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Asked by Ma da, Chicago, IL Mon Jan 19, 2009

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Answers

4
Edith Karoli…, Agent, Winnetka, IL
Mon Jan 19, 2009
When looking at foreclosures, and I have done so recently with a lot of condos and townhouses in the lower price ranges, unless you see them you can really not judge if they are a good deal or not....
Some truly need a lot of work, because they were rented out before and not well taken care of, some had been bought by someone to improve, remodel and then flip for profit and they ran into difficulties financially or otherwise and were foreclosed and now the unit is half done, sometimes everything is ripped apart and only partially things have started being done, so very careful with the "cheap deals"

Building conditions, exact location, and how many foreclosures in the entire area and your reason for buying are very important...
Will you live there yourself, or will you rent etc. etc. You really need a good Realtor to assist you....
Price alone does not make the deal these days.
Edith
YourRealtor4Life Century 21 SGR
edithdoesitright@yahoo.com
1 vote
Christopher…, Agent, Chicago, IL
Mon Jan 19, 2009
Dear Matt,

This property appears to be owned by a bank suggesting that they foreclosed on the previous owner. They're offering the property as is with no warranties of any kind. Based on local pricing trends, it does look like a very good deal. Let me know if you need any additional information or help with attempting to purchase it. Good luck.


Sincerely,
Christopher Thomas
Broker Associate, Sudler Sotheby's International Realty
773-418-0640 (cell)
christopher.thomas@sothebysrealty.com
http://www.mayagentchris.com
1 vote
Synthia Noble, Agent, New Lenox, IL
Tue Jan 20, 2009
This property is likely very low price for a number of reasons - one being the amount of work needed to make it liveable. The second is that the condo association is likely not viable - that means there is no association to take care of the building. This situation is risky since if something goes wrong with a common element (example the roof), there is no money to pay for repairs - nor is there an organized group of owners to coordinate the repairs. Additionally without a home owners association it is extremely difficult to get a mortgage. An important question to ask is what is going on with the other units in the building - are they all empty? Potentially occupied by squatters?
The price is low because the pool of potential buyers is very limited - cash only, investors.
This is not an ideal situation for a home owner. However, for the right buyer this situation can offer long term high profits - but it would be a on long process for an experienced investor. I bought two condos in this neighborhood a few years ago at steep discounts, it turned out to be profitable after about a year. A larger investor purchased 4 units in the building and bought me out so they could own the entire building.
0 votes
Scott Newman, Agent, Chicago, IL
Mon Jan 19, 2009
The likely answers is that the property is stripped down to the studs or worse. I used to represent a builder who did a lot of developments over here and his units used to go for under value- which was $200,000+ still - and those same units now are selling in good shape for $135,000. The investor who buys it will not likely be able to flip it so they'll have to hold it and rent it out which means their risk level goes up. This, plus the as-is/bank owned status mean the property will need to go for a steep discount in order to sell.

Scott Newman
Newman Realty
0 votes
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