Home Buying in 60605>Question Details

Newintown, Home Buyer in Chicago, IL

Library Tower

Asked by Newintown, Chicago, IL Wed Mar 25, 2009

Any opinions on the Library Tower? We're interested in a 2/2. Looks like prices have dropped 30 grand since January. We're looking to buy soon. How much negotiating room on price do you think there might be? Once a unit is completed, is there room for negotiation on upgrades? (Like a nicer fridge, for example.) Could we expect to get a year of HOA paid? Do you think the recent Vetro auction gives us some good back-up for lowering the price? And what happens if they default on that construction loan that was due in January? Thanks for the help!

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Hi Newintown,
As Christopher Thomas said, consult with your buyer's agent about your concerns. Continue to do your homework. Before jumping into the library tower development consider other new luxury construction such as the Marquee Condominium, located on Michigan Avenue, it has many of the same amazing amenities, over 80 percent closed, homeowners association controlled. More information on http://www.marqueeblog.com and http://www.marqueechicago.com. The developer is offering fantastic pricing on his remaining two bedroom two bath units. Come visit me at our sales center, 1464 South Michigan Avenue. We are open each Saturday and Sunday from 1pm to 4pm or by private appointment. Feel free to call me.
To Your Success,
Akos Straub
Web Reference: http://www.marqueeblog.com
0 votes Thank Flag Link Wed Apr 15, 2009
Dear Newintown,

I just wanted to add a couple of things. First inf you are already working with a buyer's agent, then you definitely want to run all of your questions past them as well.

Second your instincts on pricing and the potential downward pressure on Library Tower (and all other non sold out developments in the South Loop) are correct. There "should" be some significant negotiating room on price, but some developers are up against a very solid brick wall when it comes to their bottom line average price per unit or their average price per square foot.

Fred makes a very good point about underwriting guidelines and the ability for you to close a loan in a non-warrantable (in the past 50% sold more often 70%) building.

I'd suggest throwing in your dream offer. The worst that the developer can say is no, and you're much more likely to get some sort of response (counter offer) than you are to get a flat out no.

Good luck.

Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.mayagentchris.com
0 votes Thank Flag Link Thu Mar 26, 2009
They are very negotiable-the concern you should have however is the percentage of sold/under contract units. Fannie May now requires that at least 70% of the units in a new development be sold or be under contract-if not, the underwriter for your lender will be unable to fund your loan to purchase. You should discuss this issue with the lender you are currently working with! Fred Scovell 312-914-1045
Web Reference: http://scovell-sabatini.com
0 votes Thank Flag Link Wed Mar 25, 2009
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