chicago real estate

How To Price Your Home to Sell

Every time I meet with a seller one of the main topics we discuss is how to price their real estate to maximize the sale price while minimizing the time on the market. Most people have the belief that pricing real estate a little higher than the market value will give them flexibility to negotiate when the right buyer comes along.

This is the conventional approach that most sellers take but I can show you with hard data that this approach leaves a lot of money on the table for the seller. Below I will show you how to price your real estate to put you and your family in a position of power throughout the selling process.


While this is the most common approach to selling real estate, in almost every case the sales data proves that you will get more money if you start at or slightly below the market value. Buyers are more educated than ever so they can spot an overpriced piece of real estate as they’ve probably been searching for weeks or even months online.

What happens when you start above the market value is you get some traffic but the savvy buyers don’t come to see the unit as online viewings have taken the place of first showings. For all my listings I shoot 3D walkthroughs and listing videos so buyers can get a feel for the home before they come to see it.

What happens around day 25 is the traffic to your home decreases dramatically. Why is this? Put yourself in the shoes of a buyer. They’ve been looking for months and a new property hits the market that looks like it might be the one. They rush over to see it in case it’s their new home. This is the same phenomenon with listings (just the reverse) so it’s not too surprising that about 80% of your traffic will come within the first 25 days of being on the market.

As the traffic dies down and we exhaust all our marketing channels (mailers, online advertising, reverse prospecting for buyers in the MLS, social media posts, email marketing, etc) it is time to take a price reduction to increase the traffic to the listing.

The challenge with reducing the price to the market value after it’s been on the market for a few weeks is that buyers no longer feel compelled to write a full price offer in fear of losing the property. Therefore they normally offer 5-7% below the new list price. At this point we’ve missed the opportunity to get the full market value for the property and lost most of our negotiating power. Inevitably, we will end up selling the property 1.5-3% below what we could have got if we had priced the unit at the market value from the start.

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Below is the data from the past 12 months of condo sales for 1 bedroom and 2 bedroom condos in the South Loop. In the case of the 2 bedroom condos, units that took a price reduction sold for a median price of $516,250 vs units that did not take a price reduction which sold for $537,000. That is a massive difference to your bottom line.

I also ran this for 1 bedroom units to confirm the data. The median price for the units that took a price reduction was $315,000 vs $335,000 for units with no price reduction. That’s why it is important to get the pricing right from the start.

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All this sales data doesn’t take into account the added expense of increased time on market. One bedroom units that had to take a reduction sat on the market on average for 75 days vs 39 days for units that didn’t take a price reduction. This additional 36 days cost the owners in taxes, assessments, insurance and mortgage interest. Not including the stress of their unit not selling and the inconvenience of having to show their unit more and keep their house in showing condition. The story is similar for the 2 bedroom condos which sat for an additional 74 days on average.

Pricing your home is an art and a science. It’s not easy to always hit the market on the head but by using multiple data sources (comps, price per square foot, active inventory, absorption rate, etc) we can triangulate a price range that should be acceptable to the market and should put the most money in your pocket.

I know that selling your home is stressful and my job is to get you the most money in the least amount of time. Valuing real estate is one of my strong suits since I have a quantitive background. If you have any questions about this article or pricing your home, reach out to me and we’ll set up a time to talk.


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1228 W Monroe St Unit 401 | 2 Bed, 2 Bath | Condo

Gorgeous 2 bedroom / 2 bathroom unit in the heart of the West Loop. This unit features granite countertops, stainless steel appliances and hardwood floors. Available September 1st. Garage parking available for $200. No security deposit, move in fee $1,000.

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Every home has a unique story and the TC Group would be honored to tell yours. We understand luxury real estate in Chicago. Our primary objective is to partner with you and achieve the highest net proceeds as quickly as possible. We pride ourselves on personal service and attention to our clients’ every need—our goal, for every transaction, is to create ecstatic customers. Selling a home in today’s market can be challenging and the TC Group understands this. In spite of a shifting market hundreds of homes are sold each month in Chicago. What’s the difference between selling your home or failing to do so? The Details. We believe one of the best ways to capture prospective luxury homebuyers is to create cutting-edge content for engagement. Our videos focus on the endless premium amenities that the properties have to offer and an exclusive inside look at the homes – leaving prospective homebuyers craving more.

To schedule a private showing of one of our properties call 702-528-2267. Connection Matters, Get Social With Us:

Subscribe to our YouTube Channel: http://bit.ly/2UGPP8L

Facebook: http://bit.ly/2ZhfROB

Instagram: http://bit.ly/2UnEdT1

Zillow: http://bit.ly/2vA2Rnl

2432 W Chicago Ave Unit 1S | 5 Bed | 3 Bath Duplex

New construction 5 bed/3 bath duplex-down offers extra wide living space w/ a sleek modern design. Features of this special home include: kitchen cabinetry by LEICHT, Quartz countertops, Bosch stainless steel appliance package, Pella windows, JELD-WEN doors and Grohe/Hansgrohe plumbing fixtures. Additional desirable features: hardwood floors, carpet on lower level, Porcelain tiled baths w/Quartz counters, spacious master bath w/ huge walk-in shower, heated floors and double bowl vanity. Other highlights: closet organizers, Nest Thermostat, recessed lighting, large covered terrace (6x34) off main living area & garage rooftop deck (20x18). Garage parking include in price. Ideally located - this home is a short walk to boutiques, salons, shopping, coffee shops & restaurants. Also close by popular Smith Park, w/ recreational amenities for entire family. 10 minute walk to Western Metra stop. Non refundable move in fee $2,500. No security deposit.

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Every home has a unique story and the TC Group would be honored to tell yours. We understand luxury real estate in Chicago. Our primary objective is to partner with you and achieve the highest net proceeds as quickly as possible. We pride ourselves on personal service and attention to our clients’ every need—our goal, for every transaction, is to create ecstatic customers. Selling a home in today’s market can be challenging and the TC Group understands this. In spite of a shifting market hundreds of homes are sold each month in Chicago. What’s the difference between selling your home or failing to do so? The Details. We believe one of the best ways to capture prospective luxury homebuyers is to create cutting-edge content for engagement. Our videos focus on the endless premium amenities that the properties have to offer and an exclusive inside look at the homes – leaving prospective homebuyers craving more.

To schedule a private showing of one of our properties call 702-528-2267. Connection Matters, Get Social With Us:

Subscribe to our YouTube Channel: http://bit.ly/2UGPP8L

Facebook: http://bit.ly/2ZhfROB

Instagram: http://bit.ly/2UnEdT1

Zillow: http://bit.ly/2vA2Rnl

HOMES FOR SALE - CHICAGO SOUTH LOOP - 1804 S Calumet | 3 Bed | 2.1 Bath

Don’t miss your chance at this bright & airy, beautifully maintained townhome!Located in the historic Prairie District, this 3-bed, 2.1-bath home is just a quick commute to Soldier Field, Lake Michigan, Museum Campus & so much more! With over 2,400 sq. ft. of thoughtfully designed living space, this spacious town home also offers a bonus room perfect for a child’s playroom or home office! Full of natural light, this stunning townhome has been customized w/unique details throughout the space, from the designer flooring to the crown molding, gorgeous fireplace, wainscoting details, arched windows & more. The open concept living space connects the living & dining areas to the chef’s kitchen, creating a true heart to this stunning home. The bright & beautiful kitchen offers plenty of storage in the custom cabinetry, modern stainless-steel appliances & bonus breakfast bar seating. A balcony off the kitchen offers room for a grill or bistro set. Fully equipped w/ in-unit laundry hook up & oversized single-car garage, this stunning townhome offers all the amenities you could need in the perfect location & is sure to go quickly! Schedule your private showing today!

4004 N St Louis Ave #1S | 4 Bed | 3 Bath Duplex

This gorgeous duplex offers four bedrooms, three baths and beautifully updated spaces. Sparkling hardwood flooring, many large windows, generous natural light and 10 foot ceilings add beauty and charm. Enjoy a spacious kitchen with granite countertops, brand-new stainless-steel appliances, generous cabinet storage and convenient breakfast bar. Linger over a meal in the large dining area, just off the kitchen or kick back and watch a show in the comfortable living room with cozy fireplace. Each of the bedrooms are spacious and comfortable. The master features a gorgeous ensuite bath with dual vanities and separate shower and soaking tub. Great wet bar area on lower level with sink and wine refrigerator – ideal for entertaining. Utility/laundry room, tandem parking space, great office space, plus new roof!

Homes for Sale - Chicago South Loop - 1841 S Calumet Ave #611

Beautiful and Bright, this unit is just over 1,000 square feet offering two bedrooms, two baths and a wonderful open concept floor plan. Relax in the inviting living room with lovely hardwood floors and floor to ceiling windows which look out to the city beyond. The kitchen gracefully flows from this space and boasts an intuitive layout with sparkling granite countertops, stainless steel appliances, great cabinet storage, large pantry, and convenient breakfast bar. The tranquil master has a fantastic upgraded closet organizer and great ensuite bath. In unit washer and dryer are tucked out of sight. Lounge out in the open air on the magnificent outdoor terrace and take in the expansive city views!

Every home has a unique story and the TC Group would be honored to tell yours. We understand luxury real estate in Chicago. Our primary objective is to partner with you and achieve the highest net proceeds as quickly as possible. We pride ourselves on personal service and attention to our clients’ every need—our goal, for every transaction, is to create ecstatic customers. Selling a home in today’s market can be challenging and the TC Group understands this. In spite of a shifting market hundreds of homes are sold each month in Chicago. What’s the difference between selling your home or failing to do so? The Details. We believe one of the best ways to capture prospective luxury homebuyers is to create cutting-edge content for engagement. Our videos focus on the endless premium amenities that the properties have to offer and an exclusive inside look at the homes – leaving prospective homebuyers craving more.

To schedule a private showing of one of our properties call 702-528-2267. Connection Matters, Get Social With Us:

Subscribe to our YouTube Channel: http://bit.ly/2UGPP8L

Facebook: http://bit.ly/2ZhfROB

Instagram: http://bit.ly/2UnEdT1

Zillow: http://bit.ly/2vA2Rnl

I’M READY TO START LOOKING FOR A HOME NOW WHAT?

So you are ready to purchase a home. Where do you start? A great place to start the process is with engaging a real estate professional. Anyone can show homes but only a qualified real estate broker will help you navigate the process from contacting a financial planner, introducing you to a qualified lender and discuss your needs and wants to find you the right home. They should have access to off market properties as well as the MLS (Multiple Listing Service) to ensure you see everything that is available that fits your "must have" list. Qualified real estate professionals bring expertise and guidance that will make sure that you not only find a home that you love but one that will appreciate and will be marketable when you are ready to sell. 

How Long Does It Take to Purchase a Home?

Ever wonder how long it takes to buy a home? In this video I cover the 5 steps you’ll encounter during the home buying process. I’ve also included a link below to my “Roadmap of a Transaction” that shows the timeframe for each step as well as some of my partners I use in my brokerage business. All of my partners are based out of Chicago but my lender partners are able to originate loans throughout the country. Enjoy the video and let me know what you think in the comments.

Chicago Real Estate Market Data - February 2019

Below is a link to the Chicago Real Estate Market Data for Chicago. This report covers all the Chicago neighborhoods. What I find interesting is the increase of inventory since July of 2018. We will have to watch inventory going into Q2 of 2019 to give us more direction of the health of the market. There is a lot of data in this report so if you have any questions feel free to reach out to me and I’ll help answer any of your questions. 

333 W Hubbard St Unit 610 | 3 Bed | 2.1 Bath - 2300 Square Feet

Modern and inviting, this spacious 2,300 ft. combined unit offers three bedrooms, 2.1 baths and magnificent upgrades including designer lighting and custom features throughout. The main living area showcases a luxurious open concept with lofty 15-foot ceilings and large, nearly floor to ceiling, windows which frame stunning views of the cityscape. This space is warm and bright yet still maintains a cozy feel – wonderful for entertaining and relaxing alike. Gather around the table for a delicious meal, sip your coffee out on the balcony or settle in to watch a favorite show. The artfully designed chef’s kitchen leaves nothing to be desired boasting stunning quartz countertops, gas cooktop, stainless steel appliances, wine refrigerator and huge center island. Prepare a meal and take-in the gorgeous views. Each of the bathrooms are upgraded with marble countertops and fine fixtures. Ideally located, close to shopping dining and entertainment. Residents enjoy a beautifully landscaped courtyard and 24 hour doorman. 

2429 N California Ave #1S - Logan Square 3 Bed | 3 Bath | Duplex

This beautiful, three-bedroom, three bath home enjoys a fantastic location in Logan Square. Lovely details such as rustic exposed brick, built-in shelving and hardwood floors add character and charm. Relax in the inviting living room with large windows and ambient recessed lighting. Enjoy a thoughtfully laid out kitchen with stainless steel appliances and great cabinet storage. Sip your morning coffee in the lovely sunroom. Also find a fully fenced backyard and convenient 1 car garage. Ideally located within walking distance to parks, sports fields and nightlife.

How to Write a Successful Real Estate Offer

The Chicago real estate market is extremely competitive. I’ve had many buyers miss out on their first and even their second offer due to the competitive nature of the marketplace. I suggest my clients follow the suggestions below to increase their likeliness of getting their offer accepted.

  1. Find the property you love.

    Most people think that they are going to find the perfect home. I hate to be the bearer of bad news but that property doesn’t exist. Instead focus on the 90% property. Throughout this process you will find constant tradeoffs. Whether it be location, size or price, you will be making some sacrifices in your next purchase. Try to build a list of must have features and keep them top of mind. Then build a list of “nice to have” features so you know what is important. If you take this approach you will be much happier with your next home and it will give you clarity throughout the process.

  2. What is the home worth?

    Once we’ve found the home we need to figure out what it is worth. We will start with comparable properties that have sold in the last 6-12 months. But comps don’t tell the whole story. Other items that factor into the value of a home include current inventory, time of year, median price/square foot, market time of the listing, and list/sold ratios for the area.

  3. Preparing the offer

    After we’ve put together a thorough market analysis, we will write up our offer. It is best to make an offer that is close to what we think the property is worth. I’ve seen too many buyers write lowball offers that end up costing them money in the end. The reason for this is that it can offend the seller and then the rest of the process becomes contentious. If the seller is offended by your offer they won’t want to work with you and every step in the process becomes a fight. I often find that you get into a nickel and dime situation during every turn of the transaction which costs you money in the long run. Remember that the purchase price is only one aspect of the transaction. You still need to negotiate the closing terms and inspection items. There are dollars to be gained or loss in those aspects too and if you start with a lowball offer you are much less likely to have any collaboration during these steps of the purchase.

  4. Pre-approval letter

    You will want to include your pre-approval letter with your offer to validate that you are a legitimate buyer. I always recommend you work with the right lender for your situation. I normally recommend either Guaranteed Rate or Wintrust since they both have local underwriters who know the unique aspects of the Chicago real estate market and can be available if and when we hit a snag in financing.

  5. Letter to the sellers

    I recommend all my clients write a letter to the sellers introducing themselves. This helps differentiate you from other buyers and helps humanize the process. I’ve had multiple offer situations where sellers took our offer which was lower than the competition because they connected with the new buyers through this letter. It’s an extra step but I believe it is a competitive advantage in the end.