In my recent move to Chicago it's about that time to get a condo closer to work (not that I live that far away right now). But this will be my first real estate deal I'm trying to work out so I might need a bit of help on this one. My parents are going to back me on this and help with the down payment so I'll be looking to make the purchase within 2 months and move in 2-3 months after that.

The place is called Prairie Park and it's over in Wheeling, IL. I think this place was built for a 30-60 crowd, but I'm going to be getting one of the smaller units. This is definitely a high quality condo. Everything is top notch and nothing is cheap about this place... thus the high price.

Right now I'm looking into a 1 Bedroom unit with a den and 1 1/2 baths. The plan right now is to convert the den into a bedroom and the 1/2 bath into a full bathroom. I saw the same floor plan where they've done it before so it's possible and looks nice. However they said it'll cost like ~$5000-6000 to do that for me.

Anyway. The unit is 1480sqft (including balcony of course). I'm going to get the 3rd floor (out of 5). Base price on the unit is 349,900. I've been doing my homework though and looked up the pricing on the condos sold in 2004-2006. I found that the equivalent unit was selling for around 290,000 just a 15 months ago.

I brought that up to the guy and he gave me this whole deal on how prices of materials skyrocketed so they have to raise costs.. (because the builder won't cheap out on quality). Anyway, right now I'm trying to get a stain package (natural finish on just the crown, doors, frames, and the base board) and Maple wood floors in just the living room (possibly throughout the whole unit if reasonably priced). I'm estimating the stain package + hardwood flooring will run $10,000 and the remodeling $5000.

These guys are jacking the pricing on me and give me this whole sales pitch on real estate. Right now it's a buyers market from what I hear so pricing should be a bit flexible in my favor. I want to sell this place in about 5 years given the market is good and I'm out on top.

What would be a good bottom line price to offer him and let him sit on it?

Again in recap:
Base Price $349,900
Hardwood $5,000-$10,000 (living room vs whole apartment)
Stain $5,000
Bathroom Conversion $3,000
Room Conversion $2,000

Pricing last year was about $290,000 for same unit in different building.

They are selling 5 near identical buildings in a complex (Three 7 story buildings and two 5 story). Right now in the unit they are trying to fill up they are throwing in free hardwood flooring for the living room... I really feel they are desperate for business due to the slower market and them not selling as many units... especially come winter time.

I want to just throw a price at him and leave it at that... let him call me if they want to bite. This is a family run real estate group that works with a family run builder. So this is a close knit circle where I feel they can negotiate a bit more. But I feel like they know I want this place so they won't be flexible.

Any input would be great.

 

Well, here's the thing with places like this. They will sell no matter what. What that means for you is that you may be stuck paying the premiums they're asking. I'm sure you can negotiate some things with them, however, if they don't sell it to you they're going to sell it to someone else, guaranteed.

I'm also not sure how far this place is from the city of Chicago, but the closer you get, the more money they can sell for, b/c again, they can get it. Space is at a premium, so while the market may be slowing down in the suburbs, it's still a pretty hot market in urban areas or the places close to said urban areas.

Oh and that sounds like a lot of money to me for hardwood floors. Our whole first floor is oak with a cherry-ish stain and our upgrade cost $10k... for 2500 sq ft of hardwoods. We went to contract in late 2004 and the place was completed in early 2005, so prices were a little less... but even today many builders are throwing in hardwoods. My neighbors just bought a 7800 square foot place one community over and they got the whole first floor, approximately 3000 square feet hardwooded for free.

I would recommend you take the $370k total price and make them an offer. I'd go after them with something like $355k or so. Basically getting the floors for free. Oh, and one more thing, don't worry about what pricing was last year. That's irrelivant b/c prices go up. From the time that we signed our contract in Aug 2004 to when we moved in in March 2005 the base price went up almost $75k. So anyone who came to the community at that point was paying $75k more base. It's supply and demand and the builder had no problems getting the money. They pretty much raised the base prices $10k every 2-4 weeks and they were still selling like crazy. They were also the first builder to sell out their lots in our community.

So don't worry so much about the base and what it was last year. Try to get them to throw in the floors. Let them know you're serious, but that you'll walk if you can't get the deal you want. Again, they may not care and they may let you walk since they'll just sell the place to someone else... but remember, it never hurts to ask..

 

Oh, another story for you

Our first place in NY (about 50 miles north of NYC in Westchester County). It was a luxury townhouse community and almost nothing was negotiable. We got some free options and such, but mainly small ones. The prices were what they were, and if you didn't like it, they sold to someone else. It was a very desirable community, so they were able to get what they wanted. This place also raised the prices a lot as well. From the time we bought to the time we actually moved in (construction took about 11 months) our unit had increased about $80k in base price. Add in the increase of options and we made almost $90k on paper before we even moved in.

Granted this was in 2002/2003 when the market was hotter, however, this builder is still putting up luxury townhomes all over Westchester and still getting top dollar. The sicker part is that you make still make money when you sell. We were in our place for less then a year and a half before we put it on the market and we made almost $200k. Why? Generally when you buy new construction you're buying below market value. As soon as construction ends in your neighborhood the prices will catchup to the market and you'll have some nice equity in a short period of time. Even with the market slowing you'll be in good shape. Not as good of shape obviously, but hey, money is money.

So keep that in mind as well. If this is a desirable place to be, you're going to make money, so you need to decide if you're willing to risk getting into it for $10k-$20k b/c even if you pay full face value, you'll make money. Just look at the people who paid $290k base last year. In theory they're already up $60k. Next year if they have any units left they may up the base to $390k, which means people like you who bought now will be up $40k. So keep that in the back of your head. Also remember I'm just speculating b/c I know nothing about that area, but based on the increase of base pricing you mentioned, I'm probably at least on the right track...

 

Thats like 5 minutes from me.

$350K for that size is too much....and you could find an AMAZING townhouse for about 50K less. Look in Coverntry Park in Palatine. You can see it off of 53 and Palatine rd. There is a gorgeous 3 bed, 3 bath 2 car garage townhouse for $309K. Also look into Frenchmen's Cove in Arlington Heights....

 

Thanks, maybe I'll take a look at them.

But I'm just saying that I visited a few condos around chicago and they are "nice" looking but the build is sub par to this place. There are a lot of features with this condo that you can't find elsehere. Plus on top of that this place is about 2 miles from work.

Yea, I'll take a look at them though. Thanks for the info.

 

How much are HOA dues?

Do you know any realtors or are there any good websites for your area that will show recently recorded properties? I would check those to see what units in that complex have sold for the last few months. That would be a better indicator.

As for the place itself, what would a 2BR cost instead of doing the upgrades to a 1+? The sf seems high enough to do the conversion, but just curious. Also, balcony should not really be counted in sf.

 

Well they count balconies because everyone is doing it these days.

I said in my first post I looked at the records of deeds and saw what they went for last year.

The dues are approximately 1% of the condo a year... so about 250 a month would guess.

 

^ That's odd. I thought there were laws about what can be counted as square footage and what can't be.

 

But do you have records of what they sold for the last few months? Last years has no bearing on today.

 

I agree with Nicky. I live in the NW suburbs as well and for $350K you can get a beautiful, 2-level townhouse. I would not pay this much money for 1 bedroom (I don't care if it has a den or not; it's listed as 1 bedroom), especially in Wheeling. Don't get me wrong, it's a nice area but I would be worried that I might not get my money back in the future. There is only so much you can make on a $350K condo in the burbs.


A friend of mine lives in Wheeling, by Milwaukee and Hintz. There is a new community of townhomes in that area. You should check it out. I know he paid close to what you're willing to spend. His place is about 2 years old.


Also, ask about the exact amount of HOA dues and what's included. I would not be surprised if they were higher than $250.

How much are taxes?

 

Sorry, I should've been a bit clearer.. yeah recently they've been selling for higher... but then again the amount of units they're moving is slower than before.

I guess if they want to sell they can sell. Hopefully if it's a slow fall and winter they'll bargain.

 

I'm beginning to think I should look into other properties as well, having a yeard would be really nice

Maybe I just got sold in living at this place... If you guys can give me some other names of places I'd be willing to drive over and take a look... pretty much I'm looking for some place new that's not too big (I'm single and maybe my brother will live with me during summers on break?), and is built with quality materials. I hate it when walls are cheap and thin or the place has poor insulation. Things like granite countertops, solid cherry doors, anderson windows... etc are things that I want. I can't stand living in a place like in college where you can hear everything going on in the building and outside.

I'm going over to them today and I'm going to throw a number at them. And look elsewhere... if I hear back from them before I look into other property then great.

Thanks for everyone's input

 

I'm a little late to the party but want to jump in anyway. First off you might want to talk to people other than the builder reps. Doubtful that that one complex is doing better than everywhere else in the country. As new to the area and a new buyer you are a lamb in the woods. How about slowing down a little and collecting information from a varity of sources? Are there any resales available in the complex? What do you have to compare except some sketchy searching on your own?

You might try to find a realtor that thinks like you that you don't mind working with. There are plenty available that have some free time. It does not cost you a dime as a buyer to use their expertise. Again check and double check the information that you are given. The only one paying the bill after all is said and done is you. It is possible that you found the best possible unit for you with the best quality and price. I tend to doubt that but check to see.

As someone else wrote, that sounds like a one bedroom unit. Regarding the patio, it might be local custom for agents to include the sq ft when they tell you how large it is but that's the wrong way to do it. Heated and cooled living area above grade is what the appraiser will report at the highest value. Patios, garages and basements are not part of the gross living area though they have some value.

Sorry for the long post but I don't like to see people make mistakes that time and a little work can avoid. My information is not speculation. I'm in the business.

One more thing, if possible; consider getting approved for a loan or at least make some inquiries prior to buying. The builder/seller may have something special but perhaps not. The only way to know is to have a comparison.

 

Thanks for your advice, right now my situation is bit odd. I was going to get situated with my girlfriend at her place with her parents... temporarily until I purchased a place of my own. Unfortunately she decided to go back to school for another semester so now I'm living alone with her parents... not that bad and all but they are first generation Korean while I'm 2nd (difference being they don't speak english and my Korean is pretty rough).

But I'm definately going to talk to coworkers and other people in the area that might have more information about places to live around here. The realtors there really seem like a no hassle laid back seller that believes no matter what customers will come to them, so we'll see how my luck goes there.

 

Check any of these places....its where I'm gonna move this Spring.

Coventry Park (Palatine)
Frenchmen's Cove (Arlington Heights)
Lake Arlington (Arlington Heights)
Mill Creek (Wheeling)
Hamilton Place (Palatine)
Elizabeth Place (Arlington Heights)
Hidden Lakes (Arlington Heights)

...Any of these developments have gorgeous townhouses with 2 car garages for $300K-ish.

 

Make lemonade, improve your Korean! As far as the sales agents at the development, they are sales agents and supposed to sound knowledgeable and friendly. I still suggest that you venture out a bit and find an agent not aligned with that development so that you will have some real comparisons.

 

Are you working any specific agent on this one? I'm trying to dig up information on these townhouses, but tough to find.

Maybe I can hook up with someone that'll drive me around and check these units out.

 

A friend of mine does commerical realestate, but he does residential for friends. Got to realtor.com and do a zip code search in 60004 and surrounding areas.

Connie Hoos with ERA has been good to my family in the past...
Give her a try.

For $350K you can get soooooooooooooooooo much more then a 1 bed one bath condo....and that will be hard to sell later on.

 

I need to move

 

Another question.

I asked about a 2 bedroom condo in the same building. They also mentioned that upon signing I will be able to move in around March of 2007. They told me that for property tax what they do is collect an estimated amount for the year 2007 to pay in 2008. And if there's any difference they will refund me.

Is this legit? Am I supposed to get charged like that?

 

There is now way to tell until the property is assesed and turn over to the village off Wheeling. They'll collect what the "think" the taxes MAY be. I've never heard of anyone getting a refund. You'll end up paying more....it always happens.

 

Late on this thread, but fck that, WAY too much especially with the market today in the chicago area. Listen to Nicky on this one.