When Should You Lower the Price? 1322 N. Clybourn on the Near North Side
We last chattered about this 3-bedroom in the silver-leed certified building at 1322 N. Clybourn on the Near North Side (near a soon to be new Target, apparently) in April 2011.
See our prior chatter here (but I’m almost scared to link to the old thread- given the discussion about pizza, among other things).
In April 2011 it was listed at $474,900.
8 months later, it is still listed at $474,900.
If you recall, it has 10 foot ceilings, floor to ceiling windows and bamboo floors.
The kitchen has granite counter tops and stainless steel appliances.
The master bath has onyx counter tops.
This unit is currentlystill listed for about $100,000 under the 2007 purchase price.
Is this property a microcosm of the larger market- where properties are sitting and sitting, sometimes for years, with few or no price reductions?
Scott Rife at Prudential Rubloff has the listing. See the pictures here.
Unit #2N: 3 bedrooms, 2 baths, 1800 square feet
- Sold in December 2007 for $575,000
- Was listed in April 2011 for $474,900
- Currently still listed at $474,900
- Assessments of $340 a month
- Taxes of $6465
- Central Air
- Washer/Dryer in the unit
- Bedroom #1: 18×12
- Bedroom #2: 13×11
- Bedroom #3: 12×11
Cabrini or no Cabrini this area still stinks for a variety of reasons.
yes, its improving but it still has a LONG way to go.
so at north of $250/SF you’re competing with quite a bit better areas.
i’d think this place would move at $400-$425K but my guess is the seller can’t budge much as reflected in no price change for 8 months.
I still don’t know what this neighborhood should be called as it’s kind of in no-mans land. Definitely not Old Town, nor is it “near-north side”. I don’t see anyone paying $475k for a condo in the shadow of Cabrini.
Seeing the 2007 sales price makes me sad. It is just inconceivable to me that someone would pay that amount of money for an average sized condo in a very, very poor location. I’d imagine the seller isn’t budging because they can’t bring money to the table. I don’t exactly feel sorry for them given the bad decision making involved here, but it is a sad situation…
Mortgage is only $417k. Seller should have some room to move.
Why not rent the unit out for 2000/month. The monthly costs for this owner is probably around 2700/month. So, if they lose 8400/year for three years and then put it on the market for the same price (at which point the market will be better – remember the longer we are in this slump, the less likely it will drag on for much longer), they would probably lose much less money (30k) than reducing it now by a much larger amount. There ARE options – people just need to be calm and write out and analyze each option before making an emotional decision.
Neighborhood fail!
Residential living is for side streets with trees and parking (high rises excepted). Busy, arterial streets like Clybourn are for commercial use.
Oh my the tub has chicken pox! I wonder if it got it from the bed cover or it was the other way around ; )
The price should be lowered when the owner wants to actually sell the unit. It’s not going to sell for anywhere near the list price at this point. I don’t see why sellers keep these places on the market.
If the sellers were serious, they should lower the price $25,000 every month until it sells.
This seems like a good buy… in twenty years when a neighborhood develops.
Seriously, who? how? and why? paid $575K for this? I can’t begin to imagine what they were thinking. Is that a typo on the 2007 price? I just can’t get my head around it. Not that t his area has tranformed that much in 4 years – but that’s the point – 4 years ago this was still Cabrini, right?
“remember the longer we are in this slump, the less likely it will drag on for much longer”
Huh? Care to explain that one. And please use small words as I”m one of the dumb ones here.
“remember the longer we are in this slump, the less likely it will drag on for much longer”
“Huh? Care to explain that one.”
If a slump lasts 6 years, then if we’ve been in it 2 years, there’d be 4 years left, while if we’ve been it 4 years, there’d only be 2 years left. Well, wait, maybe that’s not quite right…
Real estate slumps are time-limited – they have never (and will never) drag on for many years. If we are in a 5 year slump, prices should start increasing next year. If we are in a 7 year slump, prices should start increasing in 2014. I don’t think anyone (except on this site) foresees a “greater than 7 year slump”.
Nat: “Mortgage is only $417k. Seller should have some room to move.”
Dang. Well, not many excuses for this ask, then. This condo, in this neighborhood, on this street, is not worth nearly a half a mil.
$417K sounds like the first mortgage to me. No 2nd on there?
I doubt this place as nice as it is, even sells for 417k
400 or slightly under IMO
People aren’t willing to pay for the “possibility” of gentrification, although it is coming to this area, by the time that happens, this unit will be way the hell out of style, I mean it is already looking dated just a few years later
No recorded second mortgage.
“If the sellers were serious, they should lower the price $25,000 every month until it sells.”.
No, if the seller wants to sell, they should list it at a realistic price from the start!
“at which point the market will be better – remember the longer we are in this slump, the less likely it will drag on for much longer”
what kind of comment is that? I’m sure one year into the bubble burst someone who was down 10% and believed this would’ve kept their home because ‘the longer it goes on, the less likely it will drag’ flash forward the next year and the next year 10% drops, holds on, 10% drops, oh, but 10 years later, it stopped dragging on! what a deal. Learn economics and history of bubbles before making such crazy statements. If real estate can’t hold itself with 3.9% mortgage rates, can’t wait to see what happens when inflation and rates pick up.
Isn’t this the building with the tacky rainbow color changing light on its facade?; trying to act like it wants to be at the gateway to Boystown. Such a strange building in the middle of a blah area.
So many units on the market, and who wants to live on top of Clybourn Avenue? And who wants to buy an overpriced unit in the “no man’s land” of former Cabrini Green campus? Developer was very lucky to sell its units at such inflated pricing, but for a 2012 resell this unit will close around $350,000 or less. There are many alternate “3-bedrm/2bedrm + den” unit choices in 2-mile radius for someone committed to area, and way too many alternate choices in LP/LV/WP/BT/LS/GC etc.