Quick update: I just spoke with the auction center at 1400 S Michigan and learned something interesting. On the registration cards they ask bidders which condominiums they are interested in. They use this information to sequence the condos for auction, with the most in-demand condos being auctioned first. In other words, the last condos to be auctioned will have the least demand and possibly be the better deals – unless of course all the losers (not meant to be derogatory) end up bidding on the last condos and drive up the prices.

Once again, the auction is this Sunday at the W Hotel on Adams St.

This loft at 1910 S. Indiana( the Engravers Lofts) gets my Way Cool rating. Most of what I see on a day to day basis is so much the same that I can’t usually keep them straight. However, this loft is really neat with some very unique finishes that make it stand out from all the other drivel out there.

The unit is priced at $399,900 plus an additional $30,000 for the parking space and the monthly assessments are $484. It is a 1659 square foot northeast corner unit with 2 bedrooms, 2 baths, and a fabulous view. You get to see a nice mix of high rises, green space, and smaller buildings.

In this photo of the living room you can see that the unit has expansive floor to ceiling windows and a steel ceiling – you don’t see too many of those.

The kitchen island has a polished concrete counter top with a swerve design embedded, supported by a metal pipe – one of the many interesting architectural details in this unit.

The master bedroom has a partially dry-walled ceiling to break up the monotony and you can also see two other unique design elements. All the HVAC ducts are flattened as opposed to the standard circular shapes seen in almost every other loft. And on the left side of the picture you can barely tell that the bathroom door hangs from a metal bar above the doorway and rollers allow it to glide across. I can’t remember if there are multiple types of doors in the unit but I do remember that the front hallway closet door is made of a heavy metal screen.

Check out the interplay of several unique design elements in this master bathroom: mosaic tile wall, circular mirrors, high neck faucets, single wide basin sink, and a vanity supported by a metal pipe.

There are two things people might not like about this unit: 1) The balconies are bright yellow and 2) the ceilings are unfashionably low – not the 17 feet that seems to be irrationally popular. In particular, the clearance can be a bit tight when standing under the duct work. Nevertheless, I think this place is way cool!

The unit is listed by Keller Williams and has been on the market for 90 days now.

First it was going to be October 1, then November 2. That’s when new FHA condo approval rules were going to be implemented. Now it’s December 7. I know it’s shocking but the government just can’t seem to get their act together – in this one rare instance.

One of the more significant items we’ve been waiting for is some relief on the restriction that condo associations can not be approved if they have the right of first refusal. On the one hand, I’ve never understood why condo associations have this right anyway – like they’re going to have the funds to buy a condo and do what with it? On the other hand, I never understood why FHA cared – as long as it’s not discriminatory. But forever promising to remove this restriction on the right of first refusal one month from now is leaving condo associations in limbo. Why incur the legal expense of changing the bylaws to relinquish the right when the government is going to relax the requirements in just one month? However, with 36% of the buyers using FHA mortgages how can the associations afford to keep waiting?

As if this issue weren’t thorny enough, some folks within the mortgage industry aren’t exactly optimistic that things will get better even with the new rules. According to Tom Fishwick of Guaranteed Rate, “I am not sure how much easier it will be once whatever changes do go into place. Clearly they are having trouble figuring out how to implement the changes. As it stands now, they will need to review every single condo building that gets an FHA loan. Currently the spot approval allows an FHA underwriters to sign off on the easy projects once they confirm those basic questions. [with the new process] I am expecting long delays, if not a tougher qualification process, even if they will allow for a right of first refusal. For now I am cheering every time they announce another delay.”

Another South Loop condominium development is looking to clear their unsold inventory via an auction. On November 15, 2009 Michigan Avenue Tower II will auction off 41 units in one hour at the W Hotel, starting at 1:00 PM. Check out the link above for information on the building, floor plans, and some historic sales data. The building is located at 1400 S. Michigan Avenue and offers nice views from the north (above the 10th floor or thereabouts) and east facing units.

Here is the list of condominium units up for auction:

These units are being auctioned off without parking. Indoor, heated parking spaces can be purchases separately at a flat fee of $35,000. Notice that most of the units being auctioned off have the less desirable exposures. Units are available for previews daily through November 14. Every time I’ve been to the building it has been swamped with potential bidders so I’m thinking there aren’t going to be any bargains at this auction. Then again, all these people could be bottom feeders, who will drop out once the bids rise $20K above the minimums.

Bidders will be required to register in advance of the auction and should check in by 12:00 noon on the 15th at the W Hotel, located at 172 W. Adams St., in Chicago. Bidders must bring a cashier’s check or the usual substitutes for $5000 along with a blank personal check, which will be used in combination to leave a 5% deposit (of the winning bid amount). A separate cashier’s check is required for each property that the bidder is approved to bid on. It sounds like they won’t let you into the auction without presenting the checks.

Bidders can work with realtors but their realtor must be present at the bidder’s first visit to the building and all must register in order for the realtor to earn the 2% commission.

There will be a practice auction at 7:30 PM on November 14, also at the W Hotel. Interested bidders would be well advised to attend this event as it will provide an opportunity to find out what the bid increments will be, whether or not you will be able to understand the auctioneer (why the hell do they talk so fast?), and get a feel for the overall process.

When shopping for a condo or a townhouse in Chicago buyers are often confronted with comparing units that have assessments that are significantly different. So how do you make this comparison?

First, the simple part which almost everyone intuitively knows. Check to see if heating and/or air conditioning is included in both. If not, then estimate the value of this and subtract it from the assessments that include this. Now you have the equivalent cost of the assessments as if there were no heating and air conditioning.

Second, are there amenities included in one that are not included in the other – e.g. fitness center, pool, etc…? If so, you could impute the value of that amenity to you and subtract it from the assessments. Some people place no value on a doorman but it’s possible that a really good fitness center would allow you to cancel your $100/month health club membership.

The third piece is a bit more complicated and is really only practical for people familiar with reading financial statements. You have to figure out how much of the assessment is going towards operating expenses vs. building reserves. Let me explain. Suppose you have two identical buildings with identical expenses but different assessments. How could that be? Well, the building with the higher assessments has decided to build up their reserves. They’re really not spending the money but they are saving it for a rainy day (when the roof starts leaking). The other building will have to impose a special assessment, so, in the long run, the cost of living in the two buildings is exactly the same. Therefore, when comparing the two assessments you should subtract out that portion of assessment that is going towards building the reserves. If you don’t know how to determine this you could always ask your realtor (good luck with that one).