Wednesday, February 23, 2011

Home selling tips: Price low or forever hold your peace

In certain segments of the Chicago housing market, there is little use in pricing "a little too high" and expecting to negotiate all those offers that come in. The reality is if you are priced too high, no one will offer...anything. If we can find several good comparable sales (and many times there are few to find in a six month period) a seller should be pricing slightly below those in addition to showing in top condition to have a high likelihood of securing a strong offer.

One tough segment is two bedrooms, one bath condo units across the North Side of the city. There are many variations: with decks, without decks, high assessment, low assessment, parking, no parking. When we zero in on the true market comparable and what the likely competition is (including alternative neighborhoods) we suggest a price range that will likely illicit offers. Our vast anecdotal experience of working everyday with other buyers and sellers allows us to suggest true pricing ranges. Other factors include rental parity, interest rates, finish level, views and of course...location.

Unfortunately, many sellers would like to list for sale at or above the highest comparable sold price in the past 12 months thinking they will "have more room to negotiate". The reality is, the tighter you price to the most probable sale price range, the higher the price and better all around deal you will get. Sellers will also avoid months of disruptions to their lives that also cost them time and money.

The luxury market ($1,000,000 and above) will vary much more in pricing strategy and depend more greatly on finish level, position in the buildings or blocks, schools etc...

Read more home selling tips here!

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