Real estate market questions (Chicago, Evanston: sale, foreclosures, condo)

[speris]

What's the status of the real estate markets in the Chicago suburbs? Can I assume that the list prices for houses can be negotiated downward? Any idea how much, percentage-wise?

Also, what is the quality of new construction in places like Oak Park and Evanston? I currently live in the Houston Heights, and new construction is notoriously poor here, not to mention that many residents resent the builders for destroying the aesthetic of the neighborhood. Does that same sentiment exist in Oak Park/Evanston?

Any insight appreciated!

[sgresident]

i would think that any home price would be negotiable, especially a home that has been on the market for quite awhile.

[fairmarketvalue]

Originally Posted by speris

What's the status of the real estate markets in the Chicago suburbs? Can I assume that the list prices for houses can be negotiated downward? Any idea how much, percentage-wise?

Also, what is the quality of new construction in places like Oak Park and Evanston? I currently live in the Houston Heights, and new construction is notoriously poor here, not to mention that many residents resent the builders for destroying the aesthetic of the neighborhood. Does that same sentiment exist in Oak Park/Evanston?

Any insight appreciated!

As a recent home seller and "closed", I will tell you the Chicago suburbs are not full of "desperate sellers" willing to go much lower than their ALREADY reduced list prices. What has happened in this area is that nearly ALL have listed their homes based on the current declines, for a quicker sale and shorter time on market. But they are in no way prepared to give them away for crazy prices below market and appraised value which is why our inventory has lasted longer than some. They nicer suburbs with good schools and easy commutes to jobs and convieniences are holding steady in their prices and many not selling for much below 2-3% off list. The more affluant suburbs are still bringing near list prices. And ALL price ranges are available in every suburb and the differences are reflected in each 50,000 -100,000 increment.

It's hard to assume that with all the media attention and absolute worst case scenarios being broadcast every day that there is still a somewhat "fair market" in many parts of our nation. Foreclosures are almost unseen in most suburbs, new construction did take the hardest hit as builders built specs they now can't unload and certain price ranges are sufforing more than others. A national mentaily has developed into a local one, with many thinking they are going to go see a milliion dollar home and get it for 1/2 a mil. Because this was happening in California, many don't understand that the home in CA was never worth even CLOSE to a million but a "crazy run-up" like the media talks about and one that just came back to what it was really worth and cost to build with still a profit. That did not go on here in the Chicago suburbs and many other parts of the nation and the media does not ever point out those little details. Now granted, we had pockets of areas of homeowners and builders who were making a "more than normal profit" but todays MLS and the list prices do not reflect that anymore. As mentioned, most all homeowners have realized they are not going to get as much $ as they could have 2-3 years ago but have certainly priced their homes accordingly because of this. So to answer your question, depending of the price range you seek, even 10% off of list is considered "low ball" at this point. On a house that's 500,000, that's an offer of 450,000 and I can tell you anyone priced at 500,000 could have been closer to 600,000 2+ years ago and 500,000 is alread a great deal they are not willing to go further down on! The length of time on market indicates to me and many others, that "desperate to sell" is not where we're at, at least yet. I know we held on and paid for 2 houses for nearly 11 months until we got a reasonable price for our home. I also know that we could have easily gotten quite a bit more just 2 short years ago. But 2 years ago is gone and the real estate market is trying to "listen to consumer" concern with respect while asking the same of it's consumers. Hopefully you understand what I mean by this. One last example: many showings of our home were from lookers who could afford at least 100,000, and even up to over 200,000 more. They came thinking that the home and location of a home @$750,000 was really priced at $550,000. They found out VERY quickly that it was NOT and went looking in their price range instead, knowing if they wanted what a home that cost $750,000 had, they were going to have to pay somewhere close to what that cost was. An important # to consider is price per sq. ft., bells and whistles it has, etc., which drive the home prices up, and lastly the location of varying suburbs. I had a co-worker who looked at houses for over a year, thinking sooner or later they'd find that "expensive home" for 10's to 100's thousands less. Well, they finally bought a home and closed on it 3 weeks ago. It was $625,000, nearly 100,000 more than most all the other homes they had looked at in the last year and a 1/2. Point here is that they were looking to find something in the 500,000-550,000 range that just simply didn't exist. They wanted a larger home with all the updates, etc. and finally found it at $625,000. That same home would have easily brought $700,000 a few years ago so they STILL got a great deal!

Good luck and hope this helps, even if it's not necessarily what you want to hear. Some will argue and those are usually buyers who are still seeking that "bargain" and mad they are not finding it. Also, the city of Chicago itself paints a much different picture than the suburbs. It has 1000's of "condo developements" that are weighing down the inventory and the city has had a bigger decline than the suburbs. Single family homes in the city are very hard to find without still spending a huge chunk of $ and schools are the key driver in the Chicago metorpolitan housing market. There are bad schools in the city, and good to excellent ones in the suburbs.