Price It Right- It will Sell: 1140 W. Newport in Lakeview
There are two townhouses currently on the market at 1140 W. Newport in Lakeview. These aren’t huge townhouses- but seem more like a two bedroom condo alternative.
They were built in 1990. Unit #A was the last unit to sell.
Unit #A:
- Sold in April 2004 for $350,000
- Sold in January 2008 for $383,000
Unit #C came on the market less than three weeks ago and is already under contract.
Unit #C: 2 bedrooms, 2 baths, 1350 square feet, private attached garage, private patio
- I couldn’t find a prior sale price for this unit
- Currently listed for $394,900
- No assessments
- Koenig & Strey has the listing
Unit #B is still on the market. It has also been on the market less than three weeks. The listing says it has a private roofdeck. Unit #C doesn’t mention having the same. You can see more on the Craigslist ad.
Unit #B: 2 bedrooms, den, 1350 square feet, private attached garage, private roof deck, patio
- Sold in January 2004 for $325,500
- Originally listed only a few weeks ago for $434,900
- Reduced to $426,900
- Reduced again
- Currently listed at $425,000
- No assessments
- Kale Realty has the listing
That seems like a good price for unit C. After this winter, I would love to have a private attached garage!
Does the owner really believe that a $1,900 reduction in his ask price is going to affect interest in his unit in the slightest?
I do like the fact that theres no assessments on these units. I’ve always been very skeptical of assessments on condos. From my viewpoint condo owners never gain the same amount of utility or even close to it for their cash outlay in assessments.
Nice place, decent location, and no assessments. But the fact is they’re still going for way too much. Unit B is selling for well over 100k+ than it was bought for just a few years ago. NOTHING appreciates at that percentage. In this buyers market only idiots with money to burn will buy it.
High assessments are a real value-killer for many condo developments, but I’d be a little skeptical that you could get by with no assessments at all. That would have to mean no common area maintenance or services, which I can only imagine being practical in a handful of situations.
I think these are right on the el tracks.
Bob,
So where does all that assessment money go? The uniform maintenance that a condo association mandates upholds the value of all units in the building. I’d be pretty terrified of a condo without assessments.
David,
In buildings without a doorman does it really cost at least $200/month for landscaping every so often? Many people live in single family homes with no assessments, they don’t seem to have a problem maintaining the value of their domiciles (in a stable environment).
Sure special assessments may be needed on older units for things, but I think HOAs and co-op boards are mismanaged & waste money. Consider this: if a comparable apartment building can provide simliar amenities to a co-op for far less, what is going on here?
I assume it’s one or more of the following:
– Large buildings cost more to maintain;
– Special assessments are to be avoided by building reserves;
– Assessments can include cable and/or heat;
– Some degree of inefficiency due to bureaucracy.
I’m with Bob; I wouldn’t want to live in a highrise because I don’t want to pay the assessments (especially for a doorman), but if you do want to live in a highrise I think the assessments are probably reasonable for what you get in return.
By the way, I’m not David; I believe there are three or four of us lurking this site.
A:
It is interesting that the one priced UNDER $400k went into contract almost right away and the one priced $35k higher (over $400k) has not.
They’re not identical units, obviously, but it seems that the under $400k price point is selling much quicker than units listed above that amount.
Hi – I actually own Unit B. To answer some questions/comments…
Unit C is actually a smaller unit – the top bedroom is completely lofted – one room only – ours is the full size which gives 2 rooms up – one bedroom with attached office/sitting room. We are the only unit with a rooftop deck – C does not. Also – our bath, which is totally updated is larger with double vanity, his is not.
There are no common areas so no need for assessments. The alley is plowed by the association next door.
“Does the owner really believe that a $1,900 reduction in his ask price is going to affect interest in his unit in the slightest?”
The $426900 was a typo – hence the change to $425000 – it happened the same day after we noticed the mistake.
We are not on the “el” – the townhomes across the street are – and are priced much higher.
Our pricing is based on Comps in the area – other than the smaller unit next door with no roofdeck you won’t find another townhome in the Southport area for less – we checked.
Thanks for the comments and hope this answered some questions.
Most assessments especially downtown are always too high. But none? Seems like a disaster waiting to happen. Unfortunately for one reason or another sellers are still living in la la land with their pricing. Whether its because of greed, stupidity, upside down loans, etc, etc. The inventory of condos is at 17 months right now and is only going to increase unless sellers come back to earth. It’s a constant battle with sellers these days when you comp out their place. More than usual at least.
Agent 007 – Do you know what assessments are for? Common area expenses and future building repairs. With a Fee Simple townhome there are no common areas and each homeowner is responsible for their owne building repairs. Hence no need to com-mingle funds amoung unit owners. Why is this strange and a waiting disaster?
Go Jill. You have to realize that the majority of bloggers on this site can barely afford the rent on their studios let alone ever hope to homeowners.
Your place looks great, good luck with the sale!
Paul,
The majority of the bloggers on this site made a conscious, intelligent choice not to buy during the housing bubble. I suspect we are also saving boatloads of cash in the process by not buying overpriced properties such as the one in question. If the unit cost $325 in 2004, it is worth less than $325.
We don’t rent studios, we rent units like these while the owners (apparently yourself included) enjoy price declines.
The question comes down to: how long are you going to live in the property?
I still meet lots of people who only want to live in a condo for two years. Do they realize that they won’t even cover their closings costs during that time period? (and that’s if the property doesn’t depreciate during that time.)
It makes more financial sense to rent if you have a short time period. But many people haven’t done the math yet. The housing boom psychology (that housing prices only go up) is still intact- for now.