Price Drives Real Estate Market

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The old adage in real estate of location, location, location has been replaced with price, price, price! If you are in the process of selling your home, you know the frustration of finding a buyer to purchase your home at the listed price. This is, if it isn’t considered a value in the market. People are buying homes, yet are still looking for the best deal.

They want to buy a property at a lower price. With the glut of properties on the market and fewer buyers than sellers, buyers are flocking to homes listed at a value price and ignoring listings that are more expensive. Price your home to entice potential buyers and you will sell your home!

Lisa McGuirt, a 25-year veteran residential broker in the Baird & Warner Gold Coast Office, says, “This is, without a doubt, one of the most challenging markets I have ever experienced.” She maintains that buyers are more educated than they have ever been, due mostly to the Internet. Sellers need to be prepared to sell their property at a lower price than they want or expect.

Ms. McGuirt contends that price alone is what will motivate a buyer to make an offer; this is after looking at every property in his or her price range that is on the market. “Buyers are truly taking their time because they can,” she says. “There is no rush to submit an offer because most properties for sale sit for a longer period of time than they have in the past.”

If the property shows well and is well-priced, than it sells much quicker than other properties that don’t meet these criteria. If a seller is frustrated that his or her property is not selling, the issue is most likely the price. Even in the most sought-after properties in the Gold Coast and Lincoln Park, buyers want to know they are getting a very good price.

Ms. McGuirt recommends that sellers have an appraisal done prior to putting your home on the market. This will help you know where your property should be priced to compete in the market. And, even if your property does sell at a higher price than comparables in your building or neighborhood, it may not appraise at the sales price. This can cause problems with a lender, which may jeopardize the ability for a buyer to secure a loan for your property.

It’s still a buyers market out there, no doubt, yet the good news for some is demand remains strong in Lincoln Park, Gold Coast and River North. There hasn’t been much construction in these areas and the absorption rate is catching up with inventory as interest rates remain low, so it’s an opportune time for buyers to obtain financing.

Sellers need to be prepared to lower their selling price. Price your property to sell and move on if you need to. The good news is you can get a great deal in a neighborhood where you may have been previously priced out.

For more information, contact real estate broker Lisa McGuirt at 312.981.2355 or lisa.mcguirt@bairdwarner.com.

Terri_Lee_Ryan

About Terri Lee Ryan

Terri Lee Ryan is a former Chicago commercial real estate broker, marketing consultant and hotel developer. An avid writer, she is the author of Life Is One Big To-Do List. In “People, Places and Property” she dishes on leaders in real estate, new places in your neighborhood and deals being done in Chicago.