by the 4 current unit owners. Since that time, we have kept up with every aspect of maintenance the building has required. We all respect each other’s privacy but, at the same time, work together to bring packages in, sign for packages, keep the building and the grounds tidy etc.

    To the naysayers I ask, what’s not to love?

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  64. PS

    Forgot to mention 4 assigned parking spots and storage for all.

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  65. HD

    “You, clio, keep sending your army out and losing, to the tune of $1k/month. You’re essentially subsidizing someone else’s rent for a substantial amount of money because you bought at the top.”

    I’m not saying that clio is in the best situation, but at this point all he has is an unrealized gain/loss. And maybe its helpful in his situation to have the tax write-off’s and depreciation on this property.

    So he’s taking a 1k cash flow hit each month, but he might be able to ride it out for the next decade…

    Then again…perhaps he should cut his loss and re-allocate in a potentially higher returning investment.

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  66. For kicks:

    Maybe according to HD, it is another sign of the end of the green zone.

    “A grenade has been found hanging from a pole in the Lincoln Park neighborhood, but police do not know if it is live.

    The department’s bomb and arson unit was called shortly before 7 a.m. to the 1900 block of North Clifton Avenue and closed the immediate area to traffic while they investigate.

    Fire Department spokesman Chief Kevin MacGregor said fire officials also are on the scene and a hazardous material alert has been called.

    — Staff report “

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  67. “Then again…perhaps he should cut his loss and re-allocate in a potentially higher returning investment”

    I have thought about this – and then realized that my stock portfolio is ALSO down about 20% (up from a steeper loss of 40% last year). There is a lot of volatility in the stock market and it is getting harder and harder to analyze/interpret with all of the misinformation out there.

    I guess I could take a loss and put it into a savings account and make 0.0000000000001%

    Actually, the only good thing about taking a loss is that you can claim it as and ordinary loss (if it is an investment property) on your income tax. This would be a great write off since income taxes are set to sky rocket in 2011!!!!!

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  68. Chichow,

    Bob made that comment. And I agree with his comment and your comment too.

    However, I usually won’t call an individual out on their bad investment decision especially when the wound is still fresh.

    Once in a while someone will attack me and maybe I’ll fight back in general, other than SH, I’ve pretty much just preached doom and gloom.

    “#
    chichow on August 3rd, 2010 at 7:28 am

    HD

    “You, clio, keep sending your army out and losing, to the tune of $1k/month. You’re essentially subsidizing someone else’s rent for a substantial amount of money because you bought at the top.”

    I’m not saying that clio is in the best situation, but at this point all he has is an unrealized gain/loss. And maybe its helpful in his situation to have the tax write-off’s and depreciation on this property.

    So he’s taking a 1k cash flow hit each month, but he might be able to ride it out for the next decade…

    Then again…perhaps he should cut his loss and re-allocate in a potentially higher returning investment.

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  69. Well said, James! For all of you bemoaning the Schaumburg-ization of Chicago…take a trip to Northern Virginia. Talk about FUGLY. Thousands of boxy, red-brick colonials thrown up after WWII. And those hideous houses cost a fortune.

    Most DC bureaucrats are too consumed with power to give architecture a second thought. When I moved from DC to Chicago in 2003, I was thrilled to find so many affordable architectural gems — from authentic lofts to converted churches and schools.

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  70. Sabrina:

    8% is not accurate for the cost to exit a property, particularly a high end condo.

    Most realtors do commissions at 5%.

    Seller transfer taxes are $3 per 1000, or .3%

    On a condo, you do not need to pull a new survey, so title insurance is about $1,500 fixed.

    Add it up and its closer to 6-6.5%. As others point out, each percentage makes a big difference in your calculator, which as “advanced” as you call it is only as good as its assumptions.

    The buyside fees are ridiculous and may be more appropriate for New York. $12k to close on a 400k condo?

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  71. “Sounds like WF’s problems in 2012-2017 are CA specific and I hope they get liquidated instead of bailed out if they need help.”

    Not a chance, Bob, as that time bomb was set by GW, purchased by Wachovia and WF was the designated savior for Wachovia–no way they’ll be allowed to fail b/c of that problem.

    “buyer’s costs are [not] 4%- but they are higher than most people assume”

    True, but in Chicago, it’s more like greater of 1.5% or ~$3k, excluding any loan fees/points, isn’t it?

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  72. “Wow. Now who will the whiners on Uptown Update hate on?”

    Hahaha, I was wondering the same thing myself.

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  73. HD:

    apologies for the mis-attribute.

    I’m COMING FOR YOU BOB…not really. j/k

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  74. James….
    Your obscene rant about the current state of urban architecture would be mildly amusing if it hadn’t been plagarized from another NYC based RE blog commenting on the state of progression in that city.
    I won’t mention by name the blog as you are well aware of where you found it and others needn’t read it as it is as irrelevant now as it was then, NYC vs Chicago. No difference in wording and no impact of such ridiculous commentary.

    What I do find amusing and disturbing at the same time is that while many protest the erection of new luxury condos replacing
    a: historically significant
    b: aesthetically pleasing
    buildings, those same people do not have the means or education to contribute anything to avoid the destruction of said buildings to make way for new luxury towers…or in this case a 4 unit building.
    This is all so very similar to Republicans who are currently whining and bitching about a nation under Obama’s rule while doing nothing whatsoever to contribute any sort of viable solution to the imaginary problems they see.
    Sad sad people…

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  75. I am with you Margo, I really do like this style of housing as it usually replaces nasty buildings in need of major repair. Why try and save old rotten buildings that have no historical significance when you have modern units such as this to replace them.
    During my time in the city, I toured so many of these places and while the differences in them were minor, the quality of construction and the aesthetically pleasing design is welcomed by many who chose not to live in the many modernish high rises or retreat to the suburbs to find newer construction homes.

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  76. thanks westloopelo – exactly right. When are people going to realize this.

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  77. ok i am short on time.

    but westloop my home slice, i will direct you to search for some of my old posts about Sergio & Banks building this type of building (not luxury but economy finishes and quality) while tearing down SFH in good condition on a blocks (area) that are ALL SFH and now you have a three story ugly crap shacks amongst light brick ranch homes peppered thoughout Alderman Banks ward. (yes you read it right Sergio & BANKS were the builders and the alderman there is alderman BANKS. plus alderman Banks was the chairman of the CHICAGO ZONING COMMISSION)

    did i pull a NIMBY, yes i did, and it went into the “suggestion box” did i work with other NIMBY’s yes i did. how did it end up? well we know the answer to that. how is the little man to stop that corruption?

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  78. “For kicks:

    Maybe according to HD, it is another sign of the end of the green zone.”

    Does it count as Green Zone if it is next to an auto dump and a steel mill on the Chicago river? Queue Anon for a meaningless CMWRD statistic about sluice gates he gets from a google search…

    Not to say a grenade isn’t humorous or interesting.

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  79. “Queue Anon for a meaningless CMWRD statistic about sluice gates he gets from a google search”

    The meaningless MWRD stats come from Bob.

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  80. Oh ok, sorry. I most associate his rants with overly graphic descriptions of sexual assault potential in walk up condos. The other non sequiturs are easy to misplace.

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  81. Hey hey hey I drive by the metal scrappers all the time just south of the Ho Depot.

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