West Loop Terrace Unit Still Available: 936 W. Madison
We chattered about this “soft loft” 2-bedroom unit at 936 W. Madison in the West Loop in April.
See our prior chatter and pictures here.
It is still available and has been reduced by $1,000 (the parking is now “extra” instead of being included in the price.)
The terrace runs the length of the unit and there is no one above you (so nothing can get tossed down on you.)
Both bedrooms also have windows.
Ron Knoll at Saffron Realty has the listing. See more pictures here.
Unit #5F: 2 bedrooms, 2 baths, no square footage listed
- Sold in October 1998 for $291,500
- Sold in April 2002 for $380,000 (parking included)
- Sold in April 2006 for $405,000 (parking included)
- Was listed in April 2009 for $430,000 (parking included)
- Currently listed for $399,000 (parking is $30k extra)
- Assessments of $380 a month
- Taxes of $5577
- W/D in the unit
- Central Air
- Bedroom 1: 15×13
- Bedroom 2: 14×11
Its a nice unit, but their MLS pricing games wrt the parking won’t move this unit. Theres a lot fewer loop jobs to walk to from West Loop than there were in 2006, and there will be even fewer in 2010.
They will be lucky to get the 2002 price for this. My guess is 365k with parking.
If this sells for $399k, then the appreciation from the ’98 price is 2.9% per year. Did the ’98 buyer “overpay” (ignoring that they did very well in the ’02 sale)?
Also, this is a perfect example of why you split out the parking in the first place–since MLS doesn’t seem to have any limiting rules–if it had been priced as it is now, it hits a lot more searches as a 2/2 under $400k.
I would like to hear the conversation when the agent says to the seller, “It’s probably the parking spot that’s holding us back here… Let’s sell that separately! And I think we should come down $1,000.” What happens to these sellers when they get the offer without the parking spot? They get to come back to their old place and park if they’d like. I honestly don’t get it – such a lame maneuver.
“Did the ‘98 buyer “overpay” (ignoring that they did very well in the ‘02 sale)?”
I’ve argued that Chicagoland RE has been consistently overvalued for quite some time. Given this seems to be a constant affecting the entire area, its probably not as applicable in this instance.
Its the 2.9% figure I take issue with. If we look at inflation measures broader than the CPI fudged government stats (that exclude food, energy and housing ownership too haha), we’ll likely see that the cost of living has not gone up 37% over this time period, at least thats my guess.
“I honestly don’t get it – such a lame maneuver.”
See my post under the 1720 Michigan property where they just cut the price of the unit down to 200k, but embedded within the MLS text it states “Must be sold with the parking spot for a total amount of $248,900”. LMAO!
“Its the 2.9% figure I take issue with.”
Huh? That’s a fact, if it sells for $399; nothing to “take issue with” and it’s *well* below the “appreciation” since 1998 of most props we see here.
And that’s what I was posing–if this is up so much less than “typical”, was it overpriced in ’98?
I said $360k back in April (parking included) and see no reason to budge from that prediction. I guess it depends on how fast they want to do a deal.
From the photos, it looks like your neighbors can easily access your terrace and hop right into your unit if they wanted to get in
“From the photos, it looks like your neighbors can easily access your terrace and hop right into your unit if they wanted to get in”
To the extent that is true, *every* SFH has the same problem with *everybody*, not just neighbors and their guests.
I would concider this a ‘move-up’ home, unforetunately there are less and less of these. The mover-ups need to sell there places first.
Also, I think that the urban loft is starting to loose its appeal. Seems that the open concept is not as great as everyone believed.
There was a great link to another blog in a privious post about the decline appeal of loft. Anyone remember the site or have the link.
Anon,
You are correct. I never really thought of it that way. One of the reasons that I like high rise living, is having only one way in and out of my unit. It makes me feel safe to know that if the crazy killer neighbor is coming to get me, he/she has to come through the front door.
I hate terraces that connect. Your neighbor can easily access all of your windows!!!
The entire premise of move-up home is based upon constant and regular appreciation. Without that the entire premise breaks down.
I think this is the link you are looking for Tom?
http://union03g.wordpress.com/2009/05/09/why-you-are-in-love-with-chicago-lofts-and-you-will-never-buy-one/
The move-up home is based on career advancement and salary increases.
Constant and regular appreciation won’t help you afford a the larger monthly nut that comes with moving up. Perhaps a bit in terms of a larger down payment. But nothing like doubling your salary.
Insert personal attack on the careers of cribchatter regulars here.
“The entire premise of move-up home is based upon constant and regular appreciation. Without that the entire premise breaks down.”
Hyperbolize much, HD? There was such as thing as “move-up homes” during periods of basically stagnant home values; then it relied on inflation, the forced-savings component of amortizing mortgages and increases in personal income.
The entire premise of median-earners purchasing move-up McMansions with high-end appliances was based on bubble appreciation, sure.
You left out increasing family size, as in having kids and needing a larger home.
Or so HD doesn’t think I am disagreeing with him (speculating on having lots of kids)
I wish I could’ve played the move up game too (well played and been successful at it). But I came out of grad school in 2006 with 60k in debt and an old beater car.
Now I have a fraction of that debt left and a newer car paid off. Unfortunate the real estate f-tards, government officials and mortgage fraudsters (countrywides, indymacs and organized crime) screwed up our economy via housing speculation to the point that it doesn’t make sense to buy a “starter home” anymore.
Instead I’m gonna sit out for the next 3-5 years when the dust settles and just get a “settle here for good” home. Not gonna be a party to the ponzi economics of “someone else paid x therefore the intrinsic value of my housing unit should be y” type BS.
Monkeys look around and see other monkeys throwing feces and they emulate that behavior, similarly people in the RE game look at “comps” only in relation to what other people long real estate paid and not vs. rent equivalence.
Until the idiots are flushed out, and it will take awhile, I’ll not dip my foot in the RE pond. Not worth the risk, especially now that any hope of appreciation looks dim and continued depreciation a real possibility.
I should’ve known this whole thing was going to wind up an economic disaster when real estate ownership and valuations in America became the subject of dinner table and cocktail conversations.
Just curious Bob – MBA?
WOW bob you’re so angry. Just be happy that you’re in a better place than most people.
Bob.. ain’t like you goin to miss this to the upside… couldn’t agree more….time is on your side.
GLS – yeah you’ll find more than half the regular commentators here are MBAs, JDs or JD/MBA’s.
Yeah I shouldn’t be angry.. my liabilities in life are pretty miniscule compared to most & its always dollar beers somewhere 😀
Bob – just found out the 50/50 on Division has $1 bottles on Mondays. I haven’t made it to that bar yet but if you leave Lakeview and are in need keep it in mind. I can’t imagine the bar would be much different than the others offering the same deal.