Confused about Chicago housing/ apartments. standard of living (Phoenix, Virginia: co-ops, attorney)

[Lookout Kid]

Originally Posted by snoylekim

Your example is a real outlier for a condo ( not a co-op) unless you were looking at the penthouse, or that particular development had rolled a special assessment into the monthly charges ( some do that ) ... For a high rise in South/West Loop ..assessments on a 1 bedroom are typically 350-500, for a two bedroom 400-600 , disregarding any special assessments .. Low Rise buildings are typically lower .. Main message is that it's an important charge to consider ( along w/ property taxes) if one is moving from a rental to an 'owner' environment .. and there's more homework to do on a condo versus a free standing house .. Co-ops are an entirely different animal w/ respect to costs of owning and assessments .. For most, if you have to ask ....

I think Myssa's point (and mine too) is that if a place seems outrageously cheap, it could be due to higher assessments. Buildings with high assessments usually sell at lower prices to make up for the additional cost.

[long101]

$1800 in assesments? I call BS. I dont think even the would be Spire would be that much

[Lookout Kid]

Originally Posted by long101

$1800 in assesments? I call BS. I dont think even the would be Spire would be that much

I've seen co-ops with $2500 assessments. And even though this includes property taxes in a co-op, it is still outrageous.

[snoylekim]

Yes, Co-Ops are a different beast because of the ownership model.. I've seen > 1K assessments in condos, but they've been on 2000 + SF 3 bedrooms that sell well north of 800K. Assessemnts are typically computed by the size of the unit .. I disagree w/ the contention that unit prices are adjusted to account for higher assessments ..unless it's an 'implicit' discount because the assessment includes parking . That doesn't mean that it wouldn't/shouldn't enter into the negotiations, though... Assessments in highrises are greater because of some of the commonly funded necessities ( elevators, central heating and air, security) and extras ( workout rooms, 'party' or meeting areas, pools ) .. Some of these amenities undoubtably serve as 'price enhancers' to the perceived value ( plus location, location, location) ..

[Chicago60614]

Jeez, I can't believe how high those assessments are.

I'm in a very nice 1 bedroom gut re-hab in Buena Park. I love the place, $238K and $105 assessments each month. There are plenty of nice places all over, you just have to track them down. Location is a huge key. You certainly don't have to live in the ghetto, but don't expect to find a huge steal at Diversey and Clark.

[snoylekim]

IMHO, if I were buying and a prospective unit had and assessment well above comparable nearby properties and didn't include something above and beyond , that'd be a red flag ... Something's wrong someplace..which should come out in the disclosures ..

[HeatherRae]

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[HeatherRae]

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[Gelasia]

Originally Posted by long101

$1800 in assesments? I call BS. I dont think even the would be Spire would be that much

Like I said $1800 more like $1,892 a month in assesments and as Lookout suggested it does in fact include taxes as well as all expenses.

Baird & Warner


either way my dreams went up in a puff of smoke =(

[PokerPlayer1]

Originally Posted by MyssaTx

Like I said $1800 more like $1,892 a month in assesments and as Lookout suggested it does in fact include taxes as well as all expenses.

Baird & Warner


either way my dreams went up in a puff of smoke =(

If that is really $1800 monthly, it would explain why the property like that had a price tag of only $250K.

As others have noted, the sale price of an attached dwelling has an inversely correlated liability to its monthly assessment. In other words, a $450,000 condo anywhere else might only sell for $250,000 if its monthly assessment is extremely high, as seems to be the case here. Huge assessments actually have a quality of life 'benefit' in certain regards. Some people want their living space to remain highly exclusive with the best possible services and property maintenance schedule that only a high assessment can provide, without having to outlay a mound of cash up front in sale price alone. Obviously, the free markets factor this in and adjust the "value" of the property accordingly (and as a direct result of the assessment), but the net effect of disproportionately high assessments is very appealing to some people in that their dwelling is very well served and flush with funding while the riff-raff factor is even lower than what a coop board gets away with.

I think why some people find that so offensive is they see pictures of fantastic properties that are otherwise way out of their league and as a result, get all excited but then sadly learn that yes, Virginia, the big assessment is the reason for the low price and you shouldn't even think about a condo without instinctively factoring in the monthly dues.