Why won't my investment property in Lincoln Park Chicago sell?

Question

Hello world,

What am I missing? I realize it's a pandemic, but other similar units are selling, this one will not sell.

I own an investment property condo, 2bd/1ba in Lincoln Park in Chicago. It's in the heart of Lincoln Park off Armitage Ave on a little desirable street, we have now made it the lowest priced 2bd in the neighborhood (besides garden units and high rises), it has decent finishes, in unit laundry, GFA, we had it staged, I don't get it. It cash flows as a rental property $200 per month after a bank loan.

My agent said he's stumped, we get 3-6 showing requests per week. Buyer feedback reviews have noted the small 900sqft space, but then why do other 900sqft condos in the neighborhood sell?

Here's the listing: https://www.redfin.com/IL/Chicago/1919-N-Bissell-St-60614/unit-K/home/13351562

Ashley Carter · Answer

Amazing street and address. Very small unit, I've sold in that building before, that building seems to sell for less than others.  Double check you dimensions, based on the floor plan available on the listing - it doesn't appear to be anywhere near 900sf. Also agree with other about rate of return being too low for an investor. The ideal buyer for this in someone who wants to owner-occupy for a year or 2 with small downpayment and move out keep it as a rental. Condition is nice, staging is great. Buyers are seeing not the value - only lever left to throw is keep moving pride until someone bites. Adjust in 3%-5% increments, anything less is meaningless to the buyers. If you've had over 12 showings at the current price with no offers - move the price to $275K. Good luck - IMO it's price.

Aaron Zimmerman · Answer

Overall, it looks like a nice place. However, if you were to find something to complain about it would be the 900 sq ft. and the lack of space in the living/dining room. Perhaps it's the layout too with the kitchen being right by the front door. One of the bedrooms appears to be just a little small. It really wouldn't be a place to have a huge amount of people over.

Why are you looking to sell- just out of curiosity?

Mike B. · Answer

maybe it’s the cash on cash return...assuming 25% down for investment = $71K. $2.4k/yr cash flow is only 3.4% cash on cash.

Ron S. · Answer

Location and schools are great.  I think it's definitely the square footage.  I think most personal buyers would be looking for wider bedrooms and additional space for dining.  You may want to try pivoting the ad to target investors as it looks like it would be a great rental property.

Jake Fugman · Answer

@Mike Wasielewski  Targeting investors is tough when it comes to condos - especially if occupied.  If you are hitting a brick wall I would try to wait until the unit is vacant and relisting to go after first time home owners (and sell the rental as a pure upside).

Patrick Britton · Answer

@Mike Wasielewski jeez...people here are excited to offer opinions, but I think there are far too few facts to provide a conclude the cause, or causes.

So let's ask some questions:

1.  exactly how many showings have you gotten?

2.  do they tend to spike after a price decrease?

3.  what is the selling broker/agent commission?

4.  how was the original list price arrived at?  was there a CMA, what were the comps?

5.  are your neighbors on your "side?"  Neighbors can be your best friend or worse enemy.  Maybe someone doesnt like you, or doesnt want you to sell?

6.  what has been the feedback from other agents, specifically?  no more, "it's the layout."  you need details.

7.  What do other agents think of the price?

8.  is the condo FHA approved?

9.  how long did the comps from the CMA take to sell and when did they sell?

10.  any possible issues with financing?

11.  ask the agents with buyers exactly WHEN the buyers decided against the property.  that should provide a very good clue.

12.  any special assessments you don't know about?

Sorry, those are all the questions I could think of in a few minute.  I'm sure there are others.  and the more questions we can ask, the more likely the culprit(s) will be found :)

BTW - it's never ALWAYS one thing and it's certainly never ALWAYS price.

Lastly, ask a lender if there's any complications with financing that property.  You won't be able to sell it to someone using financing if they cannot get financing...

Carmichael Lewis · Answer

I agree with Mike B. It's in a desirable neighborhood, the property is very nice but the return is very low.

Mary M. · Answer

Its a cute space! If it were mine i would consider changing the little bedroom and moving the closet to the short wall so you end up with a more useful bedroom.

The kitchen and bath are not the best renovations (sorry) so that will bring the price down too.....

Lower the price and relist !

Henry Lazerow · Answer

Sorry missed the link. Its not priced terrible, a little high. I would recommend ditching the black granite and put in a nice white quartz. Attached a photo of the stone from my building. PM for contractor will be only around a grand for your size kitchen and make a huge difference

The description is also too long and I would avoid pointing out its top floor of a non elevator building (lots of walking up stairs).

Henry Lazerow · Answer

I do a lot in area. Feel free to PM me for honest feedback. Price is most likely issue but could also be bad photos, description, etc. The starter condos are popular right now and its the higher end stuff thats sitting longer so a 2br 1ba should be selling.