How long will it take to sell my house in Chicago, IL?
- “How long will it take to sell my home in Chicago, IL?” is the second most important question for home owners in Chicago that are preparing to list their home for sale. (The first being, “How much can I sell my house for?”)
- “How quickly are homes selling in Chicago?” is a question asked by home owners in Chicago that are just interested in how the real estate market is performing.
- “What is the average number of days homes are on the market in Chicago before they are sold?” is a question asked by many home buyers searching for Chicago real estate.
WHY ARE THESE QUESTIONS SO IMPORTANT TO HOME SELLERS AND HOME BUYERS?
Home sellers want to know how long they will have to “stage” their house for showings, how long they will be paying mortgage payments, taxes, utilities, etc. on a house they want to move out of and in many cases how long until they can purchase their next home. Home buyers want to know the average number of days houses take to sell in Chicago, because they use it as a guide when looking for homes. As unjust as it may be in certain circumstances, home buyers think that homes that are on the market for longer than average “have something wrong with them or they wouldn’t still be on the market.” In most cases, the only thing wrong with homes that are on the market too long is that they are priced higher than the market will bear.
So let's get to the numbers you are here to see.
In the following table, we have broken down the statistics into different price tiers to give you an accurate average for the price tier you are looking to buy in or sell in. The following statistics include traditional home sales from the last 3 months (last updated on December 01, 2022) to ensure there are enough sold homes at each price tier to provide good ballpark estimates.
|Price Tier:||Sold Homes at Original Price:||Days to Sell at Original Price:||Sold Homes w/ Price Reduction:||Days to Sell w/ Price Reduction:||Price Reduction Required to Sell:|
|$0 - $99,999||35||39||7||107||13%|
|$100,000 - $199,999||149||54||46||96||8%|
|$200,000 - $299,999||227||53||66||93||8%|
|$300,000 - $399,999||165||47||51||87||5%|
|$400,000 - $499,999||113||56||24||85||5%|
|$500,000 - $599,999||76||44||18||94||5%|
|$600,000 - $699,999||59||51||13||80||4%|
|$700,000 - $799,999||29||50||4||107||4%|
|$800,000 - $899,999||30||44||9||78||3%|
|$900,000 - $999,999||16||50||5||148||7%|
|$1,000,000 - $1,099,999||13||72||2||44||6%|
|$1,100,000 - $1,199,999||6||49||0||0||0%|
|$1,200,000 - $1,299,999||3||47||2||102||9%|
|$1,300,000 - $1,399,999||7||42||4||103||7%|
|$1,400,000 - $1,499,999||5||52||0||0||0%|
|$1,500,000 - $1,599,999||5||64||0||0||0%|
|$1,600,000 - $1,699,999||6||32||1||264||8%|
|$1,700,000 - $1,799,999||3||91||0||0||0%|
|$1,800,000 - $1,899,999||1||23||0||0||0%|
|$1,900,000 - $1,999,999||3||28||2||291||6%|
|$2,000,000 - $2,099,999||1||53||0||0||0%|
|$2,100,000 - $2,199,999||2||172||0||0||0%|
|$2,200,000 - $2,299,999||3||105||0||0||0%|
|$2,300,000 - $2,399,999||2||32||0||0||0%|
|$2,400,000 - $2,499,999||1||0||0||0||0%|
|$2,700,000 - $2,799,999||1||42||1||245||11%|
|$2,800,000 - $2,899,999||0||0||1||2179||10%|
|$2,900,000 - $2,999,999||1||45||0||0||0%|
|$3,000,000 - $3,099,999||1||0||0||0||0%|
|$3,100,000 - $3,199,999||1||46||0||0||0%|
|$3,500,000 - $3,599,999||2||63||0||0||0%|
|$3,700,000 - $3,799,999||1||90||0||0||0%|
|$4,300,000 - $4,399,999||1||111||0||0||0%|
|$4,400,000 - $4,499,999||1||154||0||0||0%|
|$4,800,000 - $4,899,999||1||10||0||0||0%|
|$18,500,000 - $18,599,999||1||0||0||0||0%|
In the table above you will see how homes that were priced correctly from the start (did not require a price reduction to sell) sold in substantially less time than homes that required price changes to sell. At a city-level, regardless of price tier, homes that were priced correctly sold in 51 days, compared to 103 days for homes were overpriced for what the market would bear and eventually had to lower their price to the market-driven price. The homes that sell “quickly” are not undervalued; they are priced correctly based on the current market. Many people selling their homes try to start high and wait too long before selling at the correct market price, but they all eventually do; otherwise their home never sells!
Why are these figures different than what another Realtor told me? It's all in the Methodology.
We believe that a statistic is only as good as the methodology used to calculate it. Be sure that the average you are using as a guide when selling or buying a home in Chicago was calculated with a strong methodology at its base.
A common, simplistic, albeit inaccurate, way to calculate this number would be to add the “Days On The Market” for each home that was sold last month in Chicago and divide the total by the number of homes sold in Chicago last month. Many real estate agents use this simplistic calculation and do not give it a second thought; unfortunately, that calculation substantially inflates the number of days a home will be on the market if it is priced correctly.
So what was our methodology?
We started by eliminating all short sales and foreclosures from the statistics. Next, we broke down the statistics by separating overpriced homes, homes that required price reductions to sell, from homes that were sold at their original list price. Finally, we broke the statistics down into price tiers of 100K.
Why did we not separate single family homes from condos and townhomes? Why did we not separate the statistics at a square footage tier, a bedroom and bathroom count tier, etc.? Simply stated, the above statistics are meant to be city-level statistics that are used as a more accurate ballpark number than you will find elsewhere online. The reports are not meant to be used as a “calculator” for your exact property. There are far too many factors that Bowers Realty Group uses when determining a realistic estimate for your exact home, such as: the condition of your home, the number of bedrooms and bathrooms, your home's square footage, if you have a finished basement, which subdivision your home is in, how your home compares to other homes currently on the market in your area, etc. This report is meant to give a general overview for the entire city of Chicago, not your exact home. For an estimate for your home contact us today for a free, no obligation, CMA (pricing estimate) and for an expectation of how long it will take to sell your home.
Were homes that sold for more than the asking price included in the statistics?
Homes that sold for more money than what they were listed for are included in the statistics. This is a common occurrence when homes receive multiple offers; however, homes that actually increased their list price before they sold were not included. The reason they should not be is that the vast majority of cases, these are home sellers that were not happy with the price their home could sell for based on current market conditions so they changed the only factor they could, the condition of their home. They most likely listed at a price that was too high for their home's current condition and then decided to renovate their home and eventually listed the home at a higher price tier due to the upgrades.
- Homes that are priced correctly sell much more quickly than the “average” in any area!
- The “average” number of days homes take to sell varies greatly by the methodology used to create the average.
- If you are buying Chicago real estate, you need a Realtor on your side that understands pricing and how to accurately calculate how long homes take to sell in Chicago.
- If you are selling your home in Chicago, you absolutely need a Realtor that understands how to price your home correctly based on current market conditions, or it will cost you time and money!
- Contact Bowers Realty Group today at 630-712-1921 if you have questions on the above statistics or you are looking to buy or sell real estate in Chicago.