4-Bedroom Lincoln Park Single Family Home Sells for $39K Under 2001 Purchase Price: 2746 N. Racine
We last chattered about this 4-bedroom single family home at 2746 N. Racine listed for $724,000 on the border of Lincoln Park and Lakeview in October 2010.
See our prior chatter here.
Just after our discussion, the house went under contract.
Some of you thought it was a deal at that price while some thought it would sell just under $700,000.
The listing said it had a “chef’s kitchen”.
3 out of the 4 bedrooms were on the second floor. It also had two decks and a garage.
Mario Greco at Prudential Rubloff had the listing.
2746 N. Racine: 4 bedrooms, 3.5 baths, 2 car garage, no square footage listed
- Sold in August 1995 for $390,000
- Sold in August 1998 for $530,000
- Sold in September 1999 for $619,000
- Sold in April 2001 for $747,000
- Originally listed in January 2010 for $849,000
- Reduced and withdrawn in July 2010
- Was listed in October 2010 for $724,500
- Sold on November 30, 2010 for $708,000
- Taxes of $11363
- Central Air
- Bedroom #1: 15×14 (second floor)
- Bedroom #2: 12×11 (second floor)
- Bedroom #3: 12×11 (second floor)
- Bedroom #4: 16×12 (lower level)
Mario Greco= SOLD
Seriously how do you not use Mario to sell your place?
really you have 2 options if you need to sell, drop your price to a realistic level or call 21 jump street and higher Mr. Greco
I bet you in 2001 when the seller purchased the property, I bet the thought never crossed his mind that 9.5 years later he would sell the property at a $39,000 loss. It’s amazing to even conceptualize that concept. Buy in early 2001; less at a loss in late 2010. I looked at a house that some buyers purchased in early 2002 and they were trying to sell in 2010 for the 2002 purchase price and they had no takers. They eventually withdrew the house from the market.
This means few can actually sell their properties; and defaults and subsequent liquidation will continue for many years to come.
Be careful my fellow knife catchers because you may lose a few digits.
“Seriously how do you not use Mario to sell your place?”
Just speculating here but maybe for certain properties he wouldn’t take the listing (ie: overpriced 200k McCrapboxes). He seems busy enough with higher end listings.
Groove, Seller did both. Previous selling price was 899k with a different agent. If you google the address, you can still find her listing online. Greco lowered price to an attractive level for the hood.
“Just speculating here but maybe for certain properties he wouldn’t take the listing (ie: overpriced 200k McCrapboxes). He seems busy enough with higher end listings.”
Also speculating but I’d think he and some of the other more prominent agents would have an advantage is being selective about taking well priced listings, which would sell relatively quickly, which would reinforce the agent’s reputation. I was thinking about this in connection with Eric Rojas’ comments the other day about how a well priced property in a desirable location will sell quickly, even without photos (and I dare say perhaps even without an agent). That’s what you really want in this environment as a sellers’ agent.
“Just speculating here but maybe for certain properties he wouldn’t take the listing (ie: overpriced 200k McCrapboxes). He seems busy enough with higher end listings.”
“Previous selling price was 899k with a different agent. If you google the address, you can still find her listing online. Greco lowered price to an attractive level for the hood.”
hey both of those seem like even more like solid reasons to have Mario Greco be you agent.
Either sabrina subconsciously/purposely picks more of his listings or the guy is a true allstar.
doode it must suck to realize that loss, after almost 10 years of mortgage payments of 4k to sell it for less than you paid. at least (if the guy didnt refi to death) he should have 200k in equity!
“some thought it would sell just under $700,000.”
Well, that’s not quite what I wrote. But I doubt that they’d have killed the deal over 1%, so I’ll count that prediction as “correct”–it certainly did sell before the end of the year.
Oh, and Mario has his share of overpriced listing at any given time; it is true, tho, that they do not seem to include a lot of overpriced commodity-condos.
MG said once in an extended post here that he’ll take any listing and do his best job because in this town he never knows who else the seller might refer to him in the future. He said his staff with sometimes bitch about having to show condo in Roger’s Park but then he reminds them that might lead to an ever better listing in the future. I dont have the time to find his post but someone with a better memory than me can link to it. Sorry in advance if a paraphrased incorrectly.
“doode it must suck to realize that loss, after almost 10 years of mortgage payments of 4k to sell it for less than you paid. at least (if the guy didnt refi to death) he should have 200k in equity!”
Appears to have had $247k of equity at purchase, and only a conforming mortgage at sale (so, almost $300k). Also appears to be some relationship changes mixed in.
“Appears to have had $247k of equity at purchase, and only a conforming mortgage at sale (so, almost $300k). Also appears to be some relationship changes mixed in”
so basically they guy “rented” this place for the past 10 years. It sucks a guy does it right doenst play funny-money games and still gets shafted in a way.
“so basically they guy “rented” this place for the past 10 years. It sucks a guy does it right doenst play funny-money games and still gets shafted in a way.”
Principal owner appears to have been “she”, rather than “he”.
Would rent have been less than the ~$2500-2700/month (pre-closing costs; excl any maintenance) it cost?
Does anyone remember the post from MG? It is before my time on cc, but I’d like to see it if possible. Thanks.
“Does anyone remember the post from MG? It is before my time on cc, but I’d like to see it if possible. Thanks.”
I don’t remember it exactly the way HD does (I think there was at least a partial caveat), but that was the basics–take the listing so you don’t lose referrals.
Found it.
http://cribchatter.com/?p=8259#comment-66728
“Does anyone remember the post from MG? It is before my time on cc, but I’d like to see it if possible. Thanks.”
http://cribchatter.com/?p=8259
MG:
“Finally, back in 2002 when I started in this business, I made the decision to be more of a CTA train and less like a town car and take anything that came my way in any neighborhood that made sense (i.e., reasonable drive time, etc.) at any price point – knowing that the $150k Rogers Park buyer or $200k Lakeview seller would someday sell/buy again – and more importantly – those same people would tell their friends/family about me. My staff bitches about my taking the $150k 1bd/1ba listing on Touhy/Clark and I tell them that you never know who knows whom – and this philosophy hasn’t failed me. This is the lifeblood of our business and I’ve kept/grown these relationships into a steady stream of referral business.”
Yall other agents, wake up! 😉
“#
MG on March 4th, 2010 at 7:42 am
WL – Olive branch accepted.
Most of what I was going to say in response to the question above has been said. I’ll add that PRICING – including having the difficult “you’re going to lose money” conversation right when you meet the seller OR “your purple beaded headboard has to go and I don’t care that dear old dead Auntie Gertie gave it to you” talk – is the MOST IMPORTANT factor in getting property moved.
As for my Group, I am organized in such a way that I bring 99% of the business in and I have sales agents that help me (not replace me) with showings (I do all 2nd, 3rd, “bring mom/dad back” showings and negotiate every single deal) and I have office staff that handles everything from scheduling the floorplan/photo/video appointment to processing the contract once we’re sold. We show up to every showing & I am more detail-oriented (read, crazy) than others in the business. I review my listing sheets weekly to make sure they evolve if necessary (i.e., FHA guidelines were rumored to be changing 4 times since 10/09 and remarks were edited every time the deadline for change came/went); we take pix as seasons change so the place that was listed in Dec doesn’t have snow in the picture in April (if unsold); I speak with sellers re price every 2-3 weeks or more if necessary and send them a renewed CMA every Tues to reflect weekend activity and how their market has changed since last week, and I search the MLS “hot sheet” the minute I get out of bed, once in the middle of the day and before I go to sleep so I know what the new/sold/closed inventory is.
Another reason I’ve been able to thrive instead of starve in this market is being able to speak intelligently about stuff other than the latest trend in “spa baths,” i.e., know the 2/1/10 FHA requirements like the back of my hand so that sellers know what they need to do to get their ASSOCIATION/BUILDING ready for sale (i.e., tell deadbeats in #2S and #3N to get their assessments paid up b/c if 15% of a building is more than 30 days in arrears on their monthly assessments, buyer won’t be able to get FHA or conventional conforming financing in the building without an at least 25% down payment). There are buyers agents out there right now (as evidenced by ?s I get every day from them) who think FHA approvals have gone away and don’t know the difference b/w FHA spot approvals (now gone) and building approvals (all that is left) or who don’t know that if the commercial space in a multi-use condo building (think 3-4 unit new/newer const bldgs on commerical strips like Southport, Clark, Lincoln, etc makes up more than 20% of the total sqftge of the building their 10% down buyer can’t get financing in that building (even with his/her 790 FICO score) and they shouldn’t be spending time looking at these buildings. Or from the listing agent side, telling seller to check the % of ownership in their condo docs and make sure commercial space %age isn’t going to kill their ability to sell, etc.
In addition, I have someone answering my phones from 830am until 630 pm 7 days/week. There is no other agent in the city or elsewhere that I’m aware of that has this kind of coverage. And I routinely start my day at 430am and end it at 930-10pm. I treat emails and vmails as if they are hand grenades with the pin pulled sitting in their respective inboxes and return them within 30 minutes and sometimes within 5.
Finally, back in 2002 when I started in this business, I made the decision to be more of a CTA train and less like a town car and take anything that came my way in any neighborhood that made sense (i.e., reasonable drive time, etc.) at any price point – knowing that the $150k Rogers Park buyer or $200k Lakeview seller would someday sell/buy again – and more importantly – those same people would tell their friends/family about me. My staff bitches about my taking the $150k 1bd/1ba listing on Touhy/Clark and I tell them that you never know who knows whom – and this philosophy hasn’t failed me. This is the lifeblood of our business and I’ve kept/grown these relationships into a steady stream of referral business.
A lot of other agents dream of being the $3M+ SFH guy/gal or want their name on a bus stop in Andersonville as “the agent” for a specific ‘hood. I took the opposite approach as stated above and I have been the top agent in many different ‘hoods over the years just by volume alone. This approach helps with the all-important pricing issue stated above b/c if all you know is Roscoe Village or North Center and price a house/condo without deep knowledge of what that price buys you in OTHER ‘hoods buyers may be open to, your inventory will sit and your seller will fire you.
These are a few of the qualities/practices that have helped me survive/thrive in this market.
Flame away… 🙂
“
beat me to it, HD!
“Found it.”
I did correctly remember there was a different interpretation–take everything regardless of *location* not regardless of Seller’s attachment to a ridiculous, unobtainable listing price.
“Would rent have been less than the ~$2500-2700/month (pre-closing costs; excl any maintenance) it cost?”
In 2001 in that area? maybe 2700?
As a fun tidbit: 5 of the 9 places I had marked as favorites on Redfin all got pulled in the past week.
“As a fun tidbit: 5 of the 9 places I had marked as favorites on Redfin all got pulled in the past week”
hey do you want your agent to do showings during Kwanzaa, i would think not
“In 2001 in that area? maybe 2700?”
And in 2004? And 2008? And the years in between?
And I don’t mean something that would have worked, I mean a SFH in updated condition, that you could live in for a decade in that part of LP/LV.
Yeah, the transaction cost likely make it more, and you can’t ignore that, but interest + taxes (ignoring FIT deduction) was cheaper than rent.
“Yeah, the transaction cost likely make it more, and you can’t ignore that, but interest + taxes (ignoring FIT deduction) was cheaper than rent.”
very true, but your calc basis is misint a important factor. THE DP! 247k over 30yr is 700 or 247 over 10yr is 2,000 (how ever you want to look at it). that DP was real money that a rent would use to rent.
also werent rates in 2001 in the 6’s? that would make the 500k over 30yr 3.1k? now jumbo’s i have no clue on the rate for that in 2001?
“also werent rates in 2001 in the 6’s? that would make the 500k over 30yr 3.1k? now jumbo’s i have no clue on the rate for that in 2001?”
Blended rate. Cheaper at the front to rent, sure.
“247k over 30yr is 700 or 247 over 10yr is 2,000 (how ever you want to look at it).”
$247k, today, get you what?, 75 bips? That’s the electric bill.
“That’s the electric bill.”
i guess you havent seen my electric bill during the holidays 🙂
oh BTW i really wasnt going for the rent comparison mainly trowing a joke out there for the clio’s and annony’s and a-fed’s too, pointing to the fact the gal bought 10 years ago and is stepping away as a wash. they always say renting is throwing money away.
just trying to point out a example that buying is aslo throwing money away.
What do people choose to use in these type of calculations? Real or Nominal dollars?
Apr 2001 CPI 177
Oct 2010 CPI 218
747k in Apr 2001 is equiv to 925k in Oct 2010.
Thanks, all. Very interesting re: MG.
FWIW…I sold a place in the last two years that was also bought in the late 90’s early 00’s.
Using nominal dollars and after all transaction costs (broker, etc.) I was about even, but built up equity. If we use real dollars, then I had a loss.
My current place bought in the peak is going to be with me for a looooong time so I won’t be taking that realized gain / loss for decades
so is this evidence we are now at 2001 prices even in the green zone?
“Using nominal dollars and after all transaction costs (broker, etc.) I was about even, but built up equity. If we use real dollars, then I had a loss.”
Nominal, Real more factors i am too lazy to apply. the one thing i do hate when the rent/own comparison comes to play is the DP. potential gains/losses aside of the DP is the fact people to account for it in the calc. a renter is not going to come out of pocket the amount of the DP if he rents a place.
hey groove, my electricity bill this last month was $50 and I use a lot of electronics
“What do people choose to use in these type of calculations? Real or Nominal dollars?”
Whatever best suits the chosen side of the argument, of course.
Usually, I like to price things as if all available (pre-2000) funds were put either in etoys stock or gold.
“hey groove, my electricity bill this last month was $50 and I use a lot of electronics”
mine was 89 but its the next two that i will take a hit on. i tried the new fangled LED Christmas lights last year didnt see a diff on my bill.
“Principal owner appears to have been “she”, rather than “he”. ”
Bet “her” nesting instinct is going to be thoroughly checked going forward.
I remember this one. That is a really nice eat-in kitchen — I like the appliances/finishes, there’s plenty of storage space, and the deck looks like it’s off the kitchen. IMO, the fridge location seems sensible given the space; it’s not too far away but allows for a larger unit as well as tall pantry space. The term “cook’s/chef’s kitchen” is grossly and indiscriminately overused, but this qualifies as it would make someone who cooks regularly and enjoys the process happy (we do exist, and for me, this is a huge quality of life issue). Perhaps the seller is a serious home cook and got a lot of enjoyment from the space while she was there.
#anon (tfo) on December 13th, 2010 at 10:37 am
“Found it.”
I did correctly remember there was a different interpretation–take everything regardless of *location* not regardless of Seller’s attachment to a ridiculous, unobtainable listing price.
Anon – To be clear, what I meant by the above was that no matter if it’s a $100k condo or $5M SFH, I would take the listing – but implicit in that is that I wouldn’t take a listing that’s going to be a waste of my time, i.e., seller is unreasonable re price expectations, seller won’t allow showings other than before 6pm or not on weekends, etc. That being said, this is a business and there may be other reasons to go with the wackadoo seller – i.e., good street traffic for signage exposure, seller is going to get real b/c they are expecting twins and their 2bd/2ba won’t hold them, seller agrees ahead of time to change price at a set time if not sold or the traffic isn’t where it should be, etc.
MG: “Anon – To be clear, what I meant by the above was” …
Yeah, I just remembered it as being distinguishable from this:
“he’ll take any listing and do his best job because in this town he never knows who else the seller might refer to him in the future.”
which I think implies that you take all comers, no matter how wackadoo.
Even though I used the word ‘all’ – I think it’s implicit, like MG said, that he won’t take all comers, no matter how wackadoo. I think you might be the only person who interpreted my abstract of MG’s statement that way. You are a very literal person. And that’s OK.
“#anon (tfo) on December 13th, 2010 at 4:57 pm
MG: “Anon – To be clear, what I meant by the above was” …
Yeah, I just remembered it as being distinguishable from this:
“he’ll take any listing and do his best job because in this town he never knows who else the seller might refer to him in the future.”
which I think implies that you take all comers, no matter how wackadoo.”
“Even though I used the word ‘all’ – I think it’s implicit, like MG said, that he won’t take all comers, no matter how wackadoo. I think you might be the only person who interpreted my abstract of MG’s statement that way. You are a very literal person. And that’s OK. ”
Most of the time you choose your words carefully, HD, esp. when paraphrasing something posted here in the past.
It’s more likely that I was the only one who cared much (as in, at all) about the distinction–even MG posted the response to my post, not to yours.
MG – definitely impressive. Amazing to me that he’s only been in the business since 2002!
“Even though I used the word ‘all’ – I think it’s implicit, like MG said, that he won’t take all comers, no matter how wackadoo. I think you might be the only person who interpreted my abstract of MG’s statement that way.”
It’s not entirely clear what you were responding to, but this came up in part in response to the issue of realtors taking overpriced listings (or not), as well as price points (the two issues are distinct). In rereading, I can see how your post was focusing on price points (plus location) but I had in mind you were suggesting he wouldn’t hesitate to take grossly overpriced listings (which he was clear here he wouldn’t). Taking grossly overpriced listings is not wholly implausible, there are certainly those who do it.
“only one who cared much (as in, at all)”
Interpersonal comparisons of utility are difficult, some would say impossible. But I cared at least enough to comment. Realtor business models are of some VERY modest interest.
Would love to hear more from MG as to the first 2-3 years in the business and how he got ramped up so huge so quickly. Perhaps it’s book writing time!
“Would love to hear more from MG as to the first 2-3 years in the business and how he got ramped up so huge so quickly. Perhaps it’s book writing time!”
You guys are so crazy!!! So a guy does the job he is supposed to do and now he is some type of “hero”. Give me a break!! This is exactly what’s wrong today – our expectations are so low that we feel as though we have to reward anyone that does what they are supposed to do. This is total BS!!!!
Here’s what I was responded to as to why he has his share of overpriced listings.
__________________________
“Oh, and Mario has his share of overpriced listing at any given time; it is true, tho, that they do not seem to include a lot of overpriced commodity-condos.”
___________________________
Also, in my haste to get out of the office, I said I used the word ‘all’ when I actually used the word ‘any’ – as in he’ll take any condo because of the referral potential. Then I referenced the RP condo from his post. Which for the most part, within reason, is true.
I wasn’t trying to imply that he would take *any and all* whackadoo listing regardless of price or location, but he said above “To be clear, what I meant by the above was that no matter if it’s a $100k condo or $5M SFH, I would take the listing – but implicit in that is that I wouldn’t take a listing that’s going to be a waste of my time, i.e., seller is unreasonable re price expectations, seller won’t allow showings other than before 6pm or not on weekends, etc.” and then goes on to say that there are sometimes reasons to take the whackadoo sellers.
___________________________________________
“Interpersonal comparisons of utility are difficult, some would say impossible. But I cared at least enough to comment. Realtor business models are of some VERY modest interest.”
How about parsing HD’s posts to within a micron of their life?
And, had I expected not one, but two people to find the original post that quickly, I wouldn’t have bothered.
I’m under the impression that MG used to be with Prudential Preffered Properties, and then started his own business in 2002, but that could be me misremembering. In any case, I think what we’re seeing here (and are going to continue to see) is that anybody who bought a less than ideal property during the boom is going to take a big hit. This house has siding, not brick or stone like people want to see in LP/LV, 1 bedroom is in the basement and 2 upstairs are smaller, etc. I think in this market the properties that check ALL of the boxes will still move at good prices. Anything too close to the El, w/out parking or yard, etc is going to take a serious hit. The first place I bought was less than ideal, but property market was booming and it was the only place that came close to what I wanted. Luckily I got out of there when things were still booming and learned my lesson.
+1 to Peg Bundy’s comment
I bought a place where Mario was the seller’s agent. He was there for the showings after the initial one (initial was a weekend where a bunch of showings had been lined up, so one of his staffers was covering the cattle call). We looked two more times, he was there both times. I understand from my agent that he was the one in contact with her for the negotiation part. Once we were under contract, the same staffer who’d done the initial showing covered the inspection and the closing. So, he appeared (to me) to be hands on at all points where it was critical, then handed off the non-critical pieces to a staffer.
“How about parsing HD’s posts to within a micron of their life?”
I always figured it was to provide HD with CLE training and credits, that’s why I cared.