It's been a while since we've shed the spotlight on a neighborhood in a weekly sales stat post. I guess that's a good thing, because that means that we've been so busy helping out our amazing buyer clients! Along the way we've helped plenty of sellers sell for top dollar as well.
After swimming in this market, let's just get this exclamation out of the way: THIS MARKET IS BANANAS!! Here's the executive summary: Inventory continues to be in short supply, which means that buyer demand is strong. There are multiple offers out there, and it's very competitive. It's not uncommon to see between 2-5 or even 6 offers on the good properties. This is bringing about the use of something that's been a "secret" in the realtor's tool belt until now: the "escalation clause."
An escalation clause is a tool that a realtor and buyer can use to help give them an edge in a multiple-offer scenario, whereby they're basically saying "our initial offer is X, and we are willing to go up to Y if you get another offer." In this example, the buyer is putting an ultimate cap on what he or she is willing to spend. Most clauses stipulate that they will top other offers in increments of $1,000, but you should be able to "fine tune" any escalation clause with the help of your realtor.
In extreme circumstances (often with very affluent buyers), some escalation clauses offer to top the highest offer by $1,000 with no cap! Talk about paying top dollar. Sometimes when you gotta have it, you just gotta have it.
The risk in using an escalation clause, of course, is that as a buyer, you are putting all of your cards on the table. You lose any and all negotiation, because the seller knows how far you are willing to go.
The big takeaway in all of this is that you should use Escalation Clauses carefully. Make sure to ask your realtor to check with the seller's agent about how the offer and review process is going to go. Will there be a single round of submitting "highest and best" offers, or will there be multiple rounds? You will want to formulate your strategy with your realtor, so that you have the best chances of nabbing that new home or investment property!
WEEKLY STATS: LINCOLN SQUARE
Lincoln Square - that perennial neighborhood on the North Side - is a popular favorite among buyers and renters. It's got great schools, a robust restaurant and nightlife scene, and amazing park spaces. Here's a look at what's happening in the real estate market up in that awesome neighborhood.
All data is collected for previous 30 days market activity - April 2014 - and is current as of May 14, 2014
Attached Single Family Activity (Condos & Townhomes)
New Listings: 77 (up 48.1% from April 2013)
Closed Sales: 23 (up 21.1%)
Median Sales Price: $267,500 (up 5.7%)
Percent of Original List Price Received: 96.7% (up 0.3%)
Market Time: 55 days! (down 59.3%!)
Inventory of Attached Single Family Homes for sale: 112 (up 16.7%)
** This last stat goes against the city-wide trend of lower inventory - possibly an indicator that more 2007 and 2008 buyers are moving off the fence to sell.
Detached Single Family Activity
New Listings: 21 (down 19.2% from April 2013)
Closed Sales: 10 (up 100%)
Median Sales Price: $707,000 (up 128.1%)
Percent of Original List Price Received: 95.5% (up 5.5%)
Market Time: 48 days (down 74.1%!!)
Inventory of Homes for Sale: 27 (up 12.5%)
There you have it! Market time is Lincoln Square so low. Listings are flying off the shelves! Good thing that inventory is creeping back up a little bit, but, will it be enough to satiate all those hungry buyers out there? The numbers are saying "not yet!"
Are you interested in selling in Lincoln Square or other areas of the city? We've just rolled out a new property CMA / Valuation tool for FREE, if anyone is interested in getting a very basic idea of what their property is worth now. (This uses very basic property tax metrics, so it's best to talk to your realtor to fine-tune your results)
Our buyer services are free, and our seller services are competitive. Let's talk!