In today’s competitive real estate market, savvy buyers look for the best deals by targeting homes with higher market times. In this video, we’ll look at data from six key markets in the western suburbs of Chicago to see what areas are most likely to offer discounts:
- Burr Ridge: 36% of listings are priced 69% above the median sale price, with homes on the market 9x longer than average.
- Oak Brook: 30% of listings are 45% above the median sale price, on the market 17x longer.
- Clarendon Hills: 28% are smaller, fixer-uppers priced 34% below the median sale price, on the market 25x longer.
- Hinsdale: 26% of listings are 54% above the median sale price, on the market 9x longer.
- Downers Grove: 22% of listings are overpriced and stay 17x longer on the market.
- Naperville: 18% of listings are luxury homes priced 219% above the median sale price, on the market 18x longer.
Discover how to leverage market time to negotiate better deals, even in a hot market. Watch now for valuable insights to make the most of your investment!
Eric Andersen, B.A., M.Div.
Owner/Designated Managing Broker, Andersen Realty Group
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📩 Email: eric@eandersenhomes.com
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Transcript:
In today’s competitive real estate market, savvy buyers are on the lookout for the best deals. I’m Eric with Andersen Realty Group, and one way to find these is to look for homes that have high market time. These will be ripest for a discount and give you the best opportunity to negotiate for a lower price.
In this video, we’ll analyze data, especially market time, from the western suburbs of Chicago to see where we can find the lowest-hanging fruit. We’ll look what the data shows for six key areas in the western suburbs, offering insights for anyone looking to avoid the competition and get a better deal.
In Burr Ridge, homes typically spend a median of 22 days on the market and sell around $856,000. However, there’s a significant subset of properties that have been on the market longer. 12 of Burr Ridge’s 33 listings have market time in excess of 45 days, which is how we’re defining low-hanging fruit in today’s market, making up 36% of Burr Ridge’s inventory. These homes are more expensive than the typical Burr Ridge home by 69%, suggesting they are a somewhat niche product, with a median asking price of $1,450,000. They’ve been on the market for an average of 367 days, which is 17 times higher than normal. Low-hanging fruit, indeed.
Moving to Oak Brook, it mirrors Burr Ridge with a median of 22 days on market but with a higher median sale price of $1,205,000. Among the 30 listings available at the end of April, 9 are in the high market time/low-hanging fruit category and represent 30% of Oak Brook’s inventory. These homes are listed at a median price of $1,750,000, 45% higher than the median sale price, and have been on the market for an average of 367 days, or 17 times the market average. So like Burr Ridge, Oak Brook’s low-hanging fruit is in the luxury price point.
In Clarendon Hills, the market is notably quicker with homes selling in a median of 12 days with a median sale price of $750,000. Despite this smaller market with only 7 homes for sale at month’s end, we might consider 2 of these low-hanging fruit, representing 28% of the market in Clarendon Hills. These listings are priced at a median of $492,500, which is 34% *below* the median sale price for the area. All of the low hanging fruit in the other five areas we are looking at in this video are either more expensive than the median sale price of the area or about equal to it, so Clarendon Hills offer the most affordable options. The two higher market time homes in Clarendon Hills are less expensive than the typical home in the area due to their smaller size and outdated condition. These two homes have been on the market for an average of 297 days, 25 times longer than average.
Hinsdale’s homes have been selling in a median of 19 days with a median sale price of $1,367,500. Out of 34 listings, there are 9 that we might consider low-hanging fruit, accounting for 26% of the Hinsdale market. These homes have a median list price of $2,100,000, which is 54% higher than the median sale price, which again suggests these are specialty items that won’t have a very large audience. They have an average market time of 177 days, nine times the Hinsdale average.
Downers Grove, where homes typically sell in a median of 11 days for $508,750, has 16 out of 73 listings that are low-hanging fruit, representing 22% of the market. These homes are listed at about $500,000, just below median sale price in Downers Grove, suggesting that these homes are typical for the neighborhood but are overpriced by comparison to the homes that are selling quickly. They might be smaller, outdated, and/or in less desirable locations, like on a busy street, but the sellers have not accounted for these issues in their asking price. The average market time for these homes is 187 days, 17 times higher than average.
Finally, in Naperville, homes are selling in a median of 9 days with a median sale price of $650,000. Out of 109 listings, 20 fall into the low-hanging fruit category, making up only 18% of the market, which is interesting given how large of a market Naperville is. Naperville’s low-hanging fruit is typically higher-end homes with a median list price of $1,425,000, which is 219% above the median sale price. The average market time for these properties is 164 days, 18 times the average.
Among these six markets, Burr Ridge, Oak Brook, Hinsdale, and Naperville stand out with homes priced well above the market norms, indicating they are higher-end luxury properties that will appeal to a limited pool of buyers. At the other end, Clarendon Hills offers low-hanging fruit in the form of smaller, fixer-upper homes priced well below the area’s median sale price. Downers Grove presents a unique case where the low-hanging fruit is priced ever so slightly below the median sale price, suggesting these homes are simply overpriced. This is particularly striking given Downers Grove’s median market time of just 11 days and has an inventory of less than two months.
All of these markets remain competitive due to low inventory and high demand. But there are always deals to be found, even in a competitive market. New listings with low market time will attract most of the competition, but remember, even low-hanging fruit was new to the market at one time. As market time increases, competition and price tends to decrease. I always tell my clients that market time will either be your best friend or your worst enemy. Sellers often take advantage of low market time to create buyer competition, and buyers can leverage high market time to negotiate better deals. But there are exceptions. Occasionally, a new listing sells at a discount, and there are stubborn sellers who refuse to negotiate on overpriced homes, and sometimes they find a buyer willing to give them their price, even when market time is high. But in general, paying close attention to market time is key when evaluating how competitive a listing might become. If you’d like help identifying specific properties that are ripe for a discount or in coming up with the best negotiation strategy, contact me today. I’m Eric with Andersen Realty Group, a family-owned brokerage where we treat our clients like family.