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Old 01-08-2009, 10:43 AM
 
5,460 posts, read 6,083,571 times
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Part of the "getting worse" prediction is that houses that the loans bought are foreclosed on. That will reduce the number of them outstanding, but is hardly good for the area in any sense. That could be some of the reduction you're seeing.
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Old 01-08-2009, 11:49 AM
 
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Quote:
Originally Posted by chet everett View Post
I agree it has some lovely pictures. The property has some negatives beyond the taxes. It is right on Green Bay Rd, a pretty heavily traveled street. Further, it appear that and E-W cross street, Great Elm Ln, terminate right in front of this home.

Lot size is listed as .29 acres 80x155, which ought to be buildable, but as a corner lot (Glenco Ave is directly north) there may be some restrictions and /or irregular shape. The drive is oddly configured as well, coming from the north of the property all the way across what should be the front lawn and terminating in a one car garage. Appears there is ZERO true back yard, the outside space is all a (fenced) side yard.

Listing does not make clear, but I believe there is NO main floor lavatory, only a master upstairs with a full+ bath in basement. Retrofitted space pack A/C can be a negative, as are raditors for heat.

Kitchen is nothing special, and basement laubdry room is not going to please buyers.

All-in-all not a a bad value at the listed price, but certainly not the SCREAMING bargain that too many folks are waiting for -- certainly any family could make be very happy here, but in current economic conditions this home may be expensive to own / maintian, difficult to ever expand, not desirable as a teardown and still a bit of risk.

On the plus side, it is in an area that will always have many other homes that are FAR more expensive, may retain its value / appreciate over a long period and should prove quite comfortable for a family of five or more. Schools are well rated, Highland Park High School: Best High Schools - USNews.com (http://www.usnews.com/listings/high-schools/illinois/highland_park_high_school - broken link) http://www.suntimes.com/images/cds/pdf/top50mid-2008.pdf (broken link)

All depends on what you want / need and your tolerance for risk...
I agree with most everything you said.

However, most buyers in Highland Park in this price range looking for an older home on the east side are familiar with these limitations if they've done any sort of searching... one car garage, basement laundry, space pak, small lot, etc. are all fairly common (describes my house pretty much). So, I believe the only real negative a person familiar with Highland Park would see is its location on the main north/south artery through the town. I don't think most buyers (in this particular area) heavily consider future expansion possibilities. Generally, people are willing to trade buying the giant house for other things (proximity to lake, school, train, town center, etc.) or when they need more room, they move. That's not to say that additions to properties don't occur all the time, I just don't think many potential buyers would be turned off by possible future expansion limitations.

The price already reflects its location. In my neighborhood, just south and east of this location, the house likely would be priced a bit higher (and the lot would be considered on the larger side). In fact, if you put the home two lots away on Glencoe Ave (where it intersects) it would probably be listed higher as well.

Like you, I don't think the house is a great deal but it doesn't seem particularly over-priced either. Also, there doesn't seem to be alot out there right now in this price range (with four bedrooms) on the east side, so that might help it.

Finally, unfortunately, the real estate taxes on this property aren't out of whack for Highland Park at the moment. I have a four bedroom home on a lot half the size of this property, and my taxes are about the same (even after I appealed them and received a reduction last year).
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Old 01-08-2009, 12:01 PM
 
Location: Humboldt Park, Chicago
2,686 posts, read 7,139,931 times
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Default Highland Park flip

Paige,

I still think it goes for way less than $539K. I would not be surprised if it goes for less than $500K. My guess is, given this tough real estate market, it goes for $450K and the new owner is able to successfully appeal their taxes based upon lower purchase price to say $9K/yr intead of the $11k/yr they are currently paying.

If the current owner is greedy and ends up holding on to it and is forced to sell in 12-18 months, it could go for as little as $400K. That would be a price that would get me interested, very interested.
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Old 01-08-2009, 01:22 PM
 
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Originally Posted by Humboldt1 View Post
Paige,

I still think it goes for way less than $539K. I would not be surprised if it goes for less than $500K. My guess is, given this tough real estate market, it goes for $450K and the new owner is able to successfully appeal their taxes based upon lower purchase price to say $9K/yr intead of the $11k/yr they are currently paying.

If the current owner is greedy and ends up holding on to it and is forced to sell in 12-18 months, it could go for as little as $400K. That would be a price that would get me interested, very interested.

Well, keep an eye on it! It's a good place to live (or is this for investment?).
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Old 01-08-2009, 01:39 PM
 
28,453 posts, read 73,510,312 times
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It'll be fun to watch. I'm with Paige --about what I'd expect for the price. It is already signficantly below HP's median value for CD: //www.city-data.com/city/Highla...-Illinois.html The reason that I mention the buildable lot situation is not so much that I would expect this to become a teardown, but because homes with a greater appeal as an opportunity to build new would have more of a "floor price" underneath it.
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Old 01-08-2009, 08:29 PM
 
1,989 posts, read 4,022,002 times
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I have to apologize again-- my internet connection is dead and won't be repaired till Sunday. Argh.

Sheri257: Regarding Alt-A's "improving," I'd pay attention to the options that show how many of that type of loan are late, delinquent, in default, etc. I'd be surprised if that's improving and that'll give you a read of how much of who is in trouble.

Paige65, Chet Everett and Humboldt: Regarding the Highland Park property, sorry if my intermittant posts caused confusion. The post was simply to show the pricing history. The property was on the market for a bit (although not awful) before what appears to be a flipper bought it. The price is now reduced to the point where the flipper won't make any money. I've been surprised to see more than a few houses in this neighborhood attempt a "flip" in the last yeara-- so far they're still all on the market.

I'm keeping an eye on the status of the flippers as one indicator of when the market has stabilized. If flippers are still a solid proportion of the buyers, I don't trust it.

My hope is that more than a few of them will fail to make a profit (like Green Bay Rd) and word will get out. Green Bay is the first I've personally witnessed to drop beneath profit level.

See you all Monday.
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Old 01-09-2009, 09:02 AM
 
22,770 posts, read 27,038,860 times
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Quote:
Originally Posted by cohdane View Post
I'm keeping an eye on the status of the flippers as one indicator of when the market has stabilized. If flippers are still a solid proportion of the buyers, I don't trust it.
I have the same 'feeling', but I do not know if it is logical to assume this. It does worry me to see that multiple homes in my area/price range are being bought by real estate agents, repainted, and put back on the market for a 30% price increase.
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Old 01-09-2009, 01:03 PM
 
28,453 posts, read 73,510,312 times
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I don't have direct knowledge of the property / situation but it appears to my jaundiced eye not to be a flip. The stuff in the house does not scream flip. In fact, to my eye it looks like some one may have gotten divorced or something. The "decluttering" is also accompanied by some changes in the other furniture...

Zillow can be so much fun: Photos for 1135 Green Bay Rd, Highland Park, IL 60035 - Zillow
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Old 01-09-2009, 04:14 PM
 
Location: Humboldt Park, Chicago
2,686 posts, read 7,139,931 times
Reputation: 1188
Default Highland Park flip (or not)

Chet,

It will be interesting to see what this goes for. With a listing price of $539K in this market, doubtful it gets much more than $500K. It might get a lot less if they really have to sell badly due to a divorce, move, etc.

I think a lot of well-maintained properties like this in good areas will be coming up shortly.
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Old 01-11-2009, 12:53 PM
 
16,308 posts, read 25,574,834 times
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Quote:
Originally Posted by Bideshi View Post
wait until property taxes go up before you decide to buy. Not only will property prices go down, but taxes will absolutely go up. A lot.
Property tax increases are passed on in the form of rent increases, you won't escape them. The solution is to make sure your local elected officials clearly understand that they will be thrown out on their butts if they choose tax increases.
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