John Ruble needed to sell his home fast. He planned to move from Chicago’s Norwood neighborhood to suburban Antioch, where he’d live in a two-story ranch with his daughter and her husband.
Ruble needed a speedy sale because he planned to put a whopping 50 percent down payment on the Antioch house, and he needed to sell his Chicago home to get that money.
He put his house on the market Jan. 6. Then, he worried–that buyers wouldn’t want to shop for houses in the middle of a Chicago winter, that his house would sit on the market for months, that he’d never get that Antioch home.
After all, the middle of winter, in the wake of the year-end holidays, has traditionally been a slow time for real estate.
Ruble needn’t have worried. By 5 p.m. the next day, someone had bought his house. His Antioch plans went off without a hitch. “I was very surprised at how fast it sold,” Ruble said. “I even got about $5,000 more than I thought I’d get. Now I have no worries at all. I’m set.”
Ruble’s story isn’t unusual. Home sellers in the Chicago area are finding that in today’s hot real estate market, it’s possible to sell a house quickly any time of the year. Of course, that doesn’t mean that some times aren’t better than others. During certain times of the year you’re likely to get a better price, and during other times you’re likely to nab more offers.
So, when should you put your house up for sale? That depends on when–and on how quickly–you need to sell it.
At one time, most real estate agents would have said that putting your house on the market from March 1 to June 1 would guarantee the most offers and the highest prices. And that’s still a great time to sell. Families with children often look at houses during this period, so the closing can take place after the school year ends.
But it’s no longer the only time homeowners can nab a quick sale while still fetching a top price. Chicago’s real estate market has been sizzling for nearly two years now. People are buying 12 months a year, even during the holidays. And home prices in the city and its suburbs continue to escalate.
“It doesn’t matter anymore when you put your house up for sale,” said Barry Paoli, president of Century 21 McMullen, a Chicago brokerage. “If you price it within 5 to 10 percent of market value, it’ll sell in two or three days, even in the middle of December.”
Paoli, who sold Ruble’s house in January, said his agents sold 50 houses in December, a large amount for what is traditionally one of the slowest home-selling months of the year.
And Paoli’s experiences aren’t unusual, at least not in Chicago. According to statistics from the Chicago Association of Realtors, 1,351 houses in the city sold during the week of Dec. 19 to 25 last year. During the same week, 1,330 Chicago homeowners put their homes on the market.
That’s Christmas week, remember, when most people are more concerned with last-minute gift shopping than they are with buying a house.
Of course, those numbers pale in comparison to some of the busiest weeks of the year. From May 23 to 29 last year, 4,420 homes were sold. Between June 27 and July 3, the total was 4,574.
But the numbers do prove that it’s possible–even likely–to sell a Chicago home during what used to be terrible times to have your residence on the market. “I think these numbers will surprise a lot of people,” said Diana Turowski, public relations director for the Chicago Association of Realtors. “The market’s so hot now, there’s no bad time to sell a house.”
Elizabeth Ballis, a city real estate agent with Coldwell Banker Residential Brokerage, agrees. “I had six closings this January. Usually, I have none,” she said. “When’s the best time to put your home for sale? Right now.”
Before sellers get too giddy about the hot Chicago-area market, they should realize one thing: Just because a house will sell in the middle of December or on Thanksgiving weekend, doesn’t mean it’ll fetch the best price.
Buyers who put their homes on the market during the traditional selling period–roughly from late February to midsummer–will probably grab more offers for their properties. More offers usually translates into a higher selling price, as potential buyers try to outbid each other for a desirable home.
The greater number of buyers–and offers–between late winter and midsummer is tied to the school year. When buyers purchase a house in April or May, they won’t close on it until the school year ends. That means they can move during the summer. If they’re moving to a new school district, their children won’t have to make a switch to a new school during the academic year.
Buyers face more competition during this time, too. To guarantee getting a house, they have to offer more money than they would during the winter months, when fewer buyers are looking at homes. This equals bigger profits for sellers.
“There are more sales during this time, which means a sort of inflation of home prices kicks in,” said Frank Nash, a real estate agent with Baird & Warner’s North Shore office. “As homes come on the market during this time, they sell fast. When the next home comes up, it’s a little more expensive. The next home after that is a little more expensive, too. You can certainly get more money when you sell during this time.”
Before putting a home on the market, an owner should do some research to guarantee the most offers and the best selling price. Gary Jacklin, broker/owner of Re/Max Action in Lisle, recommends that sellers never forget what kind of buyers make up their target market.
Sellers determine this by looking at their homes. Owners selling a modest home–one with two bedrooms and about 1,000 square feet–will probably attract first-time homebuyers. First-time buyers usually don’t come with school-age children, so they’re not tied to the school year when it comes to moving. Buyers selling homes like this can probably fetch an equally high price in winter as they would in spring or summer.
But this isn’t the case for buyers selling larger, more expensive homes, which attract move-up buyers who’ve already owned one or more residences and who more than likely will come with children in either elementary or high school. They want to move only after the school year ends.
Do most sellers consider such factors when moving? Not on their own, Jacklin said. “That’s why people need to work with real estate agents,” he said. “A lot of thought and analysis goes into selling a house. You have to think about who’s going to be the buyer. You have to consider where your house is located. Will the buyers have children, toddlers or teens? It all makes a difference.”
