Live in a Sears Roebuck House in Old Norwood Park: 6721 W. Hurlbut
This 4-bedroom house at 6721 W. Hurlbut in Old Norwood Park might not appear special from the street.
But it is apparently one of those rare Sears Roebuck kit homes from the 1920s and 1930s.
Constructed in 1924, it is built on an oversized 50×150 lot and the listing says it still has the original front porch.
3 of the 4 bedrooms are on the main floor with the master bedroom set up as a second floor master suite.
It has a finished basement with an adjacent weight room.
The house also has a first floor family room with cathedral ceilings.
The kitchen is described in the listing as “newer” with cherry cabinets, black appliances and granite counter tops.
Old Norwood Park is a unique area of the city with a diversity of home styles, winding roads and large lots. The elementary school is also among the top in the city.
Dympria Fay-Hart at Century 21 McMullen has the listing. See the pictures here.
6721 W. Hurlbut: 4 bedrooms, 3 baths, 1.5 car garage, no square footage listed
- Sold in January 1989 for $173,500
- Sold in January 1996 for $235,000
- Sold in April 1998 for $333,000
- Originally listed in April 2010
- Currently listed for $674,900
- Taxes of $5890
- Central Air
- Bedroom #1: 22×18 (second floor)
- Bedroom #2: 13×12 (main floor)
- Bedroom #3: 12×11 (main floor)
- Bedroom #4: 12×11 (main floor
# Sold in January 1989 for $173,500
# Sold in January 1996 for $235,000
# Sold in April 1998 for $333,000
# Originally listed in April 2010
# Currently listed for $674,900
Makes me want to puke. Who wants to fund this boomer’s retirement via RE appreciation?….anyone?….Bueller?
I’m just impressed with the ~$100,000 made between 1996 and 1998. If no major improvements were made, then that was some good apprecitation.
if there is one thing that i dislike more than bucktown and clio, it is WOOD PANELED BASEMENTS.
to the point if i found my dream home for 50% less than market value and it had a wood paneled basement or room. i would run away from this like cutler did to his team.
“to the point if i found my dream home for 50% less than market value and it had a wood paneled basement or room. i would run away from this like cutler did to his team.”
So, you’re saying I could make $50k+ in a weekend by buying that house, tearing out the paneling, have some dudes hang drywall and flipping it to Groove for 25% off market?
What was the April listing price?
They seem to be using 5930 Neva as a comp (only 4+/3+ close to the circle that’s sold in the past year).
I couldn’t live on hurlbut street it reminds me of some of the assistants in my office… gross
and LOL at the appreciation on this place… insanity
The ivy on the fireplace / chimney is really cool looking. I’d emulate that if I end up in a place with a similar feature.
anon,
YES!!!!! oh my its a pet peeve and makes my skin crawl. you would be able to flip it as long as the internet has no trace of a piture with the paneled room anywhere.
I love NW and old norwwod, (as you guys can tell), but i havent found a reason yet to pay 675k for this home. its looks to be well kept solid home. I passed by it a few months ago and looks great from a curb appeal standpoint. but just nothing grabs me and says “groove you should pay 675k for this”
“Makes me want to puke. Who wants to fund this boomer’s retirement via RE appreciation?….”
well, get ready to check into the hospital for TPN – because you are going to be puking a lot in the coming years!!!
http://www.chicagotribune.com/classified/realestate/ct-mre-1003-umberger-20101001,0,366736.column
Reality check: If you’re considering listing your house, and you’re serious about selling, you’re better off being realistic right from the get-go.
This is according to a New Zealand housing analyst whose study of online buyer habits echoes one done earlier this year in the United States.
Alistair Helm, chief executive of Realestate.co.nz, concluded that a property receives four times as many views in the first week online than it does a week later. His company looked at 1,100 New Zealand properties during a six-week period in July and August.
Helm told the New Zealand Herald that the “most important people in the market” are serious buyers who are searching online every day, and they’re fully aware when a home that might meet their needs becomes available.
A few months ago, the online brokerage Redfin.com looked at traffic for listings in Chicago and six other markets.
The homes studied had gone on the market early this year, had been for sale at least 60 days and the listings had been “updated” — had a price change or some other significant condition change — at least once.
Redfin came to the same conclusion: Brand-new listings get four times as many online viewings in that initial week than immediately afterward.
If you’re fishing for an unrealistic price, you may be blowing it, the company said.
Interesting HD – thanks for the information. I totally agree – if you want/need to sell fast, set your price accordingly and walk away. However, if you have time or do not need to sell, stick to your price. Remember, you can ALWAYS lower your price later – it’s simple, smart business. Believe me, I can sell ALL of my properties in minutes if I offered them at a really cheap price (anyone could – but why do it?). Also, remember that when listing your house, don’t get trapped into signing a 6 month or 1 year listing agreement (especially if you are testing the market). Do a 3 month listing. If your place doesn’t sell, instead of lowering the price (which may get buried and unnoticed), take the place off the market (even for a few days) and re-list at the lower price. It will come up as a new listing. You are not trying to fool anybody – but it WILL be seen by more people.
There’s truth there. My wife and I just moved to a stagnant metro in Ohio. We had exhausted the supply of listings for the areas we were targeting, so decided to just wait for new listings, well the day we made that decision a new listing came on at 10-15% less than the theoretical market for the house (the ture ‘market’ is still a bit in flux here like everywhere) and we offered another 5% less than ask. They accepted on the following weekeday.
So, basically what I am saying is that if you price it right it will sell and your listing won’t get a chance to go ‘stale’. But that is really obvious on an intellectual level, and often selling a house has too much emotion wrapped in.
And it surely helps that my future house is an estate or almost estate and the trustee simpley wants to liquidate it as quickly as possible. Like that rowhouse on Foster in Andersonville from earlier this year – http://cribchatter.com/?p=6716
Guess what?
Hurlbut
“Also, remember that when listing your house, don’t get trapped into signing a 6 month or 1 year listing agreement (especially if you are testing the market). Do a 3 month listing. If your place doesn’t sell, instead of lowering the price (which may get buried and unnoticed), take the place off the market (even for a few days) and re-list at the lower price. It will come up as a new listing. You are not trying to fool anybody – but it WILL be seen by more people.”
Clio, where were you when i listed LOL having said that, taking your place off the market and putting it back on might make it appear to be a new listing, but there are ways to find out that the place was just re-listed and that could backfire.
Like I’ve said, price it right and it will probably sell – QUICKLY.
Fortunately, pricing it right means pricing it at or near the comps for your area. Even more fortunately for buyers, the comps are a downwards moving target.
“taking your place off the market and putting it back on might make it appear to be a new listing, but there are ways to find out that the place was just re-listed and that could backfire.”
1. How could it backfire?
2. What’s your alternative? Just leaving it on to languish forever?
Icarus, I agree – that’s why I said that you are not fooling anyone (or trying to fool anyone) – however, the point is to get your listing noticed and most serious buyers (as pointed out earlier) look at the “new listings” everyday. Even if they have seen your listing before, it will bring it back to the forefront (when these serious buyers may have forgotten about it).
‘pricing it right means pricing it at or near the comps for your area” near meaning below in this market
anon – you’re right, you don’t have much alternative.
$675?!?!? Who listed this with a straight face, famly friend trying to get someone to stop calling their office?
Square D,
“Guess what? Hurlbut”… ha classic.
We get tons of mileage out of “Guess what? Chicken butt.” around here.
Any idea what the original list was in April of this year?
House purchased from sears catalog is probably way better quality than ANY POS new construction of today
“House purchased from sears catalog is probably way better quality than ANY POS new construction of today”
yeah um… no
they were prefab houses that the owners would mostly build themselves for a bit of history on the matter, check out the wiki page
http://en.wikipedia.org/wiki/Sears_Catalog_Home
“House purchased from sears catalog is probably way better quality than ANY POS new construction of today”
Blue light special in aisle 3, James.
Sonies
you are an idiot
Taking the listing off and relisting it a few days later does appear to have an advantage but it can also backfire. Serious buyers that are concentrated on a specific area will recognize the “new” listing immediately. I see it all the time on homes in the specific area that I am searching.
How can it backfire?
I instantly wonder what the earlier price is when I see a new “old” listing. It reassures me that it was priced wrong from the start and makes me think that it is still overpriced and they are just hoping to catch someone off guard.
Some buyers shop for the price drop special. Retail has conditioned some buyers (not me) that sale prices are great. Why does redfin allow you to sort recent price drops? Dropping the price can also can get someone more motivated to buy. New listings for some buyers represent “full retail” pricing and they may want to wait it out and hope that the price drops off after a few months!
Inventory gets stale quickly and then you’re competing against all the rest of the stale inventory. New listings only compete against new listings until after the first week then it becomes stale.
Most sellers are still holding out for their wishing price and quickly just end up as stale inventory.
In the neighborhood I watch there are hundreds of units available and only 2 or 3 a week even bother to reduce prices. and they wonder why property sits for 90/120/150 days etc.
“How can it backfire?
I instantly wonder what the earlier price is when I see a new “old” listing. It reassures me that it was priced wrong from the start and makes me think that it is still overpriced and they are just hoping to catch someone off guard. ”
So, you were going to seriously consider the house if it had the exact same price drop w/o de-listing? Are you for real?
Because it sounds like either way that seller isn’t getting you to buy, so there’s no “backfire”.
“New listings for some buyers represent “full retail” pricing and they may want to wait it out and hope that the price drops off after a few months!”
So, they won’t get the bottom-feeders (I’m a clearance sale bottom-feeder, so it’s not intended as an insult), either. Big deal–anyone who’s seriously in that camp would look at the 7th price reduction as a sign of desperation and low ball anyway; at least the re-listing puts it back on their radar looking for price drops.
Anyway, the de-/re-list isn’t going to do much “real” unless you also re-market the place, whether by a new agent or new staging or *anything*.
So, you were going to seriously consider the house if it had the exact same price drop w/o de-listing? Are you for real
Sorry that I was not clear. No that is not what I said or meant. When I see a new listing on a house and realize that is not a fresh listing but is just re-listed as “new” again my first instinct is to scroll down and see what it was previously listed for and how much it has changed. Then I would decide if I want to do anything differently with this new information. Typically if I am interested in the home and it is in my reasonable range then I will see it right away. Dropping the price a bit will not usually change my mind. If I had liked the home earlier I would have made an appropriate offer. If I did not like the home previously the typical 3-5% price drop would not change my previous opinion.
In the end a property will sit until the perfect storm hits. A few years ago that was usually on day one or two. Today that is on day 130 to 180!
The other problem with stale inventory is that price reductions are rarely meaningful. 3% here, 5% there, when they need a swift 15% or 20% haircut to attract some real interest.
” In the end a property will sit until the perfect storm hits. A few years ago that was usually on day one or two. Today that is on day 130 to 180!”
Every time one of my properties sold within a week, I thought that I probably underpriced it. I really don’t think there is any reason to keep reducing your price unless you cannot psychologically or finacially afford to keep the place (which, I know includes many people out there). However, I keep repeating this sentiment to reassure those out there that real estate prices ARE going to go up – don’t panic (especially if you can afford to hang on a little longer).
“The other problem with stale inventory is that price reductions are rarely meaningful. 3% here, 5% there, when they need a swift 15% or 20% haircut to attract some real interest.”
Hey – why not 50-80%? – That sure will attract some attention!! Again, the winners of this real estate “game” are gonig to be the ones that can hang in there. There are a lot of people who ARE going to be winners – they just need to be patient and sit tight.
“clio on October 4th, 2010 at 6:12 pm
Hey – why not 50-80%? – That sure will attract some attention!! Again, the winners of this real estate “game” are gonig to be the ones that can hang in there. There are a lot of people who ARE going to be winners – they just need to be patient and sit tight.”
________________________________________________________
Are you the person who sold my grandmother Intel shares at $75 about 10 years ago?
“The other problem with stale inventory is that price reductions are rarely meaningful. 3% here, 5% there, when they need a swift 15% or 20% haircut to attract some real interest.”
This is why I think the bottoming process is going to be long and drawn out in pricey RE areas like Chicago. Delinquencies have already peaked, albeit at very high level, they are still coming down.
So over the next few years the people that really want to move that choose not to default (the vast majority) will likely only be able to cut to the extent that they have equity to cover that.
No more drastic moves after this winter maybe 3%/year depreciation for the next five years or so is my best guess from where we are in the spring. Big leg down this winter however: the pain needs to be paid in full for the government tax credits.
“Are you the person who sold my grandmother Intel shares at $75 about 10 years ago”
Stocks are very different from real estate. Everybody needs a place to live (not everybody needs stock). In addition, people love to be creative with their living spaces and many use them to define who they are to the world. You can’t really do that with a stock. Just wait, my friend – you will see…. People who have any money right now and can afford to buy, definitely should.
“No more drastic moves after this winter maybe 3%/year depreciation for the next five years or so is my best guess from where we are in the spring.”
Are you kidding me? I think that you are fooling yourself if you think real estate prices are going to continue to fall for the next 5 years. Remember, the population keeps growing – add that to an improving economy (albeit slowly) and a relative absence of new construction in the next 5 years and you have a recipe for price increases. Also, don’t count more government bailouts yet – there may be plans in the works to help distressed owners and mortgage companies forgive or re-negotiate these mortgages. That is why many banks may be holding out on offering these delinquent properties at a loss.
Plenty of people are “hanging in there”- that’s why the market times are a year or more (or sometimes 2 or 3 years.) The market IS the foreclosures and short sales. The regular home sellers haven’t quite figured it out yet in Chicago. The massive numbers of foreclosures in places like Phoenix, Las Vegas and Miami have forced the prices down quicker so the market is more realistic. It will bounce back quicker there than Chicago.
The thing about the biggest real estate bubble ever is that the bust is going to be a real b*tch. Prices will be down far longer than any of us realize (once they hit the bottom.)
There was a mini-condo boom in Florida in the late 1970s (like Chicago had). By 1980, it had bust. My dad actually bought a condo right on the ocean for a rock bottom price after the developer gave him massive concessions plus free parking. The developer was desperate.
The condo didn’t go up a dime for 15 years. It wasn’t until 1995 that things started moving higher again.
And that 1970s boom was nothing compared to 2000-2006. My dad tells the story to me often- as a cautionary tale. Real estate will not be a good “investment” for people for a long, long time. Of course, you need somewhere to live.
I’ve said before that most 20 and 30-somethings will bypass the condo altogether once it becomes clear that they will have to live in whatever they purchase for 10 years or more. It will put a floor under SFH prices but condos will be in pain.
By the way- this house was originally listed for:
$679,000 in April.
“When I see a new listing on a house and realize that is not a fresh listing but is just re-listed as “new” again my first instinct is to scroll down and see what it was previously listed for and how much it has changed.”
My favorite are the agents who reduce $100 every few days. What is the point again?
“House purchased from sears catalog is probably way better quality than ANY POS new construction of today”
Did you actually have a straight face when you typed this BS? These pre fab homes were the precursors of the modern day mobile homes and were not at all well constructed. I am actually shocked that some of them are still standing after all these years.
I had to LOL seriously when I saw the asking price for this place. I mean, come on now. In a time when even top of the line construction projects are taking cuts every few months hoping for a sale, why would someone pay such an outrageous price for one? I realize they might be a somewhat significant part of RE history, but this price is ridiculous!!
“I’ve said before that most 20 and 30-somethings will bypass the condo altogether once it becomes clear that they will have to live in whatever they purchase for 10 years or more. It will put a floor under SFH prices but condos will be in pain.”
Sabrina – When I graduated from college I was laughed at for not immediatly buying a shoebox Jr. 1 bed. I move home briefly. Then I rented and My friends wouldn’t believe that I would “throw away” my money. Now I’d like to buy a house and I have savings and with a kid on the way there’s no way Mrs. Villager and I will be able to do a condo so when we buy (soon) it will be a house so we can live there as long as we want. So your point is on target – although looks like we won’t be roscoe villagers for long without budget!
It’s kind of funny because in the last few years I have spent a total of 40k in rent money – effectively burnt it. While my economist friends have lost about 15-20k in principal loss, 10-15k in prop taxes, another 15k in assessments not to mention broken/replaced applicance and rennovation costs. Who’s making the right financial decisions again? Buying for the short term dosen’t work so well.
“People who have any money right now and can afford to buy, definitely should.”
Clio,
see the buying thing aint the problem its the selling thing. most buyers and move up buyers own and cant sell or dont want to take the emotional price cut to sell.
I know i fall into the emotional category, i want to buy NOW but am not willing to list at the price i need to to sell.
which goes to Sabrinas many year of inventory theory;
“Plenty of people are “hanging in there”- that’s why the market times are a year or more (or sometimes 2 or 3 years.) “
In other news Bob is happy cuz Bob is seeing more properties go for 400k that previously sold for 600-700k in a particular non-GZ area.
Had Bob followed the crowd of RE cheerleaders he would’ve been tied to a place and unable to get one of these new places as he would likely be unable to sell his current place.
Roscoevillager
Don’t forget that your rent covered the costs of the property taxes and assessments on the unit that you rented. I’d also point out that some of those ” economist friends” were able to make money on those starter and second homes you slammed while you paid rent and invested in 3% safe returns with your spare cash. Many of them have already been able to purchase the SFH with a decent down payment! Sure they may have paid more for that property than today’s current values but if they have your long term attitudes they will be there for a long time and it’s irrelevant what today’s selling price would fetch.
If this does not apply to your exact friend subset know that many in my subset used this technique to move up to their dream house and are settled in for the long haul just like most of our parents. My parents and most of the neighbors growing up around my house in Edison Park lived in those same homes for 30+ years. Some added additions as needed by growing family size but almost all stayed for the long haul.
Not everyone fits into “they are screwed” stereotype you suggested in the example.
Jp3chicago – very true, although I just would like to point to the fact I specifically called out the purchasers of the Jr. 1 bed (condo). I would also like to point out that while the rent I paid was covering the assess/taxes my monthly bill was lower than a mort/assess/tax/PMI that I would have had based on comps in the building and area as I did not have a significant downpayment. You may remember the importance of downpayments was a lot less significant than it is now. I chose to wait to put more down and my friends didn’t. This looks to be the lynchpin of what could be the good or bad in real estate decisionmaking.
Anyone that bought a home for the long term and within a conservative budget did fine. I think you point out a different set that helps bolster my (and Sabrina’s) argument that the condo route is becoming less popular. The SFH can allow for additions as you point out condos – not so much. It’s great for your friends who successfully used a condo as a bootstrap method. It has proven risky but not completely impossible but it looks like a lot of the 05-07/8 purchasers are having a really rough go of that method. Even if they have equity they could still looking at some loss with RE commissions etc.
For my risk tolerance I’d rent until I had a good downpayment, buy a SFH (not for everyine, very true) and live in it for the long term. I am neither the rule nor exception right now but it is an emerging alternative that was simply untenable a few years ago.
roscoe – so based on my simple math and the fact that you lived at home for a brief sting it sounds like you have been out of college for three or four years max? If that is correct then it puts things into a better perspective.
I’m 43 and my wife and her friends are 34 so we/they were at different places during the run-up of RE pricing. This is why my subset and your subset are in different places.
BTW for the record I did not purchase my first place until I was 29 or 30. I think that it was $118K and at that time I put down well over 20% down and then quickly added a new kitchen bath and wood floors out of my savings. When I sold as a percentage over investment costs I did well on that place. It allowed me to purchase a great place in Bucktown.
Isn’t this somewhere near the former Gacy house?
And how are the schools around here?
jp3 – I’m 29 so that would likely explain it. Sounds like I’m following you we’re looking to buy in the next 6 mo or so.
Roscoevillager – I applaud your plan and financial prudence! I also love the fact that you saved up a decent down payment for the first plac!. Buy whatever you like as long as it is in your budget and will be somewhere you want to live for a long long time!
Saw the electronic payment hit for my mortgage this AM on my Chase update and realized again that our PITI (principal/interest/taxes/insurance) payment for our primary crib is about 12% of our gross pay per month. This is one of the keys to life. I never loose sleep about making a payment!
Make sure that you do not extend yourself too far on the purchase. If Mrs. JP3 ever got the urge to quit and stay at home we are in position to handle that change. This makes life a bit more simple.
jp3 – I’m 29
BTW if no one has explained this to you yet, don’t worry about that next birthday. Being in your thirties is a blast. Perhaps it is because I’m no longer there but I think that the thirties is one of the best decades of life. Hopefully I will think the same thing about the 40’s when I crack over the 50 mark!
Roscoe villager,
i second JP3 as our mortgage payment is spit in a bucket of water. dont over extend, actually go lower than you think is comfortable, and get a place/hood you wouldnt mind being in for 10 years (even if you move after three).
the financial freedom we have allows of some really stupid frivolous spending that we just laugh off when looking back at it. (which with us happens frequently)
and that kind of stress free life is priceless.
I envy you two, Groove77 and jp3chicago. I consider myself very thrifty, certainly among the most among my peer group. And even my housing payment is higher than yours as a proportion of GI. Over time you guys are guaranteed to be well off. Well if you don’t have any expensive habits that is.
I’m not always bearish on all Chicago RE anymore–check out MLS 07648580 just listed. Its a 2/2 in LP for 240k. This may be the first 2/2 that could be CF+ that I’ve seen in awhile.
” our PITI (principal/interest/taxes/insurance) payment for our primary crib is about 12% of our gross pay per month.”
My PITI is 5.8% of my gross pay per month – Bob, do you envy me as well?
“My PITI is 5.8% of my gross pay per month – Bob, do you envy me as well?”
In this one specific dimension, yes. OMG clio housing is REGRESSIVE! (But don’t tell the libtards they’ll be coming for more of your $$$).
“OMG clio housing is REGRESSIVE!”
Bob, that is hilarious – and TRUE!!! However, the “libtards” already know this and have already set in motion their socialist plans!!
My PITI + Assessments is 6.8% of my gross pay per month … and yet my condo is horribly underwater. No one would envy me … (well, at least not my mortgage and property, maybe my income)
HAMP guidelines REDUCE a borrower’s first mortgage payment to 31% of their monthly gross income.
Think about that for a second. My rent is less than 10% my gross household, yet with HAMP, those fortunate borrowers have their mortgages REDUCED to 31% of gross – not take home – income.
Amazing, simply amazing.
thanks guys – We’re probably moving out of the village for exactly that reason. More the Jeff Pk/Port Pk area. We’re looking to have it around 10% off the bat but fingers crossed we improve that position. Mrs. isn’t sure if she’s going to want to work or not so we’re very conserv for two incomes because we want to flexibility of not having one. Since we’re first time buyers and will have to do a lot of work we’re probably going to take the option of the FHA route to have more cash on hand for “surprises” and a new baby but we would still have the option of pre-paying the mort.
“I envy you two, Groove77 and jp3chicago. I consider myself very thrifty, certainly among the most among my peer group. And even my housing payment is higher than yours as a proportion of GI. Over time you guys are guaranteed to be well off. Well if you don’t have any expensive habits that is.”
Bob i thank you for the kind words. as you know your a finance guy its all about angles and risk. i am not a gambler it scares me. so my angles are conservative. we could take our money out of other places and pay off the mortgage, but i decided i could “cover the spread” of our 6.17% mortgage and do it “safely” with a bigger return. its a tad hard now days yields and all, returns are smaller and banks really arent giving out squat
remember to max out all retirement, HSA, FSA, Ect. which in our tax bracket really isnt that much tax savings but its still free money
“My PITI is 5.8% of my gross pay per month – Bob, do you envy me as well?”
i do it with a sub 100k salary and you do it with a 1mil+ income. Which do you think is hard to get to that level?
“6.17% mortgage”
Wait. Seriously? You have a conforming-size mortgage and are paying 6.17%? If you want to keep it out there, why haven’t you refi’d? You could drop 200 bips. You’d make up the closing costs in under 2 years.
good luck roscoevillager, no reason you shouldnt take the FHA route if your financially responsible. and dont worry kids really arent that expensive the first year the doctors bills will be shocking when you add them up. the rest is cake walk.
“remember to max out all retirement”
For me right now a conventional 401k doesn’t make sense. Too restricted in your selections. Roth IRA, on the other hand, is golden. And I’d do a Roth 401k too if available to me, but its not.
anon,
gosh you sound like my finance guy, i havent refi’d because we think we will move and wont cover cost in a year time. (yes i know its been two years now please dont rub it in).
and yes i know i could just pay the mortgage off with the HELOC which is at 3.35%
Maybe Groove doesn’t qualify for a refinance…are you above 80% LTV? If so, you might qualify for a refi through the HARP program but maybe not…
Also, good news for new FHA borrowers…the upfront premium was just dropped to 1% of the loan amount. However, the annual premium was increased to 0.9% or something like that.
“For me right now a conventional 401k doesn’t make sense”
employer not matching either? with our match at work (when we had it) it was the best choice even with the slim pickings. but its only one aspect of tax shelter/retirement there are many combos out there to work to your goal.
for me i try to keep it as simple as possible, same with my investments, i get a LOW AZZ return but the simplicity and safety help me sleep well at night, even when i take a hit its still a small one so looking long term it easy to brush off.
Groove: Just ask your “finance guy” to bump up the rate on the loan by 1/8 of a percent and have them cover your closing costs. That way you don’t have to worry about the break even period and you’re covered in case you don’t end up moving. Seems like a no brainer to me.
“i do it with a sub 100k salary and you do it with a 1mil+ income. Which do you think is hard to get to that level?”
that is very impressive, groove – it really is an accomplishment to live like that WITH a family in the city. You know that you will do fine if you keep thinking the way you do. Just don’t get mad when they change rules and give out “free money” to those less responsible than you – i have personally seen many people in your situation absolutely flip out and become nasty mean people because they are doing everything right and sacrificing and doing without a lot while others live off of government bailouts/subsidies, etc. I understand the sentiments, but don’t let it take over your personality!!!
“gosh you sound like my finance guy, i havent refi’d because we think we will move and wont cover cost in a year time. (yes i know its been two years now please dont rub it in).”
It’s just that I’m paying less than that for a jumbo, so it’s pretty shocking.
“Maybe Groove doesn’t qualify for a refinance…are you above 80% LTV?”
no i qualify, my HELOC has $5,200 on it only to keep it open and my mortgage is only 30% of “todays” market.
“Groove: Just ask your “finance guy” to bump up the rate on the loan by 1/8 of a percent and have them cover your closing costs. That way you don’t have to worry about the break even period and you’re covered in case you don’t end up moving. Seems like a no brainer to me”
“It’s just that I’m paying less than that for a jumbo, so it’s pretty shocking.”
i have a 30 year fixed at 6.17% (easy to tell the year i bought now) i really didnt think we would still be in the same house before this summer heck i really thought we would be gone last fall.
now we found a place we sort of like in Galewood and will be sending out “feelers”. so then i would be looking to do a multiple property loan which i know nothing about and need to look into it quick.
i do know if all doesnt work out i will be refinancing soon.
Galewood? That’s not on the NW side? And what about the coveted public schools that you will be leaving behind? Surely you know that Galewood’s schools don’t even come close. Unless you’re looking at private schools…
“Galewood? That’s not on the NW side? And what about the coveted public schools that you will be leaving behind?”
I think Groove was referring to specific places he looked at when hating on the wood paneling–I was just checking out what’s for sale in Oriole Park, and the stuff that isn’t under contract is a nightmare of basement paneling.
Groove–I’ll come do the demo for you, if that’s the only thing holding you back.
“Just don’t get mad when they change rules and give out “free money” to those less responsible than you – i have personally seen many people in your situation absolutely flip out and become nasty mean people because they are doing everything right and sacrificing and doing without a lot while others live off of government bailouts/subsidies,”
Clio,
oh gosh they have been giving irresponsible people tons of handouts and money. and gave the bank who now hold my mortgage gobs and gobs of federal money.
if i wasnt happy with what i have i could see me turning sour. but i am happy and all is good with the world, plus we believe handouts are good things but i wont get into that here.
“Galewood? That’s not on the NW side? And what about the coveted public schools that you will be leaving behind? Surely you know that Galewood’s schools don’t even come close. Unless you’re looking at private schools…”
i still see montclaire and galewood as NW side. and yes sayre school is a bit rough doenst mean my wife and some good parents cant turn it around? and back plan allows for private school a city over 🙂
anon,
i am not a fan of the housing stock in oriole, as much as i hype it, and more double lots in galewood too. 🙂
“i am not a fan of the housing stock in oriole, as much as i hype it, and more double lots in galewood too.”
You looking at the fc Tudor on the giant (for the city) lot? How bad is the inside?
Well, I’ve considered Galewood but if you’re all the way out there why not just go a couple blocks south and buy in Oak Park? Just seems like a much safer bet to me…plus there are plenty double lots in Oak Park and there are many properties listed under 300k right now (for example, just check out the northeast corner of the town). Sure, the taxes are higher but at you’re not gambling on the school system.
If you want a deal, check out 119 S Euclid Ave in Oak Park. Listed 5 days ago for $295k. It needs some work, but it’s in the heart of Oak Park and the lot size is 50 X 175…that’s pretty huge.
“You looking at the fc Tudor on the giant (for the city) lot? How bad is the inside?”
idk i think you may be looking at a differnt property? the inside is good, needs some updating but its solid electrical is new and new boiler
but it has my anger spot, no C/A and a few other irks that may be a deal breaker if price is wrong
“all the way out there why not just go a couple blocks south and buy in Oak Park?”
Taxes are killer and the old groove i am i really dont want to do so much work on the new place. where we are at now we’ve always taken advantage of Oak PArks amenties and paid chicago taxes. we have been trying to find a place in River forest for over a year and still looking, the oak park homes in the price range for us are to “fixer uppers” and in a blah oak park school.
River Forest’s taxes are just as high.
“River Forest’s taxes are just as high.”
better schools up till HS and less “oak parkers” 🙂
in all honesty, mentally for me (not my wife) not having a chicago address is equal to giving up. grandparents born raised here parents born raised here, i was born raised in here, my son born here.
“idk i think you may be looking at a differnt property?”
Probably, as it’s (1) too close to North and (2) priced in bidding-war land, if it’s not destroyed inside ($85.5). 1626 Sayre.
anon,
oh gosh no, our agent asked if i would like to go see that place i redin’d it and said heck no. your a internet sleuth think same lot way less work. and por favor dont post the address
“and por favor dont post the address”
That’s why I was vague until I was pretty sure I was wrong.
ps:
If I found the right one, that’s pretty nice (can’t quite figure the layout). And the taxes should actually be *lower* this year than last, with the 25% reduction in AV.
layout is good and good sized rooms and the back yard is HUGE (well long) its set back off the street (all the house on this street are).
our feeler is 307k but no higher than 319k only because of the negatives (which are on my list of deal breakers) that may make ME walk after the 307k. its not our dream place but we like it.
we will see, i think the feeler will cause friction, so i may be a lost cause from the get go.
Looks like they owe about $219, so it’s not a total non-starter.
Also, again if I’m right, make sure you note that you won’t be asking for a credit for painting the exterior.
“Also, again if I’m right, make sure you note that you won’t be asking for a credit for painting the exterior.”
i think we missed on the place again (its brick) or your pulling a joke about my comment on the edgewater place and the color 🙂
“pulling a joke about my comment on the edgewater place and the color”
Well, that was definitely the reference. Maybe I’m looking at the wrong place, and maybe I’m just making sure to throw off the scent of anyone else sleuthing.
“maybe I’m just making sure to throw off the scent of anyone else sleuthing”
so was the what they owe on or off the scent?
“so was the what they owe on or off the scent?”
dont answer that one
i had to ccrd and found my answer
219k diff property
according to my notes 267k if that helps
“so was the what they owe on or off the scent?”
Off. I was looking at a 4-square. Which is, at another guess, a couple blocks over.
My next stab has either about $100 or about $231 (weird timing of mtgs listed) owed. And an even larger decrease in AV–almost 30%.
Okay, I’m clearly doing something wrong, and will thus end my speculation.
But, based on my nosing around, you should expect tax bills to go down on the places you’re looking at.
Groove77cc at yahoooo dotz com for the address
i will let you know Wednesday about the feeler.
So they think this house appreciated almost $2200 a month since they bought it? Maybe thats what they were paying in interest on their mortgage after giving the previous owner a $3700 a month appreciation (42% in two years). Sure the lots big………because the house is tiny. Also, I don’t really care how “well kept” a 80 year old house is there are inevitably serious issues with a house that has weathered almost a century of chicago bake/freeze seasons. Whoever painted and decorated it did a nice job in a kathie lee gifford, kitschy sort of way. Did you look at the “master suite” in the attic? If you’re taller than 4 foot 2 you must have to slide off the bottom of the bed to stand upright. But really, lets be honest here, $674K for a cute little, freshly glossed up starter house in a city on the verge of bankruptcy, with the highest sales tax in the country, outrageous RE taxes, a decrepit public shool system and a neighborhood beginning to be overrun by crackheads, crime and section 8 renters. Even if you put $174K down and only borrowed $500K its a lose/lose deal. Your monthly pymnt would be $2684….when you add in RE taxes and HO insurance your paying $4100 a month. In ten years (at 5%) you have paid $492K to live there, over $230K of that in interest and still owe $406K on the house. To break even you’d have to sell it for $1,071,720 after 10 years. If you kept it 30 years it would have conservatively cost you 1.76 million dollars to live there. All said, anyone who buys into the ponzi scheme that is this listing should have their head examined. Your better off diversifying your $174K downpayment in real investments and then taking the more than $4100 a month you’d pay in mortgage/taxes/insurance and rent a mansion of a house or a penthouse on the lakefront. You be free to move and still have your $174K downpayment in the bank. These people can’t even sell this cubicle now at $674K and are trying to rent it out for $2600 a month.
Great write up E. Brown. I love it!
Too bad it was delisted on January 28, 2011.
“To break even you’d have to sell it for $1,071,720 after 10 years.”
Umm, how much would you have paid in rent over those 10 years to live in something comparable? With no chance of getting even a penny back through appreciation.
The person who owned this for 10 years got to write off all the taxes and interest. That saves them at about 120k of the 492k. Bringing their cost over 10 years down to around 370k.
So, even if they sell it for the same price they paid for it in 10 years, it will likely have been cheaper than renting. Any price appreciation they realize if they sell after 10 years will directly lower the above cost.
Having said that, this place is overpriced at 674k….
That’s not a Sears home.
Hi! Yes, this is a Sears Avalon. It was actually built in the summer of 1925. Sears often used high-profile architects to design their plans. The Avalon was designed by Ernest Braucher.
To clear up the misinformation in the comments above, Sears houses of that era were not prefabricated, they were “pre-cut”. That just meant the lumber was pre-cut at the factory to save the builders time (especially before power tools).
Sears did sell crappy prefabricated homes in the late 1940’s and early 1950’s under the brand of Homart.
thanks lara,
some cool info there!
This house was listed for $599,000 last month and hit by the wrecking ball this week. It was an adorable Sears house in immaculate condition. What a shame.
lara
sears-homes.com
Sears Homes of Chicagoloand