Buy a Foreclosure, Renovate and Wait to Sell: 3807 N. Wilton in Lakeview
This large 3-bedroom duplex down in a vintage building at 3807 N. Wilton in Lakeview was bank owned in August of 2008.
There are no interior pictures of the unit from the prior sale and the description doesn’t tell us the condition of the unit.
But it sold in January 2009 for $205,000 with a parking space.
It is now a “gut rehab” and has a new kitchen with granite counter tops and stainless steel appliances, brazilian hardwood floors, new carpet and paint and custom spa-like baths.
All 3 bedrooms are in the duplex down.
It has central air and a washer/dryer in the unit.
After months on the market, what will it take to find a new buyer for this unit?
Marcel Murrell at Prime Market Realty has the listing. See the pictures here.
Unit #1: 3 bedrooms, 3 baths, 2800 square feet, 1 car parking
- Sold in February 1996 for $151,000
- Lis pendens filed in October 2007
- Bank owned in August 2008
- Sold in January 2009 for $205,000
- Originally listed in August 2009
- On and off the market
- Listed in August 2010 for $437,500
- Reduced
- Currently listed for $429,900
- Assessments of $235 a month
- Taxes of $4425
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 17×13 (lower level)
- Bedroom #2: 15×15 (lower level)
- Bedroom #3: 15×11 (lower level)
You know Chicago RE is still bubbly when you can buy a place, sink maybe 50k into it to rehab it, and turn around and resell it for 200k more.
Basically if there is this much premium for turnkey over foreclosures that need work, you know RE is still bubbly. Then again this hasn’t sold yet so we’ll see.
But…all bedrooms in the baseme…er…lower level? I don’t know. I might be Ok with is for less $s as I would rather they be there as opposed to the living rooms.
I bet this will be a real tough sell to the “raised in the suburbs” type of buyer that is the likely pool of buyers.
hah I put an offer on this place back in 09 for 175k, guess i wasn’t too far off
“sophisticated 2800 sq ft duplex down”
Exactly the phrase to describe a 2/2 with bars on the windows and no bedrooms above grade.
“hah I put an offer on this place back in 09 for 175k, guess i wasn’t too far off”
How bad was the interior then? Or did you make the offer blind?
I always think it’s funny when the “penthouse” owner has to share his/her rooftop deck with the other units in the building. That’s got to be fun when you are trying to sleep and have a party going on above you.
Looks like a nice renovation here.
blind… since the stupid realtor would never call me back to let me see the thing… Mike Fields was his name, whatever, glad I didn’t get a call back but it was a good deal for the location and no mold so whatever interior needed to be changed I could manage it
Well, i’ll tell you one reason why it won’t sell. we attempted to go to an open house here twice. both times the agent was not there during the entire posted open house time. It was actually quite funny because we sat in our car for about 15 minutes waiting to see if she would appear, and numerous other people would ring the bell, pull out their cell phone and then finally walk away.
After repeating this exercise twice, we gave up even trying to look at the place.
This is a well-priced very nice unit. People are willing to pay a premium for a newly renovated place – the price is in line with other places in the area and the third bedroom third bath make up for the “garden level” location of the unit. The seller deserves a pat on the back for a job well done.
um… hasn’t sold yet… there goes that reading comprehension skill again
Looked at this place back in July, the parking is tandem with other unit owners so you have to share keys, not much of a back deck either. The bedrooms truely felt like a basement and there appeared to be a number of finishing touches left to do in the rehab (closet doors, crooked light fixtures).
I’ve brought this up on other suppossed ‘gut rehabs’: I am always extremely doubtful of the degree of gut that actually occurred. Especially since this may have been done by a pick-up truck developer/flipper.
Gut means all new mechanicals to me. Just had a friend who bought a rehabbed conversion in 2005. Last week water started leaking from his unit below. Turns out the drain pipes from his unit to the commons stacks cracked through from age. Plumber told him all the pipe was old and junk. Friend replied that the place was gutted in 2005. Plumber laughed and handed him the estimate.
“This is a well-priced very nice unit. People are willing to pay a premium for a newly renovated place – the price is in line with other places in the area and the third bedroom third bath make up for the “garden level” location of the unit.”
This place is fine, but it isn’t well-priced. Here is a very good comp, two blocks away, that was reduced to under $370K w/parking before finally going under contract. And a lot of buyers would prefer this one b/c two of the bedrooms are on the main level:
http://www.redfin.com/IL/Chicago/3901-N-Sheridan-Rd-60613/unit-1-E/home/13383045
chi_dad, that is more like 2 miles away, actually, it is more. this place is overpriced but that is like saying we should be using Uptown comps against Lincoln Park.
“that is more like 2 miles away, actually, it is more. this place is overpriced but that is like saying we should be using Uptown comps against Lincoln Park.”
Why not, our city is huge and your dollar can buy you many things why not comp it? you will be able to see and show yuppies that LP, LV are over priced for what you get. and be able to see the Bucktown/wicker park are over priced to the point its so insane it becomes sane.
“chi_dad, that is more like 2 miles away, actually, it is more. this place is overpriced but that is like saying we should be using Uptown comps against Lincoln Park.”
since when is 3901 Sheridan more than 2 blocks from 3807 Wilton? They are *almost* on the same block.
My bad. 3807 N Wilton is on the *east* side of the tracks while 3901 N Sheridan is on the *west* side. Totally different world over dere in dem parts. Scratch that comp.
Bob,
50k for a gut rehab of a 2,800 sq ft unit? Please send me your GC’s number.
Doesn’t the Red Line run through the backyard of this one?
Odd numbered addresses are on the west or south side of the street, so this one is across the street from the el, not on the tracks.
Sorry, meant “east or south side” of the street.
Yeah this place is nice. So why don’t you guys think 3901 N. Sheridan is a good buy??? Just because its 1/2 block west of the El… Please explain. I live not too far from here in North Center and have never known this territory to be problematic.
“Yeah this place is nice. So why don’t you guys think 3901 N. Sheridan is a good buy??? Just because its 1/2 block west of the El… Please explain.”
I do think 3901 Sheridan is a good buy. I saw this place and actually really liked it. It’s a 4/3 with decent finishes, parking, plenty of room, 1 block from the red line and in a decent hood. IMO, for $370K this is a nice option for a family that wants to stay in the city.
chi_dad
Just out of curiosity, why’d you pass it up…
Came down to the public school option as a back-up to private. If something adverse happens or if we tire of paying private school tuition (likely), we’d prefer to be in either Lincoln or Ogden. I quite liked the unit, and I like the location, too, other than the school district issue.
“Just because its 1/2 block west of the El”
Doesn’t the el actually run behind 3901 Sheridan? (it’s where the el tracks curve to go into the Sheridan station, right?)
Madeline that’s correct but there appear to be other buildings that would buffer the el noise. I’ll admit that this particular block is more commercial than Wilton, but for the space, proximity to the el and relative level of amenities; I’m surprised it took so long for someone to snatch it up. Seems like it was a good deal to me.
It’ll be interesting to see what Sheridan closes at. I probably would’ve been all in at 340k myself.
“Seems like it was a good deal to me.”
What’s a “good deal” anymore? This is the problem with the housing market and why it’s at a standstill. Prices continue to fall. Buyers who thought they got “deals” just 12 months ago are now finding the same properties anywhere from 5% to 50% under what they paid for them.
The price declines are accelerating. So the buyers will sit on the sidelines and wait and wait and wait…
I thought I got a great deal on my place in 08. Now I consider myself lucky I bought 35% on market because it appears I am only even!
Its so slow that I’m actually getting bored of watching it. At times I feel like I’m watching paint dry it’s gotten so slow and boring.
“The price declines are accelerating. So the buyers will sit on the sidelines and wait and wait and wait…”
“The price declines are accelerating. So the buyers will sit on the sidelines and wait and wait and wait…”
if the stock market is any indication, they are predicting some pretty big inflation going on down the road or at least dollar destruction, so perhaps that might get people to stop waiting to buy? i sure as hell hope so, although i’m not exactly sure how the fed buying bonds will help inflation at all…
inflation = unemployment
The lower the price/rent ratio, the better the deal. Compare a property’s price/rent ratio to historic norms and I think you have a starting point to work from.
“if the stock market is any indication, they are predicting some pretty big inflation going on down the road or at least dollar destruction, so perhaps that might get people to stop waiting to buy?”
Thanks sonies – everyone (except the people on this site) have been predicting inflation/stagflation in the coming years and is why I am such a proponent for buying NOW – but everyone here refuses to believe it. I am set for life – I am just trying to help those who look to this site for advice. I don’t want them to be screwed (and many of them WILL regret not buying in 2010-2011)
The Fed buying bonds puts cash into the economy. More cash in the economy generally leads to inflation.
I truly know a “good deal” in this day in age is relative. Similar to many of you I’ve been playing not the sidelines but a game of jump rope… jump into a contract, but jump out shortly thereafter when I see a better deal. The truth of the matter is that ALL of us wont be able to capture THE bottom dollar deal. Although the thought of getting strapped with an undervalued property is downright scary, I’m vowing to get in the game.
Clio – aka “set for life”. What’s your story? You’ve made a killing in real estate?
I don’t want to capture the bottom dollar deal. I just don’t want to significantly over pay.
“The truth of the matter is that ALL of us wont be able to capture THE bottom dollar deal.”
“The Fed buying bonds puts cash into the economy. More cash in the economy generally leads to inflation.”
not exactly but anyway, I meant to say how does that (QE2) help “employment” because… it doesn’t
“The Fed buying bonds puts cash into the economy. More cash in the economy generally leads to inflation.”
That’s the hope that they won’t publicly state. The direct consequence they are stating is it leads to artificially lower interest rates which leads to more investment and help for the housing sector.
Goldman Sachs is predicting this will actually be three or four rounds with the total reaching up to $2.1T.
Its certainly a stealth bailout for the banking sector as well as their costs of funding will drop even lower in the out years (out to year 7 I think this goes to, or early 2018).
All it will do is further the wealth disparity in America between those that work in the real economy and those that work in the financial sector. And also further foster another asset bubble which already began (bonds).
“not exactly but anyway, I meant to say how does that (QE2) help “employment” because… it doesn’t”
There are a variety of effects on the economy…another effect is that the purchase of bonds should supposedly drive up prices on bonds. Since bond prices and interest rates are inversely related, a rise in prices should drive down rates. But I really don’t see that happening…bonds are really in bubble territory right now. Anyway, treasuries are just loans to the government and it’s about as dead beat as you can get as a borrower.
The intent is to lower interest rates further to promote spending and raise production which would supposedly increase demands for workers. I’m not sure it will work but I do think that inflation will start to take off…that’s not to say house prices are going to shoot up, but prices in general will start to increase.
Appraisal Question:
Someone recently told me banks are not lending like they used to on duplex downs? A mortgage broker told me they are valuing the garden square-footage at 50% off. Anyone familiar with this? Has this always been the case? Or is this new? If this is correct, has anyone seen first hand what this has done to the prices of duplex-downs assuming appraisals are well below asking price?
This place has been listed for over a year. Was originally listed in Aug. 2009 for $569k