$570K home in Oak Park now selling for $225K

[Bonster]

$225K looks a lot closer to the actual value of this home ...

Two-story Colonial in Oak Park was $570K, now $225K



Joe Zekas on 10.02.10 at 2:28 PM

I was in Oak Park earlier today, visiting a friend who'd had his home on the market earlier this year with no offers after numerous showings. His home, on a wide lot with a 2-car garage, was an oversized bungalow with 5 large bedrooms (4 on the second level, two of them master size), 2 full baths, a beautifully redone kitchen with a separate breakfast room, front and rear porches, a home office, a large unfinished basement and, as the Realtors say, "too many features to list." The home was originally offered at $440,000 and reduced to $395,000 before he took it off the market.

I was surprised that my friend's home hadn't sold at that price. It's on a quiet, tree-lined street of mostly bungalow-style homes in northeast Oak Park, not far from the city limits. It's not the most desirable part of Oak Park, but then it's far from the priciest. The schools are good, and the neighbors all know each other, according to my friend, who's lived there for 20 years and raised two children there.

Stiff competition from short sales may have been a factor in my friend's home not selling.

A 2-story Colonial (pictured above) not far from where he lives is currently on the market for $220,000. It's a much smaller home, with 3 bedrooms and a bath and a half, but on a larger 46 x 125 lot. It sold for $350,000 in June of 2004, sold again in November of 2007 for $570,000 - and is now listed as an approved short sale at $225,000. Annual property taxes on this home, which has been on and off the market for more than 2 years, are listed at $9,568. Other large bungalows in the immediate area have also been listed as short sales in the low $200s and even into the mid- to high $100s.

http://www.redfin.com/IL/Oak-Park/1043-N-Humphrey-Ave-60302/home/13278141

[tony la]

225k seems cheap for that house.

[MRS. NORTHSIDER]

225k seems cheap for that house.

Yes, it certainly does.  I guess this shows just how far the real estate market has fallen.  I also think the statement "not far from the city limits", meaning Austin, may have brought the price down.  I saw the story yesterday in the real estate section of the Trib online.

[tony la]

It is a short sale.  Many agents and buyers stay away from them because of the many uncertainties of the transaction.

[MRS. NORTHSIDER]

The people who bought it in June of 04 for 350K and sold it in November of 07 for 570K certainly made out handsomely.  A 220K profit in a little over 3 years - nice.  However, I can't believe anyone paid 570K for it considering where it's located in OP.  I guess buyers in Berwyn weren't the only ones who got caught in the trap.

[The Jackal]

BUYERS stay away from short sales?

[MRS. NORTHSIDER]

It is a short sale.  Many agents and buyers stay away from them because of the many uncertainties of the transaction.

Not here in Berwyn.  On a website I sometimes look at that has RE listings it has 55 single-family homes with contingencies and 28 of those are short sales.  If I was in the market for a house right now I'd be looking at foreclosures and short sales to get the most bang for my buck.

[berwynguy]

It is a short sale.  Many agents and buyers stay away from them because of the many uncertainties of the transaction.

Not here in Berwyn.  On a website I sometimes look at that has RE listings it has 55 single-family homes with contingencies and 28 of those are short sales.  If I was in the market for a house right now I'd be looking at foreclosures and short sales to get the most bang for my buck.

No you wouldn't.  

Buying a short sale and ESPECIALLY a forclosure is NOT for the novice or regular buyer (in MOST cases).  If you have a family and want this to be your primary residence you can forget it.  Most people don't have the cash, knowledge, or patience to handle the transaction.  

[MRS. NORTHSIDER]

It is a short sale.  Many agents and buyers stay away from them because of the many uncertainties of the transaction.

Not here in Berwyn.  On a website I sometimes look at that has RE listings it has 55 single-family homes with contingencies and 28 of those are short sales.  If I was in the market for a house right now I'd be looking at foreclosures and short sales to get the most bang for my buck.

No you wouldn't.  

Buying a short sale is NOT for the novice or regular buyer (in MOST cases).  If you have a family and want this to be your primary residence you can forget it.  Most people don't have the cash, knowledge, or patience to handle the transaction.  

My next home purchase will be to my advantage.  I will have the cash and patience.  As for the knowledge, that's what a real estate lawyer is for.  I do realize my shortcomings in THAT area.

[berwynguy]

Your real estate lawyer can't help you with the bulk of what you need to know.  There are so many factors that go into purchasing a SS or Forclosure that it would make your head spin.

Examples:

Do you have 2-5 months to kill while the bank goes through the 5 foot pile of offers on properties?

Do you already have a house to live in?  

Are you selling that house?  

Do you need financing?

How much money are you bringing to the table?

Will the bank selling the house even except your financing or will they want cash?

What condition is the house you are going to buy in?

If the house is beat up or has problems, do you have the know how AND THE RIGHT PEOPLE to get it fixed up, and I ain't talking about calling Michael Moore Construction or Crafton for brick work if you want to have any money left to do anything. You need to have a good crew to get the job done that isn't going to charge you full boat retail for the rehab.  

Where do you and your [insert number here] kids going to go when the above is handled?

Here is a VERY important and REAL issue almost NEVER talked about.  I bet even Tony does a dance around this one.  Do you "know" the realtor handling the transaction?  What I mean by that is are you in their close circle of buyers that will have an actual shot at getting your hands on that steal?  Let me elaborate a little further.  Do you honestly think some moe off the street got that house in Oak Park for $225K?  I would bet the farm that the listing agent knows them very well or they are a good customer that has bought several properties, or they come recommended by the former.  Trust me when I tell you, the listing agent has the power to determine who actually gets the property.  Tony will come in with all the bla bla bla BS about it goes to the one who submits the highest bid and is the most qualified, but that ain't true, especially when it comes to a realtor that handles many of these for a bank.  

Would you like me to continue?

[MRS. NORTHSIDER]

I don't know (in person) Tony La.  As to all your other questions, if I was going to saving 10's of thousands of dollars I would figure out the rest of the equation.  I would rent or live with a relative, put things into storage and do what I had to do.  The end result would be dollars in my pocket.  Don't worry, not many other people would be willing to go to such extremes - but I would in this market.  I moved here in 1988 and paid 58K for our first home.  Not a bohemian by blood - at least I don't think so.

[berwynguy]

A lot easier said then done "Mrs. Northsider."

The ideal candidate as a buyer for a short sale or foreclosure is someone who has a lot of time to kill waiting for the final outcome and if they don't get it no big deal. They are someone who already has somewhere to live that they don't need to unload to buy this one.  They are a person with money to spend (ie. an investor).  They have the rehab money.  They have vast knowledge of rehabbing a distressed property and have a roledex filled with all the people to get the job done REASONABLY & AFFORDABLY.  For instance, they have Joey the floor guy, Mario the painter, Ronnie the roofer, Pauly the plumber all on speed dial who they have given a lot of other work to and will be taken care of on their own house.  They have a good realtor who knows how to negotiate or has a connection to another realtor who has many SS's or foreclosures listed who is willing to "take care of 'em."

I may be being presumptuous, but you don't seem like that person to me.  Don't worry, it isn't an insult.  Most people aren't.

[MRS. NORTHSIDER]

A lot easier said then done "Mrs. Northsider."

The ideal candidate as a buyer for a short sale or foreclosure is someone who has a lot of time to kill waiting for the final outcome and if they don't get it no big deal. They are someone who already has somewhere to live that they don't need to unload to buy this one.  They are a person with money to spend (ie. an investor).  They have the rehab money.  They have vast knowledge of rehabbing a distressed property and have a roledex filled with all the people to get the job done REASONABLY & AFFORDABLY.  For instance, they have Joey the floor guy, Mario the painter, Ronnie the roofer, Pauly the plumber all on speed dial who they have given a lot of other work to and will be taken care of on their own house.  They have a good realtor who knows how to negotiate or has a connection to another realtor who has many SS's or foreclosures listed who is willing to "take care of 'em."

I may be being presumptuous, but you don't seem like that person to me.  Don't worry, it isn't an insult.  Most people aren't.

No insult "berwynguy".  I didn't realize how invested you were in this conversation.  Yes, I do know plenty of people who could do the work for me.  I guess you think only the realtors or people like them who have the skills to "flip" the property can buy a short sale or foreclosure - you''re WRONG.  But I guess that would be taking money out of your pocket now wouldn't it?  No wonder you're so defensive.  You're probably making a mint in Berwyn right now.

[Bonster]

For instance, they have Joey the floor guy, Mario the painter, Ronnie the roofer, Pauly the plumber all on speed dial who they have given a lot of other work to and will be taken care of on their own house.  

Or Jose, Manny, Rolando, and Pasquale.

[MRS. NORTHSIDER]

For instance, they have Joey the floor guy, Mario the painter, Ronnie the roofer, Pauly the plumber all on speed dial who they have given a lot of other work to and will be taken care of on their own house.  

Or Jose, Manny, Rolando, and Pasquale.

Hey, watch out!  One of does guys is my husband.

[tony la]

Short sales and foreclosures are like apples and oranges when it comes to buying.  Foreclosures by themselves have two levels of buyers that are totally different.  When it comes to foreclosures the key phrase is......Is the home livable.  If it is not, it will take a cash offer or a 203 k rehab type loan. If it is not livable no bank will lend on it unless it is 203 k.  These are the single family homes you see priced at 30k to 80k.

The shortsale is sort of a pre foreclosure, where usually the people who owned it are still living in it. These properties are in pretty good shape.   Different banks that are holding the mortgage work in different ways.  Some are easy, some are not.  Some could take a year to close and some can close fairly quick.  The many variables involved make this process hard to deal with.

There are plenty of homes that need a ton of work and require a 203k loan or cash buyer that are available for sale and can be bought tomarrow no matter who you are, or who you know.  A 203k lender will give you the money to rehab the home with a licensed and bonded contractor who has to submit a bid and stand by it.  The bank lends the money to buy the home and to rehab it.  However they will not generally let you do any work on it.  They want a licensed contractor who will pull permits and do the work according to municiple code.  This is a FHA product, so you have to live in the home to qualify for this property.

I hope this helps

[watcher]

For instance, they have Joey the floor guy, Mario the painter, Ronnie the roofer, Pauly the plumber all on speed dial who they have given a lot of other work to and will be taken care of on their own house.  

Or Jose, Manny, Rolando, and Pasquale.

or Larry, Darryl and Darryl with materials supplied by Caleb Mr. Haney