The real estate market today is a tale of two markets: homes that sell quickly for top dollar and those that linger, many of which eventually sell at a steep discount. It’s a dynamic that mirrors Aesop’s The Tortoise and the Hare. The key to success? Knowing whether the home you’re dealing with is a steady tortoise or an overconfident hare. In this video, we’ll explore how this plays out in Downers Grove and nationwide, uncovering the strategies that help sellers maximize profits and buyers find the best deals. From competitive pricing to recognizing niche opportunities, we’ll share data-backed insights to help you navigate the market with confidence. Whether you’re buying or selling, strategy and preparation make all the difference.
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Andersen Realty Group
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Transcript:
Real estate in the western suburbs of Chicago as of January, 2025 is a tale of two markets. Some homes race off the starting line, get multiple offers, and go under contract within days. Others sit for months and go stale before selling, often for a sizable discount from asking price. I’m Eric with Andersen Realty Group, and what we have here is a dynamic that’s similar to Aesop’s The Tortoise and the Hare. The tortoise, with its steady determination and well-planned strategy, ends up winning the race. The hare, overconfident and careless, takes a nap and falls short.
Downers Grove: A Tale of Two Homes
In today’s market, both tortoises and hares are very much present. Whether you’re buying or selling, the key is to know if you’re dealing with a tortoise or a hare. This will help you make smarter decisions that are more effective and profitable. We’re going to start by looking at how tortoises and hares are faring in Downers Grove. Then, we’ll see how these dynamics are playing out across the country, and we’ll end by discussing how sellers and buyers can use this information to their advantage.
But first, let’s turn to the data in Downers Grove, where the market definitely leans more tortoise than hare (keeping in mind the tortoises are the winners), though hares are also starting to crop up. Over the past 3 months, 101 single-family homes sold in Downers. Of those, 35 moved at lightning speed, selling in under a week. These tortoise-like homes were strategic and steady, and it paid off. On average, they sold for about 4.9% over asking price. Remember that: the competitive listings sold for about a 5% premium, on average. One even went for nearly 18% over asking price.
On the other hand, 12 homes lingered on the market for over 100 days, with one taking an incredible 576 days to sell. Four of these were new construction, which often has artificially inflated market times because builders typically list the home before it’s even built. Excluding these, the remaining homes sold for an average of just 89% of their asking price. That’s about a $70,000 discount, with one dropping as low as 78% of its original price. But keep in mind these non-competitive listings represent less than 10% of the entire inventory, while competitive listings represent about 30% of the market. So if you’re looking at a new listing, it’s statistically more likely to be a tortoise than a hare.
That leaves about 60% of the inventory that we might consider just average: neither tortoises nor hares. Those listings have been selling for an average of 99.6% of asking price. The moral of the story? Competitive listings are selling about 5% over asking, stale listings are going about 11% under, and the typical listing is selling right about at asking price.
National Market Context: The Broader Story
This story isn’t unique to Downers Grove; it’s playing out across the country. Nationally, active listings in November were up 12.1% from last year, giving us the highest inventory levels since 2020. What’s more, more than half of those listings sat unsold for over 60 days, which is the highest market time since November, 2019.
Nationally, the homes that were priced right, prepared well, and marketed effectively sprinted to the finish line, often selling in just 3 to 5 days. Meanwhile, the hares tended to sit for 3 months or more, eventually requiring price cuts to attract buyers.
It’s not just about speed; it’s about strategy. Elevated mortgage rates, hovering above 7%, have made buyers more hesitant. This means sellers need to be more thoughtful and deliberate. Inflation-adjusted costs of homeownership are at their highest point in decades. Sellers who understand the market dynamics and position their homes like tortoises are reaping the rewards, while hares are left scrambling to adjust.
Strategies for Sellers: Be the Tortoise
So, how can sellers be tortoises and cross the finish line as winners? First, price your home competitively. It’s counterintuitive, but asking a little less upfront can often lead to a higher sale price in the end. This is because a competitively priced home attracts more buyers. This often leads to competition or a quick sale, which gives the buyer less leverage in negotiations.
The second thing savvy, tortoise-like sellers know is that preparation matters. This includes staging, curb appeal, and minor repairs. A move-in-ready home captures buyer attention, making them more likely to act quickly. Finally, highlighting unique features and having a compelling presentation for your listing with things like 3D tours, high-quality photos, floor plans, and a robust digital presence will also help set your home apart.
Finally, know if your home falls into a niche category. Some properties, like custom homes or those with unique features, might not appeal to a broad audience but will be perfect for the right buyer. These homes might look like hares at first glance, as they generally take longer to sell. But with appropriate pricing, preparation, and marketing, they’re ready to sprint to the finish line when that perfect buyer comes along.
Strategies for Buyers: Spotting Tortoises and Hares
Buyers, your strategy depends on recognizing tortoises and hares. When chasing the tortoise, speed is critical. These homes are well-priced and well-prepared, and they sell quickly. If you’re looking at a home with low market time, you may be looking at a tortoise. As we noted earlier, in Downers Grove, competitive listings have averaged close to 5% over asking price, so be ready to bid accordingly.
Of course, not all new listings sell quickly, so you may be looking at a hare that’s getting ready to take a nap and linger on the market. A great agent who knows the local market can help you determine if a home with low market time really is a tortoise or if it’s getting ready to go into hibernation. If it’s a tortoise, make sure you’re ready to go. Have your preapproval ready and be prepared to act decisively.
If you’re looking for a deal, go hare hunting. This means keeping a close eye on market time and going after those homes that have been sitting for a while—ideally, 90 days or more. These represent opportunity and give you more negotiation leverage. In Downers Grove, sleepy listings sold for an average of 11% below asking price, though a few went in the 94% to 95% range. Again, a great agent can provide you with the most current data and help guide your offers so that you are strategic and successful.
You’ll also want to be aware of the stubborn seller. You’ll occasionally run across a seller who refuses to budge, leaving you with only two options: move on and find a better value, or be prepared to pay a king’s ransom. If it’s the home you want, there’s nothing wrong with that. Just be aware that it may not appraise and you could end up with negative equity.
Final Thoughts: Winning with Strategy
Whether buying or selling, it’s important to have a solid understanding of the market. A one-size-fits-all approach won’t work. Sellers who overprice their homes, don’t prepare them for market, and have a poor marketing strategy miss out on competitive offers. Buyers who offer 90% of asking price on every home are more likely to get frustrated and give up than they are to get a home under contract. Success comes from knowing the data and coming up with an appropriate strategy.
Just like in the fable, the winner isn’t always the fastest. It’s the one who is best prepared. If you’d like my help coming up with a great strategy, whether selling or buying, reach out using my contact information below. And if you found this helpful, be sure to like this video, subscribe to my channel, and turn on notifications. I’m Eric with Andersen Realty Group, a family-owned brokerage where we treat our clients like family.