Posted by: union03g | March 12, 2010

Chicago’s Largest Price Reductions: Why They can be Misleading

CondoShark lists real estate that has seen the largest percentage one-time price reductions but it can be very misleading, so just be careful. You have to be a good analyst and identify real opportunities in the chaos. A large reduction can mean that the seller was asking way too much to begin with and their reduced asking price may not be the lowest of its comp set. A large reduction is just a signal flare to get attention. To me it signals a sloppy/rookie RE agent.

For example, why was 2407 Surrey (pics below), a 2/2.5 loft in Lincoln Park, priced at $600k to begin with? Are they nuts? Now its listed at $450k (25% reduction) –  a reasonable ask but its still a loft which shouldn’t command as much as a non loft, ceteris paribus.

Full CondoShark listings Here – A cool site, just know what your reading.

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Responses

  1. Grant-

    I set up http://www.condoshark.com as a free tool for people to use. I clearly state on the site that it is one of *many* data points that exist to find compelling values. In fact, interested buyers can subscribe to my “Deal Alert” service where I send out what I feel are extremely compelling deals that do not show up on the price cut list. There are indeed listings that show up where they are on the list due to being mispriced originally. There are others, like the unit at The Palmolive building, that truly reduced price until they sold (this unit is under contract off an 810k asking price).

    The best way for you or any other investor to find good deals is to use many different data points and work with an agent like me who watches the market all day looking for value. I just got a 3 bedroom in the Gold Coast for one of my Deal Alert clients for 200k below the current appraised value.

    We know how to get deals done with REO and shorts sales that are often competative sutuations, as this one was.

    Thanks for your interest in condoshark, I nam happy to discuss it with you personally any time.

    MGG


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