“How Low Will It Go?” 2-Bedroom Short Sale Reduces Again: 1627 W. Ainslie in Ravenswood
One of you recently asked “how low will it go?” about this 2-bedroom newer conversion unit at 1627 W. Ainslie in Ravenswood.
We have chattered about it a couple of times but it was recently reduced another $10,000.
See our August 2010 chatter and pictures here.
The unit is now listed $91,000 under the 2007 purchase price.
Some of you thought in August it would sell for the prior $270,000 listing price but it has since been reduced to $250,000.
It also has a new address- as it’s no longer 1625- but is now 1627 W. Ainslie.
The unit is also now listed as a 3-bedroom, but that is not really correct as even the listing says the third bedroom does not have a closet (so it must be called a den or “other.”)
So I’m going to continue to call it a 2-bedroom since that’s what it is.
The building was converted into condos in 2007.
It has all the new construction amenities with stainless steel appliances and granite counter tops in the kitchen, central air, washer/dryer in the unit.
Gated parking is now included in the list price.
How low will this one go?
Or are buyers now going to simply wait for the bank to take it back?
Joe Green at Keller Williams still has the listing. See the floor plan and more pictures here.
Unit #3W: 2 bedrooms, 2 baths, 1090 square feet
- Sold in March 2007 for $359,000
- Lis pendens foreclosure filed in December 2009
- Was listed in May 2010 as a “short sale” for $300,000 (parking is $20,000 extra)
- Reduced
- Was listed in August 2010 as a “short sale” for $270,000 (parking is now $15,000 extra)
- Reduced
- Currently listed as a “short sale” for $250,000 (gated parking now included)
- Assessments of $148 a month
- Taxes of $4620
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 14×13
- Bedroom #2: 12×10
- Den: 10×9
I’m under the assumption that this place is having a tough time selling because either a). the bank is dragging its feet and is taking too long on people that put in an offer that every offer is pulled or b). this part of uptown is that bad.
Because otherwise this place has to be at rent parity with off-street parking now included.
This is a very nice space, I would think it would go for 250 no problem. I don’t quite understand how the bank could hold up the process. Is the listing agent being proactive for a sluggish bank? If regular reductions are being made I would think it would imply everyone wants the deal to get done.
There are dozens of properties just like this one on the north side that are sitting there for months (years?) with price reductions and still they don’t sell (this would be in Uptown, Ravenswood, Albany Park and parts of Lincoln Square.)
I’m assuming most of them will go into foreclosure and then come on the market at even LOWER prices.
It’s not like anyone is rushing out to buy any of these units. It’s a total turnaround from 2 years ago when everyone would have thought this was a “deal.”
Heck- even bank owned units are sitting there not moving now.
My observation about Chicago neighborhoods is that usually the neighborhood is either kid/family friendly, or is single/new couple friendly. Of course there a few (?) that are a blend but maybe only one that has awesome night life AND awesome family life. If THIS is a family neighborhood, it is likely not selling because it is a 2/2 (it would have a much better chance of selling in a single/new couple neighborhood. I don’t know if others agree, but that is what my observations have been. 2/2 sell in ELP, GC, LP and LV but are going to have a seriously hard time selling in the other, fringe areas.
I think if a buyer sits tight, they might be able to do better than a 1090 sq foot place with outdoor parking for $250k. It still feels a little steep to me.
$237,500 FHA mortgage (5% down is $12,500) @ 4.75% is $1,239 + $385 taxes + $148 assessments + PMI of roughly ~$50 (estimated low) =
$1,822 per month PITI + HOA.
or rent 2E in the same building for only $1,650 a month (maybe even $1,500 with the customary craigslist discount).
http://chicago.craigslist.org/chc/apa/2153075507.html
Being a short sale is the kiss of death for most listings. Agents don’t want to deal with them because they are more work and more time (and the stated commission is not 100% certain). Buyers–especially those that know what they’re getting into or have tried to purchase a short sale previously–know that they’re not worth the effort or frustration. Why bother?
Thank you for including the floorplan! I wasn’t sure where the photographed dining room fit in until looking at it. Nice staging decision.
Is it possible that this isn’t qualifying for FHA which is what’s holding it back?
Smallish 2/2 conversions in off neighborhoods are the bottom of the gz market and the bottom has falled out. This is not worth over 200 bucks a sq ft. Not by a long shot.
“or rent 2E in the same building for only $1,650 a month (maybe even $1,500 with the customary craigslist discount).”
hahahaahah good catch HD
“$237,500 FHA mortgage (5% down is $12,500) @ 4.75% is $1,239 + $385 taxes + $148 assessments + PMI of roughly ~$50 (estimated low) = $1,822 per month PITI + HOA.”
yes but the renter doesnt have to come out of pocket 13k so even a better to rent.
just rent 2/2’s people life will be easier.
“just rent 2/2’s people life will be easier.”
sorry in this case its a 1/2 as the second bedroom is the dining room
“yes but the renter doesnt have to come out of pocket 13k so even a better to rent.”
Net of the tax bene (which, yes, I netted of the std deduction), the monthly is basically a wash, so it’s the DP, the lack of mobility and the assess/tax risk that make it worse than renting.
“just rent 2/2’s people life will be easier”
I am a big believer in this statement, just not a follower. I preach the benefits of renting to everyone I know. I have told tons of horror stories about home ownership, and why being a landlord is a waste of leisure time and money.
In the end owning is just too much fun for me. I like knocking down my own walls and rebuilding to my own tastes. And I wouldn’t be hanging around Cribchatter if I was a leisure life renter!
You are correct clio. Premium neighborhoods=scarcity. Everyplace else=glut.
“the lack of mobility and the assess/tax risk that make it worse than renting.”
no i always see the tax and assements still effecting the renter but at a delayed timing standpoint. rent will go up to cover it.
but as a renter if a building gets taxed high or a special pops up you wont see your landlord messing with your rent till the lease is up, and then YOU HAVE THE OPTION TO MOVE.
but also the fact of never paying a repair bill
There are no scarcities for condos in any neighborhood only larger mortgage balances and less foreclosures.
You could probably argue that 3 or 4 bedroom 1,500 or 2,000 sq foot homes are a scarcity in the GZ but that’s only because in the last 20 years they’ve mostly been knocked down and replaced with mansions or brick stacked doublewides aka three flats.
The ones that remain that are in move in condition (and not on the el tracks) sell rather quickly if they’re priced reasonably.
“but also the fact of never paying a repair bill”
That applies whether the monthly is cheaper or not.
The mobility thing is only a *big* issue when the market sux–in normal-ish markets and rising markets, you have at least a stable expectation of the net capital cost of moving in X years; as it is now, you may well need to sell below acquisition cost.
On relatively new conversions like this one, with cheap assessments, it’s UNreasonable to think there won’t be an increase and/or a special, just as it is UNreasonable to think taxes won’t increase, at least some. And, a LL has the choice between eating a special or tax/ass increase and forgoing rent for one or more months. The market determines the rent, not the LL’s costs.
This immediate location has very little to offer. But if you value having a “nice” place over location I think this is a great deal. You can’t get the best of quality, size, location, and price all in one place. Here you get quality, price, and somewhat size (this is more than enough space for my wife and I, not so much with kids), and give up location. It will be a good home for somebody.
The 1625 “Garden” (ie, basement) unit is also for sale for $180k.
http://www.redfin.com/IL/Chicago/1625-W-Ainslie-St-60640/unit-0BE/home/25691971
“This immediate location has very little to offer.”
Depends what you’re looking for. I think it’s a bit too close to Ashland, but it’s an easy walk to central A’ville, w/o being in the midst of things, easy walk to the R’wood Metra stop, w/o being on the tracks or on the el. I mean, if you think this immediate area offers *very little*, then you don’t like A’ville, which is fine.
“The market determines the rent, not the LL’s costs”
well if you put it that way, (which is the correct way) then renting is WAAAAAYYYYY better in my eyes for this property.
Other than the fact that the garden apartment is a ‘garden’ and that some morning in the next decade you might make up to 2 feet of water in the unit, it looks like a pretty nice place. $180,000 is a ‘deal’ but I’d like to see it sell for $120,000 or less.
CoreLogic® Home Price Index Shows Decline for Fourth Straight Month
http://www.corelogic.com/About-Us/ResearchTrends/Home-Price-Index.aspx
““We’re continuing to see the influence of seasonal declines that typically depress home prices during the latter part of the year, but the fact that the rate of decline increased for November is indicative of the uphill battle we’re facing with the housing recovery,” said Mark Fleming, chief economist for CoreLogic. ”
Hold on tight folks!
How far does immediate go? You’re still walking distance to the Hopleaf, ME Bakery, the Neofuturarium, and S A’ville, all the Argyle restaurants, and the Green Mill. Granted, the latter is a less pleasant walk.
>>“This immediate location has very little to offer.”
Hummmm, live on the second floor with less stairs to deal with or the third floor with nobody walking overhead and roof rights… This really is a quandry…
>$1,822 per month PITI + HOA. or rent 2E in the same building for only $1,650 a month.
Yeah, but at the end of 5 years with one, you have 30k in equity andmaybe 20k-50k in price appreciation. On the rental, you have nothing.
I love the Middleeastern bakery. It’s been there for years and had the best spinach pies
“I love the Middleeastern bakery. It’s been there for years and had the best spinach pies”
Agreed. And priced well, too, tho many of their staples (rice, eg) are rather not.
“I mean, if you think this immediate area offers *very little*, then you don’t like A’ville, which is fine.”
Google says 1.1 miles to M Henry (first place that came to my mind in A’ville), I don’t think of that as immediate area (I have no car and walk everywhere). The Metra is nice if you use it (I do) but isn’t much of an attraction itself. I am thinking about restaurants, shops, entertainment. I know there is some but I think I would find myself leaving this area more often than not. Although this is close to the Clark bus which can take you to a lot of good stuff.
“How far does immediate go?”
I was talking about 1/4 mile or less.
“I was talking about 1/4 mile or less.”
Well, then, you’re pretty limited, overall. 2 full block limit.
Today is do or die for Pat Quinn’s massive 66% tax increase. He campaigned on 33% but my how his campaign promises rang hollow.
Contact your state elected representative and senator and let them know your opposition to business as usual in Springfield. There is nothing that must be done today that can’t be done on Thursday.
http://www.elections.il.gov/DistrictLocator/DistrictOfficialSearchByAddress.aspx
Please contact them at their Springfield office (317 area code).
“Well, then, you’re pretty limited, overall. 2 full block limit.”
I don’t expect to have EVERYTHING within 1/4 mile, but I expect to have some things (a bar, 2 or 3 restaurants I like, a coffee place, a drug store, maybe a grocery store). There isn’t much I can’t get within 1/2 mile of my place. I like to venture out further but I don’t need to, which is nice when it snows for 12 hours straight.
3 years ago with our first baby on the way, we would have been running to the bank with a full price offer.
(perhaps the problem is that there are not enough young stupid people ‘like myself’ to prop it up)
“(perhaps the problem is that there are not enough young stupid people ‘like myself’ to prop it up)”
There’s rarely an under-abundance of “young stupid people”, or speculators, or people not caring and wanting to live the good life on credit, Dan. My guess is there are almost as many as ever.
The “problem” is that there’s an under-abundance of banks willing to give them crazy loans vs. the bubble. These days banks or the GSEs are actually concerned about getting paid back.
There are probably enough of many people that want to buy this place. Showing up with 25% down is another, much smaller, target market.
“The “problem” is that there’s an under-abundance of banks willing to give them crazy loans vs. the bubble. These days banks or the GSEs are actually concerned about getting paid back”
Just got refinancing on a jumbo at 4.5% w/ no points, no closing costs, and no serious appraisal – private banks are chomping at the bit to get out there and provide loans. They are going picking high earners right now but are actively pursuing ways to filter down to others. This is going to be a huge loss to Fanne/Freddie and Wells Fargo, etc. – but they created this niche. You will see that, as the economy improves, non-traditional lenders will come out of the shadows to capitalize on the governments’ and big mortgage companies mistakes. God, I F@CKING LOVE CAPITALISM – it always saves the day whenever the government interferes!!!!
“They are going picking high earners right now but are actively pursuing ways to filter down to others.”
What are you talking about? No one says they have to go through Fannie/Freddie/FHA. Yet- 90% of all mortgages are now going through those 3 government entities. Without the government there would be NO mortgage market as we know it (not without enormous downpayments etc.) The mortgage market has, for all intents and purposes, been nationalized. There is no capitalism in housing right now Clio.
sorry sabrina, but I have to disagree – obviously I know what I am talking about because I am getting a loan through a non-traditional lender and talk and live with these people every day. The 10% of mortgages that are not going through the 3 government entities is going to grow and grow. The government fcked up as usual and has made it nearly next to impossible to get a mortgage – capitalists are stepping in and picking up the slack. They are going to continue to take over the marketplace unless something changes drastically. It is going to be very interesting.
Clio –
Most middle income learners wouldn’t be approved for such a loan, even with a sterling credit score.
Heck, I know people with clean, but small, credit reports (one or two revolving trades; student loan installment trades) being turned down at Best Buy for a credit limit to buy a fun TV. A TV they CAN afford over one year on credit, as opposed to real estate financed over several.
Non-Gov lenders may be taking pointed (“targeted” is apparently out of vogue) risks, but that market is incredibly selective.
Sabrina’s right. Like it or lump, it’s more or less nationalized.
ew. “EARNERS” not “learners.” Mea culpa.
“The 10% of mortgages that are not going through the 3 government entities is going to grow and grow. The government fcked up as usual and has made it nearly next to impossible to get a mortgage – capitalists are stepping in and picking up the slack.”
Why take on the risk? The government is guaranteeing all those loans. If Joe Buyer defaults with his 3.5% down – FHA will cover it. It’s a win-win for the banks.
boiztwn is a troll not a legit poster we all know this by now.
I’m a troll — how, exactly?
The mortgage market is nationalized. There are portfolio lenders out there offering phenomenal deals on jumbos and an outlet for stuff that gets overlooked by Fannie/Freddie for dumbass reasons. With that said, the reality though is that you typically need substantial equity to qualify.
The mortgage market has all but crashed. Most banks don’t want mortgages especially 30 year fixed products.
If Fannie/Freddie weren’t there as a backstop, the only mortgage you could probably get would be a 5 year or 7 year arm with 20% down. Maybe a 15 year fixed. 30 year loans probably wouldn’t exist.
With that said, most banks aren’t very bright though. I do agree with Clio, if I were a bank I would be targeting the hell out of prime borrowers and forcing them to move deposits to my bank by offering very attractive financing.
Fannie/Freddie are going to bend borrowers over in April by charging even more loan-level price adjustments, even on borrowers with high FICO scores and larger down payments. Most of the banks will institute the new fees in the next week or so though.
Russ —
Way agreed. However, the problem we’re seeing in some areas is a mathematically-restyled redlining game. Credit is not being extended to failing developments/properties/areas. Unfortunate, but there goes the credit crunch.
“With that said, most banks aren’t very bright though. I do agree with Clio, if I were a bank I would be targeting the hell out of prime borrowers and forcing them to move deposits to my bank by offering very attractive financing”
I think that is what is happening right now – I had a really difficult/impossible time getting refinanced through the govt. banks but had no problem refinancing through this private bank. Unfortunately this is the EXACT SAME THING that is going to happen in healthcare – you will develop a two-tier system. The MAJORITY of the country is going to be f@cked with govt. bureaucracy while the rich are able to go to private hospitals. You think you are mad because you can’t get financing or lose your house because of these idiots – think how you are going to fell when you lose a leg (or your life). It isn’t funny and needs to be stopped.
“It isn’t funny and needs to be stopped.”
If you didn’t vote R in the last election you really don’t have a soapbox to stand on.
“If you didn’t vote R in the last election you really don’t have a soapbox to stand on.”
Come on Bob – do you really have to ask that question? Really?!!
I’m with clio on the private concept. At some point the government will either be unable to underwrite everyone’s mortgage or the private banks are going to see how much money there is to make by lending again. Look at the spread between the 3 mo and the 10 yr. It is huge, banks are borrowing at the 3 mo and lending at the 10 yr and making huge profits (So maybe still govt supported). I expect 2011 to be another year where I get to listen to all of America bitch and moan that the banks are making money again.
Late to the party, but to the first commenter – I live about a block or two west of this place, and feel completely safe… so I don’t think this neighborhood being unsafe is the problem, just so you know. 🙂
This place just closed, could someone tell us details