11 Months Later and a $1,000 Price Increase: 2042 N. Clark in Lincoln Park
We last chattered about this 2-bedroom top floor condo at 2042 N. Clark in Lincoln Park in April 2008.
See our prior chatter and pictures here.
It was withdrawn from the market and has just been re-listed at $1000 more than its April 2008 listing although you might not realize it by first glancing at the listing.
The listing says the unit has the only tandem parking space in the building.
The price on that space has been reduced by $20,000 since last April. But the price on the actual condo has risen by $21,000.
Genna Hill at @Properties has the listing. See all of the pictures here.
Unit #6N: 2 bedrooms, 2 baths, no square footage listed
- Sold in June 2002 for $582,500
- Was listed in April 2008 for $529,000 plus $70,000 for tandem parking
- Currently listed for $550,000 plus $50,000 for tandem parking
- Balcony at 16 x 8
- Terrace at 28 x 15
- Assessments at $410 a month
- Taxes of $7,506
inflation!
I was certainly a starry-eyed naif back then wasn’t I?
“The price on that space has been reduced by $20,000 since last April. But the price on the actual condo has risen by $21,000.”
lol! Oh that sneaky realtor!
retardation!
DARN IT! I HAD MY CHANCE LAST YEAR AND BLEW IT!
LOL! This listing is about as stale as month old milk.
Sorry sellers, the ol’ “pulling the listing then relisting it” does not make your listing fresh. Its the same old stale property at the same old stale high price.
This thing doesn’t sell for more than 440k is my guess. Given the stubbornness of the seller it will take a few years.
this is a nice looking unit but def. overpriced.
This is a question for anybody who knows how it works.
We are thinking about buying in Vetro 03 unit. However, since we are not sure how the assessment works when it’s still under the developer. Here are my questions and concerns:
1. The average assessment in 03 unit is between 500–600/month. It includes almost everything. However since it’s still under the developer and it seems high even now, question is: how does it work when the building is transferred from the developer to the management regarding the assessment increase?
2. Since there were a lot of people who bought Vetro at asking or near asking price, now they had the auction and they re-priced all the remaining units in the building, question is: if these people default on their loans, how does that affect us, in terms of assessment and all?
Thank you for any answers and suggestions. We are going this Saturday (again) to see the units and depends on the pros and cons of the building, we might make an offer.
I need to get some of whatever they are smoking!
Victoria,
1. When the building is transferred to the management, the management is the one who will decided whether or not assessments need to increase. Obviously, it’s in the developer’s best interests to keep assessments as low as possible to make the case for buying in the building. It’s not 100% certain they will raise assessments, but it’s not uncommon for it to happen.
2. REOs do not pay assessments. The other owners need to make up the difference if someone gets foreclosed on and stops paying assessments. Roughly half the building was sold before the auction, so most of them have indeed paid close to list price.
I saw this place. It is looks nicer than it actually is. There is water damage in the ceiling of nearly every room. And the living room is much smaller than it looks. I don’t think it’s worth over $400k.
I like the dining room set right in the middle of the living room, adds a nice touch
hey sorry for the off-topic but what does it mean if for example redfin lists the status of a property as ‘contingent’? Does that mean its under contract contingent on the sale of the buyer’s home? Just wanted to make sure. Thanks in advance to whomever answers my question.
“hey sorry for the off-topic but what does it mean if for example redfin lists the status of a property as ‘contingent’? Does that mean its under contract contingent on the sale of the buyer’s home? Just wanted to make sure. Thanks in advance to whomever answers my question.”
HD- I’ve had the same question.
From what I can tell- “contingent” simply means it’s under contract.
It’s NOT what you and I would think contingent would be (which is that it’s under contract but contingent on the buyer selling another property.)
But if someone else has more details, please tell us.
Thanks Sabrina.
it could also mean/include mortgage contingency, or home inspection etc.
attorney review period too?
Contingent on redfin means under contract indeed. Baird & Warner used to keep properties under contract on their MLS search and just have a UC icon there. I’m not sure they still do this since the website redesign though but thats how I was able to tell contingent on redfin = under contract.
Victoria –
As HC stated, normally the assessment will rise once it’s turned over since the developer likes to keep it as bar bones as possible to lure buyers.
Using easy to understand numbers, if monthly assessments on a building are $10K and there’s 20 owners, everyone owes $500/month. If 5 owners default, there is now 15 owners to share that $10K nut.
In Chicago I believe people purchasing a foreclosure are responsible for the past six months of taxes and assessments, however.
I’m pretty sure “contingent” on Redfin does mean simply “under contract.” Of course the contract can include various contingencies as most do.
“a foreclosure are responsible for the past six months of taxes and assessments”
They don’t get out of paying taxes that easily. If the lender doesn’t pay the taxes, the buyer is stuck with them–it’s a lien on the property. You are correct that, per Illinois law, 6 months of assessments can be collected from the buyer; so REO buyers need to account for that and any unpaid property taxes.
Thanks for the answers! 🙂
Bob and anon (tfo),
Yes, technically the buyer is responsible for 6 months of unpaid taxes and assessments, but just like any other contract item, that is negotiable. The sellers (aka bank) have paid all back taxes and assessments in the transactions I have participated in. Either way they do get paid and the property cannot close without them being paid.
The “contingent” mark means its under contract, but there are still contingencies to be met, whether its the inspection, attorney approval, financing, or a home sale or home close. Also lately the mls has instated a contingency flag in the mls for a property that is awaiting short sale approval. So, if you see a property marked as contingent, go ahead and call on it, many deals fall apart these days.
You are correct Bob. The new buyer on a foreclosure is indeed responsible for up to 6 mos. of taxes and assesments on the unit.
In offers I have made on foreclosures, I have considered this fact and all but one offer was refused!
“technically the buyer is responsible for 6 months of unpaid taxes”
This is incorrect. *Technically*, the buyer is responsible for ALL unpaid taxes. Now, it’s still pretty rare that, in Chicago, with bi-annual billing, there is more than “6 months”** unpaid, but there is no reason that a condo owner couldn’t have *never* paid taxes and have several years of taxes that must be redeemed. And if a buyer doesn’t require the seller to bring the taxes current, there is no limit to the obligation.
**Really technically, there is *always* several months unpaid tax b/c taxes are billed in arrears.
I believe taxes and assessments need to be considered separately. It also depends what stage in the foreclosure process u are buying it.
This is how i understand it – please correct me if i am wrong:
If you buy a property from a lender, subsequent to the foreclosure actions, i am pretty sure you will be buying it with no past due taxes. do you think the gov’t would actually allow RE taxes to go uncollected?
Based on what my lawyer told me, the foreclosure action will also wipe away past due assessments and other liens against a property (although i doubt past due taxes are wiped away – but i’m not sure about this – anyone?).
When a lender takes control of a property, they are responsible for paying assessments and taxes. if you buy from the lender, you should not be responsible for taxes and assessments that accrued prior to your purchase. The lender i belive is obligated to keep those current.
This does not mean a bank won’t try to pass them off onto you, which happened to a friend of mine just before closing. (she refused). In the past when i have bought foreclosures they have been clean as a whistle as far as past-due assessments, liens etc. it may be different this time around as lenders such a mess.
If you buy a property prior to foreclosure, it’s an entirely different matter – you have to figure out all the taxes, liens and past due assessments on your own.
“although i doubt past due taxes are wiped away”
A foreclosure has *NO* effect on taxes. Property taxes prime other liens and run with the property. Anyone who tells you anything different is wrong.
that’s what i was thinking anon tfo (altho i prolly dint splain it well). thank you for confirming.
common sense tells me that lenders are paying taxes once they take ownership of a property after foreclosure – so when you buy from a lender it should have no past-due taxes. Is this your understanding?
“common sense tells me that lenders are paying taxes once they take ownership of a property after foreclosure – so when you buy from a lender it should have no past-due taxes.”
Absolutely should be. But as with all RE things, trust, but verify.
This is not at all what I have encountered while attempting to purchase several different properties (from different lenders and agents, of course).
I have been, should I add forcefully, told that Illinois law states that the buyer of any and all foreclosed property shall be responsible for UP TO 6 months of unpaid taxes if the seller did not keep them up to date.
Also, when I was inquiring about properties that had assessments assigned to them that I would be responsible for “contributing” the total amount of unpaid assessments that the seller left before being foreclosed upon.
Perhaps I should look into this matter a bit more…and at the same time seek a different agent.
“common sense tells me that lenders are paying taxes once they take ownership of a property after foreclosure – so when you buy from a lender it should have no past-due taxes.”
“I have been, should I add forcefully, told that Illinois law states that the buyer of any and all foreclosed property shall be responsible for UP TO 6 months of unpaid taxes if the seller did not keep them up to date.
Also, when I was inquiring about properties that had assessments assigned to them that I would be responsible for “contributing” the total amount of unpaid assessments that the seller left before being foreclosed upon.”
See, this is just backwards. There is no break for unpaid taxes b/c of a foreclosure, but there is a limit on assessments collectible through legal process (nothing stops the Association from “suggesting” that you, the buyer, make good on the seller’s unapid amounts–but they can’t effect a lien or prevail in court).
Look here: http://www.arnstein.com/condopropertyact/2008edition.htm
at Section 9 for the info.
Leave delinquent taxes unpaid at your peril. It’s rather expensive to redeem sold taxes.
technically, taxes are at least a year behind on any property. In Illinois, we pay taxes a year after the tax year. So, in 2009, we pay 2008 taxes. In 2008, we paid 2007.
And taxes don’t just magically “go away” – either they get paid by someone, or the property gets a lien, and there is a risk that the county can sieze the property and sell it at a tax auction.
So, while and REO may not pay it’s assessments, it will pay the property taxes, lest the loan become a total loss.
” there is a risk that the county can sieze the property and sell it at a tax auction”
Not the way it generally works in Cook. The taxes get sold and the owner needs to redeem them from the tax buyer at a steep premium. There are sales of title, but they don’t happen at all quickly, esp for non-abandoned property, unless you pissed off someone “important”.