Steals and Deals: Update on 3180 N. Lake Shore Drive
Only a few weeks ago I chattered about this 3 bedroom, 2 bath unit at 3180 N. Lake Shore Drive that had a Craigslist ad stating that it was $191k below market.
Unit #4A: 3 bedrooms, 2.5 baths, 1800 square feet
- Sold in November 2004 for $283,000
- Listed in January 2005 for $519,900
- Listed in January 2006 for $515,000
- Listed in April 2007 for $570,000
- Then reduced to $399,900 by mid-January 2008
- Assessments of $1,169 a month
It’s still on the market and it’s had another price reduction.
It also has another Craigslist ad.
- Now currently listed for $384,900
Thomas Hall at Rubloff still has the listing.
It would seem that is now over $200k “below market.” Stay tuned.
Sad thing is that this unit would have probably sold for $450k-$475k in the summer of 2005 (or even in summer 2006), had it been advertised as “$50k below market” back then. IMHO.
Anyone visit this unit’s open house a week ago?
I removed the below market language in lieu of priced $200K less than last 3 bedroom unit sold in the building – good news is I had 4 couples walk thru last Sunday. Relative to other 3 bedroom units on Lake Shore, this is very competitively priced.
If it is, is competitively priced at what it probably should have been priced at 3 years ago. And the owner suffered 3 years of it not selling, because of the three years of noncompetitive pricing.
Ken – thanks for your comment – considering that the 2 past 3 bedroom sales at 3180 LSD sold for at $590K and $610K within the last 15 months, $570K in April, 2007 wasn’t far off. Considering 4A has a treeline view, buyers see the value significantly less. When real estate becomes a science, give me a shout.
But when it didn’t sell for two years in the low 500’s (in 2005 and 2006–the very peak of the market), why would you think it would sell for $570K in April of 2007? Even a renovation wouldn’t justify increasing from the price it DIDN’T sell at for two years. No, pricing is no science… but I’m not even seeing the art in the $570K price. (I also notice the assessment has gone up $250 since the last time you posted it on craigslist. To me, this means that the reduction from $399 to $374 is no real reduction at all. In three years, the increased assessment will eat up the difference between $399 and $374.)
Somewhat steep assessment, though I guess about normal for that vintage given the square footage…I hope it means the association is conservative and has substantial reserves, however.
What is the assessed value for tax purposes?
I’m not a real estate professional, but I guess the market economist in me feels like the asking price shouldn’t be that huge a deterrent from getting offers at a reasonable market price (as long as the asking price is not absurdly out of range so as to be off the charts of any potential search). Now, if the seller rejected those offers merely because they were far below the inflated asking price….then that’s his fault, not the fault of the asking price, per se.
Ken – the assessments are $1,169 – my client was offering a credit at closing to cover the amount of the assmt – $253/mon – that was allocated to building reserves for the building. This association has decided to build a reserve account built into the monthly assmt.
You pose a very good question – hence why pricing is as much art as science. Pricing a 3 bed unit under the mean of $450K in Lakeview simply misses most buyers & agents’ radar – hence why we decided to price higher. Sometimes reverse pyschology works – we were simply missing buyers at a lower price because they weren’t even looking in that price range. A 3 bedroom unit with an unobstructed view is worth > $500K. This still has a view, but it is not unobstructed.
In light of the recent price reduction, buyers are looking but are not excited about the high assmts – they are in line with their competition at 3150 and 3200 LSD – hence why buyers in a higher price range are not as put off by higher assmts. In terms of price per sq ft, the unit is priced at $213.83 sq ft. In Lakeview in general, avg price per sq ft is closer to $300 to $350 price per square ft.
Tom:
Thanks again for posting from the agent’s perspective. It can be a tough crowd on here sometimes!
I see your point about the higher price point and the assessment. Your current buyers are much more price sensitive (at the price you now have it listed.) It likely will be a first purchase for them and with the banks tightening credit, they may have to put more money down on the purchase. So the higher assessments could really be a detriment to that group of buyers.
Sabrina – you bet – thanks again for creating a great forum. I don’t mind the criticism – it only makes me a better agent.
Some more thoughts – while my client’s property was listed prior – he was listed in the $500K range prior to the sale of the other units – there were no solid comps to truly nail down a true value. Also – while buyers may not agree with the price etc, the good news is it is getting exposure.
As promised – I wanted to update the progress on unit 4A. The unit is under contract with a quick close – I will share the price once we are closed – the buyer got a great deal, needless to say.
Thanks for updating us Tom. I was wondering what was happening as I still saw your ad on Craigslist.
We await the closing price. Great news for your seller!
3180 N Lake Shore, Unit 4A closed today for $357,000.