Setting the Right Price is Crucial in Chicago
June 6th, 2008 categories: For Sellers
People ask me the same question all the time: What’s the biggest mistake sellers make?
My answer? They set the wrong price for their house.
In the Chicago market, that’s a big mistake. Buyers here are savvy. They read the papers. They listen to news reports on the state of the industry. They know when an asking price is too high. And in Chicago, unlike other markets, buyers have a large inventory of smartly priced and well-maintained homes from which to choose. If they think that a condominium in Lincoln Park is priced too high, they’ll cross it off their list and move on to a similar unit being offered for $15,000 less in Lakeview.
Here’s what usually happens when a seller insists on setting an overly optimistic asking price: The house sits on the market for months, attracting only a few showings. None of these showings results in an offer. The seller panics and drops the price to a more reasonable one. But now the house has already sat on the market for months. Buyers see this and wonder what’s wrong with the residence. Talk about starting out on the wrong foot.
Just two years ago, it was OK to ask for a little more. In Chicago, homes were selling quickly, especially in the desirable neighborhoods of Lincoln Park, Wicker Park, Lakeview, Bucktown and others. Many sellers received full asking-price offers. Others received multiple bids, and eventually ended up selling their homes for more than their asking price.
Those heady days, though, are long gone. And while the Chicago market is still strong, sellers here now have to set the right price. It’s not an exact science, but a skilled real estate agent – one who’s studied the market carefully – can help you set the perfect price, one that’s not too high to scare away potential buyers and not too low to swallow up your profits.
Don’t make the asking-price mistake. Give your property its best chance to sell: Set the right price right away.
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