Market Conditions in Chicago>Question Details

Dan Karlak, Home Seller in Chicago, IL

How do I set price for a condo around Lawrence & Austin?

Asked by Dan Karlak, Chicago, IL Sun Jul 22, 2007

I have selling prices for condos in this neighborhood, but nothing has sold in the last year. Nothing in my buiolding sold for last 3 years. How do I determine asking price today for my condo based on these old selling prices?

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Answers

6
Hi Joe:

The person asking the question provided their full name along with city and town. So, Cathy probably did a public record search to determine the address, thus determining he is South of Lawrence and East of Austin. Also, the person referenced it was condo, allowing Cathy to narrow it down even more.

Melissa Mancini, Realtor, CBR, GRI
Web Reference: http://MelissaBMancini.com
1 vote Thank Flag Link Tue Jul 24, 2007
Hi Dan,
I did a quick look on the MLS and you're right, nothing in that immediate area (4 blks) South of Lawrence and East of Austin has done anything in the last 6 months. So, the next step is to broaden the area to Jeff Park and there are many units that have sold. The price one sets for the sale of their home is ultimately an educated guess with emphasis on educated. Looking at comparable properties that have sold recently gives you an idea of what a buyer might be willing to pay for a home similar to yours. The tendency is to overprice and find yourself chasing the market throughout the process. If you have a Realtor your are working with (s)he can help you pricing your unit properly. If you aren't working with a Realtor, I'd be happy help you out with a CMA on your condo.

Cathi

Cathi Weaver
Keller Williams Realty
847-477-3494
http://www.cathiweaver.com
Web Reference: http://www.cathiweaver.com
1 vote Thank Flag Link Sun Jul 22, 2007
This is a problem that many would be sellers are facing. So how do you price your home to sell? First a reality check; you have to remove your emotion from the equation. Remember it is business and prospective buyers are not concerned that you put your blood sweat and tears into your home. Also, many times a realtor is also emotionally attached to a number because their reputation and commission is based on it. A recommendation that we have been providing to our clients for years is to order a mortgage appraisal.

One of the most accurate measures to come up with the “right” listing price is to have a mortgage appraiser do a true valuation of your property. This takes all emotion out of the equation from you as well as a prospective realtor. It is a stark objective view that the eventual buyer’s mortgage lender will undertake so you might as well get it out of the way before you list the home. The expense of a few hundred dollars is easily offset by positioning the house to sell at its current market value. If you have a mortgage planner that you have used in the past or plan to use for your new purchase you may be able to save a little on the cost by using your mortgage planner’s appraiser. Since they are in the business of ordering these regularly they usually have a discounted price arrangement.

We find that sellers that follow this advice and put their property on the market roughly three percent over this appraised value are selling in 30 days or so; even in today’s market. Bottom line; price your home at a level that will create competition among buyers and watch it sell quickly.
0 votes Thank Flag Link Tue Jun 17, 2008
Broaden your spectrum by using similar closed condos in competing neighboring areas (within 0.5 mile radius and then 1 mile radius). try six months back and then 9 months back and if needed 12 months. establish a median price , extremes and notice if median price increased or decreased and at what rate. compare against what's active and pending to have an idea of current market performance and absortion. Once you have all the closed units results, weight an average if you have substantial differences but that's hardly the case. That will give you a pretty close idea. Good luck
0 votes Thank Flag Link Fri Jul 27, 2007
If you're the same Dan Karlak who's held an Illinois real estate license since 1987 you ought to have a better grip on the answer by now!

If you're a different Dan Karlak, my apologies for suspecting you of shilling for a set-up answer.

By the way, how does the responder know you're south of Lawrence and east of Austin? You didn't supply that info in your question.
0 votes Thank Flag Link Mon Jul 23, 2007
You have 2 options:

1. Expand search area to get more comp.'s
2. Pay for an Appraisal

I would be glad to recommend an expert Realtor to help you market your home and provide a free CMA (Comparative Market Analysis). Send me an e-mail with specifics and contact info.
0 votes Thank Flag Link Mon Jul 23, 2007
Herman Chang, Real Estate Pro in Palm Beach Gardens, FL
MVP'08
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