(All content, below, by Eva Bergant)
Have you ever been to a restaurant where the menu offers something, often lobster or seafood, for “market price” instead of a set price? Your meal cost is adjusted to a price that reflects how expensive the ingredient is at the time the restaurant buys it. The cost of the ingredient is dependent on the available supply and on how many chefs are interested in the use of it. If supply and demand are equal, market price and market value are equal.
Real Estate is similar. When there is a high supply of property without a high demand, the market price tends to become lower than the market value of the property. In fact as long as there is a high supply of properties it will continue to be an advantage to the buyer. The advantage goes beyond the price as there are many choices available, location, size, floorplans, finishes and more.
So if restaurant A wants to sell the ingredient quickly, the “market price” will be reduced. Is it a deal to get the lobster at a reduced price? Only if it still has the fresh flavor, and maintains its “market value." Restaurant B can continue to sell the same ingredient at a higher “market price” because of freshness, preparation or many other factors.
Is the foreclosure house a deal at “market price”? Only if it is in decent condition or can be restored to “market value”. How does this compare to the home that has a higher “market price,” but is in wonderful condition and is offered at “market value”? You decide. After all the “market price” is determined by what a willing buyer and a willing seller agree upon.
Detached single family homes closing this past week: 1932 W Potomac 3bedrooms 2 ½ bathroom home $635,000
1842 N Marshfield 4 bedroom 3 ½ bathroom home $664,000 These houses have been on the market for 230 and 855 days respectively and have had multiple list price reductions.
Attached homes closing this past week (average market time 94 days): 1735 N Paulina #418 2bedroom 2bath, Condo-Loft, parking spot, distressed seller accepted $276,000
1830 W Ellen #1 2bedroom 2 bath 1/2 Duplex with Master in lower level, one garage spot $325,000
2241 W Wabansia #402 2bedrom 2bath top floor condo, two garage spots, foreclosure sale $350,000
1079 N Hermitage #1 3 bedroom 3bath Duplex Condo with garage $415,000
2145 W Crystal #1 3bedroom 3 ½ bath Triplex Condo with garage $419,000 1300 N Wood #1W 3 bedroom 3bath Duplex Condo with garage and outside spot, $515,000
Have a topic you’d like to see explored a real estate question send it in.
If you’d like more information on properties currently on the market or selling your home just drop me a note at EvaB[AT SIGN]atproperties.com
*** Information sourced from MREDLLC; 1/24 -1/31/11. Attached Property and Detached Property residential Bucktown (Ashland, Western, Fullerton, North) and WickerPark (Ashland, Western, North, Division)