The New Reality in Sauganash: 5-Bedroom Tudor Goes From List of $800K to Sale at $425K
Thanks to those who pointed out that this 5-bedroom tudor at 5919 N. Forest Glen in Sauganash had finally sold.
I had been tracking it for awhile but it was taking forever to close so it slipped from my “watch” list. (It took 7 months to finally close.)
We’ve chattered about this house several times over the last 2 years.
See our prior chatter in October 2011 here.
At that time, the house was priced at $545,000. Many of you thought a price around $500,000 would get it done and some of you said you would go look at it if it was priced that low.
In November 2011, it was lowered to $499,000 and then went under contract.
It finally closed at the end of June 2012 for just $425,000.
If you recall, it was built in 1930 on a 40×125 lot.
The house had many of its vintage features intact.
The living room had a hand hewed beamed cathedral ceiling with the original hand carved floor to ceiling wood fireplace mantle.
In the living room, there was also a unique 6 foot hand carved chandelier.
The kitchen had been updated with stainless steel appliances, what look to be stone counter tops and an eat-in breakfast nook as well as a kitchen island.
2 of the 5 bedrooms were on the second floor, 2 were on the main floor and one was in the basement along with the family room.
The house had central air and a 2-car garage.
Does this closing blow the comps out of the water for the other homes in the Sauganash neighborhood?
Or was this just the steal of the year?
Ron Meadows at Prudential Rubloff had the listing. You can still see interior pictures here.
5919 N. Forest Glen: 5 bedrooms, 3 baths, no square footage listed, 2 car garage
- Sold in October 1985
- Sold in May 2004 for $749,000
- Originally listed in April 2010 for $800,000
- Lis pendens foreclosure filed in November 2010
- Reduced several times
- Was listed in March 2011 for $725,000
- Reduced
- Was listed in July 2011 at $675,000
- Reduced
- Was listed in October 2011 at $545,000
- Reduced
- Was listed in November 2011 at $499,000
- Sold in June 2012 for $425,000
- Taxes of $7441
- Central Air
- Bedroom #1: 13×13 (second floor)
- Bedroom #2: 13×16 (second floor)
- Bedroom #3: 12×15 (main floor)
- Bedroom #4: 12×13 (main floor)
- Bedroom #5: 12×10 (basement)
- Family room: 23×17 (basement)
The original list price and the fact that this sold for near 50% off once the bank took it back shows a common dilemma with the market.
Those who were foolish and paid exorbitant prices for real estate during the boom are unable to lower their ask price much as they frequently have negative equity. So they list at prices that don’t have a hope of selling then the bank takes it back once no nibbles.
I don’t understand how this is possible. Every realtor I’ve ever met has told me that no one selling at X would accept anything less than X-Y, and they ought to know since they have access to every listing on the MLS.
This house never went back to the bank Bob. The foreclosure was filed but never was completed. I am curious though how this seller was able to get away with a sale price of $425k considering he had 3 mortgages of 2004-2006 vintage totalling $775k.
Those mortgages were probably the reason for the initial list price, but that original price is a big part of what hurt this home. My guess is that at this sale price it also was a short sale, which may explain the 7 months it took to close and why this home did not sell at a higher price. No one wanted to go through the hassle other than this lucky buyer.
I think this comp will definitely hurt others within Sauganash, but I also do think it is a really good deal. I doubt this will end up the going price of all similar homes in the area.
Icarus, that is the realtor’s job. I wouldn’t want my realtor to go around telling people I would take far less than I have it listed at when I hope to get near my asking price. However, you never know until you try. A seller may think they’ll only do X-Y when it is all hypothetical but then when it comes down to having an offer and sale at X-Y+ or having to sit on the market longer hoping for another buyer to come along, things may change. Even if they say no originally, I’ve even heard of sellers coming back later and telling buyers, “Ok, I’ll take it” often once the buyers have moved on and don’t want the place any more. If you like a house, and can make a justification for the price you want, go for it. It’s the only way you’ll get it.
Some of the drop in the price could also have been impacted by a negative inspection report. Perhaps there were structural issues uncovered that had to be addressed. That took time to understand and the. resulted in price concessions as those sellers likely had no money or desire to fiix the issues.
Jp3 good point but if the sellers had no money to repair any issues from the inspection, how’d they have money to reduce the price if they were already so far under what they owed on the house?
It’s been a long time since seeing this house. There definitely was an addition and I believe they expanded the basement; there was something funky going on with the basement. Just guessing that the inspection didn’t come back clean. I can’t imagine 425k was the best bid they got for this place.
I also thought the house was bank owned…why the closing took so long. If not, maybe wealthy parent bailout?
“Some of the drop in the price could also have been impacted by a negative inspection report. Perhaps there were structural issues uncovered that had to be addressed. That took time to understand and the. resulted in price concessions as those sellers likely had no money or desire to fiix the issues.”
I believe this was a short sale- but the public listing didn’t say it was. Perhaps someone with access to the MLS could tell us.
I assumed the 7 month delay in closing was due to contacting the bank.
ouch!
overpriced at 800k but there is no way i thought i would go all the way down to 425k?
something has to be odd about this.
Could someone post some comps from this neighborhood. While the schools here are better than most of Chicago, I don’t see this as having long-term value. Its just as long of a commute to the Loop as Evanston or Wilmette. People used to choose this area b/c taxes were lower than Evanston and Willmette. However, with the huge budget problems of Chicago (and no money to pay for the new teachers that were part of the settlement b/w the teachers union and Rahm father), It is forseeeable that taxes here will approach Evanston and Willmette in a few years. If this is the case, then I think most people would prefer Evanston or Willmette and these homes will become increasingly less attactive as taxes go up. (especially as class size goes up which will happen b/c CPS’s budge is dismal) The only people who will look here are city workers who will have to live within the city limits. They can’t afford 800K so prices will have to reset here.
A local, this is right across the alley and when it came on the market, it seemed like a good price to me in Sauganash. Not so sure any more…
http://www.redfin.com/IL/Chicago/5945-N-Knox-Ave-60646/home/13513807
“I wouldn’t want my realtor to go around telling people I would take far less than I have it listed at when I hope to get near my asking price.”
Benjamon Correct you wouldn’t want your seller’s agent doing that. I’m talking about my buyer’s agent or agent that wanted to be my buyer’s agent. Perhaps they were hoping that I’d take them at their word and put in an offer closer to ask to get a higher commission or perhaps they really thought the seller wouldn’t budge, or both.
I do know of a few homes I had my eye on that eventually went for roughly $100K less than ask, that my realtor swore would never go that low — though it did have to linger for a year or so on the market.
Good deal, the buyers patience certainly paid off!
” Sonies (July 30, 2012, 9:40 am)
Good deal, the buyers patience certainly paid off!”
for the buyers its like Hienz ketchup “good things come to those who wait”
for the sellers its like waiting for icarus to put up the wiki “great we got the wiki but Cribchatter is already shut down”
“Jp3 good point but if the sellers had no money to repair any issues from the inspection, how’d they have money to reduce the price if they were already so far under what they owed on the house?”
Good question. They did not have the money. I suspect that they had to get the house unloaded and perhaps the risk of more time another buyer coming in at a lower number was not worth the upside of getting the deal done now. Not sure if it was a s.s. or regular transaction but coming up with 25K or more to make a series of repairs is impossible to a person who is strapped with cash. It would have to have been something that any inspector would have found. Then they knew it would be the blocker to any potential sale.
At least they might be able to negotiate their way out of a loan commitment. Either that or finance a short sale balance over time with a personal guarantee. Can banks make that happen???
“finance a short sale balance over time with a personal guarantee. Can banks make that happen???”
They can, and do, although not with much frequency.
Icarus, sounds like a not so good buyers agent to me. They shouldn’t be willing to put in offers that are ridiculous, but if you have reason to support a low offer, they should be happy to present it.
“Icarus, sounds like a not so good buyers agent to me. They shouldn’t be willing to put in offers that are ridiculous, but if you have reason to support a low offer, they should be happy to present it.”
I ran into the same thing, even with logical process and support, dont know why they are reluctant. (yes two of mine were on the comical side, but hey if you dont ask the answer is always NO)
any agents here want to chime in why you dont like presenting an offer even if its borderline insane?
Sauganash was another name of Billy Caldwell, the half Mohawk half Irish son of William Caldwell who led Redcoats, Tories and Indians on many bloody raids against the frontier during the American Revolution. In 1782 he led a force of Redcoats, Ottawas, Wyandots and Chippewas from Detroit down to Kentucky and bushwhacked and severely whipped the Kentuckians at Blue Licks, a fight in which Daniel Boone fought and in which one of his sons was killed.
Contrary to American myth the Redcoats adapted to American conditions and were quite adept at ambushes, woods fighting and other irregular combat.
Somebody has to tell you this stuff.
Groove and others – Why do we not like to present ridiculously low offers? Maybe because we don’t like to look like fools? Sure, there’s the chance that an owner will “bite” if s/he’s getting to the desperation stage and decides to take the bird-in-the-hand, but what if that’s not the case? An initial offer at,say, 50% asking price will almost always get a “yougottabekidding” response. Such as a “counter-offer” at full price with a closing date of next week.
And what happens next time, when that same buyer’s agent has a new buyer looking at another property that’s listed with the same listing agent? The seller’s agent is going to have a reaction to the thought of dealing with the “crazy agent” that will NOT be along the lines of “Oh goody, we had such a smooth time of it last time, I’m going to love dealing with this agent again and getting the job done!”
“The seller’s agent is going to have a reaction to the thought of dealing with the “crazy agent””
Because, of course, the seller’s agent is concerned about themselves and minimizing their work, not about the best interests of the principal.
It really is no wonder that realtors have such a bad rep; too many people like that.
I love my agent.
She submitted several offers for me at 50% off asking price.
“Sure, there’s the chance that an owner will “bite” if s/he’s getting to the desperation stage and decides to take the bird-in-the-hand”
Really? That’s your answer? So do you tell your buyers up front that you won’t be willing to submit offers even when there’s a chance the owner will bite?
Also, when do sellers get desperate?
“Sauganash was another name of Billy Caldwell, the half Mohawk half Irish son of William Caldwell who led Redcoats, Tories and Indians on many bloody raids against the frontier during the American Revolution. In 1782 he led a force of Redcoats, Ottawas, Wyandots and Chippewas from Detroit down to Kentucky and bushwhacked and severely whipped the Kentuckians at Blue Licks, a fight in which Daniel Boone fought and in which one of his sons was killed.
Contrary to American myth the Redcoats adapted to American conditions and were quite adept at ambushes, woods fighting and other irregular combat.
Somebody has to tell you this stuff.”
That’s correct, that’s great hidden history that the PC/multi-cult type minds try and hide or outright lie about. The US Dec of Indpendence states clearly about England and the Savages (inaccurately portrayed in Dancing with Wolves type BS, etc):
–“He has excited domestic insurrections amongst us, and has endeavored to bring on the inhabitants of our frontiers, the merciless Indian savages, whose known rule of warfare, is undistinguished destruction of all ages, sexes and conditions.”–
Also suppressed in the story of the North American Martyrs by the usual PC liar crowd. Somebody has to tell you this stuff.
” Baby Boomerette (July 31, 2012, 2:18 pm)
Why do we not like to present ridiculously low offers? Maybe because we don’t like to look like fools? ”
Thank you very much for answering. I get what your saying, but lets say i “hire” you. You are working on my behalf and for my best interests and goals.
Lets say we find a place that we really like and the current owners have it listed at a “wish” price of 400k. and that is higher than the “almost comps” (read further why i say almost) that are listing at 325k. now this home has an irregular lot in the shape of a triangle and is adjacent to an alley. how is and offer of 280k offensive? And why would baulk at us presenting this offer?
*to add, knowing this house fit our criteria almost perfect and is in a better location than what we were looking for/at. also we know that the home has a mortgage of 250k initiated in 2009 so even if I/O the seller has wiggle room.
“So do you tell your buyers up front that you won’t be willing to submit offers even when there’s a chance the owner will bite?”
I’m more interested in whether the real explanation of “why not” is given: “because it will hurt me with seller’s agents”.
Lesson: cut the buyer’s agent out, and in your offer specifically state that the seller’s agent can keep the full co-op. Bet it gets presented then, even if it’s lowball–even at 50% off, seller’s agent gets the same commission.
This was a short sale.
Agents are legally obliged to present every offer and should do so in a professional manner, along with appropriate context and data. I do what my clients ask me to do. If it’s an unrealistic offer I set everyone’s expectations. Who cares if the listing agent or seller thinks it’s an insulting number? They can reject it and move on if it is, but occasionally it can turn into a contract. If nothing else, the buyer learns a bit more about how it all works.
thanks art,
Glad to see there are good agents out there. Our last one was a bit like you but still would constantly make a case for the seller, I dont know if it was just to play devils advocate or was trying to have a bit of their interest involved. Wife thinks devils advocate and i trust her vibe from people.