Second Biggest Story of 2014: You’d Better Have a “New” or “Renovated” Property to Sell in 2014
In 2013, the market was dominated by stories of renovated homes selling almost instantly. Builders also reported brisk sales on new products.
But even with low inventory, sales of fixers lagged. (And I’m not talking about foreclosures.)
This 2-bedroom vintage unit at 621 W. Addison in East Lakeview came on the market in August 2013.
Built in 1916, this top floor unit has many of its original features including crown molding, arches, floors and an arched ceiling in the dining room.
It is a co-op in a building with 27 units.
The listing says it has great bones but needs “some TLC.”
It doesn’t have central air (window units only) but you can have an owner owned washer/dryer in the basement of the building.
There is also a 1.5 car private garage available for $50,000 extra.
Originally listed at $249,900, it has been reduced $50,000 to $199,900.
If you throw in the parking, wouldn’t a spacious 2/2 for around $250,000 be a deal in this neighborhood?
Will properties that aren’t “new” continue to lag in sales in 2014 despite low inventories?
Courtney Welsch at Baird & Warner has the listing. See the pictures here.
Unit #3: 2 bedrooms, 2 baths, no square footage listed
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- I couldn’t find a prior sales price as it’s a co-op
- Originally listed at $249,900 in August 2013 (parking $50,000 extra)
- Reduced twice
- Currently listed at $199,900 (parking $50,000 extra)
- Assessments of $788 a month (includes water, gas, taxes)
- Taxes appear to be $2934 (included in HOA)
- No central air (window units only)
- No in-unit washer/dryer (but owned w/d available in the basement)
- Bedroom #1: 15×13
- Bedroom #2: 13×12
- Dining room: 18×12
- Living room: 20×13
- Sunroom: 12×8
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Another one of these properties is 1840 N. Mohawk.
It’s a 3-bedroom townhouse that the listing says is in the Lincoln school district. Has been on the market since Thanksgiving. It has 1-outdoor parking space and is fee simple.
The price has been reduced $50,000 to $499,900. But check out the pictures.
http://www.redfin.com/IL/Chicago/1840-N-Mohawk-St-60614/home/13345832
Two main problems with this property:
(a) It’s a CO-OP
(b) It’s in EAST LAKEVIEW a/k/a WRIGLEYVILLE.
The “typical” new-home buyer in that neighborhood is not going to understand, or be interested in, the concept of co-op. S/he wants a townhouse, house or CONDO. Co-op is a dying concept that is appreciated only by equally-dying clientele in some buildings along LSD/Sheridan on the North Side and Hyde Park.
The New Year’s Resolution for co-op managements should be to seriously explore the process of turning into condominums under the principle of “Adapt Or Die.”
“1840 N. Mohawk”
(assuming no plumbing/electric problems) after some pergo/cheap carpet and new appliances, that’s a cash-flowing rental. What’s the catch?
” 621 W. Addison”
1. that assessment is basically as much as the mortgage would be.
2. this is an even better candidate than the previously-featured condo building for a co-op to apartment de-conversion.
“that assessment is basically as much as the mortgage would be.”
The assessment isn’t that bad. Take out $275 a month for taxes and you’re around $500 a month. It’s pretty big square footage. I would guess 1400 to 1500 square feet. The building is older and has a decent amount of land to maintain. $500 a month for a building of 1916 vintage isn’t that high. It sounds like there is also a back driveway that would have to be plowed and maintained. I’d have to see what the reserves are like and all of that. Have windows been replaced? What about the roof? We don’t know what is heated. Are hallways heated in the winter? All of this costs money.
People are delusional about what it costs to maintain buildings as they age. They think $200 a month is going to cut it for a larger 2-bedroom.
Not really.
621 Addison is prime for an investor but given the assessments and the co-op, no investor is going to pick that up. The cosmetic needed for today’s buyer is too much at that price point. Assessments include gas, water, heat and taxes but buyers will have a hard time getting over $788 a month.
LOL @ that Mohawk listing… “east lincoln park” , that kitchen, the rooms… wow so awful!
“The assessment isn’t that bad.”
More a comment on how low the ask is, and that the monthly nut won’t end up working for most people who are looking at sub-$200k properties–which is, of course, largely bc people don’t grok the other expenses, as you say.
Looks like it sold. Now that financing is readily available in Chicago on cooperatives again there is no reason to convert – and you get a fully owner occupied building with no renters. Sabrina is totally right on the cost of properly maintaining a vintage building, $200/month won’t cut it.