After 7 Months on the Market, Conversion Vintage Condo Sells: 522 W. Oakdale in East Lakeview
We chattered about this 2-bedroom vintage conversion unit at 522 W. Oakdale in East Lakeview several times before.
See our May 2010 chatter and pictures here.
It has finally sold for $69,500 under the 2006 purchase price.
It had all the bells and whistles including a second bathroom, central air, in-unit washer/dryer and deeded parking.
It also had a desireable East Lakeview location.
Eric Rojas at Prudential Rubloff had the listing.
Unit #2W: 2 bedrooms, 2 baths, no square footage listed, 1 parking space
- Sold in February 2006 for $409,500
- Originally listed in January 2010 for $374,900
- Reduced
- Was listed in March 2010 for $369,900
- Was listed in May 2010 for $369,900
- Sold in July 2010 for $340,000
- Assessments of $267 a month
- Taxes of $6336
- Central Air
- In-unit Washer/Dryer
- Bedroom #1: 11×13
- Bedroom #2: 10×9
- Living room: 22×24
- Kitchen: 12×14
Probably closer to $323,000 once the agents got paid.
Seems like a decent price given everything…
I was interested in this place, but the kitchen was just a deal breaker for me. Not only small, but in the very back of the unit, cut off from the rest of the living area. I remember the agent was on here vigorously defending it.
Overall, a nice place in a great location, but I’m not sure they could have gone low enough on the price to outweigh that kitchen.
Eric Rojas = sold!
I guess awkward vintage conversions with parking, w/d and AC are a rarity in East Lakeview since that’s the only reason I would be able to explain the price. but hey good for us owners, we need comps like this 8)
What a bummer to take a $70k haircut. That’s a 17% cut in price that the owner has to bring to closing.
Imagine paying a 20% downpayment when you buy the place, and then having to do the same when you sell. And then you have nothing. No equity for a downpayment on a new place. It makes me want to puke.
I’m 41 yo and still rent. The “value of home ownership” was constantly pushed on me by EVERYONE — family, friends, coworkers, etc. It was like a religion that EVERYONE believed but me. But when I visualized actually signing a mortgage document, It felt like a trap was being set.
I don’t want to gloat in any way about other people’s misfortune. It sucks that this whole bubble thing happened. But I am so glad that I trusted my instinct not to buy.
“Imagine paying a 20% downpayment when you buy the place, and then having to do the same when you sell. And then you have nothing. No equity for a downpayment on a new place. It makes me want to puke.”
That would require a 40% decrease, no?
Looking back at the first round of comments in March, it looks like it was once priced at $399 “I was $399K months ago… why didn’t you tell me I was over-priced?!” Eric Rojas (http://cribchatter.com/?p=8321)
I’m wondering what happened between the May listing and July sale (dont’ know if it was early May or what). Did someone look at the $369,900 price tag and offer “$340K, take it or leave it!”
It’s really hard to feel bad for somebody who pays $400k for a vintage 2/2 condo in Lakeview. Where did they expect the price to go, up to $500,000 or $600,000? Who did this person expect to sell to? Did they expect Lakeview to be the next NY where only the ultra rich can live and the hoi pollei must live in Jersey or something? Did they expect some power couple making $200k a year to come along and buy them out in 2001? I mean really…..
I too was like Danny and I trusted my instincts. It totally sucks that the whole bubble thing happened. It’s delaying a lot of my plans. The whole ‘who cares about the bubble you need to buy when you’re ready and live your life’ just simply reeks of impatience. I don’t want to live my life flushing money down the toilet in interest and lost equity just to say I own. There’s only a finite amount of money in my life I will earn, and i’ll be comfortable, but throwing away a large chunk of my earnings towards a home because of impatiences, instant gratification, socital pressure, etc is ridiculous.
Danny,
You neglected to factor in any tax benefit while the owners lived here. They may also be able to recoup some of the loss at closing on future returns. Don’t get me wrong. Your point is good but for many the tax ramifications are helping to subsidize the higher cost of ownership vs renting. Being 41 you could easily still have equity in a property had you chosen to buy in your late 20’s or early 30’s. In addition you would have had a decent tax write-off on the interest you paid each year. That adds up quickly in the early years of a mortgage. I’m not an accountant but felt you overlooked an important part of the equation on your quick analysis.
Groove,
“Eric Rojas = Sold!”
… most of the time! Ha.
I received two offers within two days on this place…finally. We already were down the road on the first, got a higher offer on second but owner was reluctant to cancel first and lose everybody. Prudent move. Maybe would have saved him $10K on the second offer though.
Considering other closings, this one was a little surprising to us. However, taxes and assessment were also factors in lower purchase price. The association also improved the interior staircase and halls at the end, which would have helped in the beginning.
I really love this location and the place felt brand new.
“The association also improved the interior staircase and halls at the end, which would have helped in the beginning.”
do you think with that done the the 374k list would have brought in a 355k bid?
“Being 41 you could easily still have equity in a property had you chosen to buy in your late 20’s or early 30’s.”
15 year mortgage and by now you’d be a true home “owner.” Or just pay every two weeks on a 30 and you’d be very close.
RE_Novice,
“I remember the agent was on here vigorously defending it.”
I looked at my past comments and I’m not sure I was “vigorously” defending anything. But, I surely was making the case for the unit in general in light of real market closings I research. “What the Hell?” would probably best describe my general wonderment considering we showed the place well over 100 times, not including open houses.
In any case, this place was really on your radar over 7 months I think because there was little inventory in East Lake View that was new, and had basically everything 2/2 buyers want and with little maintenance relative to older units in the area. So, I’m still disappointed we did not sell for more.
JP3: “Being 41 you could easily still have equity in a property had you chosen to buy in your late 20’s or early 30’s.”
The thing is that I never felt secure enough in my employment situation to even consider real estate until I was in my mid 30s. (I’m an Engineer, good school, diverse job experience, always top quarter percentile in salary). I had already seen what happens when large projects get canceled and layoffs/furloughs ensue.
Most of my peers did not buy until their mid 30s. Their purchases were in the time frame of 2002 – 2008. I would never be presumptuous enough to ask, but I’m guessing that many of them are underwater. All of my friends who purchased a condo have some complaint about the building, association, manager, crappy neighbors, etc.
anon(tfo): “That would require a 40% decrease, no?”
You are absolutely correct, and I’m embarrassed for not proofreading beyond spelling and grammar.
In this case, the buyer would just walk away having forfeited the down payment.
Grove, we did get $350K as well, but had accepted first stronger financed offer.
Anywho,improvements to the building common areas that affect the very moment you walk in to the building would have helped, especially during the tax credit time.
“Anywho,improvements to the building common areas that affect the very moment you walk in to the building would have helped, especially during the tax credit time.”
Its the little stuff that counts, i know when we check out places we also look at the neighbors yard, the trees around the place and the streets we would take to get home. I HATE SPEED BUMPS and if i had one on my route it would be a deal breaker for me.
i know its a small thing but i know there are many silly people like me that look for those small details when dropping a large amount of money.
Buy buy buy is such an old paradigm.
The tax benefits of a mortgage are severely over rated. We’ve discussed these before.
Prices will return to earth. The market cannot stay anemic forever.
How slow has the market been since April 31? How many new contracts have been signed?
Hahahahah April 30th, there is no 31st. My bad.
“The market cannot stay anemic forever. ”
Sure it can. How many sales are there annually in–pick your city in Europe. There’s no reason we can’t be starting a new paradigm of lower rates of owner-occupancy.
Or have you drank the koolaid?
bahahaha
“I HATE SPEED BUMPS and if i had one on my route it would be a deal breaker for me.”
Oh, and you hate them until you’re living on a sidestreet where people drive 35 *with* the speed bumps. Then you’re happy to have them slow most people down.
“Oh, and you hate them until you’re living on a sidestreet where people drive 35 *with* the speed bumps. Then you’re happy to have them slow most people down.”
dont worry groove has a louie slugger that will get them to slow down if that happens.
IF the market will remain anemic then foreclosures will continue to remain high as debtors default on their mortgages.
Sales volume increases as prices decrease.
“#anon (tfo) on July 19th, 2010 at 12:26 pm
“The market cannot stay anemic forever. ”
Sure it can. How many sales are there annually in–pick your city in Europe. There’s no reason we can’t be starting a new paradigm of lower rates of owner-occupancy.
Or have you drank the koolaid?”
“Oh, and you hate them until you’re living on a sidestreet where people drive 35 *with* the speed bumps. Then you’re happy to have them slow most people down.”
I recently moved to a street with speed bumps. My new favorite sound: rap music getting closer, rap music getting closer, bottom of car scraping speed bump, rap music fading, rap music fading.
$450K is still a lot for a 2-unit of this size and construction in this condition, regardless of the neighborhood. Factor in the .5% additional rate on the mortgage for a multi-unit vs single fam, then taxes and insurance, and $2400 from the renters (even if one of them is you as owner-occupier) and the pro forma will probably show a net loss (not a bad thing if you can support the cash flow until tax refund received; benefits of Schedule E loss off your 1040, too). Also there may be costs to ask a tenant to move out to support your non-investor loan application; if not, .5% more on your mortgage rate for the investment property.
They put speed bumps on my street last summer. This past winter, the street was never plowed. Budget cuts or the inability of the plows to clear the street b/c of the street bump?
“Budget cuts or the inability of the plows to clear the street b/c of the street bump?”
Not a general inability to plow. Never seen a problem near me.
@ REnovice = Not everyone is in love with the “kitchen in the living room” trend. The realtor was probably pointing out the advantages of having the cooking area (with its attendant smells, heat, etc.) isolated from the living/entertaining rooms.
As for size – some people’s tastes/lifestyles are better served by a small kitchen, especially if they are single with disposable income who would rather utilize the many restaurants/takeout places nearby, than come home exhausted from work and be faced with cooking dinner.