After 5 Months, Vintage 2-Bedroom Has Reduced $47,500 in Old Town: 1647 N. Sedgwick
This 2-bedroom top floor vintage unit at 1647 N. Sedgwick in Old Town came on the market in July 2018.
We chattered about it then. You can read that chatter here.
If it looks familiar to long time readers, that’s because we also chattered about it in both 2008 and 2014, when it previously sold.
You can read the 2014 chatter here.
If you recall, this is a 3-unit vintage building with garage parking.
This unit has some vintage features including tall ceilings and original wood moldings along with a wood burning fireplace in the living room.
The kitchen is the same one as in 2014, with white cabinets, quartz counter tops and stainless steel appliances.
This unit has two outdoor spaces, a deck off the back and a private rooftop deck with city views. Yes- it’s private, as the last time we chattered about this unit in July 2018, some of you thought it might be a common deck. It’s not.
It has all the other features that buyers look for, including central air, washer/dryer in the unit and rare (at least for Old Town) garage parking.
In 2008, this unit sold in a bidding war with multiple offers. It also sold within 2 months in 2014.
It came back on the market in July 2018 at $475,000 but has now, 5 months later, been reduced $47,500 to $427,500.
Why isn’t this selling quickly this time?
Is it now priced to sell?
Stephanie Poulos at @Properties has the listing. See the latest pictures here.
Unit #3: 2 bedrooms, 1 bath, no square footage listed
- Sold in October 1997 for $252,000
- Sold in November 1999 for $300,000
- Listed in June 2008 for $419,900
- Sold in July 2008 after a bidding war for $412,000
- Listed in September 2014 for $425,000
- Reduced to $419,000
- Sold in November 2014 for $416,000
- Originally listed in July 2018 at $475,000
- Reduced several times
- Currently listed at $427,500
- Assessments are now $175 a month (they were $173 a month in 2014 and $150 a month in 2008)(includes exterior maintenance, scavenger, snow removal)
- Taxes are now $8484 (they were $5996 in 2014 and $3916 in 2008)
- Central Air
- Washer/Dryer in the unit
- Garage parking included
- Fireplace
- Bedroom #1: 14×9
- Bedroom #2: 12×9
- Private rooftop deck: 27×16 (yes- PRIVATE!)
this is a classic vintage condo, I wonder why its not selling?
I mean the bedrooms are pretty narrow and only one bathroom but what gives
I thought it was priced a little high before, but with the latest drop I really don’t get it either. You’d think people would make an offer if they think it’s high. I wonder if it just feels really tight if you are in there. I also still think the assessments are strangely low and wonder about maintenance history, specials, and the state/age of the roof.
It’s most suited for a single or couple who don’t mind a smaller place, but there’s much similar around there for less, and it’s charming, and people seem to like roof decks, so seems odd that it is sitting there.
er, not much similar
Looks like a rental unit to me. Reminds me of the place I lived in Lakeview in 1994. A rental in a graystone. Not a bad place, really, but not a place I’d pay big money for.
I would never even rent this place let alone buy. Nothing redeeming about this place. Nothing.
“You’d think people would make an offer if they think it’s high.”
According to agents that are out there in the trenches, buyers will NOT try and low ball. They won’t even offer $10,000 under the asking.
Apparently the old negotiating techniques from the 1980s and 1990s, when offering below ask was the norm, has been lost with the next generations of buyers.
So properties sit and lower their prices slowly over the course of several months.
this is true… had many people who were so interested in my house they saw it 3 times… refuse to make an offer… had some folks offer like 100k below asking price too, eventually we worked out a deal with someone for the third time (fingers crossed)
“According to agents that are out there in the trenches, buyers will NOT try and low ball. They won’t even offer $10,000 under the asking.”
That’s interesting — wonder why not. I sold this year and priced my place $15K above what I figured it would likely sell for but then sold it for $10K above list but that’s because it was soon after it had gone on the market and we refused to go down much. Original offer (from the eventual buyer) was $20K below list.
I think when I was looking I’d round down (when guessing at what they’d accept) depending on how long it had been on the market either to a close round number or about 10%, but I didn’t feel it was worth bothering with if what seemed like a fair price to me was more than about 10% less than asking. I’ve mentioned this before, but I recall one place that was lingering on the market at $850K, they dropped to $799K, and almost immediately went under contract at $720K — it’s like the big drop got people to try making an offer, even a low one.
Good luck, sonies!
This finally sold for $420,000 on Dec 28, 2018.
Seller made just $4,000 on the 2014 sales price.
Lots of buyers from the 2014-2016 period are either barely breaking even or losing money (and losing even more after factoring in costs of the realtor and closing costs.)
This is new to the market. For years, people had been making money off those bust lows. But some of the recent sellers bought later- after the bottom. They’re losing money now.
What it is telling us is that there really hasn’t been any appreciation in many neighborhoods in about the last 3-5 years.
And this is with one of the best job markets in 20 years.
People are going to have to live in their properties a lot longer than 3-5 years going forward. Even just to cover their costs. If Chicago goes back to its historic 1-3% gains a year, you’ll have to live there a few years just to cover the realtor fees.
Starter condos like this are going to struggle with any price appreciation with the continued apartment boom.
Id expect to see further price declines as it doesn’t make sense to put down $40-80K on something like this (unless mommy & daddy are fronting the down payment)
“And this is with one of the best job markets in 20 years. ”
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But the jobs themselves, suck, Sabrina, you know that. Real wage growth hasn’t increased for a lot of people in 40 or so years. Even the bank of Mom and Dad struggles with covering rising prices and lower wages.
“But the jobs themselves, suck, Sabrina, you know that.”
Actually, no, they don’t. This is the biggest myth of all. It was the myth during Obama’s presidency even though every single engineering graduate was getting multiple job offers and now it’s the myth during Trump’s presidency too.
Someone other than a Shack Shack employee is renting those 10,000 luxury apartments that have sprung up in downtown Chicago since the Great Recession. Those are good paying jobs.
You know where the jobs “suck”? The rural areas. Manufacturing is dying there. What’s left? The McDonald’s or a hospital- if they’re lucky there is one.
But the cities are desperately in need of people. They can’t find enough in tool and die. And even Walmart is paying $90,000 for truck drivers, with tons of benefits and quarterly bonuses, because there’s such a shortage in truck drivers.
“Id expect to see further price declines as it doesn’t make sense to put down $40-80K on something like this (unless mommy & daddy are fronting the down payment)”
I agree JohnnyU. With young people now living in updated and luxury apartments right out of college, why would you buy something that has finishes that aren’t even as nice as your apartment? And no one has the money to put in the new kitchen themselves, that’s for sure.
The next owner of this will likely have to upgrade the kitchen and bath if they want to make anything.