It Ain't All Big Hair and Cadillacs

I have had a number of clients contact me recently asking when is a good time to list and sell their property? Traditionally around the holidays, the market tends to be slower - fewer buyers are looking, however, there are motivated buyers in the market at all times of the year.

Needless to say, consumers are being bombarded with media reports stating that the real estate market is in the tank - getting worse by the day. Bottomline, all real estate markets are local. They respond to the factors relevant to the local economy, strength of the job market etc.

Chicago real estate is doing okay - while inventories are up, property is selling. For properties that have been on the market longer, sellers are realigning expectations with market conditions. Market times are longer with the availability of inventory at a high. For motivated buyers, this is an opportunity to find more within your price range than has been the case in several years.

To answer my sellers' question - when is a good time to sell / list my property? I tell them list your property to sell when you are truly motivated to sell and move on. That may strike many as an obvious answer, however, the answer assumes that sellers understand the nuances of the current market.

First step prior to listing - determine the facts. What have similar properties SOLD and CLOSED for in the past 3 to 6 months? Recent past sales are generally the best indicators for what the value of your property will be. While that may be the best indicator, the ultimate sale price of your property will be determined by what ready and able buyers will put in writing when they submit a contract. In many cases some negotiating will allow both buyer and seller to arrive at a mutually acceptable price.

What is key to selling your property in a timely fashion is pricing your property at a reasonable and appropriate price. Regardless of the time of year, there are always motivated buyers. Truly motivated buyers will write offers on property that is appropriately and reasonably priced. While current market conditions currently indicate longer market times, it is not unreasonable to expect that appropriately priced property will sell more quickly.

Clearly there are some buyers currently in the market seeking deals and may be motivated to write a "low-ball" offer. Understand not all buyers have the same perceived value of a property. However, if multiple buyers write offers that are in the same of similar price range on a property that is significantly lower than your perceived value, the market is telling you something. Under current market conditions, you may not have the luxury of multiple buyers - you may likely only get one buyer. If you are not priced appropriately, you are likely to have NO buyers.

Again, past sales are the best indicator, however under these market conditions, buyers may be establishing new perceived values due to the available inventory. This is an important factor to consider when you are ready to sell. If you are not ready to listen to the market, you are not ready to sell.

Again - with some understanding of the current market conditions, list your property when you are truly motivated to sell - and be prepared to listen to the market.