Thomas McCarey

Hi Mandi,

Unit 803 went off market in June of 2008. It seems some listings linger on Trulia longer than others. It was listed at $1.235MM with a tandem parking space for additional $65k. Assessments (not including parking) were just under $1000/month. The building won an architectural award for its design - and for the fan of contemporary motifs the structure likely resonates. It was on the market only 2 months. This unit by developer's specs had about 2200 square feet.

803 appears to have originally sold in May 2005 for $1,085,000. Parking likely was included in this amount. It is no surprise that the seller removed the unit from the market - attempting to gain $215,000 on a two-year parlay having purchased near the apex of the market that then deflated might be termed by some as the height of folly if not absolute absurdity. Point being - seller wanted too much and the market wasn't willing to acquiesce.

Currently there are three other units on the market at 201. Two in excess of $1.8MM and a nearly 1800 sf penthouse 2/2 listed at $700k with a parking space included. I will be more than happy to share more information about this residence and other comparable homes in the area that satisfy your search criteria. You may reach me through my profile to do so.

All the best,

Thomas McCarey
The Real Estate Lounge Chicago with @properties
Accredited Buyers' Representative

[Click my website to see if my approach to the market matches your sensibilities.] - Thu Jun 25 2009, 08:37

Lara,

Not all funder sources are created equally. Different mortgage brokerages have access to some similar and some different funds. Historically Wells Fargo had a significant portion of the new construction market - I don't know what shape they are in now. But it seems to me that Guaranteed Rate has the capacity to fund a purchase such as yours so long as you have the credit score and downpayment they stipulate. n addition, I wonder who holds the construction loan for the developer you seek to purchase from and whether they have the capacity to engage in residential funding to support your purchase. At any rate, Guaranteed Rate seems to be a good option.

All the best,

Tom McCarey
The Real Estate Lounge Chicago - Mon Jun 22 2009, 13:46

Hi LP,

Sometimes what you put in impacts what you take out. And sometimes not.

In the current market buyers are looking for any means possible to emphasize their leverage. You may do the same with your next purchase if you are using this townhome sale to purchase quickly in this market. As such, your dated kitchen may be the exclamation point to the buyer's lower-than-you-want-offer. To determine which path to take, whether to enhance or to stay still depends on two means of evaluation - one subjective and one objective.

The subjective has the acronym PITA - standing for "Pain in the as*." Quite simply, is it worth the headache and hassle to do the work.

The objective has to do with the simple cost of the project.

Unlike several of the other folks who have commented here my sense is that if the "pita" factor is not too high and the cost is reasonable, do the work. The reason is because you need to gain differentiation in this market to be seen and to gain positive recognition. The idea of passing off a credit for work to be done doesn't work in a market that is still trying to find steady and residual traction.

In other words, why give a consumer the opportunity to look past you when you have it in your control to positively impact their impression of your listing? Note that I am not saying that the money you spend will result in a dollar for dollar gain. But what it does achieve is the enhancement of perception of your abode.

I wish you the best in the course you take and hope you select a skilled real estate professional to expertly market your listing.

Thomas McCarey
The Real Estate Lounge Chicago with @properties
Luxury Home Marketing Specialist
Accredited Buyers Representative

To get a sense of who I am and why I say what I do, check out my original content blog - Wed Jun 17 2009, 20:29

Hi Still Looking,

What an awesome location! Have you been to the new Whole Foods? I think it qualifies as being off the hook. And the big hole in the ground at Clybourn/Halsted/North? An Apple Store is going there. And where the New City Y was a large retail development is supposed to go there. I mention these things because they suggest location and that it was SoNo has. It has a great location that is simply going to get better. I have toured the units in the building and found them to be viscerally awe inspiring as they integrate muted colors and newness with something that a lot of new projects miss - warmth. And the end-cap two beds with the ridiculous balconies are beautiful.

In terms of whether there are problems at SoNo. I know of no problems. The beauty of google and bing is you can go faster to the point of knowing tomes about a place than ever before - I don't see anything to cause me doubt. At least not any more than anything else in the current environment.

And I guess that's the point in all this. With monies being released through pin holes, people who do want to buy are not able to buy even though they qualify to buy. Somewhere an arbitrary number of 20% was set as the threshold. Believe me, I don't advocate for 100% financing, but 20% is foolish. Maybe somewhere between 5% and 10% to ensure a borrower's capability. But projects like SoNo have been hamstrung by lenders a) making consumers run through walls a la old Tom and Jerry cartoons and b) saying they will not fund in new condo projects.

Maybe you have confronted this in your search - the paucity of funding entities lending for condo purchases. At any rate, here's my take - SoNo as a building is gorgeous. SoNo as a location is new and vibrant and value aggregating as we speak. SoNo as a purchase possibility - it seems you have made your mind up - are your working with a real estate professional who you trust and who is experienced? Perhaps a one-to-one conversation will compel you one way or the other. And such a conversation will prompt a discovery of how you wish to proceed with a negotiation.

By the way, I am affiliated with the brokerage representing the developer, but I am not associated with the project.

I wish you the best of luck!

Thomas McCarey
Certified Negotiation Expert
Accredited Buyers' Representative
Luxury Home Marketing
The Real Estate Lounge Chicago with @properties - Sat Jun 13 2009, 06:22

JTT,

You have not provided enough information to provide a sensible response. What thoughts does your realtor have?

First question - are you financing this purchase or making a cash offer. If financing, I would guess the lender would have significant if not outright problems authorizing the purchase due its incompletion, lack of appliances, and structural deficiencies.

Second question relates to who the lien holders are and the amounts of the liens. Since it is new there are likely a coterie of lien holders in terms of contractors and subs along with the bank(s). Each of these lien holders has to sign off and authorize a waiver of the lien they hold. The more holders, the greater the possibility of hold outs.

Yet the chief obstacle will be the primary and secondary lien holders. These are banks and they have a fairly exact ratio of what they will allow. I learned this last summer during a new construction short sale I negotiated. Somehow we beat the odds and came to terms with the first two lien holders and about a dozen subcontractors that ranged from plumbing to stone, from appliances to hvac. I have read that only one in four such transactions come to consummation.

So the point I am chasing is that there is a specific number based on an equation done by the bank associated with the amount of outstanding monies it has lent. And it is entirely possible that you are short of it.

Good luck.

Thomas McCarey
The Real Estate Lounge Chicago with @properties
Certified Negotiation Expert
Certified Luxury Home Marketing Specialist
Accredited Buyers' Representative - Sat Jun 6 2009, 06:06