Overpricing Your Illinois Home Now Can Cost You Later

Of all the decisions required when selling your home,art than science in what experienced real estate
the most important these days could well beagents agree is a rapidly changing market in Northern
choosing the initial listing price.Illinois real estate.
"Our agents are largely unanimous in saying that the"When you do a market evaluation prior to
biggest challenge sellers face in the current Illinoisdetermining a list price for a home, the information
housing market is avoiding the temptation toyou use must be current," insists Marc Perlove of RE
overprice their property when it is first listed,"MAX Villager in Glenview, Ill. "Any sale more than six
reports Jim Merrion, regional director of RE/MAXmonths old shouldn't be used because the market for
Northern Illinois.Chicago-area homes has changed substantially since
Overpricing a home is a big risk these days, contendsthen. I recommend basing a competitive market
Julie Wenzel of RE/MAX Town Lake and Country inanalysis on sales that closed in the prior three
Freeport, Ill. The reason for the risk, she says, "ismonths, and even then you have to be aware of the
that each property has a short window of timetrend shown in the most recent sales. Are prices for
when it is going to attract the maximum amount ofthat type of property in that area holding steady,
attention. Once a property has been on the marketrising or falling? Whatever the trend, you have to
more than 60 days that window closes and it is moretake it into account."
difficult to get it sold right now though that mayOverpricing a Chicago home may be more of a risk
change somewhat as the spring home buying seasontoday than in years past, but it certainly is not an
gets into full swing in Illinois."unusual impulse.
According to Sherry Justice of RE/MAX '10' in Home"Every seller wants to get a bit more than their
Glen, Ill., homes that sit on the market for monthsRealtor tells them the property might bring,"
can become difficult to sell even if the listing price isacknowledges Jan McNulty of RE/MAX Suburban, Mt.
adjusted to a realistic level because buyers will shyProspect, Ill. "It's just human nature, and it might not
away from homes that have been on the market formake a big difference if that 'bit more' is within 2 or
an extended period.3 percent of the list price suggested by the agent.
"Buyers today are better informed than everIt's when sellers try for 5 percent more that they
before," Justice says. "They are getting daily updatesrun into real trouble in this market."
on the Chicago-area housing market prices throughAvoiding these mistakes can be the main factor in
Internet research or directly from their agent, andhow well a home is received on the real estate
with so much inventory to choose from, they willmarket in Illinois. With warm weather approaching,
quickly see how well one house stacks up againstand more and more buyers out to shop, now may
properties with a similar list price."be the necessary time to get an educated opinion on
Therefore, deciding on the right price can be morehow to initially price your home in Illinois.