Short Sale Alert: New Construction Modern Mansion in Wicker Park: 1549 N. Honore
This 4-bedroom new construction modern single family home at 1549 N. Honore in Wicker Park has been on the market since May.
It is now in short sale and has been reduced by $699,000.
According to the pictures and the listing, the home is not completed. The listing says three appraisals have said it would take between $365,000 to $459,000 to finish the project.
The property is being sold “as-is.”
The listing also says not to be afraid to make an offer and to “please insult” the agent.
Will someone bite at this reduced price?
Jack Bogun at Keller Williams Success Realty has the listing. See the pictures here.
1549 N. Honore: 4 bedrooms, 5.5 baths, 5600 square feet, 2.5 car garage
- Sold in January 2007 for $565,000
- Originally listed in May 2009 for $1.499 million
- Reduced numerous times
- Short sale
- Currently listed for $800,000
- Taxes are “new”
ONLY $365-$459 to finish? And three different appraisers can’t agree on exactly how much it would take to finish? So if plans hadn’t fallen through they were expecting a $500k profit on the end product?
Insult him…how about don’t insult us?
WOW!!
1. I truely hate when there is a virtual tour link and all the virtual tour is just the same pic fromthe listing. For the commission on $800K, can’t the agent get a floor plan, 360 tour, or atleast some more pics.
2. If it takes $460 to finsh, then based on the listing it would total $1.246MM, which is ~85% of the over-priced original listing price of $1.499MM. For having to deal with the hassle and risk of the short-sale, potential issues with the unfinshed property, completing the construction, holding costs, and increased financing costs, this house should only sell for about 70-80% of what a completed version would currently sell for, minus the cost to complete the constructions. Now, what I don’t know is what this house would fetch completed. If it is worth $1.5MM complete, then this property could fetch $700-800K. If its only worth $1.2 complete then its only worth $500-$570K.
WL, your the expert here. What is your estimate on completed value and the price you’d pay for it as is assuming $460K to complete. Based on someone occupying the finished home and based on someone reselling.
“BUILDER LOSS, YOUR GAIN!”
LOL! no.
I’m inclined to think that if I’m dealing with a developer that likely sprung up during the boom and went bust as soon as the market did, then I’m going to have to worry about more than just finishing the job. I’d be concerned about where he cut corners already as he likely saw his financial ruin drawing near.
The market for this place is essentially cash buyers.
Am I seeing things correctly? That’s a “modern mansion” with a black tar roof???
I feel like the word “mansion” is tossed around here a little too frequently. This is not a mansion IMHO.
It’s not a mansion it’s a subpar half-built spec home.
really? really? no come on seriously?
this listing is a prime example showing many sides of the RE business have no clue what they are doing.
the more i read Crib Chatter the more i get a feeling Real Estate is all a scam. From the builder to the agents to the mortgage broker to the lawyer (still dont know why he is there) to the states property tax and so on.
AS IS — here’s a story about that.
I went over to a friend’s house this winter who lives about 4 houses down. When we came out (1 in the morning…) there’s a firetuck parked outside of the place and water is literally pouring out of the front of the house. I am 97% sure it was this place!
So, I wanted to make sure that I am giving you accurate info – just called the agent, and THIS IS THE ONE!!! He said there’s still an issue with that and you’d have to figure out how to fix it. He said that’s why it’s listed at “800, 900 thousand.”
I kid you not – it looked like a waterfall this winter – it was actually quite beautiful — water cascading from the main level (which is elevated) and the whole basement was filled up like an aquarium. Maybe that’s the fix! Make the whole lower level a pool!
Best of luck to whoever gets this. You’ll need it.
“Am I seeing things correctly? That’s a “modern mansion” with a black tar roof???”
It’s a rubber roof. What’s the problem with a rubber roof?
that’s a good story. hopefully whoever buys this gets to hear it before they become the owner.
“CH on September 3rd, 2009 at 8:59 am
that’s a good story. hopefully whoever buys this gets to hear it before they become the owner.
”
-probably not, I’m sure the sale is as-is, no disclousre. That was way the seller and agent aren’t doing anything wrong when they happen to never mention this waterfall. Winter starts in a few months, can’t wait to see freezed/busted pipes next spring. If this project is stalled, then why is the water still on. It should be shut off at the street level. This would avoid and water issues and the inevitable issuing in the winter.
so, let me ask, what would this mini-mansion go for completed. Lets assume the similar high-end finish that we see in simialr modern mini-mansions around the area?
I’d think about $1-1.1MM. Anyone agree, disagree.
On my previous post, I didn’t realize Jon was talking about the water issue during winter. So it would seem that there are already issues with busted pipes and I would assume mold & rot if there was that much water.
“Yeah this agent is a prime example of a realtor you should never, ever work with.”
Sonies, why do you say that? When I called him up and asked about the waterfall in the place he was nothing but evasive and condescending (like I was the dumb@ss to ask such a question about this place). He also said the place was priced at $800 or $900…so he really seemed to know the listing.
As to whether anyone will know about the 1st floor pool, it’s not going to be this agent that fesses up IMO. Even when confronted directly.
This area has dozens and dozens of similar unsold spec homes built by pick-up truck contractors now in default.
800k for a ‘probably’ moldy house? Yeah, not shady at all… I’d pay $2 for this place, maybe…
Offer $100K. See if he is insulted.
i get a bad vibe from this listing, the same vibe i got when i went to my first used car dealership
“Offer $100K. See if he is insulted.”
If Sonies goes in at $2 and then someone offers $100K (not me, I think that’s too high based on what I saw!), he probably wouldn’t be offended. It would be 50,000 times higher than the last offer.
“Tom on September 3rd, 2009 at 9:12 am
so, let me ask, what would this mini-mansion go for completed. Lets assume the similar high-end finish that we see in simialr modern mini-mansions around the area?
I’d think about $1-1.1MM. Anyone agree, disagree.”
With a finish level commensurate with a 5600sf SFR, I think $1MM is a bit on the low side given the size and location.
Yeah assuming you get rid of the mold and plan to live there your whole life and die there because a moldy house will never, ever re-sell.
I know I wouldn’t pay 800k for a lot in wicker park, 400k MAX…
Buckingham Fountain in Wicker Park?
I just don’t believe it. It seems very uncharacteristic of a bank to not maintain their property to the highest degree when it reverts back to them.
In fact I’ve been so impressed with how bank’s typically maintain their other properties I’m surprised they don’t start a side business or open up a property management division. It would really complement their other, main core competency. That is..finding a way to lose a lot of money very fast.
Sonies – i was interested in a moldy house and made a seriously low offer because it was so moldy i figured noone would want it. It’s really just the basement level of a three-story house, built in 1995. the source of the water was frozen pipes.
I figured cleaning up the mold would cost about $50k – a WILD guess but i figured that would get the job done, using a mold abatement specialist.
do you think it would be impossible to sell after it had been properly cleaned up and totally gutted?
so it sat through winter, wet, then through summer, wet, and now most likely winter wet and rotting, why yes I will take $800 to take this off your hands
Mold in and of itself would not make it impossible to sell, if a licensed contractor were used and the work properly documented.
But mold is only one of this places’ problems.
“do you think it would be impossible to sell after it had been properly cleaned up and totally gutted?”
Unlike a bank you have to disclose if there was ever mold, and the buyers of your property can use that as an excuse to back out of a contract.
one of my properties was basically ruined by a renter this winter when the pipes burst. 19 pipes burst and it cost about 10k to pump 3 feet of water out of the bottom floor of the unit (duplex down, middle of the night, day after xmas). luckily, we found the damage right away and made sure to keep the thing dry so there was no mold.
all in all it cost about 140k to fix it and 8 months later we are still in an insurance battle. the silver lining to the whole thing was that i learned a lot of (expensive?) lessons and also there was no mold damage, which does have to be disclosed and really will hurt your ability to sell a property.
on the plus side, the unit is now basically brand new!
Not sure why, but I am a little intrigued by this place. It could be a great deal if you picked the property up for $500k and had the ability, time and patience to finish a good portion of the work yourself. I wonder if it could be lived in (after fixing the major issues) while the final touches are placed. I also know that banks won’t finance a place if it needs serious rehab work – if this place cannot be financed, good luck finding a $800k cash buyer.
Regarding the mold issue, would you really need to disclose it at this point? The house isn’t finished. Not even close. A construction in process that has mold, is fully remedied prior to completion, and has no mold post-completition is an entirely different story than a new 3-flat that has mold 1 year after construction. But that may be drawing a fine line (but a legal one?).
I was just in this house 2 weeks ago with a client looking for a steal. i am a builder not a RE agent btw. this place is a mess. as someone else said….pick-up truck builder at the height of the boom! guy had no clue. roof issues, brick issues, window issues, you name it, it had them. worst of all, there was a flood. basement is stripped of drywall to about 3′ high. moldy/ musty basement. signs of water elsewhere in building. we were going to offer $500k, agent told us bank had already turned down $700k!!!!!! no thanks!
Saw this place. Supposedly someone made an offer for the asking price on Friday, which I have a feeling will fall through. If they go through with it at that price they are insane. It is not a 4 bedroom, it is a 3 bedroom with a loft and I sure dont remember 5.5 bathrooms but maybe it has them. Bottom line is this place still needs a super ton amount of work. Plumbing is totally jacked, outside is still not finished in the back, broken and foggy windows in the front, temporary stairs throughout, including the entrance and so on and so on.
Under contract.
RunnerRunner…agent? Or owner?
😉
Good update – thanks.
Neither, I just noticed it while browsing through listings. Don’t know the final price.
Reduced to $775,000. Still a rip-off.