Good “Bones” in East Lakeview: 522 W. Briar
East Lakeview seems to rival parts of Lincoln Park as one of the most prestigious addresses in the city.
522 W. Briar #3 is a classic vintage unit with three bedrooms, two baths, and in-unit laundry. Alas, no parking (rental parking nearby) and it doesn’t appear to have central air.
The listing says the kitchen and baths were recently remodeled, with wolf and viking appliances in the kitchen. There’s even a woodburning fireplace.
The room sizes are spacious:
- Livingroom: 21 x 16
- Diningroom: 17 x 15
- Bedroom #1: 16 x 11
- Bedroom #2: 14 x 12
- Bedroom #3: 13 x 9
Why isn’t it selling?
It was on the market last June for six months. Then it was reduced in February 2008. And it’s been sitting ever since. (Thanks to the tipster who sent me the info on this unit.)
Still, it has wonderful “bones.”
Unit #3: 3 bedrooms, 2 baths
- Sold in May 2005 for $385,000
- Was listed in June 2007 for $624,900
- Reduced
- Currently listed for $599,999 (no parking)
- Assessments of $501 a month
- Koenig & Strey has the listing
This is one really choice condo. This building has always been considered choice, is what people want- a 6-unit with really beautiful architecture.
However, I have to doubt that it can fetch 75% more now than it did in 2005, which is when prices peaked across the country. It is really beautiful so it might not give up much, but this price is doubtful. The days of being able to palm off 2 and 3 bed apts in Lakeview that have no parking, for $600K, $650K, $700K, or more, just because they are in Lakeview, are over.
Do you have to ask why it is not selling? It is over priced!
That’s usually the reason a place doesn’t sell, Steve.
Some amazingly astute and perceptive folks out there are noticing that there’s a connection between the sudden surge in sales and sharply lower prices. It seems like -WOW- if you lower the price substantially, like to levels that can be supported by the buyers’ incomes, that people WILL BUY.
Whaddaya know?
Agreed, beautiful place in a nice area to be. But no a/c seems to me to be a death blow in this price category. Parking in that ‘hood would be a nightmare, and this price range is stereotypically the BMW/Land Rover crowd.
Decent assessments, but I assume water is the only utility included.
I wonder if it has roof rights? Beautiful place, perfect location. I say $400K. With roof rights, $415? I do things by square foot so this one is tough.
Heat is included, by the way.
Water = heat. =)
I assume it has washer/dryer. Roof rights, or at least access, is a good question.
With the upgrades I would bet this ends up going at $475k.
westloop,
Its a lot easier to afford a 40k BMW than it is to pay a 600k mortgage, assessments, taxes and insurance.
In the 1980s the BMW driver was the stereotype of the flashy high-roller who was stretched beyond their means and an inconspicuous overconsumer but never let it show: appearances were too important. Perhaps in this decade we need a new stereotype for to describe the same phenomenon–the flipper with the hot crib whose finances are falling apart?
Really? With no parking and no central air? And given that it sold for $385 at the very peak of the market? That means you are willing to give $90K in credit for upgrades (that I’m going to guess cost around $50K) and appreciation in a declining market… I thought I was being pretty generous. But then, maybe I’m getting too cynical.
Bob, they are known in some circles as FB’s. F*cked B*stards.
Kenworthey,
Can you be too cynical about unicorns?
Can you be too cynical about bigfoot?
Likewise, you really can’t be too cynical about real estate when so much of it is based in fantasy.
I never said it was ME willing to fork over $90k… but I do think there is some trixie with a trust fund that is willing to cash it out for a down payment. =)
“I never said it was ME willing to fork over $90k… but I do think there is some trixie with a trust fund that is willing to cash it out for a down payment. =)”
Again, everyone set prices as if the trixie with the trust fund is gonna buy their place. Well honey, there ain’t enough rich trixie with generous parents to buy everyone’s condo – so maybe you should lower the price!
I think westloop hit on something (besides it being overpriced)
“but I do think there is some trixie with a trust fund that is willing to cash it out for a down payment”
this part of town is pretty much kiddie central, walk over to Sheridan in the morning and the bus stops have (no kidding) around 200, 23 yrd olds per lock, per stop. I htink someone a little more mature would look for other areas to put even the $$ 2005 price into
The unit is listed as having central air, refinished floors, new lighting, all new bathrooms, as well as new kitchen with stupid viking/wolf/granite/wine fridge etc.
I think it would be hard to do this for $50K, and my guess is many people would easily spend 100K doing these improvemesnts.
the seller wants to be reimbursed for their hard work and good taste.
if they had parking, they might be able to get it. No parking (although it does list that there is rental parking available whooppdeedoo) is a huge negative – i think more than $50k.
also, i think roof rights would be worth significantly more than $15k.
I love it; these FBs bought for $385k, at the height of the boom, in May of 2005. First mortgage is $308k and second mortgage was $77k = $385k. 100% financing no money down! Refi in July ’06 for $400 into one mortgage. Today’s asking price three years later is $599k!
Dare I say that these FBs paid too much when they paid $385k? How underwater are these FBs? Oh I love this stuff!
I live two blocks away in an admittedly small apartment. Still yet, my rent, cable, water, parking and internet come to a total of ~900/month and I have central a/c. If anything breaks the landlord fixes it at his expense within 24 hours. 800sf 1brs rent for 1,050 with similar amenities.
I do wonder what goes through someone’s mind who buys 1br units like this given their monthly expense would easily be close to double mine for “owning”.
I’m actually looking to buy in East Lakeview and I can tell you why I passed on this condo for my list of options.
1) The AC – window units are such a pain.
2) The Parking – I have lived in Lakeview for 3 years and although there may be rental parking “nearby” there is no guarantee spaces are available and it can cost anywhere from 150 to 300 depending on how reasonable spaces owner is. Street parking even in the middle of the day anywhere between Diversey and Belmont is impossible.
3) One level living – for me if I want to spend this much (600k) and have this much room I want to have 2 levels. You can’t have an rockin home theater system (like my fiance pines for) if you live above or below someone. So although the space is great it isn’t as functional as it could be.
Also, although I agree that compared to previous sales and inflation ect this unit is overpriced. But considering the room sizes and location the neighborhood comps make it pretty competitive I think. Then again, most comparable units are 2 level duplexes so that may lower this ones value somewhat.
bubbleboi,
Where do you see central air? I couldn’t find any reference to it. Also, are you sure that kitchen is all new? Sure, new appliances, but the cabinets just look painted and maybe refaced to me.
Also, a roof *deck* would be worth more than $15K–but don’t forget, it’s going to cost at least $15K to build it.
I guess I’d have to see what it sold for before 2004 to really get a good sense of this place, too.
#2 was sold in January of 2007 for $390K. I don’t know if it is also a 3/2; I’m assuming yes.
I’m sticking for $400K, $415 with roof rights for now! 😉
Full Text of listing description is:
“Light abounds in top floor vintage renovation. Sought-after East Lakeview. Refinished floors, high ceilings with molding, all new lighting and custom shades. New eat-in kitchen with custom cabinets, Wolf and Viking appliances and granite tops with butler’s pantry, and wine fridge. Separate dining room with Juliet balcony. Living room with wood-burning fireplace and built-in window seat. Generous sized beds both baths completely renovated. In-unit washer/dryer.”
Cooling is stated as “space pac”.
They may have spent $100k+ on the re-hab–the space pac would have been $20k, the appliances are $15k alone, “custom cabinets” indicates new and $10k, light fixtures and custom shades are a few grand, too. They’re looking to turn a profit, still, but not as much as people think.
You almost never recover your money for high-end appliances and snazzy baths when you go to resell the place, and can hope to recover 70% of those costs at the most. Maybe that’s because no matter how beautifully you do it, your prospective buyer would have done it differently.
For example, THIS buyer might have preferred a high end electric induction cooktop to any kind of gas range, and might NOT have preferred white cabinets. That is just an example of little differences in preferences that make most buyers unwilling to pay dollar-for-dollar for the seller’s upgrades, even though they will pay more for a place that is, on the whole, as tastefully done and clean as this place is.
Speaking of upgrades, why do people make so many really expensive upgrades just to sell the place after 3 years of ownership? When viewing some of the beautiful places featured here, I wonder why so many people are so eager to jump such places, or is it a matter of being behind an 80/20 that’s about to reset on them?
Here is some history for this unit:
5/22/91 sold for $202,500
8/29/03 sold for $276,000
4/18/05 sold for $385,000
4/18/07 listed for $599,000
6/12/07 listing canceled
6/12/07 listed with same agent for $624,900
12/20/07 listing canceled
2/5/08 listed with same agent for $599,999
This is a joke, right?
Another thing, the idea of “turning a profit” on renovations is bubble thinking. Historically, no renovations returned 100% to the seller, let alone a profit. The exception would be a contractor/seller who did the work at cost; even then the “profit” would just reflect the lack of mark-up. Any “profits” from renovation that were claimed during the bubble would have been achieved had the “renovator” did nothing but sat on the prop while the market rose around them.
G: You are right. As a potential buyer I do not give a SHIT about you losing 50k on your investment.
So, a reasonable price might be the ’03 price plus the actual cost of the improvements (I’d pegging that at ~$125k) or $400k, as posited by several people above. And that’s only if the “right” buyer comes along–i.e., someone who would have chosen all of the options are they are.
I would pay about $280k for this place.
I’d give $380K. It is a large 3 bed 2 bath in beautiful building in a prime neighborhood, after all.
But it isn’t worth anything like the ask price.
“I would pay about $280k for this place.”
This is the stuff that gives some credence to the boosters’ complaints about negativity. This place is worth more than $280 in the current market, even with the negative trend. I wouldn’t buy it, either, but that’s not the question. It’s what is a reasonable price in the market. $600k is nuts and so is $280k.
I have a feeling this one will probably sell closer to $500K than $400K. It is a very nice place in a very nice location. With all the upgrades and updates, someone will probably like it enough to offer a good price… Not $599K though, way too much!!
$280K… That is just not realistic.
Laura, maybe you should just make your offer and see what happens. Maybe they will come down $50K to $60K right away as a first counter.
And then what? Are you suggesting she could “make it work” at more than what she wants to pay? Do you happen to “have a friend at a mortgage co that can get her in at the same monthly payment?”
This unit just about values itself. 91-03 annual appreciation of 2.6 percent. 2003 to 2005 increase due mostly to bubble mania. Project out from 03-08 results in $315K. Add in value of renovation (75+/- percent of cost less add’l 5 percent for each year since renov.)
It looks to be the same $400K max that others have estimated. I would reconcile this with the rental value for a final estimate.
If the flipper didn’t sell for 600k in April-May of 2007 then didn’t sell for 625k when they raised the price in June-December of 2007 then this strategy isn’t working.
I think they should raise the price even more to have a bigger wow factor and keep using this strategy. Maybe raise the price by 10k/month to make the eventual buyer pay for causing the flipper such cash flow problems 😀
G… why do you jump into conclusions all the time based on a few words written here and there on a blog. You think people really take 30 minutes to carefully compose each post so that you don’t get all wound up and have to argue against it? I work in IT, ok. Does that make you happy? I have no ties to any agents or brokers.
Where did I say that Laura should accept the counter offer and buy it for a price higher than what she wants to pay. I’m just saying that if the seller drops 50K to 60K right away in a first counter, this makes it really obvious that they just inflated the listing price so that they can make it appear to the buyer that they are negotiating big time.
My other point is that if Laura does like the unit and the location (which it seems that she does), why not make an offer and see what happens. What’s the worse that happens?? NOTHING if the price does not work out for both sides. What if the seller comes to their senses or really have to get out of the home and comes back at $450K after a few rounds. Maybe this is something that Laura will counter again or maybe she will re-think her price point. It’s just negotiations.
I never understood the idea of renovations being profitable. If you can do it for $20k, then I can do it for $20k AND I get to choose the materials. Why would I pay $25k?
I used to live in the neighborhood and love it. The thought of getting a place like this at a foreclosure sale in a few years might bring me back.
“If you can do it for $20k, then I can do it for $20k AND I get to choose the materials. Why would I pay $25k?”
Convenience and/or laziness and/or incompetence. If I can do [insert task here] myself, why would I pay someone else to do it?
People will pay a premium for something in “move in” condition, but not a huge one, and the lenders these days surely won’t let them. The lender will be looking at comparables, and the market climate in general. They won’t finance a 25% diff in price.
I currently live in this building and have quite a different perspective on the listing for 522, #3:
Although the unit was purchased for $385,000. in 2005, the couple has spent a great deal of money on refinishing floors, walls/ceilings, electrical, plumbing, complete renovation of baths/kitchen and installation of central air. The list price may be somewhat overvalued for the current economic climate, but we are certainly not talking about “flippers” here; my guess is that the couple feels that they have a certain amount of financial and “sweat” equity in the place and will wait for what they believe is a fair offer.
Those of us who are fortunate enough to live in the “Cambridge” enjoy large floor plans (1400 sq. ft. being the smallest), an established and responsive condo board, low assessments per unit size and a meticulously maintained property with “good bones”.
One only has to look at new construction comps to realize that many would be buyers in Lakeview and elsewhere will settle for kitchen/dining/liv. combos and 9′ x 12′ bedrooms for the same price or higher.
Sight unseen $500K.