Tried FSBO, Now You Have to Pay More: 227 E. Walton
We chattered about some sellers going the FSBO route who threaten on their Craigslist ads that if you don’t buy from them within “X amount of days”, they will list the property for a higher amount with an agent.
Thanks to the tipster who sent me info on just this scenario.
227 E. Walton is a mid-rise building built in 1957 in the Gold Coast. Some of the units have partial lake views. I believe the building allows washer/dryers with board approval. There’s some parking “on-site” but I’m not sure if that is deeded or rental.
Unit #11W was originally listed FSBO earlier this year. After awhile with no luck in selling, the owner said the property was going to be listed with an agent at a much higher price.
Recently, it came back on the market with an agent.
And the seller followed through with the threat to list it higher.
Here’s the current listing:
STEPS FROM MICHIGAN AVENUE SHOPPING AND OAK STREET BEACH! RECENT REHAB! EXCEPTIONALLY LARGE AND BRIGHT LARGE 1200SF 1 BEDROOM WITH SPACIOUS LIVING ROOM AND DINING ‘L’ OPEN KITCHEN AND 2 FULL BATHS. GREAT CLOSETS. CITY AND LAKE VIEWS PARKING ON SITE.
SOME FURNITURE INCLUDED! VERY EASY TO SHOW LAST MINUTE! POSSESSION NEGOTIATBLE! COZY BOUTIQUE BUILDING ONLY 2 UNITS PER FLOOR-ROOF DECK WITH GRILL! DOGS WELCOME!
Unit #11W: 1 bedroom, 2 baths, 1200 square feet
- Sold in October 2000 for $220,000
- Sold in March 2001 for $235,000
- Sold in August 2005 for $255,000
- Was listed FSBO in early 2008 for $310,000
- Withdrawn FSBO in May 2008 after threatening to list it with an agent for $375,000
- Re-listed with an agent a week later in May 2008 for $375,000
- Assessments of $519 a month
- Koenig & Strey has the listing
no in unit laundry and standard ceiling height….seemed low to me
Very interesting. We’ll need to keep an eye on this one to see what happens. Something doesn’t add up. If the seller thought it was worth 375 and that an agent could get them a higher price then why didn’t they list it with an agent to begin with? And if it’s not worth 375 then why did an agent take the listing at that price? Some agents will take overpriced listings just to lock up a seller, figuring the seller will eventually come to their senses. But that is a tremendous disservice to the seller.
Is there anything more cliche then those vintage French posters in the dinning room?!?
I contacted this buyer when it was FSBO. She then sent out a mass email (exposing everyones email address) to about 25 people telling us the price would be raised if none of us put in an offer. I offered 250k and they scoffed. I guess I didn’t see the value of them turning it from a 2br into a 1br. I believe they are moving back to Boston so I imagine they are looking to sell quickly….
They’re moving back to Boston because..well…”Boston’s hot”.
Stupid hipsters trying to play the RE game. This thing goes REO by the end of fall. ‘Oh look at my condo I’m so cool. I am entitled to a gain becuase I’m a sophisticated easter coaster.’
😀
Endless amusement from the antics of distressed sellers.
I guess she followed through with her threat! Boy, she’s tough. $250,000 was a good offer.
I think we can all agree that this place is way over-priced and their selling tactics are weak.
Are the childish insults really necessary?
And I thought hipsters lived in Wicker Park not Gold Coast.
Asking prices mean nothing, if it didn’t sell at a lower price what makes it more desirable at a higher price…just to have a showing by a Realtor® wearing way too much makeup and perfume?
She probably likes the realtor because her realtor tells her everything she wants to her and reassures her of her false reality that she is financially savvy and her condo is awesome and “of course people want to buy it for 50% more than what she paid for it”. You just need to find those people.
I’ve heard of lost, isolated islands in the South Pacific inhabited by millionaires that would be interested in Chicago condos if they could only be found and get off said islands, but these islands are tough to locate (hence their isolation).
Hilarious.. and you know the Realtor is stroking them along telling them it didn’t sell because they needed the Realtor, Gary and Bob hit the nail on the head. This should be offered under 300k shortly and they will be FSBO again soon. Some people, sheesh!
“. . . just to have a showing by a Realtor® wearing way too much makeup and perfume?”
ha! 😉
my clients are lucky if i shower (this is an exaggeration for humorous effect; please do not change my nickname from “not an asshat” to “filty, disgusting realtor who does not bathe”). i don’t put on perfume or anything but eyeliner for anybody. this is not a job that requires all that cr*p. thank god!
but i have met these people. we call them “the fur coat ladies.” he he. they drive BMWs and Jaguars.
moving along, . . .
per the mls, it looks like they paid 255k for this place in ’05 and have mortgages totalllling @ 230k on it.
nothing about the listing says anything about a short sale or bank involvement or desperation. and it looks like renters are prevalent in this building – which does NOT surprise me considering the location – so, if they don’t sell, they can probably just rent it out. if i was their agent, based on the very little information about their situation to which i am privy, i’d advise them to rent it out and wait it out. rents are GREAT in that area. but maybe they simply wish to wash their hands of chicago and be done with it. also understandable.
perhaps if a buyer/offeror had edged up toward 275k or 300, the buyer/offeror might have been able to purchase the unit prior to the owners getting representation – and would have gotten a mad deal, per my brief research. i am guessing that they needed more than 20k more than their mortgage payoff to come out even.
the fact that they say possession is negotiable is crazy. allowing a buyer to take possession prior to closing? – that’s madness!
the only other active listing in the building is a 1bed/1bath listed at 450k (originally priced at 475k) – listed with the same listing agent. very interesting. but she doesn’t have all of the listings in the building, historically – so, she hasn’t “made the market.”
there are 24 units in the building (all this info is researched via mls). there are only 2 on the market right now. the most recent sale in the building (i.e., last 6 months or as close thereto as i can get) is a 1700sft 2bed/2bath for 545k in 03-2008 — and that’s the ONLY sale in the last 6 months. i count 7 total sales in the last 5 years or so. not bad turnover for a building this size in this location. people stay. lovely that there are only 2 units/floor.
it’s very interesting to hear that the owners were using “threats” to try to sell their property. not a very good idea in ANY transaction. [emotions + bravado] does not generally result in good real estate deals. for either side.
but, then again, that’s why ya hire the professionals to assist! 😉
ps. there ARE agents out there who will quote a higher sales price to a seller to “snag” the listing. i lose listings because i do NOT do this — frankly, i won’t waste my time showing a property that is not priced reasonably. gas costs too much!
Geez, the commentariat here sure are snarky…
Looks like a decent unit, but $375K is a bit wishful even in that location. Agreed that taking a comfortably sized two bedroom and converting into a spacious 1 bedroom (with two baths) did nothing to help the market value. Assessments aren’t bad given the vintage of construction and the small number of units in the building, so I’d want to see recent annual condo budgets to check up on the reserves and any recent special assessments. $300K seems a reasonable sales target (maybe dipping a bit lower to the $280-290k range if the seller needs to sell), so the FSBO listing at $310K was realistic.
“Is there anything more cliche then those vintage French posters in the dinning room?!?”
Yes! I hate those things!!!
David,
If you believe the FSBO listing of 310k was “realistic” why didn’t it sell?
My definition of “realistic” is a price that sells within a reasonable amount of time. This sat on the market for five months with no biters at 310k. Remember at the beginning of that five month period it was still possible for almost anyone to get a loan.
The no washer dryer and no private outdoor space doomed it for me.
*a realistic sales price is one that sells within a reasonable amt of time — sure.
reasonable or “super cheap”, this unit wasn’t listed on the mls or advertised/marketed for 310k, so most potential buyers didn’t see it. and many of the buyers who DID see it were not represented by agents with access to all of the numbers and didn’t have the data to know it was a reasonable/good deal – or they might have offered to come closer to the list price.
*i believe we said (previously) that a w/d could be installed with association approval. the no-in-unit-w/d + no private outdoor space is just “how it is” for the gold coast are and buildings of this vintage. it’s this or scary new construction!!! 😉
Forrealestate,
Millie can buy for less than the 375K asking in a number of units in the gold coast area with the laundry, such as 40 E Delaware, 222 Pearson, 21 Chestnut, 30 E Huron, 600 Dearborn, 33 Ontario, 2 E Erie, 512 McClurg, 474 Lake Shore Drive, 1415 N Dearborn, 1309 Wells, etc….Yes, I’ve strayed in Streeterville and Old Town but just some examples
Let’s just file this one under the “keep dreaming” category. I love these stories about delusional sellers. Make sure to keep us posted when this place eventually sells; I’d love to know what they end up getting. I suspect it goes for around $280,000 once the seller finally comes around.
SR:
As not an asshat said, $310 was a good asking price–she agreed that $375k is nuts. Seems she thinks something just shy of $300k is the “right” closing price for the unit.
Bob,
forrealestate summed it up pretty well… particularly in the Gold Coast (many buyers coming from out of town, and almost all looking through an agent), FSBO is a tough proposition, and thus should have been priced accordingly. Maybe a $290K asking FSBO price, $310K agent-listed.
Don’t let any of this stop you from trying to jack every thread into a gloatfest about people richer than you losing money on real estate, though.
Paul,
Lets look at the data. In August 2005 Case Shiller for Chicagoland was at 157.85 when this sold for 255k. Assuming the buyer didn’t find a “steal” at the time, which is unlikely, lets call 255k the prevailing market price for this unit at a CSI level of 157.85.
In March 2008 the Case Shiller for Chicagoland was 150.35. At this level extrapolating from the 2005 price this unit should be worth about 243k.
And don’t worry, my gloatfest won’t be subdued until reality says otherwise. 😀
ah, i dunno if i meant to indicate that 310 is the RIGHT price, but it was MEAN deal at 310k or under, esp. considering that the turnover in the building is low, it’s boutique with only 2 units/flr, and the only closed comp (the only one closed on the mls, anyway) in the last 6 months was a 1700sft unit for 545k (so, it sold for approx. 320/sft – this unit, at 1200sft, then, should sell for 384k).
i’m also, clearly, not saying that 384k is the right price. i’m sure it’s priced with room for negotiation.
😉
as a random sidenote, the other unit currently on the market, priced at 450k, is right at the 321/sft mark.
“dunno if i meant to indicate that 310 is the RIGHT price”
right price for a buyer, given the 310 ask, and probably a reasonable discount from the seller, given the ask, the market and assuming an actual desire to sell.
“Remember at the beginning of that five month period it was still possible for almost anyone to get a loan.”
January ’08 it was still possible for almost anyone to get a loan? Really? The market seizure had had no effect 6 months after it started?
re: “Millie can buy for less than the 375K asking in a number of units in the gold coast area with the laundry, such as 40 E Delaware, 222 Pearson, 21 Chestnut, 30 E Huron, 600 Dearborn, 33 Ontario, 2 E Erie, 512 McClurg, 474 Lake Shore Drive, 1415 N Dearborn, 1309 Wells, etc….Yes, I’ve strayed in Streeterville and Old Town but just some examples”
per my understanding (and, granted, neighborhood boundaries = a great conversation topic!), the gold coast only ranges from 800n to 1600n, and from, with a few exceptions, state street (at 0e/w) or lasalle, furthest w, to the lake. so, ya, pretty much like you said, 40 e delaware, 222 pearson, 21 chestnut, 1415 dearborn, 1309 wells** are goldcoasters.
*40 delaware – there is a 1bed/1bath listed at 269.9k, but only 705sft — nearly half of the walton unit. the lowest priced unit listed with 2baths is a 2bed/2bath, 1340 sft, for 434.9k. assessments are a little higher, too.
*222 pearson – lowest priced unit listed with 2beds/1bath is currently at 364.9k — no square footage listed. this one in walton has 2bed-space (even though reduced to 1 bed) and a 2nd bathroom. the lowest priced unit in this building (and, granted, it has 3 beds, so. . . ) with 2baths is 498.9k. a good amt of competition too.
*21 chestnut – the only unit for sale right now in 21 EAST (not west) chestnut is a 1bed/1bath foreclo, listed at 175k. and i don’t believe there are w/d units in the building. in 21 W Chestnut, there’s a 1bed/1bath listed at 249.9k (no sqftage listed — so annoying!) and then a 2bed/2bath, 1300 sft, listed for 539.9k.
*1415 dearborn – there’s a 2bed/2bath listed, currently, for 309k, but no in-unit laundry. coin laundry, per listing. another 2bed/2bath, with “w/d in kitchen” is listed at 339k – assessments for this one are 799.mo, wowza.
*1309 wells – **pushing it a LITTLE west of lasalle/gold coast, and into old town, but, still! . . . there is a 2bed/2bath listed for 354.9k with in-unit w/d AND parking included. only 1 unit for sale, right now, too. out of 80.
😉
this little bit of research (done super fast!) makes walton seem pretty reasonably listed — assuming there is room for negotiation.
Anon:
No it didn’t. The financial market trouble started with asset backed commerical paper in August 2007. This CP has a maturity of 90-180. The banks cannot hide losses on this asset backed commercial paper as they are so short term. New issuance stopped last summer, market dried up. They were unable to roll it over. Fast forward a little over 6 months: massive writedowns and the financial contagion has spread to other asset classes.
In January any yahoo with a good FICO score (pulse optional) could still get a 100% LTV loan. Even today you can still get a loan with 5% down or an FHA loan with 3% down. At current rates of decline you will be underwater on your mortgage in 4 months with a 5% down loan.
I don’t trust market pricing when the non-prudent are extended near unlimited leverage. Lets see what happens to the market when sane lending standards return.
Case shiller for *chicagoland* v. the numbers for gold coast. Was it crains or the trib that recently touted the gc as one of the ‘hoods that is holding steady/on the rise still?
“Case shiller for *chicagoland* v. the numbers for gold coast.”
Let’s just say that it didn’t appreciate by about 50%; which you’ve said, too. With their initial ask, they didn’t put more than about $50k into renovations. And people shouldn’t be buying ABOVE ’05/’06 prices (at least in any meaningful amount), no matter what Stevo says.
It was the Tribune which said that the GC was holding its own in this market.
This unit closed for 293K in September!
I had guessed it would sell for $280,000 back in June. I actually thought it would take longer than this too. So much for the higher price after listing with an agent. I guess this agent talked some sense into the seller.