Builder’s Custom Home Sells in Roscoe Village as a Short Sale: 1833 W. Melrose
Some of you will remember this 6-bedroom single family home at 1833 W. Melrose in Roscoe Village that was described in the listing as the builder’s custom home.
See our November 2009 chatter and pictures here.
It sold as a “short sale”- as is.
The listing said it was 95% complete.
It had extensive detailing including crown molding and wainscotting and hand crafted storage areas.
Cara Buffa at Prudential Rubloff had the listing.
1833 W. Melrose: 6 bedrooms, 4.5 baths, 5500 square feet, 2 car garage
- Sold in May 2005 for $550,000 (prior home)
- Was listed in June 2009 for $1.749 million
- Reduced several times
- Was listed in November 2009 as a “short sale” for $1.199 million
- Sold in March 2010 for $1.125 million
- Taxes of $5857
- 4 fireplaces
- Hot tub
wow a million dollar frame house; this is what dreams are made of
“wow a million dollar frame house; this is what dreams are made of”
Better than a million dollar cinderblock condo, no?
Pretty decent price, but this is still a magnet/private school necessary location.
Is it me, or do the taxes seem unusually low compared to the price?
“Is it me, or do the taxes seem unusually low compared to the price?”
Has HI exemptions, so it’s based on the old house for 7 years (or something like that).
Off topic but interesting:
http://www.chicagobreakingnews.com/2010/05/cops-evicted-man-trashes-house-in-foreclosure.html
Too much house for me, I’d hate to cool and heat that son of a bitch during hot and cold season
shouldn’t be bad if its zoned and ducted properly w/insulation of course
“Too much house for me, I’d hate to cool and heat that son of a bitch during hot and cold season
“Jason (TFO) on May 4th, 2010 at 2:22 pm
Off topic but interesting:
http://www.chicagobreakingnews.com/2010/05/cops-evicted-man-trashes-house-in-foreclosure.html”
The comments on that story are staggeringly retarded. KFCGuy in particular seems like a real wizard. He must have lots of time for higher order critical thinking while waiting for the fry timer to go off.
I just keep thinking “oooohhhh preettttyyyy”
Could someone please explain why a frame house is inherently less valuable? Are we putting swimming pools on the roof or slate roofs up there?
Anyone ever had to tuck point masonry? Conversely, anyone owned a house with Hardiboard? Pretty damn durable stuff.
JMM, because crib chatters think because this house would be $200k in Bumblestank, IL it should be about $250k in Lakeview…
A – this house would not be $200k in ‘Bumblestank’; ‘
B – the high end market is completely over-saturated – there are more high end homes than high income earners – see example above…
“russ on May 4th, 2010 at 7:43 pm
JMM, because crib chatters think because this house would be $200k in Bumblestank, IL it should be about $250k in Lakeview…
“
Can anyone explain how they got “6 bedrooms, 4.5 baths, 5500 square feet” on what appears to be a std. Chicago lot?
Exactly how many Chicago households have both income and savings (to now qualify for mortgage) to afford a $1 million+ house? And how many of these householders are in market for a new house in Chicago? This high-end house market is saturated.
Buyer may think they got a bargain. But you can’t confuse construction replacement cost for “purchase sale value”, much less “builder’s price anticipation” in this still declining market. I suspect a number of newer high-end Chicago houses now have a higher “replacement cost” value, determined for home insurance purposes, than the “sold-purchase value” if the house was on the market right now.
This house is now worth somewhere in the $750,000 range if it needed to be sold within three months, based on comps, and will be worth somewhat less next year, when inventory has increased further for relatively new high-end builder houses.
“This house is now worth somewhere in the $750,000 range if it needed to be sold within three months, based on comps, and will be worth somewhat less next year, when inventory has increased further for relatively new high-end builder houses.”
Architect, do you have any recent comps in mind? I haven’t seen anything selling at $750K or $850K for that matter that is close to this house.
If I can get this house for 750k in the next 3 months, sign me up!
“DZ on May 5th, 2010 at 8:39 am
Architect, do you have any recent comps in mind? I haven’t seen anything selling at $750K or $850K for that matter that is close to this house.”
2nd. Wishful thinking methinks…
“This house is now worth somewhere in the $750,000 range if it needed to be sold within three months”
“Architect, do you have any recent comps in mind? I haven’t seen anything selling at $750K or $850K for that matter that is close to this house.”
If you read it as “to find a new buyer who could close by August 3” he may be right. Remember, the attendance area school is *not* acceptable here.
“Can anyone explain how they got “6 bedrooms, 4.5 baths, 5500 square feet” on what appears to be a std. Chicago lot?”
Check the prior (or maybe the prior prior) post of this house–the bedrooms are on 3 diff floors (1 on 3d, 3 on 2d, 2 on lower) and the SF is based on rounding up and possibly including the roof deck. There’s no (usable) backyard, so there’s more house.
If I could get a similar house in this area for $750K, I would buy it tomorrow.
Wow – four people saying they would buy this house for $750k. Must be a whole lot of high income earners $200k+ plus on this board with substantial assets.
“Wow – four people saying they would buy this house for $750k. Must be a whole lot of high income earners $200k+ plus on this board with substantial assets”
sometimes HD your assumptions leave out a move up buyer who may just have a income of 100k but also a home with either the mortgage paid of or most of it paid and can bring 300k-500k (after sale) plus a down payment.
“Pretty decent price, but this is still a magnet/private school necessary location.” -Anon(tfo)
This would be Burley Elementary right? I was under the impression that was a good school. Whats up?
Answered my own ?. I had no idea it was a magnet program there.
“Wow – four people saying they would buy this house for $750k. Must be a whole lot of high income earners $200k+ plus on this board with substantial assets.”
Believe it or not HD, there’s a lot of wealthy people out there that invest in things besides CD’s like you to create income and assets…
“This would be Burley Elementary right?”
Nope. Jahn. Need to be east of Ravenswood to be in Burley.
Amazing Sonies, there are wealthy people?
All it takes is the ability to borrow and pay the interest on $900,000 (roughly gross income of $15k a month).
Wow, I’m almost wealthy! How could I be wealthy and not even know it?
“#Sonies on May 5th, 2010 at 11:14
“Wow – four people saying they would buy this house for $750k. Must be a whole lot of high income earners $200k+ plus on this board with substantial assets.”
Believe it or not HD, there’s a lot of wealthy people out there that invest in things besides CD’s like you to create income and assets…”
“All it takes is the ability to borrow and pay the interest on $900,000 (roughly gross income of $15k a month). ”
Why would you need to borrow $900k if you’re buying a house for $750k? Can I get you to approve a refi for me?
I guess HD has never heard of things like Life insurance beneficiaries, inheritance, business owners, investments, trust funds, home equity, and under the table income, are just a few things HD has no clue about.
I would come up with the money or loan to buy this house for 750k and then immedately sell it to someone within 3 months for 900-1mil and walk away with a nice profit. But someone as risk averse as you couldn’t possibly fathom how to make a profit on something.
Never heard of any of those things Sonies.
Profit? What’s that?
I’ve heard that construction costs for a new home average $150 psf for new, but not over-the-top finished. Architect: Is this a $200 psf house? The finishes look expensive.
If you apply $200 psf to the square footage of this house (3600 sf or 5500 sf), there is your cost not including the land. At $750K, that would appear to be construction hard cost, which values the land at zero in that analysis?
“If you apply $200 psf to the square footage of this house (3600 sf or 5500 sf), there is your cost not including the land. At $750K, that would appear to be construction hard cost, which values the land at zero in that analysis?”
It’s prob about 4500 usable SF. Even at $150psf, that’s $675k (minimum) to build the structure. That’s why several people said they’d buy it tomorrow for $750k–a lot in this location is clearly still going to cost more than $75k. $1.1 is a pretty good deal, tho I wouldn’t be interested b/c of the school issue, and I think the layout of the BRs is sub-optimal, as is backing onto Belmont.
“Could someone please explain why a frame house is inherently less valuable? Are we putting swimming pools on the roof or slate roofs up there?”
Talk to your insurance agent, brick doesn’t burn like wood, and your insurance is less.
Talk to your assessor, usually brick is valued more and considered higher quality.
Talk to a homeowner about maintenance, tuckpointing is expensive, but does not have to be done for decades.
Brick costs more than siding initially.
Esthetically, masonry usually looks better than most houses with siding….and etc.
Back in June I said this house would sell for $1 million. Now to sell the house, I think the price would drop further, not as a reflection on the house itself, but in consideration of a soon-to-be terrible resale market, if I’m reading the financial news correctly. Asking prices on MLS are irrelevant; actual sale price determines resale value, which requires a qualified buyer who actually successfully closes on deal.
House is likely no larger than 25 x 60 x 2 floors = 3,000 SF, if on a 35 x 125 lot. I can’t find any listing information. Extra SF to get to 5500 SF must be basement SF (1500 SF) and a roof deck/attic. 3000 SF x 200/SF = $600,000, plus another $100,000 for “fancy finishes” and high-end appliances. That’s construction replacement cost, without land cost. Basements are cheap foundation space factored into construction price without double counting. Contractor’s wholesale construction costs are significantly lower than a homeowner’s retail remodeling costs when hiring contractors.
Asking price is a mix of cost recoupment, optimism, profit expectation, market, and patience factors. For a long time, purchase price significantly exceeded “CC+L” costs, but now short-sales, foreclosures, and glutted market are disproving that expectation.
Architect, this house no longer has an asking price it sold in march for 1.125 mil with a 20pc down payment and a 900k mortgage. I like you think the price was a bit high especially since it required a super jumbo mortgage; but I van’t blame the owner for buying the bust has been going on a long time and this is a nice house, nice area, high end. Yes there will be more pain to come but this guy may have some family money or something socked away so maybe he thinks he’ll be able to weather the storm. Good for him.
“I like you think the price was a bit high especially since it required a super jumbo mortgage; but I van’t blame the owner for buying the bust has been going on a long time and this is a nice house, nice area, high end. Yes there will be more pain to come but this guy may have some family money or something socked away so maybe he thinks he’ll be able to weather the storm. Good for him.”
Sounds like a new HD, perhaps one ready to buy? 🙂
Oh I’ve been ready to buy for a long time. My problem (among many) is the 20% down payment I’d like to put down. My household made a conscious decision to pay off student loans during housing boom/bust – which could have been a great down payment.
Now that the student loans are under control we’ve been saving for a house but 20% of $500k isn’t the kind of money most people can save overnight, so to speak. There’s no family money to speak of, no big bonuses, no inheritances, no equity from a previous home sale – only savings.
Of course I could buy a house FHA 5% down and 45% or more of my income towards housing but if there’s one thing I’ve learned during this recession: One’s present income stream is never totally secure, and may be unexpectedly reduced at any moment, so it’s best to keep fixed expenses low, and when times are tough, it’s best to live off what you’ve saved in the good times. I’ve been fortunate enough to not yet experience hard times this recession (knock on wood) but there are a handful of people out there in charge of the accounts I work on and if something were to happen to them I’d be next in line at the unemployment office….just like most of us here without early in our career without any real wealth or family money….
“House is likely no larger than 25 x 60 x 2 floors = 3,000 SF, if on a 35 x 125 lot.”
Where you get the idea the house is on a 35′ lot? It’s RV–the lot is 25′. (yeah, yeah, there are a few 1.5s and a few doubles, but *very* rare mid-block like this one.
As noted in the prior post*, I did the math, and don’t believe it’s w/in 10% of 5500 interior SF. And, as also noted, this was a to-the-studs “reno”, not new construction.
*here it is again: “It’s plausibly 5000 interior SF, based on measuring the two parts of the house–original part is ~20?x40, on 4 levels (with peaked roof 4th, so slightly smaller) (3000+) and the addition is ~20×30 on 3 levels (~1800). I suspect it’s more like 4500, but that’s me rounding things down instead of up.”
You all don’t think a price chop of 30% is sufficent enough to get it sold? For short sales in the city recently, 30% off original asking is the norm.
I know it is a wood framed place, but it is nicely done with what seem like above average appliances and finishes.
While I agree that Chicago RE is overpriced, I don’t think it is fair to have the bank take such a hit…after all, we need banks to succeed don’t we?
*sarcasm*
I think it will sell and will do so with a further reduction of around $100k….anything more than that would not be considered a fair offer by the bank.
“I think it will sell and will do so with a further reduction of around $100k….”
I predict it will sell at $1.125M. I win, because it already sold.
I further predict that yesterday the dow will drop almost 900 points and then recover about 2/3 of that.
Architect wrote: “Contractor’s wholesale construction costs are significantly lower than a homeowner’s retail remodeling costs when hiring contractors.”
any tips for us retail suckers? to avoid retail?