The Starter East Lakeview 1-Bedroom Now Under the 2005 Purchase Price: 450 W. Briar
450 W. Briar in East Lakeview was built in 1972 but converted into condos in 2005.
The 142 units have no central air but some apparently do have a “rare” in-unit washer/dryer. There is deeded or rental parking available in the building.
This south facing corner 1-bedroom was recently reduced $2000 and is now listed $2,100 under the 2005 purchase price.
It has a renovated kitchen with 42 inch cherry cabinets, stainless steel appliances and granite counter tops.
It also has a marble bath.
The building has a rooftop pool.
There have been foreclosures on some of the smaller, junior 1-bedroom units in the building.
Eric Carlson at Baird & Warner has the listing. See the pictures here.
Unit #11A: 1 bedroom, 1 bath, no square footage listed
- Sold in December 2005 for $240,000
- Originally listed in May 2010 for $239,900
- Reduced
- Currently listed for $237,900 (parking is rental or extra for $25k)
- Assessments of $230 a month (includes the pool)
- Taxes of $2967
- Washer/dryer in the unit
- No central air- window units
- Bedroom: 13×11
- Kitchen: 11×10
- Living room: 16×13
http://briar10j.com/ this one’s for sale by owner… seems kinda small… two floors below
I guess being only $100 underwater can be considered a success for the 2005 buyer.
I speak too quickly without reading the whole post. $2100 underwater now starts to take on some pain.
“$2100 underwater now starts to take on some pain”
danny – it is MUCH more than 2100 underwater!!!! First of all, the seller knows he is not going to get his asking price. Even if he gets 225k (unlikely), he will still owe real estate agents 5% (11,250). Closing costs will be another few thousand. All in all, IF HE IS LUCKY, he will walk away losing 30,000 (that is IF HE IS LUCKY!!).
The link you have goes to another 1BR unit at 450 W. Briar: 12J instead of 11 A. The price shown for 12J is $159,900, which sounds like a better deal until you look at the room sizes (I think 12J is a junior 1BR. The “bedroom” is 10 x 7 and the LR/DR is 14 x 15 (actually the LR/DR measurement for the unit described above isn’t much better)
I used to have a studio in Hemingway house that had a larger LR (18 x 13, not counting the 8×10 sleeping alcove) than these 1 BR’s!
due to amoritization if he gets 250k for this place with parking he’ll walk away not losing anything (since loan balance is only 220k assuming 100% down)
“due to amoritization if he gets 250k for this place with parking he’ll walk away not losing anything (since loan balance is only 220k assuming 100% down)”
WTF are you talking about?!! First of all, why would he get MORE than he is asking? Second of all, just because he put down 30k (or paid it down), doesn’t mean that he isn’t losing that amount of money (all it means is that he doesn’t have to come to the closing with a check). Come on!@!!
The asking price is 237,900 + 25k extra for parking… (or 262k) thats wtf i’m talking about
and yes he might be “losing” paper “equity” but he won’t have to bring anything to closing, and if the person put any money down they might still break even
“doesn’t mean that he isn’t losing that amount of money (all it means is that he doesn’t have to come to the closing with a check”
so we are taking into account this imaginary expected 4-7% appreciation that we were promised?
Say you “trick” this guy and you “steal” this place for 250k, the mort + assesment + taxes with 20% down is still $1650 a month. And that’s with tying $50 G’s up in THIS market on a 1/1 in an old rental grade building that you KNOW s. assesments are coming in (come on, how are the assesments that low with a roof pool?). How many shadow inv bank owned units are in this area? It’s got to be a TON. Little old me knows three people who have played jingle mail within a 2 blocks of this very building.
What would the rent be on this place? $1400-$1500?
Sorry, but you gotta rent this one.
lol. The link takes you to a unit in this building $100,000 cheaper than this unit.
Too funny.
I was just thinking about this the other day. It is amazing to me how many people think that bringing $20K to closing is worse than losing $20K of down payment. Bringing money to closing is psychologically so much harder for people. It’s this magic threshold. Yet the two scenarios are economically equivalent.
“just because he put down 30k (or paid it down), doesn’t mean that he isn’t losing that amount of money (all it means is that he doesn’t have to come to the closing with a check).”
“I was just thinking about this the other day. It is amazing to me how many people think that bringing $20K to closing is worse than losing $20K of down payment. Bringing money to closing is psychologically so much harder for people. It’s this magic threshold. Yet the two scenarios are economically equivalent.”
Nope. Once you realize your not coming out ahead on your ownership, the DP is a sunk cost. The cash at closing–particularly in the world of “jingle mail” and “strategic defaults” (as overblown as the media may be making them) is most certainly different, and not merely psychologically.
How well I remember this building as a boring, tiny rental. This place should not even be considered eligible for condo conversion. The developers gave this ugly building a facelift of sorts, then fitted out the tiny little apartments with their measly closets and cell-like baths with all the trimmins’…. granite counters and stainless, and asked obscene prices.
This building compares to 3110 N Sheridan Rd.
Given what ordinary one-bed are dropping to in price, I would say that $160K is the absolute top end for one of these shoeboxes.
I’m not following. For the folks I’m talking about jingle mail is not an option – that’s why they are considering bringing money to closing. You can have zero down and 20K in the bank or 20K down and zero in the bank – either way when you lose 20K at closing you go home with nothing in the bank.
“Once you realize your not coming out ahead on your ownership, the DP is a sunk cost. The cash at closing–particularly in the world of “jingle mail” and “strategic defaults” (as overblown as the media may be making them) is most certainly different, and not merely psychologically.”
“either way when you lose 20K at closing you go home with nothing in the bank.”
When you go where?
When you bring $20k to closing, the next day you have neither the $20k that was in your account yesterday nor your home. When you walk away from the $20k you put down (4 years ago), that’s a sunk cost.
And why would jingle mail not be an option? Because they have other assets that the bank might come after? Do you *know* anyone that has happened to, on their primary residence? Because, of course, speculators should consider the $$ the same, but I think that “speculators” who don’t are just whales for the RE industry.
LOL
“When you go where?”
The sunk cost is the home that you bought – not the way you financed it. Look at 2 identical buyers with 20K to start only they financed the purchase differently. The one who kept the cash in the bank brings it to closing. They end up in the same position at the end of the transaction.
“When you bring $20k to closing, the next day you have neither the $20k that was in your account yesterday nor your home. When you walk away from the $20k you put down (4 years ago), that’s a sunk cost.”
Either because they don’t want to hurt their credit or because they believe they have a moral obligation to meet their obligations. And I see this all the time and it restores my faith in people.
“And why would jingle mail not be an option? Because they have other assets that the bank might come after? Do you *know* anyone that has happened to, on their primary residence?”
“Either because they don’t want to hurt their credit or because they believe they have a moral obligation to meet their obligations. And I see this all the time and it restores my faith in people.”
Then they’re actually coming out ahead, b/c they’re buying something with their $20k.
Interesting think on this. My squabble is with the specific of “economically equivalent” which I take to mean something more precise than the way you are using it.
If they put the money down up front wouldn’t their mortgage be less (even potentially no PMI) per month?
$263k for this is a big laughing joke.
You can get a 3/2.5 new condo in downtown proper with a parking space at the Vetro now for 100k more. Oh and it has central air.
Epic fail. I hope this owner remains stuck in this place to teach him an important life lesson in condo speculation and/or following the herd.
You can get a number of nice Lakeview 2 bed 1 baths for this price or less, in better buildings. Take a look at the MLS- there are now many 2 beds in 60657 and 60613 for less than $250K, that compare favorably with this sad building.
We’re going to see a LOT of condo buildings converted in the past 10 years reverting to rental, and this will be one of the first.
And that’s OK. Our rental housing stock needed sprucing up, anyway. Too bad it had to happen on the backs of the taxpayers, who will be picking up the tab for the Greed Fiesta of the noughties for the next two generations out.
If you don’t have something nice to say about an apartment, then just don’t say anything at all.
Gotta say though, I am LOVING LOVING LOVING that fantastic floorplan in the briar10j.com link posted by kmg-trok. Yes, I am LOVING it!!!
THIS is what should be required REQUIRED of EVERY single Chicago MLS listing regardless of the asking price.
OK, no more cafeine/OJ for me.