Keep Correcting--Only 50K more to go! (5%, negotiations, landlord, property tax)
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I must have missed something. Is this an exclusive Chicago area RE forum?
Economics 101 applies everywhere and if the market in Chicago is close to equilibrium, let's hope that's true. BTW I grew up in Medinah, have family all over the Chicago area and I am aware of what's happening in your marketplace.
How can you guarantee that this home won't go down in value?
I am just your average homeowner, getting ready to purchase my 4th home which I am confident I will buy at least 50% off current list price.
50% off current list? What, is it still listed at Peak price? Good luck with that. And if you grew up here, then you should undertand why everything you say is irrelevent to the Chicago market. Hell, the house I speak of in Wheaton would still be worth the $650,000peak in a suburb like Medinah. You do know what I mean, don't you? Hope so. And out of curiosity, where are you seeking a home at 50% off current list? I'd like to know the unusual specifics if that were really possible. There must be a catch if so.
50% off current list? What, is it still listed at Peak price? Good luck with that. And if you grew up here, then you should undertand why everything you say is irrelevent to the Chicago market. Hell, the house I speak of in Wheaton would still be worth the $650,000peak in a suburb like Medinah. You do know what I mean, don't you? Hope so. And out of curiosity, where are you seeking a home at 50% off current list? I'd like to know the unusual specifics if that were really possible. There must be a catch if so.
Why should I understand everything I said is irrelevent to the Chicago market? Please explain.
No unusual specifics and no catch. Just another high quality builder who gambled on some high end homes. I'm just helping him stay in business long enough to clear his inventory.
I must have missed something. Is this an exclusive Chicago area RE forum?
Economics 101 applies everywhere and if the market in Chicago is close to equilibrium, let's hope that's true. BTW I grew up in Medinah, have family all over the Chicago area and I am aware of what's happening in your marketplace.
He's not even referring to Chicago, he's referring to some random suburb in who knows where Illinois. Fact of the matter is Chicago HAS seen a major decline in sales and prices. Maybe not 30-40% over the past year but it is getting there. Now if I - a seller or realtor were to make a broad generalization about the housing market, what would I use as my example in an argument? Chicago or the random suburb in my state that went against the trend...
"In the city of Chicago, November total home sales (single-family and condominiums) were down 41.3 percent to 1,057 sales compared to November 2007 sales of 1,801. The city of Chicago median price in November was $222,500, down 23.3 percent from $290,000 in November 2007."
No arguing with the total sales volume falling way off and the big drop in median price of the units that did sell tumbling from $290K to $223K.
There are lots of "stories" behind those numbers -- from the tightening of lending, to the overbuilding, to the foreclosures. Some of those factors will probably be addressed on a longer time scale than others, but it is also important to realize that the City of Chicago is NOT the whole Norther Illinois market and even within that market there are some subsets that are quite different that the broad trends. The Case-Schiller data is assembled in a different manner (one that I think that creates other distortions), covering a MUCH larger area is off by only HALF of the percentage shown by the Realtor's data: Developments : Case-Shiller Numbers, By Metro Area
You really believe that most homes in LaGrange shot up 38%??? Of course not. The data is highly skewed by the dearth of volume -- the numbers are sorta meaningless if you don't dig deeper to see the stats on the RANGE of sales. You need to compare apples to apples, not the fact that larger single family homes are dominating the market now, as the newer condo developments in LaGrange sold out last year...
The core is still comparable sales. The data is in the MLS system for real estate agents and their clients. Find other properties of similar age, size and condition and the selling prices ought to similar if they happen close together in time. There is no magic to it. When there are more buyers and fewer sellers prices rise, reverse those and prices fall.
There is no magic to it. When there are more buyers and fewer sellers prices rise, reverse those and prices fall.
Bingo. This is exactly why prices in most markets, nationwide, are currently falling. How far? Different in every neighborhood. And no one can call the total decline until the price drops STOP-- which they haven't done yet.
Stosh: basic economics for the kool-aid drinkers here would be buy high, sell even higher. Financial markets, oil, and government budgets be damned, the real estate market never cycles.
When common sense begins to seep in pull out the real estate, statistical anomalies and keep clicking your heels hoping the sky won't fall.
Moderator cut: another personal attack
You'll find that there is good, honest group of agents here if you give it a chance and quit slinging the insults.
Most Realtors don't care all that much if prices are going up and down. What hurts are the lack of transactions. So while everyone thinks we care about price and control the price, it's just not true.
I am just your average homeowner, getting ready to purchase my 4th home which I am confident I will buy at least 50% off current list price.
Why do you care about list price? List price has nothing to do with actual value. If the home is way overpriced and you get it at half of list price it may not be all that great a deal. Maybe it's just me, but I'd be more concerned about getting a discount off fair market value. I have a lovely 3 BR here in sunny SC that I'll sell you for 109,900. I'll list it at 225,000 and you'll be getting a heck of a deal at 109k. Interested?
Why do you care about list price? List price has nothing to do with actual value. If the home is way overpriced and you get it at half of list price it may not be all that great a deal. Maybe it's just me, but I'd be more concerned about getting a discount off fair market value. I have a lovely 3 BR here in sunny SC that I'll sell you for 109,900. I'll list it at 225,000 and you'll be getting a heck of a deal at 109k. Interested?
Exactly. Tell that to the seller whose current list price doesn't reflect reality.
I made an assumption that the current list price is based on comparable properties. 50% discount off these properties would be what I would consider FMV.
In your example, I would not bother with your listing because it is obviously way overpriced compared to similiar properties. I do my homework and perform due diligence whenever I spend my hard earned dollars especially so in these current economic times.
I think you would be doing a disservice to your client by taking on a listing which you know will never appraise for what it is listed at. They would get absolutely no traffic and then wonder why.
He's not even referring to Chicago, he's referring to some random suburb in who knows where Illinois. Fact of the matter is Chicago HAS seen a major decline in sales and prices. Maybe not 30-40% over the past year but it is getting there. Now if I - a seller or realtor were to make a broad generalization about the housing market, what would I use as my example in an argument? Chicago or the random suburb in my state that went against the trend...
"In the city of Chicago, November total home sales (single-family and condominiums) were down 41.3 percent to 1,057 sales compared to November 2007 sales of 1,801. The city of Chicago median price in November was $222,500, down 23.3 percent from $290,000 in November 2007."
And the 'city of Chicago" is much different than the outlying suburbs. ANd the "who knows where" is known by most, at least those that know ANYTHING about the suburbs of Chicago. It's hardly a "who knows where" place, and a major part of the metropolitan part of one of the biggest cities in the US. Chicago's numbers are affected by all the condo/high-rise devleopements and the lack of sales of them. We live in DuPage County, if you care to look. Our median price (wheaton) is down just over 4% since last year, so when I said 10-12% from the example neighborhood I spoke of? Guess I'm being specifically honest after all. You really do not seem to understand, along with your counterparts (stosh and SurfGod), so stop trying or if you are truely interested, get the info before you blow hot air. Most ALL suburbs went against the "trend" you report, as the info you gave is for the city of Chicago and then the entire state of Illinois. Try looking at specifics and what the dirvers are, then come back and tell me otherwise. And no one is argueing that SALES are down. Doesn't mean prices are and will continue to be down.
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