Real Estate Market

January 2014 Real Estate Newsletter

Home Sellers: The Spring Market Starts Sooner Than You Think

The Spring market in real estate is a very different time than the Spring that one associates with the seasons of the year. While the unofficial beginning of the Spring market is the the Monday after the Super Bowl, typically it begins sooner. 

Let me give you some context. 

Right now, my team and I have over 2 dozen buyers who have committed to buying homes with us in 2014. Some are ready to buy NOW. These are those who I classify as "A" buyers. Some have more protracted time frames. 

Now, let's talk about your time frame. 

If you want the marketing of your home to be launched on, say February 3, 2014, you need to back into that date. There are definitely pre-marketing preparations that have to take place. They can be as non-invasive as de-cluttering to more exhaustive recommendations (which I will not list here in fear that if you read them you may never hire me). My team and I like to look at the preparations before we go on market. Then there is photography. Then there is staging. Then my team and I need time to take notes on your home to develop the marketing pieces and concepts.

The idea is that this process takes time. All the while, you are not getting market exposure. Most of the families I work for need at least two weeks to prep their home. My team and I like to have a week. Throw in a painter, repair guy and a stager and we're over a month. Given that the unofficial start date of the Spring market is February 3 and today is January 2, how much time do you really have?

Luxury Home Market Will Be Even Stronger in 2014

Last week, USA Today newspaper reported that the household wealth in the USA is at an all time high. The two major contributors to this conclusion are the strength of the stock market and the recovery of the housing market. 

Let me localize this for you. Let's talk about new construction. 

New construction is really a conversation about lots. And lots do not exist around here so we're really talking about tearing down an existing house to make way for a new one. On the low end of the scale, it costs $10,000 to demolish an existing home and haul away the trash. So when you see a lot price, add at least $10k to it to get the real cost. 

Lot demand in the greater Hinsdale area (Clarendon Hills, Western Springs) are absolutely on fire. They are beyond hot. 

A recent example is a teardown house located at 118 E. Hickory in Hinsdale, IL 60521. The lot measured 55 x 132. The location was, in my opinion, a 7 on a 10 scale. It went on the market September 4, 2013 at about 1pm for $399,000. I had submitted one of what turned out to be 9 offers. My offer was $40,000 over asking price.

It sold 4 hours later for $475,000. That's right. $76,000 over asking price. The price per square foot was $65. Most Hinsdale properties sell for $50-$60/SF.

And this is just one story. I can bury you with dozens more. 

So if land is in such demand and numerous new construction projects are selling before the new home permits are even issued, that is a reasonable indicator that the luxury real estate market in the Hinsdale, Clarendon Hills and Western Springs area is going to be strong in 2014. 

If you have a property that you think may be a teardown and you have an interest in cashing out, please contact me at 630-286-9242 to talk.