Jamesr, Home Buyer in Chicago, IL

How does lack of inventory, e.g. only one of a kind in a building location affect comps? Comps that are sold and no longer available as inventory.

Asked by Jamesr, Chicago, IL Mon May 21, 2012

There is only one condo available in our building of its size and location in the building. How does supply and demand figure in the price?

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Answers

5
Philip Sencer’s answer
You are asking 2 questions. Supply/demand absolutly affects value either up or down.
While it is nice to only use comps from the same building often this is not possible so appraisers, and folks like you, use similar units in similar buildings nearby and make adjustments for various differences. This is very common. You cannot get too anal about the adjustments you make because there are various levels of emotional or subjective valuation that goes into any analysis by a buyer as well as a seller.
1 vote Thank Flag Link Mon May 21, 2012
Phillip: Thank you for your response. The listing can be found in great detail at http://www.thisfinecondo.com. It currently is the only condo of any size on the river and facing south with lake, river, trees, gardens, and city views in Streeterville.
Flag Tue May 22, 2012
Look at comps in the area and compare condition, size, and amenities.
0 votes Thank Flag Link Fri Jun 8, 2012
Listings are not used for sale comps.
0 votes Thank Flag Link Mon May 21, 2012
John: Thank you for the response. I have heard realtors talk about the lack of inventory compared to better times. Supply vs demand factors should play a part. The condo listed at http://www.thisfinecondo.com is currently the only riverfront property of any size facing south on the river in Streeterville for example..
Flag Tue May 22, 2012
if people are looking at your unit its close to the right price..if 5 of them have looked and not purchased its 10% too high
0 votes Thank Flag Link Mon May 21, 2012
You can use comps in similar buildings close to you as comps then. If its a building where people really want to live as well, it can drive up the value also.
0 votes Thank Flag Link Mon May 21, 2012
Matt: Thank you fro your response. The listing in details is at http://www.thisfinecondo.com. It is the only condo of any size that is in a building on the river facing south with city, garden, trees, birds, lake and river views in Streeterville.
Flag Tue May 22, 2012
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