Chicago's Lincoln Square 2-4 Unit Market is seeing some positive signs for the month of September 2009.

In the Previous 180 days, there have been 17 two to four units that have sold compared to the previous year's 180 days of only 11 units.  This reflects a 54.5% increase in sold 2-4 units.

Currently there are 43 2-4 units on the market with a strong concentration in the $300K to $550K asking price.

We have adjusted, I believe in the 2-4 Unit area within Lincoln Square.  This is based upon the Previous 365 days (2008) Median Price of $538K for 2-4 units compared to this past 365 days wiht a median of $355K.

Now before you all get hot and bothered about such a massive price adjustment, here's why the market adjusted so drastically.

YOUR RENTS.  The Income Operating Statement that supports your propertys overall value.  Bottom.  No yanking on this one at all. 

I don't know how properties appraised out on a $600K property with $2,400 in income.  That doesn't cover the mortgage, taxes, insurance, the maintenance, the vacancy rate (which, btw is alot higher then the 4-6% that most appraiser's in the past have estimated for qualifying the subject property's value).  That is what the bank should have been using but instead I believe they were banking on Lincoln Square's great steady appreciation.  But appreciation doesn't pay the mortgage!

Thus said, the primary sales right now are in the $300K to $500K range in Lincoln Square.  There are some sales that drop down to $200K to $300K and those are short sales or REO properties.  Those properties need approximately a minimum of 10% of the selling price in work just to get the building up and in working condition.  This doesn't cover areas of painting, but covers replacement of piping because the lines were split, ruptured, or how about this one  .... "removed"!  Then there is the electrical which is always a nice surprise especially on the top floor of most flat top buildings.  Why?  Well, if you have a tar roof, the heat from the tar just transcends and radiates that heat into the rafters and that old electrical cloth wiring is baked.  When old cloth electrical wiring and some newer wiring, I have seen melt over the cloth wiring,  Yes, it gets that hot.  That is the biggest reason why one should remove the entire tar roof and put new insulation down and a rubber membrane with the silver reflective coating to defer the heat during the warm months and to keep the heat inside during the cold months.  These are just some of the areas that you need to consider and evaluate before you go in and purchase a short sale/foreclosure. 

The higher priced 2-4 units, as a whole, reflect electrical upgrades, new or newer rubber roofs, better copper piping, etc. 

Which masonry building sells and is desireable the most?

1.  Graystones

2.  Brick with Bay windows in the front and in the dining room area.

3.  Brick with Bay windows

4.  Brick with front Sun Rooms

5.  Brick

Which Frame Buildings sell and is the most desireable?

1.  Stone base with Cedar or Clapboard Siding

2.  Stone base with Quality Vinyl Siding and Bay front

3.  Cedar, Clapboard, or Quality Vinyl Siding with BAy front

4.  Cheap Vinyl Siding and no Bay

That's it for this warm Sunday here in Chicago's Lincoln Square Neighborhood.  Enjoy the day.  If you have any question, you know where I am ... our new location at Lincoln and Montrose.