Crib Chatter

If selling the normal For Sale By Owner methods don’t work on selling your condo – what about trying an auction on eBay?

One Chicago condo owner is trying just that according to a posting on Craigslist.  It says that it’s a “$165,000 Luxury Gold Coast Studio for auction- current bid of $115,600.” He posted:

Larger-than-average studio with great closet space, nice white kitchen, HUGE balcony and skyline view. Pets up to 50 lbs ok. Full-amenity building features workout room, business center, dry cleaners, sundeck, 24-hour doorman, laundry room, indoor garage. Parking is rental (approx $225/mo), and not included in sale price.

To see more details or to make an offer on this home, please visit eBay and do a search in “real estate” for “luxury Chicago Condo”. The home will be sold to the highest bidder on November 18.

This property is not bank-owned, but is being offered FSBO by an Illinois licensed realtor with Exit Team Realty.

The address of the property is 33 W. Delaware, a 185 unit building constructed in 1988, located in the Washington Park/Gold Coast area.  It was converted from apartments into condos in 2003-2004.  It’s a great downtown location.

There are currently about 14 units for sale in the building, including several other studios. Here are some pictures of the unit available on eBay from the Craigslist post:

The other studios for sale look similar.  The picture below is of Unit #21C, currently on the market for $177,900.

These studios are about 540 square feet.  Assessments run $300 to 330 a month.

Interestingly, Unit #21C claims it would be a great investment in their listing:

Unit Rented Until May 2008 For $960. Good Investment Option. Easy To Rent. Could Be $1100 Easily. 24 Hour Notice For Showing. Special Buyer Incentive For Full Price Offer. Call For Details.

But if you even put 20% down on this unit and have a loan of $142,320- according to the Baird and Warner mortgage tracker– you could not even come close to covering your costs by renting out this unit.

You would have the following payments (including mortgage, assessments, taxes and insurance):

• 3/1 ARM at 6.910%- $1,447 a month
• 30 Year Fixed Interest Only at 6.62%- $1,387 a month
• 5/1 ARM Interest Only at 6.975%- $1,372 a month
• 30 Year Fixed at 6.378%- $1,492 a month

As an “investor” – if you get $950 a month, you’re losing quite a bit of money.  Heck, even if you’re getting $1100- you’re likely losing at least $300 a month or $3600 a year.

So maybe the current bid on this studio on eBay of $120,100 doesn’t sound so unrealistic after all? 

According to the eBay listing, the owner paid $198,000 for it in late 2003.  The building is also mainly a rental building- only being 38% owner occupied.

The bidding closes on November 18th.  I’ll watch it to see what happens.