Same Building, Different Unit, What Result? 1647 N. Sedgwick
Many of you will remember 1647 N. Sedgwick in Old Town from the summer of 2008.
At that time, the third floor unit, with its own private rooftop deck, was on the market. It sold almost instantly. Here’s it’s history:
Unit #3: 2 bedrooms, 1 bath, dining room
- Sold in January 2000 for $220,000
- Was listed in June 2008 for $419,900 (garage parking included)
- Sold in July 2008 for $412,000
- Assessments of $150 a month
- Taxes of $3916
- Private rooftop deck
Unit #2 is now on the market. It isn’t having quite the same quick luck. (It’s been on the market more than a month already).
What’s the difference?
- No rooftop deck
- No parking (listing says it is leased off-site)
- The kitchen IS newer however
Does the rooftop deck and parking make that much of a difference?
Here’s the listing:
Huge 2 bdrm 1 bath w/ hardwood flrs thru-out. Brand new kit w/ kitchen aid ss appl’s, granite countertops, maple cabs & room for breakfast bar or table. Sep din rm w/ tons of space for large table opens to liv room w/ fireplace. Nice sized office off liv room.
Updated bath w/ granite and tile. Private deck off kitchen. W/D in unit & sep storage. Tons of space in one of the best areas in Lincoln Park.
Sonia Madden at Koenig & Strey has the listing. See more pictures and a virtual tour here.
Unit #2: 2 bedrooms, 1 bath, no square footage listed
- Sold in April 1994 for $182,500
- Sold in February 1997 for $189,000
- Sold in April 2001 for $277,500
- Currently listed for $395,000 (listed in early October 2008)
- Assessments of $145 a month
- Taxes of $3840
- Central air
- Fireplace
- Leased parking
325k. Sorry but the rooftop deck & parking is worth ~100k IMO. Subtract another 12k for the potential noise from not living on the top floor. Add 25k for the kitchen.
Could this unit be priced any better to languish and chase the market lower? The realtor is wasting his/her time. The comp upstairs is going to hang on this one like a lead weight. I agree with Bob on pricing. By the way, since #3 sold, stocks have fallen another 30%.
I agree. No parking is a big deal when you have a 2BR at this price point and location. I don’t think the kitchen is 25k better than the 3rd floor unit, either. It has similar uninspiring cabinet styles and the typical granite with stainless appliances. You could add both for about 10k.
Bob — I completely agree with your estimates/logic.
It’s pretty obvious to anyone with access to the previous building’s sales history and features laid out for them (thanks Sabrina!), that 395K is way too high.
That being said, I’d be interested to know if the sellers have this same information clearly laid out for them by their agent. If so, are they really that naive? If not, aren’t agents responsible for helping facilitate “realistic” asking prices?
Also, anyone else notice the listing says “Lincoln Park”….oops.
definately over-priced, not to mention that the one above it sold for too much too, that will be an albatross on this things neck
maybe the current listing price reflects the fact that they overpaid themselves and don’t want a short sale…anyone know what unit 2 paid for the property and when they purchased?
I disagree with haywood. I think the pricing of #3 was probably pretty close to fair. Not that it helps the seller of #2.
The outstanding mortgage on #2 is a $244,000 refi from 2003.
No need for a short sale, just more kool-aid drinking or simply greed.
This should be a lesson to those considering taking their home off the market for resale at a later date.
The longer you wait, the harder it is to find a buyer. Take your lumps now and get it over with.
I know people liked this one, but it looks like a victorian building, so rooms are small, or long and narrow (14×9 makes me wonder if the took out some old closets). The rooftop deck is a plus, and so is parking but if you figure 5% a year from 2000 price you would be more in the 325K range for the top floor unit
This is basically an apartment that one would live in until they got tired of listening to noise from upstairs and depressed from limited natural light. I cannot imagine anyone purchasing such a unit.
I believe the location is a plus, it is one block north (the good side) of North Ave. which is of course where the Sedgwick St. stop on the Brown Line is. I imagine units like this may appeal to first time buyers/ young couples. It is also very, very near what i understand is a respected preschool and playground. Its good for someone who wants to get into a nicer neighborhood but can’t yet stretch out into a bigger place, or doesn’t need a larger unit yet.
On a related note, How would you all suggest a seller price their unit? I live in a similar unit in the same neighborhood, and would imagine this one selling for somewhere between $325,000 to $340,000. Assuming that estimate is reasonable what is the rule of thumb for listing it? Up 5%, 10%? so maybe list somewhere between 350 to 375?
IF this sells for $325K you would want to price a similar unit at least 5pct LESS, not more.
You have to stay ahead of a declining market.
G,
I realize the market is declinging, but with this method, won’t the bids come in even lower than your asking price? ie. you’ll list it and say .95 x 325k = 309k and the bids will likely come in around .95*309k = 294k, won’t they? So maybe you’ll negotiate them back up to an even 300k and sell for 25k less than the neighbors property that just sold. Is the decline really this rapid? This seems like a good way to move the property very fast, but perhaps is overly generous to the new buyer?
I’m new to this, and I’m not in the market to turn a profit, I am just a home owner, so if you don’t mind please let me know what you can.
The “market price” is what buyers are willing and able to pay. Simple as that.