Monday, May 21, 2007

Wrigleyville and Lincoln Park condo price break

My previous post was about the price point in which one must jump on a Lincoln Park single family home. It's the price when a "move in condition home" will attract an immediate flood of offers.

This price break has been evident for new construction and like-new condos in Wrigelyville and Lincoln Park as well. I have represented clients on two such examples and witnessed another on one of our new construction developments.

I guess this may seem like a ridiculous concept. But we just pretty much know when a certain condo of certain location and quality will attract major attention and sell...either coming on the market at the right price or adjusting to that magic number later.

The trick is keeping track of the properties so you know when to jump. My philosophy is offering at this price from the start. Regardless of the price a listing comes on, I figure out at what price that unit would sell, say, yesterday, and open with a bid there. It takes making the case to the seller that they will end up at that price anyway. So why sit on the market $50K over priced?

You will get a true gauge of how motivated and realistic the seller is. If they do not accept your terms (and the case you made), keep things cool. They can always come back to you when they adjust the price accordingly.

Of course, I cannot comment on any of these homes until they close... but hopefully I'll remember to re-visit this post at that point. However, I'll always provide my analysis on a prospective property you may be interested and apply this brilliant theory.

Again, sellers must realize that they can blow this first good offer and end up sitting for a long time... they must realistically consider the price of the unit and not be afraid of "pricing too low". A "low" price in relation to other comps will most likely generate a list offer of multiple offers that push the price up. This will cut out uncertainty and low ball offers.

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