Back To The 2001 Price For This South Loop 2-Bedroom? 1430 S. Michigan
This 2-bedroom in the mid-rise at 1430 S. Michigan in the South Loop just came on the market.
Built in 2001, it is a “soft loft” type unit with exposed duct work and concrete ceilings.
The listing says, however, that the bedrooms have full ceiling height (which some soft lofts do not.)
There are hardwood floors and the kitchen has maple cabinets, white appliances and granite counter tops.
The unit does have the amenities buyers look for in terms of central air, washer/dryer in the unit and deeded parking is available for $30,000.
The unit is listed for $7600 under the 2001 price (if you don’t buy the parking.)
Is this a deal?
[Also, from the sales history it appears this unit was originally bought pre-construction and flipped just months after closing for $50,000 in profit. Remember those days? Ah…memories…]
Thomas Klahn at Quest Realty Group has the listing. See the pictures here.
Unit #506: 2 bedrooms, 2 baths, 1200 square feet
- Sold in January 2001 for $202,500
- Sold in March 2001 for $252,500
- Sold in June 2005 for $316,500
- Currently listed for $244,900 (plus $30,000 for parking)
- Assessments of $448 a month (includes cable)
- Taxes of $4274
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 15×12
- Bedroom #2: 11×10
This would be better staged with furniture not so out of place in this setting if they want anything close to their price. That said: 150 – 160 psf for this dated looking unit (including parking) might move it. $190,000.00
I’m a big fan of the South Loop, but I think the January 2001 price of $201k is about right.
1,200 sq feet of tasty delicious 2000 era faux loft living for $275,000 with parking. You’d be crazy NOT to buy it!
http://finance.yahoo.com/news/homebuilder-optimism-rises-5th-straight-150123826.html;_ylt=AoZY8XlWiVc8oWONhG7kCbWiuYdG;_ylu=X3oDMTQzNzIxcnFwBG1pdANGaW5hbmNlIEZQIEp1bWJvdHJvbiBMaXRlBHBrZwM3OWVmM2FlOC04MTYzLTMyMTktYmEyNy02YzJkMjhhZjg3MzUEcG9zAzEEc2VjA2p1bWJvdHJvbgR2ZXIDMDA5Mjg2MTAtNTdlNy0xMWUxLWJmOTItNmJkZjI0ZmMwOWIz;_ylg=X3oDMTFvdnRqYzJoBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdANob21lBHB0A3NlY3Rpb25zBHRlc3QD;_ylv=3
IT’s not just me – it is the rest of the world (minus the regulars on cribchatter). C’mon you guys, join reality. It isn’t that scary….
“IT’s not just me – it is the rest of the world (minus the regulars on cribchatter).”
Can’t be a bottom. The last foreclosure hasn’t sold yet.
“Any reading below 50 indicates negative sentiment about the housing market.” The reading is now at 29 (an almost 5 year high.) Sounds like they agree with a lot of the CC regulars. Not surprising, given that new home sales are at 50+ year lows.
Can’t be a bottom. Chuk hasn’t bought yet.
Chuk assumes that the number of foreclosures in the future can be quantified. But in my line of business, I’ve learned that’s rumsfeld called an ‘unknown unknown’.
” join reality. It isn’t that scary….”
Well at a minimum, reality is unpleasant. Once again I decline to join.
“Well at a minimum, reality is unpleasant.”
not for me….or anyone else who hung on to their properties. They will see their properties pop back in values over the next five years (at which time they will be even more ahead w/ their mortgages) – whereas HD and Bob will be just starting their 30 year mortgages after having wasted the last 10 years renting.
“not for me….or anyone else who hung on to their properties”
ROFLMAO!! Yeah, I look at my portfolio all the time and get so angry that I wasn’t more heavily weighted to the long side of U.S. R/E the past 4-6 years. Oh, had I only been long more Chicago R/E.. damn!!
“Chuk assumes that the number of foreclosures in the future can be quantified.”
Uh, no, he doesn’t. And he knows that, no matter how great the housing market might be, there are still foreclosures. There were foreclosures at the height of the boom; there never will be no foreclosures.
ze (and everyone else) – you CANNOT and SHOULD NOT look at ANY investment with less than a 5-10 year time line. Sure, right now, you are ahead of what you would have been in 2006 – but can you say the same thing in 5 years? I don’t think so…….
Wasted the last ten renting bwahahaha. Bob will be skipping the entry level and buying a home at a discount from someone who is forced to or had come to the correct conclusion that their “sweat equity” was as fleeting as the whispering wind..
” you CANNOT and SHOULD NOT look at ANY investment with less than a 5-10 year time line. Sure, right now, you are ahead of what you would have been in 2006 ”
I choose to follow your direction, and will look at investments with a 6 (within the approved 5-10) year time line. So, I look at all real estate investments on how they performed from 2006 to 2012.
[looking…calculating…analyzing]
I see what you mean about how great things are!!
Bob – you will NOT be getting any spectacular deals – there are SEVERAL people with millions of dollars who are ready to swoop in and buy anything that is a great deal (and no, they are not interested in crappy places in englewood, maywood, etc.). I am not saying that this is right – but it IS reality. I, myself, have tried to pick up bargain properties in awesome areas only to be outbid or been the victim of insider info/selling. It’s not gonna happen. Builders/investors/realtors/brokers all are in bed together – the average joe is not going to get the 400k SFH in lincoln park – so you either accept it, or start looking in fringe areas. There are no other choices…..
“start looking in fringe areas”
You’ve heard of McKinley Park? No? Bob has.
I’ve been looking for a house in LP / Old Town / GC. Gotta say that in the last 2 weeks a lot of properties I was looking at have gone under contract ($1-2.5mm range). I have no clue if / at what price they will close but I was very surprised. I was also surprised that more properties haven’t come on the market since January.
” you CANNOT and SHOULD NOT look at ANY investment with less than a 5-10 year time line.
what’s an investment? Do you have any idea what 5-10 years is to someone with no short term memory… sheesh!
Sure, right now, you are ahead of what you would have been in 2006 – but can you say the same thing in 5 years?
Barring illness, I’ll take yes, the weed gives second sight and amazing powers of observation….
Yes, yoss, inventory is pretty tight and demand has increased in the meantime. This spring looks like there will be even less inventory than last spring. I don’t think potential sellers will come out of the woodwork once they hear that the market has ‘gotten better’ because after speaking with their realtors they’ll realize that only volume, and not pricing, has gotten better. RE/MAX is running advertisements on the radio about short selling they’re so desperate for reasonably priced inventory.
“I’ve been looking for a house in LP / Old Town / GC. Gotta say that in the last 2 weeks a lot of properties I was looking at have gone under contract ($1-2.5mm range). I have no clue if / at what price they will close but I was very surprised. I was also surprised that more properties haven’t come on the market since January.”
And down in my (much) lower price realm, the song remains also remains the same.
It’s still very hard to find a Unicorn Criteria (2.5 bath, w/d, a/c, garage, kitchen not open to living room, (minimal) outdoor space, ideally within a couple blocks of the park, in no event west of Halsted, but for realistic purposes east of Oz) compliant 2 bed for between $450k (with fees below $1k/mo) and $550k (with fees below $500/mo) (or rent for no more than $2,700/mo). Until I found one (worth buying) a year and a half ago, I hadn’t seen more than a couple of possibilities over the course of a one year search. And over the past year and a half, I’ve not seen more than one or two comparable posibilities.
And how much do you (i.e., the collective wisdom of CC) think adding a third bedroom to the mix will add on? My (minimal) efforts thus far to find a Unicorn Criteria compliant 3 bed for between $550k (with fees below $1k/mo) and $650k (with fees below $500/mo) (or rent for no more than $3,200/mo) have been unavailing, so I gather that a bedroom is worth more than $100k (or $500/mo if renting).
@HD “I don’t think potential sellers will come out of the woodwork ” – that is my fear. Worried that any inventory that does come on the market will be overpriced stuff that sellers have been sitting on for a few years waiting for that “uptick”. I am hoping to find a short sale at a reasonable price but I think banks may also be reluctant to approve losses if they think prices are going up.
Lincoln Park/Near North $1M-$2.5M listings by contract date Feb 1- Feb 14:
2012 12
2011 10
2010 8
2009 10
2008 16
2007 20
Lincoln Park/Near North $1M-$2.5M listings by contract date Jan 1- Feb 14:
2012 36
2011 32
2010 29
2009 27
2008 40
2007 61
Lincoln Park/Near North new $1M-$2.5M listings Jan 1- Feb 14:
2012 103
2011 101
2010 110
2009 124
2008 157
2007 135
Reminder: Contract comparisons for prior years do not include those that fall out and return to active.
Sorry, should be “Contracts for prior years”
Wow, it looks like the market is up 5%! I’m SHOCKED AND AWED!
G – do the new listing numbers include properties that were on the market previously and then re-listed? For example:
http://www.redfin.com/IL/Chicago/19-E-Scott-St-60610/home/14124144
Taken off market October 2011 and re-listed in Feb 2012.
I don’t know if it’s HD’s influence or I’m just noticing more estate sales in Norwood Park. Homes that are going for around $400K and haven’t been updated in forever.
icarus? how does that relate to me?
HD, I don’t recall exactly how you worded it, but you made reference to inventory being a lot of crap shacks that boomers are looking to sell to fund their retirement accounts and estate sales from heirs looking to make a quick buck, still thinking it’s the boom years.
also, one of my unrealistic fears is that we will finally buy a house this year and then the house I’ve had my eye on for years will go back on the market at a more realistic market driven price.
I agree that this place would really benefit from a little staging, they’ve tried to make it feel like a suburban townhouse when it clearly is not. I’ll be surprised to see it go near ask if it stays like this.
yeah, that sounds a lot like me. Every so often you get an estate sale that’s a pretty good deal. However be prepared to throw some money at it, either your own money, or, some sort of rehab loan. It’s work, and a little hectic to get the paperwork, but it’s really not that bad. However it helped because my credit is pretty good and you have to use a reputable contractor, and that’s not cheap either. You can’t take the lowest bid and expect the barely english speaking contactor to know how to correctly fill out paperwork. I know Russ discourages buyers from taking out reno loans, and there are anecdotal stories of reno loan hell floating around out there, but it’s really not that bad.
Of course that’s a risk, it’s a huge risk. But even if you got a ‘deal’ on an estate sale, you still have to put money into the house to bring it up to date. labor and materials cost what labor and materials cost irrespective of the price of the house. If you can get a house cheap enough, then it makes sense to put money into it, provided that it will apprise out with the work completed Don’t go crazy and put in a $15,000 stove and you’ll be just fine. Prices may still fall (well, of course they will) but you have a newly renovated house today, to your own style, getting to custom do everything. It’s daunting but fun if you’re into that stuff.
“Icarus (February 15, 2012, 11:43 am)
also, one of my unrealistic fears is that we will finally buy a house this year and then the house I’ve had my eye on for years will go back on the market at a more realistic market driven price.”
“G – do the new listing numbers include properties that were on the market previously and then re-listed?”
Yes, yoss, that would be a new listing (just like in prior year totals.) Here’s some perspective:
2/1/12-2/14/12: There were 40 new Lincoln Park/Near North $1M-$2.5M listings, 15 of which had prior listings that were active between Oct 2011 – Feb 2012, so 25 new to the market.
2/1/11-2/14/11: There were 27 new Lincoln Park/Near North $1M-$2.5M listings, 13 of which had prior listings that were active between Oct 2010 – Feb 2011, so 14 new to the market.
HD – you are a bonafide idiot. Anyone who has actually gone through the process of getting a mortgage or refinance will tell you that it is a complete and total nightmare (worse than a short sale). I am refinancing my house (or trying to). I am asking for a loan that is less than 2x what I make. I have assets to cover the amount I am asking for, and I am getting barraged by the underwriters of the loans for such much fucking documentation (rental properties, equity statements, K1s, rental contracts, partnership documents, 401k plans, assets, paystubs, taxes on all my properties, profit/loss statements on all companies I have even a small ownership of) – it is ridiculous. Maybe for the simple person who has one job, one bank account it is easier – but those of us with numerous investements/assets, it is a nightmare.
What is even worse is that I lost my temper and told the broker that the underwriters were complete morons in trying to get all these documents because “I could quit my job 3 seconds after I got the loan” or all of my tenants could suddenly stop paying rent and these fucking pencil pushers should understand that there will always be an element of uncertainty and risk – so they should take everything with a grain of salt. The only message I was able to get accross to these fucking idiots was that I was going to quit my job and that my renters were going to stop paying rent. My loan application was suddenly denied. Un-fucking-believable.
Ain’t karma a bitch?
@G – great data – thanks!
I am sure there are probably plenty of UIC grads in the mortgage broker biz. you should find one of those, and reminisce about your years as a flame to butter him up so you dont get screwed too badly?
In the financial information of the listing, it has special assessment. Not sure what kind of problem the building has.
I love it when CLIO calls me a bonafide idiot.
I spend much time in this area and it is a very nice area, this building, meh but if you can get a 2/2 at the January 2001 price, I’d consider that a steal
sonies, how come you’re down south when you have rainforest cafe so close
I’m a little late to this discussion, but: I think this is a very nice building (much nicer than it looks in the picures), well-built, in a good area. I’ve been in a 3 bedroom unit, owned by two architects, which was quite nice (it looks over Michigan, though, so better view(. I think this could be a nice home at a reasonable price (not a steal) for someone who wants to stay in property a while.