Tuesday, November 25, 2008

A Tale of Two Foreclosures in Chicago



My clients were interested in this new construction foreclosure listing on North Clark Street in Rogers Park. They know the area and the price is so right in the $230,000s. It's a huge two bedroom, two bath unit with really nice finishes, wired for sound, parking and deck.
However, the building is sketchy. The elevator is inoperable, there is another foreclosure listed in the building with another brokerage and details are hard to get. I'll bet that there is no owners association formed and no one responsible for the maintenance of the building. The views of MacDonald's off the living room and the alley off the master are lovely. With their eyes lit up while looking at the level of finish... I gave it the "thumbs down".


Later that day, I'm in Ravenswood Manor and Albany Park with another group of clients. Another foreclosure is listed at West Montrose and North Sacramento on the edge of Ravenswood Manor... a few blocks from the CTA Francisco Brown Line. It's a giant three bedroom, two bath unit with nice decks, good level of finish and did I mention huge. I like the location. No parking included, but it's priced so cheap at $218,000, renting a spot or parking on the street is totally worth it.
The place needs about $15K in appliances and upkeep. The marketing is so bad on this place no one has probably seen it. I called the listing office for details after viewing it (the unit is on lock-box) and no one has called me back.

The difference here is it's a better location and the owner's association is in good shape. I have other clients living in the condo building who may provide my clients much more of a true picture of the association. Whoever was the owner of this place, and now the bank, has really messed up. I would put $15,000 of renovation in to the unit and list it at $299,000 for a much higher sale than they are asking. It sold originally for more than that. It would make a fantastic primary residence.




"You could bowl in this place!"



Foreclosures are not for everyone. The buying process is not easy and due dilligence is to the extreme. However... a deal can present itself. A deal just presented itself.

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