Chicago Metro Area Real Estate » Palatine

Should you view homes above your price range, if they’re on market 30 days or less?

Fran Bailey, Baird and Warner Realtor — Fri, 19 Feb 2010 20:40:16 +0000

NOTE TO SELLERS! Homes that sell in 30 days or less get a significantly higher % of list price!

This week I received a great question. Michael M. asked, “Is it wise to see a home that only recently came on the market (let’s say less than 30 days) and is $25-50K out of your price range? Or should you wait until there is a price reduction that brings it closer to your comfort range?”

A few non-scientific real estate statistics will help me answer this question. The statistics shown in the table are based on condo and townhouse listed sales for all of 2009 in the 4 locations (2 city and 2 suburban). On average homes than sold in 30 days or less sold for 96.7% of list price.

So if your maximum price is $250K, you’re probably wasting your time looking at homes priced $275K to $300K since $250K as a percent of those list prices will well below 96.7%. The chances that sellers would accept an offer of $250K are very low. However, after the home has been on market 30 days, you chances of getting an offer of $250K accepted are much better since the average percent of sale price to list price drops to 92.7%!

If your maximum price is $500K, it isn’t outside of the realm of possibility that a seller with a home priced at $525K might accept an offer of $500K since it would be 95.2% of list price. That’s less than my un-scientific average of 96.7%, but not impossible.

Of course, these are rules-of-thumb. For each home, it depends on how well it is priced, how motivated the seller is, how well your buyer agent can help you negotiate a lower price, and other factors.

Besides list price, the other consideration is your amount of self-control. Finding the right home is often based on a bonding experience that buyers have when they see a home. It often happens within just a few minutes. Some people will fall in love with a home and blow through their maximum price. (Love often knows no bounds!) Others have more self-control and are willing to risk losing a home to another buyer while they wait for the price to fall in their range.

Great question, Michael! Let me know, if I didn’t fully answer it!Similar Posts:

Showings Today in Arlington Heights, Palatine and Schaumburg, IL

Fran Bailey, Baird and Warner Realtor — Sat, 21 Feb 2009 23:45:19 +0000

Today I showed houses in Arlington Heights, Palatine and Schaumburg. The homes for sale weren’t much out of the ordinary with the exception of a house in Palatine featuring a pool table in the dining room and mold in the basement. Needless to say, it’s not on my buyers’ short list!

Home sellers, please reconsider renting to a couple of college kids a home you are trying to sell. Their “furniture” does not help a house show well!

Arlington Heights and Palatine are pretty comparable pricewise. Schaumburg is definitely less expensive. Property taxes also tend to be lower in Schaumburg due to all the taxes generated from the commercial development (e.g. Woodfield Mall, IKEA).

For more information on these northwest suburbs visit my Arlington Heights, Palatine and Schaumburg blog posts.Similar Posts:

Curious in Palatine

Fran Bailey, Baird and Warner Realtor — Tue, 18 Mar 2008 18:16:40 +0000

While showing a house in Palatine on Sunday, the buyers and I noticed that the vent hood in the kitchen wasn’t above the stove, but above the counter to the right of the stove. We thought it strange, but continued to view the rest of the house. Later, I returned to the kitchen and noticed a large cutting board on the counter below the vent hood. Sellers have been known to put a rug over an unsightly spot on a floor, so I was curious if the large cutting board was covering a stain on the counter. I moved the cutting board only to find that it wasn’t covering a stain, but a huge hole where a stovetop had sat! It pays to be curious when viewing a home. Similar Posts:

Durty Nellie’s – A Palatine Institution

Fran Bailey, Baird and Warner Realtor — Mon, 21 Jan 2008 18:06:02 +0000

Saturday I showed houses and condos to buyers in Palatine. With single digit temperatures, we were freezing by the time we got to the last home.

Afterwards, I should have stopped in at Durty Nellie’s in downtown Palatine (180 N. Smith) to warm up. Durty Nellie’s has been a neighborhood pub in Palatine for over 35 years, but it isn’t just a typical neighborhood pub. It features local and national bands and an impressive food and beer menu. The ever changing beer menu features numerous ales and lagers.Similar Posts:

Chicago Area Whole Foods Map

Fran Bailey, Baird and Warner Realtor — Wed, 26 Dec 2007 14:26:05 +0000

My partner’s brother’s family is visiting this week and they’re big fans of Whole Foods. For those of you not familiar with Whole Foods, it’s a grocery store chain which sells high quality natural and organic products. For you Whole Foods Fans out there relocating to the Chicago area, I thought I’d create a map of the Whole Foods here.

There are 15 Whole Foods in the Chicago area and another 4 stores in development. The map below shows the stores by red dots and the 4 stores under development with purple dots.

As you can see, Chicago has 6 stores all in the northern part of the city with one more under development. The Whole Foods are in the areas of the Gold Coast, Jefferson Park, Lakeview (2), Lincoln Park, and South Loop. The Near North Side has 1 in development.

There are 5 Whole Foods in the northern suburbs of Deerfield, Evanston (2), Northbrook, and Palatine. Two are in development in Schaumburg and Lake Zurich.

The western suburbs have 4 Whole Foods in Hinsdale, River Forest (across the street from downtown Oak Park), Wheaton, and Willowbrook. Naperville has one under development.

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Sellers Have to be Flexible on Showings, Especially in the Upper Price Ranges

Fran Bailey, Baird and Warner Realtor — Sun, 29 Oct 2006 14:50:50 +0000

Today I will be showing several homes in the north and northwest suburbs. The first home I had scheduled to show was a house in Palatine priced at $749,000. After I had scheduled all the showings, I got a call from the listing broker informing me that the seller didn’t want the home shown today because she was having a party the day before and “it would be too much pressure on her”. That’s her choice. However, I hope she isn’t expecting to sell the home any time soon.

Showings for houses in that price range don’t come along every week or even every month. Her lack of flexibility in having the home shown also signaled to me that she isn’t flexible on the price as well. When I informed my buyers that they couldn’t see the house as part of today’s showings, they just gave me the address of another house to see at that time. I don’t expect them to reschedule a showing of this one.

Home showings are often inconvenient, but not selling a home may be even more inconvenient.

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New Homes in Palatine

Fran Bailey, Baird and Warner Realtor — Sat, 04 Mar 2006 00:01:24 +0000

This week I came across a nice article on new homes in Palatine. Titled, “Palatine’s Smart Growth”, the article on YoChicago.Com gives a good overview of Palatine and some of the new housing developments there. I do have a couple of minor differences with the article.

First, it described the downtown as having an urban character. A few brownstone-like townhomes and loft condos don’t automatically give an area an urban character. One of the things I like about downtown Palatine is what I consider a small-town feel. It isn’t trying to compete with downtown Arlington Heights which definitely is going for an urban feel.

Second, the article said that one of the pluses of the Lake Louise Condominiums is their proximity to the Arlington Heights Metra Station. Actually, they are much closer to the Arlington Park Metra Station.

That said, I like Palatine a lot. It has good transportation options with its own Metra Station and quick access to I-355. You get a little more home for the money than in Arlington Heights which is what you would expect since its farther from the city. However, homes in Palatine are less expensive than comparable homes in its neighbors to the west, Inverness and the Barrington area.

If you decide the check out some of the new homes in Palatine, don’t forget! Take a buyer’s agent with you!Similar Posts:

2005 3 Bedroom House Average Sale Prices – Park Ridge out to Barrington

Fran Bailey, Baird and Warner Realtor — Sat, 25 Feb 2006 20:36:24 +0000

Below is a data map of 2005 average sale prices for 3 bedroom houses in Park Ridge, Des Plaines, Mount Prospect, Arlington Heights, Palatine, and the Barrington area. The darker the green, the higher the price. Park Ridge had the highest average sale price of the group at $501,893. Neighboring Des Plaines has the lowest average sale price in the group at $325,915.

Data is from the Multiple Listing System of Northern Illinois (MLSNI).

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