We Love Rooftop Decks: 1647 N. Sedgwick in Old Town
We have a soft spot for rooftop terraces. This one is a rare terrace on a vintage building at 1647 N. Sedgwick in Old Town (or maybe on the top of the garage- it’s hard to tell).
Unit #3 seems to have it all.
- A balcony and “exclusive rights to rooftop deck”
- Garage parking
- Central Air
- Washer/dryer in the unit
- 10 foot ceilings
- Wood burning fireplace
What doesn’t it have? Large bedrooms:
- Bedroom #1: 14 x 9
- Bedroom #2: 14 x 9
Unit #3: 2 bedrooms, 1 bath, diningroom
- Sold in January 2000 for $220,000
- Currently listed for $419,900 (garage parking included)
- Assessments of $150 a month
- Taxes of $3916
- Sudler Sotheby’s has the listing
You can check it out at the open house this Sunday, June 8, from 2:00 – 4:00 pm.
Dibs!
Seriously, what do you guys thinks this is worth? It doesn’t seem outrageously overpriced to me.
Awesome place! I don’t care about bedroom size, this is the city.
My guess: 375-385k for this.
I’m going to go back to wishing for a RE market crash and picking up this unit for 220k. However unrealistic wishing is free 😀
When I think of nice cribs, this is definitely a Chicago dream condo.
8 years ago nearly half the price.
I wouldn’t go quite so far as dream condo — I’m not digging the kitchen or the bathroom, and I’d want to pull up the carpet in the BRs — but yeah, nice place, nice price. I’m figuring they priced expecting the actual to be more like $400K, which doesn’t seem too far off to me, given the great location, the deck, the wbfp. I know where I’m going to be on Sunday… It’s been a long time since I’ve seen a place I’d like to live, where I wouldn’t also be likely to get mugged/burgled/smell urine (Printer’s Row, Roger’s Park, deep north and west River North).
Yeah, i just did a calculation of 5% appreciation a year off the 2000 sale price, which I think is reasonable appreciation, and it puts it at about $325K. So maybe Bob’s low-end estimate is more like it. Still, I like the place.
This seems like a lot of money for a place that only has one bathroom. At the very least I’d like a powder room.
How much would it cost to put in a powder room? I was thinking the same thing.
I STILL like the place! 🙂 I guess it’s because I’ve seen so many meh places asking for $600K, that this place looks so good to me. Also, I’m a sucker for a rooftop deck and a wbfp.
This does indeed seem like one of the more reasonably priced properties to come across these pages. It definitely seems like you are paying for location over trim.
The counter in the kitchen seems too small to be terribly useful but large enough to get in the way. But without it, there isn’t much space in the kitchen.
I do like the statue thing in the bedroom.
Great find, Sabrina! I’m definitely going to the open house. Of course, I’m not buying anything for a year, but I’m still going just to torture myself and tell myself (yet again) that this place is THE ONE and there won’t be anything else as good on the market in a year. The moldings are amazing but I really hate the stain on the wood. Does anyone else think it would be an improvement to paint the trim white (with a contrasting color on the walls of course)? Or am I the only person in Chicago who hates natural trim? The garage parking is the real clincher here, although the one bath is a downer. I’ve always assumed it’s really hard to add a bath in a condo when someone lives below you. I imagine it turning into an episode of Perfect Strangers with your downstairs neighbors plugging leaks with their fingers and getting sprayed in the face as a new one bursts out of the wall.
I think this place is the perfect rival in a face-off with my current favorite “vintage LP on the cheap” nominee (which is 70K less mainly because it has no parking and a very tiny second bedroom):
2327 N. Geneva Ter #3 Chicago , IL 60614
Price: $ 349,000
Assessments: $ 175
Taxes: $4,433
Square Footage: 1300
Market Time: 75
Bedrooms: 2
Bathrooms: 2
Dining Room: 13X10
Living Room: 11X14
Master Bedroom: 12X11
Bedroom #2: 08X09
Bedroom #3:
Bedroom #4:
Kitchen: 11X13
http://tours4.vht.com/Viewer/PhotoGallery.aspx?ListingID=50009474&Style=IDX
Which is the better deal? The locations seem pretty equal to me (although I think there’s more to eat and do around the place on Geneva). Is garage parking and a roof deck really worth an extra 80K and the loss of an extra bath? A quick check on craigslist reveals several places for rent for $200/month or less within a block or two of the place on Geneva.
Funny thing, is that the couples that are old enough to afford a $419,000 condo don’t want to live in a 2/1 with 14×9 bedrooms.
With a wbfp, deck, garage, cent air, rooftop deck and its location this property won’t just be limited to DINK couples.
yeah. I’m a… SINK, and I want it. 😉
…But the $420,00 price ensures that mostly DINKS and 100k+ single earners can afford this unit. I hate when people argue with me about this. There are so few single people that can reasonably afford $420k without Option ARM mortgages or have enough cash saved for a downpayment.
Some dual income households earn enough to afford units like this. Unfortunately, DINKS with kids or who plan on having more than one child aren’t going to be interested b/c of the bedroom issues.
They’ve effectively priced themselves out of the demographic they want to sell to. I don’t think I’d be going out on a limb to say that this place will sit for a long time at this price. It’s going to need some serious price reductions before it will sell.
Lower the price to $250k or $300k and you greatly the number of people who would be interestd and it would sell faster. And the seller would still make a profit. But at $420k the seller is just plain greedy.
“It’s going to need some serious price reductions before it will sell. ”
I think this is where we disagree. I think it needs some price reductions, but I’m guessing 340-375k. We will see..
Actually, the submitter’s 2000 sales price info is wrong. According to the assessor’s office, the PIN of this unit is: 14-33-420-052-1003; and according to the recorder of deeds, the following transactions occurred (with some omitted):
3/94 – Condo declaration (from a rental)
10/97 – Warranty deed for $252k
11/99 – Warranty deed for $300k w/$239 mortgage
1/01 – refi for $237k
1/02 – refi for $237k
2/06 – refi for $224k.
My previous figures were based upon the erroneous 2000 selling price. Based upon the correct figures I will stand corrected – I am wrong, this place isn’t a $250k unit because that put it below the 1997 price…I only predicted a return to 1999 pricing 😉
Bob, you are more correct than I was. I amend my previous post and I think this place is probably worth on the low end of Bob’s range listed in the post directly above me. Maybe slightly less. But not much. But I still say that $420k is way way way too much money. And the seller is being really really greedy and/or unrealistic.
“DINKS with kids or who plan on having more than one child aren’t going to be interested b/c of the bedroom issues.”
I don’t think many couples with only one kid would be really interested in a place with bedrooms this small and only one bathroom. A single parent with one kid, sure, but then you’re back to the how-do-you-afford-it problem.
And, yes, yes, there are plenty worse housing situations that kids grow up in, but they don’t cost $400k.
“A single parent with one kid, sure, but then you’re back to the how-do-you-afford-it problem. ” I’m just waiting for someone here to tell the antecdotal story of their client, the super-rich single mom, who bought a $400k two-bedroom place with lots of money down, and of course, I’m the one who is wrong because it happens all the time. 3…..2……1…..
homedelete-Eliot Spitzer had a lot of escorts.
Be sure to check back in on Sunday after you attend the open house and let me know how it looks in person.
This is a really great location in Old Town.
“homedelete-Eliot Spitzer had a lot of escorts.”
Thanks Bob, I was waiting for that.
homedelete on June 6th, 2008 at 1:52 pm
…But the $420,00 price ensures that mostly DINKS and 100k+ single earners can afford this unit.
—
You might not be able to get mortgage ins unless you put 10% down……that’s a lot of quid to pee away!
This listing changed to inactive…probably under contract.
Thanks for the update Burt. I wouldn’t be surprised. I heard from a bunch of people that there were a lot of people at the open house.
Many people said the rooftop terrace was really nice. That’s pretty rare for old town (and so it having your own garage.)
It was indeed a big crowd.
I walked away feeling the majority of the people must have just wondered in from the Old Town Art Festival but alas I checked the listing this morning and Burt is correct, it’s inactive. The interior of the unit, especially the kitchen, did need some updating. I think more and more people are beginning to buy on location and just update on their own and to their own taste.
Definitely a stroke of genius to time this open house for the Art Festival. Nice Job!
Sabrina,
Just an FYI, there’s a new FOR SALE sign at 200 W Menomonee (Menomonee and Wells, right by the park). I think it might be a “by owner”. The unit looks like newer construction, its a 2BR/2BT, with a deeded parking space included (big plus for this area).
Asking is $390K I think.
Why Homedelete will live in a studio for many years to come. Just because you can’t afford it does not mean it is priced too high. Ask for a raise at work already!
“Bob, you are more correct than I was. I amend my previous post and I think this place is probably worth on the low end of Bob’s range listed in the post directly above me. Maybe slightly less. But not much. But I still say that $420k is way way way too much money. And the seller is being really really greedy and/or unrealistic.”
There are TONS of people who make six-figure incomes in Chicago, I don’t know what you are talking about. There are plenty of successfull people in their late 20’s and 30’s who are single and can afford a place that’s about $400k. Not to mention that this type of unit is great for people who live in the burbs and want a city unit.
D
I don’t know about “tons”- as the average income in Lakeview is like $56,000. Oh- but that includes all of those renters!
Question is- how many of these six-figure income people have any money saved for a downpayment to buy all of these properties?
Even on $100k a year- it will take quite a bit of discipline (and time- probably a year to two years) to even save the $40k needed for 10% down on a $400k property.
Just the downpayment requirement alone will create a drag on sales for several years.
Let’s not forget that 95% financing is still available. My guess is that the credit markets will losen in the next 6 months.
The only arguments you have are argumentum ad personam. You repeatedly say that I live in a studio but I don’t. I live in a great 2 bedroom apartment 1000 sq for an affordable price down the block from the el, metra and 90/94 and there’s plenty of street parking to boot. I rent because all the 2br condos in my ‘hood cost north of $250k; 90 year old bungalows cost $400k; non-bungalow sfh’s are listed in the 700’s and new construction spec homes are listed north of $1,000,000; the rehabbed italianates and victorians are priced in the $1.2 mil and higher. Of course, there’s only been a handful of $1,000,000+ sales since ’06 so it’s sort of ironic that there are so many million dollar homes that no one is buying.
Thanks for the info homedelete. Isn’t it the truth about what you said about the bungalows costing $400k and new construction spec homes north of $1 million.
They are all over the north side- even in neighborhoods I would call not that desirable. Who is buying all of these? Or why would they? I don’t get it. I’m not even seeing the spec homes selling in Lakeview for goodness sakes.
The bungalow issue is even more laughable. Those houses should be about $175k.
Speaking of bungalows, in 2005, my neighbor the retired fireman/part-time specuvestor, purchased a nice bungalow down the block as an investment for $400k! He put a nominal amount of money in to the house repainting the inside, replacing the furnace, polishing the hardwood floors, etc, and put it on the market 3 months later for $540,000. It sat unsold for over 6 months at that price until he couldn’t take the bleeding anymore and rented it out as a rent-to-own property. Rent was $1,400 a month. Anyway, it’s still a rental today and he’s waiting until the market improves to relist. Meanwhile over the last two years, two more bungalows on the same block went up for sale. The first bungalow is 90 years old and the inside looks like it hasn’t been updated since 1970. Asking price was $499,999 and keeps getting steadily reduced. Today it’s at $400,000 and is still on the market. The second bungalow is literally two doors down but it’s been rehabbed. Asking price $650,000. It’s been on the market for 18 months now and even with a $100,000 price reduction it still sits. I suppose we could buy a bungalow in a much less desirable neighborhood further northwest but even there, the crappiest trashiest most vandalized REO bungalows are in the $250s and just sitting. These are working class neighborhoods on the NW side and a move-in condition bungalow is still $350. Ten years ago they were selling for 40% or 50% of that price and they were better condition too.
Sorry I can’t resist posting; my SO is in the next room over watching a terrible movie so i’m surfing the net instead. This property is my personal favorite in the 60641 zip code. It was a new construction spec home built in ’05 or ’06 and sold for $1,600,000. iirc. In ’07 the owners decided to flip it and listed it for $2.399 mil. They haven’t budged on the price for like 9 months. I don’t think 60641 ever had or ever will have a $2.0+ sfh and if it did, it sure as hell won’t be this one! chicago.yahoo.idx.prupreferredchicago.com/details.aspx?firstrecord=0&VIP=PrudentialProperties.com&searchgeo=60641&propertytype=1%2c2&sort=5&sortacdc=desc&searchtype=8
especially when there are beautiful Victorians like this for $1.390 (and it’s been sitting a while too)…
chicago.yahoo.idx.prupreferredchicago.com/details.aspx?firstrecord=2&VIP=PrudentialProperties.com&searchgeo=60641&propertytype=1%2c2&sort=5&sortacdc=desc&searchtype=8
Homedelete:
I concur regarding the bungalows. It’s pretty laughable what occurred during the bubble.
But that will change.
It’s not in Chicago, but many of the same bungalow belt homes built during the same era are selling for quite a discount in places like Berwyn (some as cheaply as $175k now- and still not selling.)
Also- the landlord/investor down the street isn’t unusual. I see many properties that don’t sell but ultimately get rented and many of the owners tell me they’ll re-list in a year or two “when the market improves.”
Most are taking a loss on the rent compared to their mortgage costs on these properties with the belief that they’ll sell for a profit to make up for those losses in 2009 or 2010.
Only time will tell.
There’s another good find just down the street at 1742 or 1744 Sedgewick (No numbers up). It’s just been redone and Caldwell Bankers is listing, but I didn’t have time to jot down the broker.
It looks in good shape and of course a great neighborhood. If anyone has the details and can post it here, that would be great. Thx.
Looks like 1742 Sedgwick, two units. #1 appears to be duplex down 3BR/3BA for $765K (2117sqft). #2 is 2BR/2BA for $635K (1255sqft).
These are searchable on the Coldwell site.
thanks, I’ll take a look.
re: 3912 Keeler–
hd, it’s kinda worse than your recollection. The (teardown/lot) sold for $455,500 in 1/05. The completed (presumably) house sold in 5/07 for $1.71mm. So they wanted to make $700k in a few months for … what? Doesn’t seem likely they did anything to the house. If I were interested, I’d offer them $1.71mm.
Does anyone have any info on the price this unit was sold for?
It is indeed under contract according to the sign out front.
JanetG: We won’t know the price until it closes. I’ll update it with a closing price when we get one (about 30 days probably.)
Thanks Sabrina!
Well, well, well.
Our little rooftop Old Town Triangle score has resurfaced. The first contract has fallen through and this little gem is back on the market as of this wee. But you better hurry, there are secondary offers being negotiated as we speak.
Does anyone have more info about the 200 W Menomonee building that Greg referred to? Aside from the fsbo, I saw another unit closed for 297k in 12/07. Just curious to see if 389k is comparable.
Sabrina, if you have pictures on these units, can you please share them with us? Thank you!
I think there are some pictures of that unit on Craigslist.
Some of these buildings are duplex units. That building is older. Some have parking, some don’t. Parking is an outdoor space. Some of the first floor units have front patios. Units come on the market every once in a while.
The location is good- but they’re older and some of them haven’t been updated. It depends on the unit. I don’t know how big they are.
It is under contract again. Location location location!
Contract probably means little as since the bubble almost any yahoo can get a unit under contract. The closing yield seems to be a lot lower on contracts these days. These days I trust closings not contracts.
Today I can show you two contracts for every closing. The ratio used to be a lot worse, especially at the end of ’06. Every yahoo with a 590 FICO had signed a contact but only a handful could get loans as the subprimes started to implode. Today the problems are short sales that take too long, lack of financing, and home appraising for less than the contract price.
homedelete — I can’t quite figure out which way is “worse” in your meaning.
Was late 2006 seeing three contracts for each closing (two failures for each success), or only one contract per closing (few failures)?
My sense (as an industry outsider, and from California) is that the main bubble years (say 2003-5) had relatively few failed sales. There were enough multiple offer situations that sellers should have been able to pick good buyers (pre-approved or better) so that few sales would have failed due to mortgage issues. Buyers may have been able to overlook many inspection problems (and some idiots were waiving the inspection contingency). There are enough accusations of appraisers being overly generous for lenders that not too many appraisals may have failed. Finally, sales volume was so high that there should have been few sales failing due to two-house problems (need to sell one to afford another).
These days (say late 2007 to now) seem like there is much higher potential for failed sales. Lending standards are tightening all the time, and rates are going up — both of which are going to cause mortgage problems, even for pre-approved folks. (We just bought, and wrote the mortgage contingency 0.75% above our pre-approval rate; by the time we had a contract and could lock that margin was gone.) Appraisals are probably killing a fair number of deals these days — our appraisal came in below the listing price (but just above the contract price). Finally, I think that the psychology of buyers has changed dramatically, such that buyers’ remorse is much more of an issue. Any inspection is going to turn up problems, and an uncommitted buyer can use those to walk away at little cost.
That said, I can’t figure out 2006 and early 2007 contracts. I thought that mortgages were still fairly easy, but appraisers had started getting blamed (incorrectly) for the bubble and were probably being more conservative.
Let me clarify — I was in California during the bubble, but am now here.
Wose in the sense that the paralegal here had IIRC 30 files open but only about 1/3 of them ever closed. Like I said, every dick harry and tom with a FICO of 590 and lower wanted in on the housing boom and signed a contract. Financing was starting to dry up around that time and few closed. One lawyer here was annoyed because he was spinning his wheeling working on a ton of files but few of them closed, which means he didn’t get paid. A few months after that the number of contracts coming in slowed down substantially. Today volume is off by about 50% from the peak and the contracts we sign are generally better quality candidates.
I’m seeing the same thing.
Usually a contract fails because of buyer financing. I’m seeing prospective buyer after buyer assume that lending is as it always has been. But alas, when they meet the bank, they’re shocked to find that the real minimum today is 10-15% down plus closing. Finding that liquidity in a matter of weeks ($80,000) is tough for most.
That’s why I’m not optimistic this market will turn around until lending does. And with so many banks having been burned by the old days, I think we’re back to the traditional 10-15% down, fixed 30-year for good.
So for all you developers assuming our situation is short-term and a return to the “golden age” is coming, I say keep dreaming. You fundamentally are missing the parameters at play today.
Here’s another theory I’d like to toss out.
The inventory numbers I’ve seen are horrendous. Last I checked we were over 10 months of inventory. Anyone have the latest figures? But is our situation even worse than the inventory stats show?
Here’s what I mean: I know of several developers/sellers who are currently opting to rent vs. sell today. If these sellers are waiting short term to list their units in a year or so, then isn’t this a “hidden inventory” which is currently unaccounted for?
Me thinks the inventory numbers do NOT show an accurate picture of how bad our horizon truly is. If I’m correct, I’d guess that its in the best interest of a seller today to do just as this property has done. Price your property realistically and just be done with it before these “hidden” sellers start coming out of the woodwork. Beat the rush to proper pricing today or risk more price cutting as desperation begins to heat up. Prices will drop even further.
But again, its just my theory.
In LP there is a 4 – 5 month supply of condos. That number actually has stayed the same for the past 3 months.
Months of inventory has been dropping for a while, and I believe that I’ve seen numbers around 5-6 months on the market today (as opposed to 8-10 last year). I’ll try to hunt down a source (NAR?).
I also think that there is a massive “shadow” inventory out there that isn’t officially listed, but will be on the market as things turn around. For example: I see lots of REOs listed on bank websites (e.g., Countrywide) that are not on the MLS. There may be several times as many properties owned by banks (and nominally for sale) as are actually listed in an easy-to-find manner.
I wouldn’t doubt that certain zip codes have lower inventory than other. Englewood and Roseland with high inventory averages with LP’s low-to-normal inventory to give you a skewed number like 10 or 12 months. There’s an awful lot of toxic wasteland on the south and west sides.
In areas with high inventory many home debtors live hand-to-mouth so to speak, so financial trouble comes quicker and often forcing them to sell. In more affluent areas the home debtors have better finances and some finance reserves so they can whether the storm for longer. But that still doesn’t obscure the fact that many in affluent areas are highly leveraged. If buyers are unable (and are quickly becoming unable) to leverage themselves as much as previous buyers then problems will start to develop. Like someone said earlier, one bank stopped Option Arm loans just a few days ago regardless of credit score!
Yes, my 8-10 month figure is old it looks like.
I wonder though, is inventory dropping because of sales, or because of listing being pulled from the market?
Inventory is not dropping due to sales. It is dropping due to all those who have pulled their listings because of fantasy pricing. They are just “waiting for the turnaround” in order to list again. Many are attempting to become landlords for the time being, which is just a way to partly stop the bleeding. It isn’t a solution. The hidden inventory JanetG mentioned is indeed growing daily.
This is the typical bubble after-effect where the sellers insist on chasing the market down, thus making it somewhat sticky.
As far as inventory numbers, I saw a recent number that said “downtown” was 14 months. I haven’t seen numbers on LP or Lakeview.
I wish the press and the IAR and CAR would be more active at making data available. In the last press release for May, IAR listed the Illinois sales numbers and the Chicagoland sales numbers but left off Chicago completely (when they have provided it in the past.)
What don’t they want us to know?
As for hidden inventory- this is a big issue as G and JanetG point out.
Look at 334 W. Menomonee. 18 units, only 4 have sold. Only ONE is on the market. The others are all rented and that developer is “waiting” for the market to come back. These will all be back on the market at some point.
Same with any of the new construction high rises. 340 OTP has seen some sales in the last six months, but the majority of the flippers have been rentals in the building. Ultimately, those units will all come back on the market.
Ditto for 600 N.F. We haven’t even seen a one bedroom flip yet. They have all simply been rented.
I estimate the “rentals” in these new buildings at 20 to 30% (and higher, in some buildings.)
I’ve also spoken to several sellers who decided to rent and “wait it out” rather than lower their price further.
They all believe that the market will “improve” by next spring (at least, that’s what their agents are telling them.)
Renting “until the market comes back” only works if you have a lower cost-basis (bought before the boom). Flippers who bought at 2006 prices would be lucky to recover half of their monthly holding costs by renting it out. For flippers with multiple properties, that’s a pretty huge burn rate. The market will stay bad longer than these people will stay solvent.
Thank you, Sabrina! Good info on 200 W. Menomonee. The fsbo is a 2bed/2bath duplex one with parking. I also found out that the one that closed before is a 1bed/1bath unit. I don’t know how close Zestimates are on zillow but according to the numbers, it looks like 297k for 1bed/1bath in Old Town was a good deal? I’m also a novice in this topic though. 🙂
LP is at 4 -5 months. Care to wager? I will supply the data…
And thus a furhter question for an attorney:
Sabrina brought up 334 Menomonee in the Old Town Triangle for instance. Some of the posters from that blog have said the developer intends to rent his way through to sunnier skies. One poster brought up a good point. How long can a building still be considered a condo building if only a handful of units have been sold as condos and the developer decides to rent the rest. If the majority are rented, then wouldn’t this building be classified as an apartment building?
I’d submit that the owners might have grounds for class action lawsuit against the developer. After all, its their equity which has been diluted at the enrichment of the developer, isn’t it?
I’m not a developer’s attorney so I can only speak generally but the condos are still condos because they’ve been declared so according to recorded documents. Condos have their own PINs whereas apartments do not. The developer can keep control of the board until I think something like 75% of the units have been sold. Condo owners sue developers all the time; especially condo conversions. Buying into a new condo conversion is like voluntarily paying to join future litigation.
For me at least, the question is whether the developer can afford to rent the condos out until the market turns around. The developer is paying aboug 8%-10% juice on the construction loan and if he hasn’t yet paid it off, I don’t know how a few thousand bucks a month in rent is going to save the day. There’s a building in old irving, they advertise all over craigslist for over a year now. I think they’ve sold only a handful of units so they’re renting some out. Keep in mind this building used to be section 8 and it’s across from Schurz high school. These bright eyed developers come along and decide that former section 8 apartments are really $200+ condos in disguise! These people definitely haven’t paid off their construction loan and I doubt $900 bucks a month in rent pays the juice! I don’t have the time to find a link to a rental so here’s a link to a for sale unit in the building:
chicago.craigslist.org/chc/rfs/740972841.html
Hi all,
I was the listing agent for this property. We received 5 offers within the first week, accepted the best. However, the buyer got cold feet and walked. We reactivated the listing on the MLS, but immediately returned to the other 4 offers and accepted one within a few days. The property sold for near the asking price with five offers on the table. It was without a doubt, a fantastic property and it was a joy to represent.
ah the good old days
Be careful what you wish for because you might actually get it.
The 10% these buyers once had evaporated into thin air. They’re stuck with a second mortgage for $42k too. I hope they enjoy their home because they’re going to be there a long time.
“I hope they enjoy their home because they’re going to be there a long time.”
You almost make it look like living in a place for a long time is a BAD thing. What we all have been saying is that in the current (and foreseeable future) real estate climate, people who buy now SHOULD be expect to live in the place they buy for a long time. I hope these people ARE happy with their purchase.
Sold for 412k on 8/28/09. Eighteen days before Lehman blew up.
“Jennie are there any updates on the client’s satisfaction level today, eighteen months hence in a bad real estate environment?”
Bob, you assume that the people who bought this unit did so as an investment. You fail to understand that a lot of people buy homes because they love the place (for whatever reason), love the neighborhood and DO intend to stay put for awhile (why wouldn’t they). If they are like most buyers and bought for these reasons, I am sure they are very happy. In addition, in 10-20 years, I am sure that they will realize that they made a great decision (from both financial and personal perspectives).
Bob, Lehman blew up in 2008, not 2009
Clio,
Until recently, nobody lived in $400k, 1000 sq ft 2 bed 1 baths for very long. It small, cramped and is difficult to accomodate a growing family. But now they truly are stuck for at least 10 years. These buyers, one of five bidders, allegedly, got exactly what they wished for although in retrospect, it was a very costly decision. Its going to be a long time before this until is worth 412$ again.
“Until recently, nobody lived in $400k, 1000 sq ft 2 bed 1 baths for very long.”
True…. but there are also several groups of people that WILL stay in these places for a long time:
– confirmed bachelors/bacheloettes
– widows/widowers
– retired couples looking to downsize
– gay singles/couples w/o kids
– wealthy suburbanites looking for a pied-a-terre
Together, these groups of people may constitute a large number of home buyers (DINKS). However, I do also recognize that the number of 2beds in the city are likely much higher than the number of these peoples. A smart investor/developer may want to target areas that cater to these people. I did in Boston and it worked extremely well.
Clio, you’re the guy still building horse buggies while the guy down the block is making the Model T.
“Clio, you’re the guy still building horse buggies while the guy down the block is making the Model T”
yeah, now go compare the price of one of those horse carriage rides downtown with a cab ride!!!
“Clio, you’re the guy still building horse buggies while the guy down the block is making the Model T.”
Many of the buggy makers transitioned into supplying chassis for teh auto industry. The dying industry you were searching for is buggy *whips*, rather than the buggies themselves.
So what did it close at?
Re isn’t a dying industry, but 400k two beds, one baths in chicago is a concept that is past its time. Like the buggy manufacturers, he needs ti retool his thinking, because these places are perfect for few, but were merely transitional housing in the greater fool scheme.
HD: What about 400k+ 2bdrm 2bath 1300+ sq. ft in Old Town.
Thoughts on those units?
“HD: What about 400k+ 2bdrm 2bath 1300+ sq. ft in Old Town.
Thoughts on those units?”
In select areas, 400+ 2/2 are going to do just fine. It is when you get those 2/2 units in fringe areas and family-oriented neighborhoods which may suffer.
30% more space and an extra bathroom? $400k maybe. But I think most people would have a difficult time believing that this unit today is worth anything near the 2008 purchase price of $412k. The buyer that ‘got cold feet’ really dodged a financial bullet.
“#chichow on August 18th, 2010 at 9:05 am
HD: What about 400k+ 2bdrm 2bath 1300+ sq. ft in Old Town.
Thoughts on those units?”
“The buyer that ‘got cold feet’ really dodged a financial bullet.”
yup – he’s probably sitting pretty right now in his cramped apartment, throwing away 1800/month in rent waiting and waiting for the “deal of the century” to come alone (only to be snatched up by investors w/ cash). I wonder if you will be saying the same thing in 2015? 2020?
Why always assume the worst? Maybe the buyer waited a year and got a great deal?
“”#clio on August 18th, 2010 at 9:17 am
“The buyer that ‘got cold feet’ really dodged a financial bullet.”
yup – he’s probably sitting pretty right now in his cramped apartment, throwing away 1800/month in rent waiting and waiting for the “deal of the century” to come alone (only to be snatched up by investors w/ cash). I wonder if you will be saying the same thing in 2015? 2020?”
“
“Why always assume the worst? Maybe the buyer waited a year and got a great deal?”
What constitutes a great deal?:
400k mortgage at 4.5% interest now = 18,000/yr interest
250k mortgage at 7.5% interest in 2 years = 18,750/yr interest
Basically, I am trying to say that if potential buyers continue to wait, they may (actually WILL) be faced w/ higher interest rates. Therefore, even if a currently priced 400k property drops to 250k in 2 years, buyers could be paying more for the property because of probable increased interest rates.
“Basically, I am trying to say that if potential buyers continue to wait, they may (actually WILL) be faced w/ higher interest rates”
Clio–higher rates are going to lead to even lower valuations. Only scenario where this wouldn’t happen is the economy comes roaring back along with inflation. I don’t see that scenario coming to fruition, especially not within the next two years–that would indeed be an optimal scenario for this owner.
Also sorry Sonies got this unit confused with another comp in the building right around the Lehman time.
“Clio–higher rates are going to lead to even lower valuations.”
All of these financial models/predictions and big financial words sound really good in theory, etc. – but if the financial wizards in the world/government really knew what the f@#k they were doing, we would not be in this mess. Where were they 5 years ago? I completely don’t trust or believe anyone anymore – it is a sad state.
“if the financial wizards in the world/government really knew what the f@#k they were doing, we would not be in this mess. ”
The financial wizards in the world/government are actually doing quite well in this mess. George Soros even wrote in his book, The New Paradigm for Financial Markets, in early 2008, that the government needed to step in to backstop housing and that there would be a massive financial crisis in the near term. He is also very supportive of all this government intervention. I think he probably did quite well.
Don’t assume that just because someone is a financial wizard or policy maker that their motives are purely beneficial. They could be financial as well or other things.
Hey people out ther looking at this 1647 Sedgwick address. Well in somewhere in the area of 1921 my father came home here as an infant. Just learned this out today! He was born at St. Elizabeth Hospital hospital August 23 1921. I’m sure that doesn’t exist anymore! Well i can not wait to drive past this home. To see my heritage althought everyone in my family thinks it’s crazy. I think it was maybe a whole house at one time. I’m sure everyone looking at this now condo would have never imagined that a family my family just an ordinary family from the 1920’s lived here, but they did.
“St. Elizabeth Hospital…I’m sure that doesn’t exist anymore!”
Sure do:
Saint Elizabeth Campus
1431 North Claremont Ave.
Chicago, IL 60622
773-278-2000
“I think it was maybe a whole house at one time”
Almost certainly not. The 28-29 Polk guide (findable on the Chicago History Museum website) shows 4 families resident at 1647 Sedgwick, with the property owned by a Martin Haefner, wife Clara.
[@fo doing what @fo does]
That’s all v well and good but you should prob track down Sue Ann from four years ago and relay the info. Or maybe she has a google alert set up.
I’m sad bc, just for a moment, I thought bobbo was back.
I want to know what happened to HD’s ex-neighbor’s bungalow flip.