As they say, real estate is local, so today, I’m going to give the facts of what is essential to know about the change here in the Chicago western suburbs. I will go over which suburbs are hot and which are not. 

In this blog, I will cover everything you need to know to help you decide whether to buy, sell, or rent in 2023.

Let’s get straight into it!

Interest Rates

The recent and sudden change in interest rates is on everybody’s mind. A year ago, 3.0% was the highest 30-year fixed mortgage rate we had seen, and now we’re almost at 7%.

Even though this doesn’t seem like much of an increase initially, it can have large consequences for your monthly payments.

With a 3% interest rate, your monthly mortgage payment for a $500,000 home would be $2,200. However, if the interest rate were 7%, your monthly mortgage payment would surge to $3,300; that’s an additional

$1,100 per month!

With interest rates remaining at an all-time high, the demand for houses has significantly decreased.

A year ago, there were 20% more homes on the market than there are now. Fewer choices for new homeowners might be due to sellers not wanting to leave their current interest rate or lack of available options.

With the housing market always in the news, you might wonder how it’s doing where you live. It’s important to remember that real estate is local though, so even if prices are dropping in some areas of the country, that doesn’t mean it’s happening everywhere. Here in the Chicago western suburbs, for example, we’re still going strong!

The largest drops in home prices have come in the areas of the country that have dramatic increases in appreciation, areas as Arizona, Texas, and San Francisco. Chicago, however, was ranked 5th as the fastest-shrinking inventory in the nation. 

The Midwest is a linear market; this means appreciation never gets too hot or cold, unlike cyclical markets on the coasts.

Median Sales Price

However, not all suburbs are doing as well as others. Let’s cover the Western Suburbs that are still strong and those that have seen a decrease in value.

Chicago Western Suburb Prices

In this section, we will cover a year-over-year change in median sales price for the largest suburbs of the Western Suburbs.

Most suburbs are seeing a rise in median sales prices, except Clarendon Hills and Glen Ellyn. Both recorded lower sales prices this year compared to last year; however, Glen Ellyn only experienced a slight change of -1.2 percent, while Clarendon saw a much more dramatic decrease of 13%.

Carol Stream, Naperville, and Schaumburg have seen the biggest jumps in median sale price at 9.8%, 9.1%, and 8.5%, respectively, while most of the other suburbs are between 4-6%.

Market Time

Now, we will look at the days on the market metric to see how long a house takes to sell.

This comparison is between Q3 last year and today. All suburbs have shown a decrease in the number of days on the market, except for Lombard and Glendale Heights. Lombard increased by 2.4%, while Glendale Heights’ numbers more than doubled, increasing to over 50%.

This number should generally be around 60 days; anything over is not good news for sellers and buyers. The lower the days on the market, the more demand vs. inventory.

While demand is lower because of rates, the lower supply balances prices and keeps a stable market.

Glendale Heights had a large change in market time in March 2022, at the same time as interest rates started to increase aggressively. Glendale Heights, an entry-level housing market, is likely getting priced out of the market by potential buyers who can afford to buy in Glendale with today’s interest rates.

We are still in an ideal market for sellers. With interest rates increasing but fewer properties available to buyers, prices could stagnate or decrease just a bit as winter arrives.

Months Supply

Months Supply has been dropping for over a decade but much more aggressively since the pandemic’s start. The short supply is the main reason prices skyrocketed.

The suburbs with the largest home supply decrease are Hinsdale, Glen Ellyn, Addison, and Schaumburg.

While the average monthly supply number is still very low at 1.7 months supply for the entire MLS, these four suburbs have seen a decrease in inventory for sale. This could be a leading indicator of prices starting to increase or stabilize a bit.

Most all other suburbs had a drop of around 20-30% in supply compared to just a year ago.

Conclusion

Ok, so what does this mean for you? Should you buy, sell or rent? I hate to answer that it depends, but it’s true. It depends on your personal situation, needs, and goals.

Today is a great time to buy if you are a first-time home buyer or someone who needs to move up to a larger house.

Prices have come down from the highs of just a few months ago but are still much higher than last year or even 5. The problem most people are finding is the limited supply of new listings.

I talk to people regularly, waiting for the market to drop or even crash. The truth is, there is no sign of any large increase in supply. And so, wishing that prices drop significantly could be a long wait.

If you can buy it today, you should consider it. I always tell my clients to buy when they are ready to buy; no one can time the market.

Suppose you are interested in buying or selling in the Chicagoland market id love to hear about your goals. You can call, text, or set up a video meeting in the description box below to cover your exact situation.

Are Zestimates Accurate? Studies have shown that Zillow’s home values are within 20% of the actual value around 50% of the time. So while they aren’t perfect, they are a good starting point.

According to Zillow, it covers over 42,000 homes across the Chicagoland area and is only 75% of the time accurate within 5%.

How does Zillow Determine Home Values?

Ever wonder how Zillow comes up with these numbers? They don’t just pull them out of thin air- there is a method to the madness. Zillow’s home values are determined by considering many different data points.

This includes public records, real estate transactions, and even user-submitted information. They then use special algorithms to come up with a final number.

Redfin and Zillow’s estimated values cover about 100 million homes nationwide.

How Accurate are Zillow’s Home Values?

So now that we know how they come up with the numbers, how accurate are Zillow estimates? Studies have shown that Zillow’s home values are within 20% of the actual value around 50% of the time.

So while they aren’t perfect, they are a good starting point.

According to Zillow, it covers over 42,000 homes across the Chicagoland area and is only 75% of the time accurate within 5%. Other areas have different statistics, and your location will also vary the accuracy of the Zestimate.

For example, if your subdivision or town has a lot of activity and relatively similar homes throughout. Zestimate will be fairly accurate. However, the number will be less accurate if your home is unique or in an area with very few home sales.

How to Get a More Accurate Home Value from Zillow

You can do a few things to help ensure your home’s value is as accurate as possible on Zillow. First, make sure your home facts are up-to-date and accurate. This includes the number of bedrooms and bathrooms, square footage, and any recent updates or renovations.

Your best, most accurate estimate is going to come not from a computer sitting in a warehouse but from a local real estate agent that will be able to walk your property and see what makes your homes stand apart and what a buyer in today’s market would be willing to pay for your home.

If you’re considering selling your home, the first step is to get an accurate estimate of your home’s value. Zillow’s Zestimate can be a good starting point, but remember that it is just an estimate.

Remember, Zillow, at one time, was buying homes from what the Zestimate algorithm was projecting; it led to Zillow buying over-valued properties and losing over $230 million. I guess computers can’t do everything yet.

The four things that sell your Home for the highest price

Briefly, I want to tell you what will sell your home for the highest price; ultimately, the Zestimate is just an estimate of what your property could sell for. To make sure you get all the equity out of your investment that you deserve. Here are the four most essential things to remember when selling your property:

1. Presentation- Presentation is everything; it’s the first impression. This is a big one; you want the buyers to be able to envision themselves living there. If your home doesn’t have good curb appeal, it will sell for less than it could.
2. Pricing- You don’t want to overprice or underprice your home. Remember, you are not just selling to one person; you are selling to the market. The market will determine your home value, no matter how much you or your agent thinks it’s worth.
3. Marketing- Marketing is the overdrive of home sales. How more exposure your home has to every qualified, capable, and willing buyer, the more offers. Ultimately getting the best results.
4. Your Agent- How your agent negotiates for you, the fees they charge you, the marketing they do for you. It all has an impact on your home’s sales price.

Make sure you choose the right real estate agent for the job if you are in the Chicagoland area and looking for real estate services. Please reach out to me; you can call or text.

For a more accurate number, contact a local real estate agent. They or I can give you a more accurate estimate based on your home’s unique features and the current market conditions. You can set up a video conference with the link below to discuss your home and its estimated value.

This means we are still seeing many multiple offers. If you’re a buyer, you must be prepared for competition. If you’re a seller, it’s important to understand the process from the buyers’ perspective and set yourself up for success.

In this blog, I will talk about both of those things and give you the tips you need to win in any real estate market!

Ok, let’s get straight into it.

Get Pre- Approved by a local lender

You must be prepared for competition if you’re a buyer in today’s market. It’s not uncommon to still see multiple offers on a property, and sometimes there can be as many as 5 or 7 buyers competing against each other.

So how do you win in this situation?

The first thing you need to do is get preapproved for a mortgage. This will show the seller that you’re serious about buying the property and that you have the financial ability to do so.

Getting a pre-approval from a local lender is always your best bet-to-win offer. The very best lenders are also reaching out to the sellers and giving them a vote of confidence when your offer is submitted.

This step helps secure the closing. Listing agents and sellers want to feel confident that the mortgage will not be a problem when it comes time to close. Sellers are not only looking for the best terms but for peace of mind that the deal will close.

If you’re working with a real estate agent, they should be able to provide you with a list of local lenders that they recommend.

A seller with multiple offers will choose the best terms and the most likely to close. If the transaction doesn’t close, that extends the time on the market, and the property will likely sell for less.

Move Quickly

The next thing you need to do is be prepared to move quickly. In a competitive market, the seller will choose the buyer who can close on the deal the quickest. So if you cannot close quickly, you might want to reconsider making an offer on the property.

If you are a seller in a multiple-offer situation, pay attention to the buyers’ loan type and approval time frame.

Suppose there are two similar offers; one buyer is pre-approved with a conventional loan, and the other is still in the process of getting approved for an FHA loan. In that case, the seller will most likely choose the conventional buyer because they’ll be able to close on the deal quicker.

As a buyer, you should also be prepared to put your best foot forward with your offer. In some cases, this means offering more money than you originally planned, But if it means winning the property, it will be worth it in the end.

Keep Your Emotions in Check

Lastly- Keep Your Emotions in Check; it’s important to keep your emotions in check. In a competitive market, there will be times when you lose out on a property you want. It’s easy to get caught up in the moment and let your emotions take over, but you’re likely to make bad decisions if you do this.

When making an offer on a property, ensure you’re doing it for the right reasons. Don’t get caught up in a bidding war just because you think it’s what you’re supposed to do. Stick to your budget, and don’t let emotions cloud your judgment.

When you’re selling a property, don’t get too attached to it. It’s important to remember that it’s just a piece of property and that other homes are out there. If you get too attached, you’re likely to make poor decisions, such as accepting a low offer just because you don’t want to let the home go.

Conclusion

There are many things you can do to make your offer the most competitive it can be. Things like waiving contingencies, increasing earnest money, and being pre-approved for a loan can all help.

The bottom line is this: in a competitive real estate market, you need to be prepared.

Know what you want, do your research, and be ready to move quickly. If you do this, you’ll be in a much better position to win the property you want – whether you’re buying or selling.

But at the end of the day, it’s important to remember that you can’t control everything. Sometimes you’ll get lucky and win in a multiple-offer situation, and sometimes you won’t. Don’t let your emotions take over, and stick to your budget.

I hope you all got some value from this blog, and I hope you can put some of this into practice.

If you are looking into buying or selling real estate in the western Chicago Suburbs, feel free to give us a call, email, or book a consultation with us using the link in the description below.

Here are our top five investments to get more money for your home.

Investment #1: Paint 

The best return on your money invested by far is paint. A fresh coat of paint makes any house feel new, clean and updated. When we go to look at a property to invest in, the first thing we do is see how much work needs to be done. If it’s a complete gut job, then we move on. But if it just needs some TLC, then we get to work.

We decided to put a fresh coat of paint on the entire home and paint a clean white throughout. This took about two weekends to complete, and the cost was around $600 in materials.

Paint is the best return on your money when it comes to home improvements. A fresh coat of paint might transform any house into a lovely, clean home.

Earlier this year, we posted an article titled ‘Does Fresh Paint Increase home value?’ In it we covered a study completed by a HomeGain’s; the survey found interior paint will return 107% of the money invested.

We also covered the most popular colors of 2021 in that article; I will link it below if you would like ideas and color pallets.

Investment #2: Staging

Staging refers to making a property more appealing to potential buyers. It may be one of the most effective and simplest methods to get the most out of your home.

Staging can influence a buyer’s purchase decision since it puts your property in the best light and demonstrates how fantastic it may be if only some effort were made to improve it.

Professional Staging can be expensive; however, if you are willing to put in a little effort or have some taste, you can easily do it yourself.

Here are some quick tips:

– Paint all the walls a neutral color

– Clear off all surfaces, including tables and countertops.

– Put away personal items such as family photos or collections.

– Replace any old or worn-out furniture and fixtures.

Staging is not very financially demanding, nor does it require much time. However, since the first impression is crucial in real estate, it can be one of the most profitable investments for sellers. We also covered in a blog article the step-by-step process to stage your home. I will provide that link in the description below.

Investment #3: Landscaping 

Owners continuously look for new ways to enhance their houses and make them stand out. This is especially true when trying to sell or rent a property. A well-maintained front yard can aid you in your endeavor!

When visitors approach your house, they first notice the front of your home. It’s also the first impression you make on a potential homeowner. If you’re searching for simple, inexpensive methods to spruce up your property. Landscaping is a cost-effective way of adding value to your home.

Here are some tips for landscaping on a budget:

• Get rid of any dead plants or debris in your yard.
• Trim the hedges and bushes.
• Pull weeds by hand or use weed killer
• Add mulch to your flower beds.
• Plant some flowers or shrubs.

You can find more tips in our blog article titled. “5 Quick Front Yard Makeover Tips On A Budget” is linked below.

Adding value to your home doesn’t have to be expensive. There are many simple and budget-friendly ways to do it.

Investment #4: Photography 

The most cringe-worthy moment for me in real estate is when I see a listing with terrible photos. This is the number one thing that will turn off buyers from your home. If your photos don’t attract the buyer. They will never take the time to request a showing, so your property could miss out on many potential buyers and offers.

A picture is worth a thousand words, and when it comes to real estate, this couldn’t be more true! Good quality photos can make or break a listing.

You might want to reconsider if your realtor takes photographs with their phone. Simple photos could make or break your deal.

Investment #5: Drone Video 

Drone video is becoming more and more popular in real estate. Aerial shots give the buyer a completely different perspective of the property. It will also help them understand the layout of the land much better.

If you have a big lot, this is an excellent way to show it off! Buyers are always looking for extra land or acreage. If your home is near any landmarks or has a beautiful view, be sure to showcase that in your video.

Video is ever so becoming a necessity when it comes to marketing your home.

If you hire a professional to take your photos and videos, ensure they are current with the latest trends and technology. As a business, we understand the importance and value a video brings. This is why we offer video services to our clients.

Reach out to us if you are interested in learning more!

Here are some tips for taking good drone footage:

• Get a bird’s eye view of the property.
• Focus on the land and lot size.
• Showcase any nearby landmarks or views.
• Make sure the video is well-lit and clear.

Please contact us if you have any questions or want to learn more about our services. We would be happy to chat.

I hope you all got some value from this blog, and I hope you can put some of this into practice. Be sure to watch how we completely transformed this 1950’s cape cod into a spectacular forever home.

We are always here to help, so please don’t hesitate to reach out. 

If you are looking into buying or selling real estate in the Chicagoland area, feel free to call or email us.

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When you’re selling a property in Illinois, there are several factors to consider. One of the most important is who pays the closing costs. This can be a tricky question, and it depends on a variety of factors. However, there are some standard expenses associated with selling that we will discuss in further detail.

Often I get the questions: Who Pays the Closing Costs When Selling a House in Illinois? The buyer and seller are generally both responsible for the closing costs of a property. 

Who pays closing costs when selling a house in Illinois? 

As a general rule, closing costs are paid according to the terms of the buyer’s and seller’s purchase agreement. The responsibility for closing costs is usually divided between both parties if the sale goes through. The costs may not be evenly split, and the buyer is likely to pay more than the seller. 

The buyer and seller are generally responsible for the closing costs of a property. 

Closing costs are the fees associated with the sale of a home, and they can vary depending on the type of home, the location, and the buyer. For a full breakdown of these costs, here’s a list of all the fees associated with selling. 

Remember, closing costs and real estate sales contract terms are negotiated between the buyer and seller before the sale is final.

Sellers typically pay for:

– The real estate agent’s commission

– Property taxes

– Home insurance

– Utilities

– HOA dues (if applicable)

– Repairs (if necessary)

Some of these expenses, like the real estate agent’s commission and repairs, are paid at closing. Others, such as property taxes and utilities, may be prorated so that the seller only pays for the time they owned the home.

There’s a lot to take into consideration when selling your home – if it’s your first time, you will find it helpful to read our list of steps for selling your home successfully.

Buyers typically pay:

– Loan origination fee

– Home appraisal fee

– Home inspection fee

– Pest inspection fee (if necessary)

– Closing costs

– Down payment

Understanding Seller Concessions

Seller Concessions are paid by the seller to help offset some of the buyer’s costs. In Illinois, a seller can pay up to 3.0% of the sales price towards the buyer’s closing costs and/or prepaid items.

The amount that a seller can contribute is negotiable between the buyer and seller, but note that any amount over 3.0% is paid for by the buyer.

Negotiating Seller Concessions

Negotiating seller concessions can be a great way to save money as a buyer. If you’re looking to purchase a home, be sure to ask the seller if they’re willing to contribute to your closing costs. It never hurts to ask!

Keep in mind that when purchasing a home, the price needs to be favorable in a sellers’ market (which Illinois has) to get an accepted seller concession. In a buyer’s market, seller concessions are significantly easier to reach an agreement on.

Disadvantages of Seller Concessions 

Let’s get this out of the way: Sellers aren’t paying your closing expenses because they are too kind. In most situations, when a seller covers closing costs for a buyer, the sales price is usually higher.

Typically the buyer asks the seller to cover some of your closing costs, but what the seller is really interested in is their net profit. The seller agrees to pay for closing costs but at a higher sales price.

In some situations, the home may not appraise for the sales price. If this happens and the buyer is getting a loan, they may have to bring money to closing to make up the difference.

The key takeaway?

If you’re thinking of selling your home in Illinois, it’s important to understand the closing process and who pays the closing costs. When you’re negotiating with a seller, they will be looking out for their best interests – not yours. Seller concessions can be beneficial for buyers, but it’s important to understand that there are potential risks involved. It’s always a good idea to consult with a real estate agent or lawyer before entering into any agreements.

In Summary

So, who pays the closing cost when selling a house in Illinois? It really depends on the situation. Who pays the closing cost when selling a house in Illinois can vary, but typically the buyer and seller are both responsible for some closing costs. The best way to find out is to ask your real estate agent or the person you’re selling the house to.

If you have any other questions about selling a house in Illinois, feel free to reach out to us! We would be more than happy to help.

Happy selling!

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Selling your Chicago home can be a stressful process. You want to get the best price for your house but you also want to sell it quickly. How can you do both at the same time?

The answer is: By following the 5 tips in this blog post! We’ll show you how to sell your Chicago home fast and for the most money. We’ll also dispel some of the myths about selling houses quickly so that you can avoid any scams.

5 Best Tips To Sell Your Home Quickly and For the Highest Price:

1. Price it Right
2. Stage and Depersonalize it
3. Professional Marketing
4. First Impressions Are Everything
5. Negotiate the Sale

If you’re ready to learn how to sell your Chicago home quickly, get ready to take notes. This blog post could save you thousands of dollars and valuable time.

1. Get a professional quote on your home’s value 

To sell your home successfully and quickly, you need to price it right. If your home doesn’t need repairs and is in great condition then consider yourself lucky! You have a head start on the selling process. But even if your home is in perfect condition, there are still a few things you need to do before you put it on the market.

First, you need to find a good real estate agent. A good real estate agent will have experience selling homes in your neighborhood and will be familiar with the market conditions in your area. They will also be able to give you a realistic estimate of how much your home is worth and how long it is likely to take to sell.

Once you’ve found a good real estate agent, the next step is to price your home correctly. Pricing your home too high will discourage potential buyers from even looking at it, but pricing it too low will leave money on the table. The best way to find the right price for your home is to compare it to similar homes that have recently been sold in your neighborhood.

If you’re not sure how to do this, your real estate agent will be able to help you. Once you’ve found the right price, it’s time to get your home ready for showings. This means decluttering, deep cleaning, and making any necessary repairs.

2. Stage and depersonalize your home before viewings start 

Staging and depersonalization mean removing all personal items, such as family photos, religious items, and anything else that might make someone feel like they’re intruding on your home. This lets buyers instantly connect with the home by imagining themselves living there.

It’s also important to stage your home in a way that makes it look spacious. This means removing all unnecessary furniture and clutter. You can also use strategic lighting to make your home look brighter and more open.

If you don’t have time to do this yourself, you can hire a professional home stager or cleaner. This is an investment that will pay off because potential buyers are more likely to make an offer on a home that looks clean and well-maintained.

3.  Market your home online across multiple platforms 

In order to sell your home quickly, you need to get the word out that it’s for sale. This means marketing your home in the right places – and lots of them. The first place to start is online because that’s where most home buyers are looking these days.

Your real estate agent should list your home on their website and on major real estates portals, such as Zillow, Trulia, and Realtor.com. They should also create a custom website for your home and promote it on social media. Your agent should have professional marketing tools including professional photography. If your real estate agent is taking listing photos with his iPhone, beware!

In addition to online marketing, your real estate agent should also hold open houses and broker’s opens. This will give potential buyers the opportunity to see your home in person and fall in love with it.

4. Don’t forget to landscape and clean your property 

First impressions are everything, so don’t neglect the details that come together to make a beautiful home. You want to make sure the outside and inside of your property look great. This means keeping up with landscaping and making any necessary repairs, as well as cleaning and decorating your home.

Avoid any bad smells by making sure your home is clean and well-ventilated. Pleasurable smells, such as freshly baked cookies, can also help make a good impression.

You should also consider painting your home in a neutral color because potential buyers will be more likely to like it if they can imagine themselves living in it. If your home needs major repairs, such as a new roof, it’s worth investing in them before putting your home on the market.

Finally, make sure your home is well-lit, both inside and out. This will make it look more inviting and welcoming to potential buyers.

5. Have a professional help you negotiate the sale 

Once you’ve found a buyer who’s interested in your home, it’s time to negotiate the sale. This is where having a good real estate agent comes in handy because they will be able to advise you on what’s a fair price and help you negotiate a deal that’s beneficial for both parties.

It’s important to remember that the sale of your home is not just about the money. You also need to take into account things like how long it will take to sell your home. Price and terms are both important considerations.

The most important thing is to stay calm and rational during the negotiation process. This will help you get the best possible deal for your home.

Key takeaways 

By following these tips, you can sell your home quickly and for the most money. Just make sure to do your research and work with a qualified professional to get the best results. Selling your Chicago home doesn’t have to be stressful. By following these tips, you can sell your home quickly and for the most money. Just remember to price your home correctly, stage it well, and get professional help when needed.

So, there you have it! The ultimate guide to selling your Chicago home fast. Remember to follow these tips and you’ll be on your way to a quick and easy sale. If you have any questions or need help getting started, please contact us today! We would be happy to assist you.

In this blog post, we will cover everything you need to know about increasing your home’s appraised value and what factors can negatively affect the value of your home.

We will also cover everything you need to know about the home appraisal process, along with the most frequently asked questions.

Let’s get started!

What is appraised home value? 

The appraised value is the estimated value of your home, which is set by a professional appraiser. It is used to calculate the amount of money that the lender will give you or the potential buyer for a mortgage or refinance. Appraised value differs from market value, which is the amount the public is actually willing to pay for the property at a given time. 

What to Expect in the Home Appraisal Process

The home appraisal process can vary depending on your location, but, typically, an appraiser will come to your home to inspect it and take pictures. They will also review recent sales of similar homes in the area to understand what your home is worth. Keep in mind that the appraiser is not there to give you a price for your home but rather to estimate the value.

As a general rule,  home appraisal takes 1 – 1.5 hours to complete. Costs and duration vary anywhere from $300 up to $600, depending on the area and size of the appraised home.

You do not need to be present or guide your home appraiser through the home. In light of the pandemic, we often recommend homeowners provide easy access to all areas of the house to minimize the inspectors’ need to touch anything more than is necessary; this includes opening all interior doors, turning on all lights, and providing easy access to all parts of the home and exterior areas.  

How is Your Home’s Appraised Value Determined?

Several factors affect the appraised value. Appraisers use a comparative analysis approach to value residential homes, which involves assessing your house against other similar properties to identify the similarities and differences. 

Your appraiser will evaluate the over condition of your house and its features and compare them to similar properties in your area (and their sales price). Only sold homes are compared – pending sales or other homes for sale are not factored into the analysis. 

What are the most common factors affecting appraised home value? 

The location and surrounding homes

Home appraisers gather data for properties closest to your home. On average, they prefer homes located up to 0.5 miles from the subject property. In some instances, if there is little to no data, the appraiser might go further out (up to a mile or more) to find a comparable home. 

The size of the home

The size of the home is obviously an important factor, especially when it comes to the appraisers estimating the value of your property. The total size includes the living space square footage and lot size. The appraiser must determine the overall square footage, the total finished square feet, and the above and below grade square feet.  Home listings often are not very accurate and usually pull data from the previous listing or public data.

Quick Tip: Make sure your appraiser accurately measures your home’s square feet by verifying the appraisal square footage with your own measurement.

The age of the home

The age of your home also has a large part to do with your home’s appraised value. Homes that are decades apart in age are not good comparables. This is because new homes have different building standards and are often much more efficient than those built decades earlier.

The number of bedrooms and bathrooms

As you might expect, the total number of beds and bathrooms are critical to the appraised value. But what you might not know is that each bedroom must have a closet and window to be classified as a bedroom. Additionally, the bedroom must be above grade (if the home does not have an English basement) or be partially below and partially above ground level (i.e. an English basement). In other words, an enclosed basement with no windows will not be classified as a bedroom.

When comparing homes that have an additional half bathroom vs a full bathroom, the price difference is determined by comparing the sold price of other homes. For example, if the average sold price of a two bathroom is $320,000 and the average 1.5 bathroom home sold for $315,000, the value of the additional half bath is estimated to be worth $5,000.  

The neighborhood amenities 

Location, location, location. Many Chicago suburbs are highly desirable for their schools and neighborhood amenities. If a home is located within walking distance to parks and schools, the appraiser will take that into account when determining the value of your home.

Homes that belong to the same school district, same subdivision, and benefit from the same neighborhood amenities are the most accurate comparison. However, there may be significant differences in assessed value and tax rates between one home’s school district and another. Keep this in mind when looking at comparable homes on even the same block.

The condition of the home

The condition of the home is also a large factor when determining the value of your home and appraisers will determine whether the home is in good, average, or poor condition. A poorly-conditioned home might be broken or have old appliances or have old outdated carpets and trim work.

The interior features

The appraiser will take into account all of your interior features when determining the value of your Chicago area home. This includes the type of roofing material, number of fireplaces, types of flooring, and cabinetry. The overall condition and age of the updates all affect the value of your home. 

The exterior features

The appraiser will also take into account all exterior features when determining the value of your home. This could be things such as porches, decks, garages, and driveways. If a home has any unique or special features, such as a turret or widow’s walk, the appraiser will also take this into account.

At the end of the day, your house’s value is determined by what a potential buyer is willing to pay for it. Although an appraisal has some worth, it is only useful for determining the approximate value of a property. You must still find a buyer who is willing to pay that amount for it.

How to Increase Your Home’s Appraised Value

There are several things that you can do to increase your home’s appraised value. Some of the most important include making sure the property is in good condition and updated, having a well-maintained yard, and making sure the home has adequate storage. You can also improve your home’s appeal by painting it in neutral colors and decluttering.

Best ways to increase appraised home value in Chicago 

Upgrade the kitchen and bathrooms

If you are planning to sell, upgrading your kitchen and bathrooms will go a long way towards the value of your home – both appraised and market.  Some realtors even suggest that this is the first step before putting their homes on the market. The National Association of Realtors found that you can get up to a 120% return on your investment by upgrading the kitchen and bathrooms.

Replace the carpeting  

Old carpet is one of the first things potential Chicago area home buyers notice when visiting a property. If you think about putting your Chicago home on the market, it might be worth replacing your carpeting. In our experience, homes are more popular if they have flooring rather than carpeting unless you are looking at the buy to let market. 

Paint the walls in a neutral color

No home buyer wants to walk into a house and see wallpaper everywhere or bright color paint on all the walls. The first thing they think about is the cost to fix it. Instead, you can make your home look fresh by painting it with neutral colors such as white, beige, light browns, and grays. This gives them a blank canvas to visualize themselves living in the house.

Improve the yard 

If home buyers walk into your yard and see dead grass, weeds everywhere, and junk lying around, it will be a significant turn-off for them. It sends the message that nobody cares about the property – in which case, why should they? It is essential to ensure that your lawn is well-maintained before selling your home. You could also add some landscaping to improve the aesthetic appeal of your home.

Add a deck or patio

A deck or patio is a great way to increase the living space in your home. It also adds value by making your Chicago area home more appealing to potential buyers – everyone knows Chicagoans love to make the most of the summer with barbecues and garden parties. Decks and patios can be expensive, but they are definitely worth the investment.

Improve the garage

If your Chicago area home does not have a garage, adding one could be a major selling point for potential buyers. The further out you get from the city of Chicago, or if you are in an upmarket suburb, this investment becomes even more critical. Commuter families are looking for great garages, ideally with multiple parking spaces, and so is anyone with a car worth protecting. If your Chicago area home already has a garage, you could improve it by adding insulation, new epoxy flooring, and drywall.

Factors that Can Negatively Affect Your Homes Value

There are several factors that can negatively affect your home’s appraised value. Some of the most common include outdated appliances, plumbing, and electrical problems, mold in the bathroom or basement, leaking roofing material (asbestos shingles), termites/other pests infestation. Here are the most common faults I see when preparing homes for an appraisal.

Cleanliness   

If your home is not clean, it will negatively affect the appraised value. Homebuyers want to walk into a clean and fresh property.  This means that you will need to professionally clean your home from top to bottom before putting it on the market. A professional clean goes one step further than a regular spring clean and includes carpets, walls, appliances – essentially anything in sight. While you don’t need to pay a professional to do it, you’ll need to work to the same high standards.

Logically, a clean home shouldn’t affect your home’s value. But home appraisers are humans and everyone is influenced in a positive manner by a clean and tidy home.

Sketchy Neighbors

Unfortunately, sketchy neighbors can negatively affect your home’s value. This might be the most frustrating because it is completely out of your control. Homebuyers do not want to live next to a house that is constantly having loud parties or is always being raided by the police. Additionally, homes that are abandoned, have excessive cars or are visibly hoarder homes can also negatively affect your home’s value.

If you are having trouble selling your Chicago area home, it might be because of one or more of these factors. It’s close to impossible to address these issues, but if you can, you will be able to increase the appraised value of your home and make it more appealing to potential buyers.

Air and noise pollution

Air and noise pollution along with light pollution from a nearby business or establishment could negatively affect your home’s value. Homebuyers want to buy a peaceful and cozy house – not feel like they are living in an urban jungle.

For similar reasons, noise from busy roads or airports could also negatively affect your value. If you live near a garbage disposal plant or a sewage treatment facility that emits bad orders, this can all count against you. 

Overly personalized renovations

Over-personalized renovations or bold colors could affect the value of your home. While it’s obvious that the home buyer could redecorate to their own tastes, most home buyers want a place that is move-in ready and does not require any additional work. I typically find that Chicago area homes that have been renovated by their owners to fit their personal needs are less likely to sell because potential buyers might not have the same needs or like the renovations. Homebuyers want homes that have been renovated in a neutral style so they can make their own. 

Deferred maintenance

Deferred Maintenance is a poor signal to both buyers and home appraisers.  Homebuyers know that when they buy a home that has been well-maintained, they will not have to spend any additional money on repairs for some time. Chicago area home appraisers also take into account the amount of maintenance a property needs when determining its value. 

Homebuyers will also be less likely to purchase your home if it has deferred maintenance. So make sure you complete any needed renovations and perform the home’s regular maintenance that is necessary before listing it on the market! 

Frequently Asked Questions

Here are some of the most commonly asked questions by sellers:

How long is a home appraisal good for?

According to the Federal National Mortgage Association, the majority of appraisals are effective for 90 days, however, this figure can differ based on a variety of circumstances. The appraisal is frequently used for a residential mortgage refinance or property purchase, both of which should be completed within 90 days.

What if my home doesn’t appraise for the sale value?

The most common reason for a lower-than-expected appraisal is that the appraiser wasn’t familiar with the current market or area. If you are hiring the appraiser yourself, it’s a great idea to find one that is familer with the area. If you and your real estate agent do not agree with the home appraisal, you are able to request an appeal or rebuttal. You should also add additional comparable homes to the appraiser and also miss features and characteristics. 

If your home’s appraisal is completed correctly, or the rebuttal is not reversed, you must lower your sale price to the appraised value or, if you are in a strong seller’s market, request the buyer cover the difference to complete the transaction.

Do home appraisers check for permits?

 Home appraisers do not look for city permits or paperwork for the completed work. But it is quite easy for a home appraiser to evaluate the overall craftsmanship of the work performed.

Although home appraisers don’t need city permits, many Chicago real estate attorneys check for this during the transaction to ensure that all necessary permits were obtained and that the work was done by a licensed contractor.

Do home appraisers check in closets?

Home appraisers will open all your closets and check inside,  so don’t hide any skeletons in your closet! Home inspectors are not just being nosy –they need access to every part of the home to check the floors, square feet, and overall space. They are also looking for any clues of water damage and pests.

Should I have a home appraisal before listing my home for sale?

Getting your home appraised before the listing is not cost-effective. Usually, your real estate agent will be able to provide what is called a broker price opinion, which should be very close to the home’s appraised value. If you are trying to be proactive, I would recommend a home inspection before an appraisal. The home inspector could point out anything that needs immediate attention to prevent repair requests from catching you by surprise.

Summary

The Chicago area home appraisal process is complex and there are many factors that can affect the final outcome. In this blog post we’ve covered what to expect in a Chicago home appraisal process as well as how you can increase your home appraise value by following these three steps:

1. Understanding what factors will positively and negatively impact your property’s worth.
2. Performing regular maintenance on your property.
3. Completing any needed renovations before listing it.

If all of this seems like too much work and you’re looking for help with increasing or improving your own Chicago real estate investment, let us know! We help buyers, sellers, and investors in the Chicagoland area with all their real estate needs. We would love to hear from you.

While there are many things that can go wrong, working with an experienced agent and team makes it a smooth and relatively stress-free experience. 

In this blog post, we cover the entire process of buying and selling a home simultaneously in Chicago Illinois, the best practices used by those in the know,  and what’s working well in today’s market. Let’s get started!

Can I sell my house and buy another one at the same time?

Many buyers and sellers carry out the two processes simultaneously. On average, 20% of homeowners make the two transactions together. There are a number of steps that need to be coordinated and this is complex to achieve in a chain. 

There are several different strategies that you could use to accomplish this goal. You will need to talk with your agent about what the best approach would be for you. As a complicated process, each one should be approached on a case-by-case basis, but here are the basic steps you will need to take to buy and sell your house at the same time in Chicago, Illinois. 

How to buy and sell your house at the same time 

1. Find an agent who specializes in simultaneous buying/selling

Work with an experienced agent who can help you navigate the process. They will be able to give you specific advice and guidance on what needs to be done in order to sell your home and buy a new one simultaneously.

Many different factors could affect the success of your transaction. Your agent’s experience, the market conditions, and the time of year all contribute to your likelihood of success. Choosing the best help could be the most important of all.

2. List your current home first

Start by putting your current home on the market. 

It’s critical to get everything in order before listing your property. When you’re looking to sell and purchase at the same time, a good offer from a strong qualified buyer is essential.

3. Start looking for your new home 

It is important to have a firm idea of what you are looking for. As your current home is already listed, you don’t want to lose time figuring out what you want. Nail down as many variables as possible, including location, bedrooms, age, size, and price range. 

3. Negotiate on both homes at the same time

You will need to negotiate the offers on both homes until an agreement is reached on price and terms. This can be tricky, as there are many moving parts involved. Your agent will be able to help you navigate this process and keep everything on track.

If you spot a property that interests you, you can place an offer on the condition that your house is sold. Often this is the most challenging negotiation. Keep in mind that having a sales contingency lowers the value of your offer. When compared to a non-sale contingency offer, a sales contingency offer would be very ineffective in our current market circumstances.

4. Be ready to close quickly 

Once an agreement has been reached with both homes, it is time to close! Your agent will walk you through the closing process so that nothing gets missed or overlooked during this important step in your transaction.

The most common closing is a concurrent closing, this is often done by closing on one home in the morning and closing on the second only a few hours later.

What is a concurrent closing?

A concurrent closing is when you sell one property and then purchase another within a short time frame, usually on the same day. Exactly simultaneous closings are not technically feasible at the same time – you could compare it to twins being born. It’s part of one overall process, but it can’t physically happen at the same moment 

In concurrent closings, the first closing must be completed before the next, thus there must be a minimum duration of at least a few hours (bare minimum) between them.

As you can see, selling and buying a house at the same time can be a lot of work. This is why most people choose to enlist the help of an agent to make the process as smooth as possible. 

Let’s take a look now at some of the best practices that are being used in today’s market.

Best practices for selling/buying at the same time

Here are some of the best practices that we are currently seeing in today’s market:

• Get pre-approved for the new house before you list your current home for sale. This will ensure that if there is a multiple offer situation, you have an advantage over other buyers.
• Be aggressive with the listing price of your home. A reasonable listing price or receiving a strong quick offer and contract will be beneficial when submitting the offer on your new home.
• Look at homes prior to listing yours for sale so that when you do list it, you will already have an idea of what is available and at what price.
• Have a team that can make this process easy for you. A real estate agent with years of experience in buying and selling homes simultaneously is extremely helpful as well as having closing attorneys who understand the process and how to coordinate the closings so that they happen on the same day.
• Use the same attorney, agent, title company, and lender for both transitions. With many moving parts, the fewer people involved the less of a chance of miscommunication or mishaps.

What is working well in today’s market?

There are many things that are working well in today’s market when it comes to selling and buying a home at the same time. Here are the most notable:

We recommend all our simultaneous seller buyers have a strong written offer from a buyer for their home before viewing and submitting an offer on their new home. Here are the reasons why:

• Your offer will be more attractive to the seller of the new home if it is accompanied by a written sale contract of your current home.
• If you have a great strong offer on your current home, this can help in negotiations for the purchase of your new home.
• Be prepared to move quickly when you find the home you want to purchase. In some cases, multiple offers can be made on a property and the seller may choose the offer with the quickest closing date.

Once again, keep in mind that having a sales contingency lowers the value of your offer. When compared to a non-sale contingency offer, a sales contingency offer would be very ineffective.

Alternatives to Selling before Buying

If you are unable to sell your home before buying a new one, there are a number of options to explore, which include renting your home before buying, using a bridge loan or HELOC loan, getting a leaseback, or selling to an ibuyer. 

Rent your home before buying:

If you are financially capable and qualify for two mortgages at the same time, one option is to lease your property before looking for your next home. After you are settled in and the lease has expired, you can then place your old home for sale. Leasing your first property would give you time to look for your next home and not have to deal with the strict constraints of concurrent closings.

FHA and VA loans, however, do not allow you to have two mortgages at the same time. Also, lenders prefer that your monthly mortgage and housing payment account for less than 43% of your gross income. If qualified, this is a great alternative to simultaneous closing. Contact your lender and/or your agent regarding your specific situation.

A bridge loan or HELOC loan:

This is a short-term loan that can be used until the proceeds from your home sale are available. If you have equity in your current house, you may use that money to pay for the down payment, closing costs, and unforeseen expenditures while still keeping both houses.

A bridge loan enables you to borrow money for a new property before selling your present home. Bridge loans typically come with higher interest rates than traditional mortgages and they often require high credit scores and low debt-to-income ratios.

Leaseback:

If you are unable to find another place to live, but your current house has sold, you could negotiate with the new buyer to lease or rent your old home back to you for a short period of time. This is often mostly done with investors or developers. Most traditional buyers want possession at closing. This option allows you time to buy without having to use a bridge loan or be in a huge rush to find another place.

Sell to an iBuyer:

An Instant Buyer is an organization that purchases houses from sellers who want to sell quickly and completely online. The iBuyer makes an offer to the seller within a few days of receiving a description of the property. It’s gaining popularity thanks to large corps and even traditional real estate companies offering this service.

Zillow has recently discontinued this service because it has already lost a lot of money with the few it has completed. It’s quite convenient to sell to an iBuyer, but like with everything else, there is a price. However, if you can find an iBuyer that makes financial sense, take advantage of it. Confirm that you’re receiving a fair price by consulting with a reputable real estate broker. 

Pros and cons of selling and buying a home simultaneously

Here are some of the most notable:

Pros:

• You will not have two mortgages at the same time.
• You won’t need a place to stay while you find your new home
• One move instead of two

Cons:

• Selling and buying at once requires two closings, which means two sets of closing that must go exactly to plan. There is a higher risk that one or both transactions will fall through, so you need to be prepared for this possibility.
• Time restraints limit the time to find your new home
• Most people will need an agent to pull it off

Conclusion 

What is the best option for you? It depends on your situation, financial ability, time constraints, and what makes sense to you. You should always consult with a reputable real estate broker/agent that knows all of your options and can assist you in making the best decision for your situation.

We’ve helped Illinois families buy and sell their homes in Chicagoland for over a decade – get in touch if you have any questions about buying and selling your home at the same time in Chicago. 

How much are sellers’ closing costs in Illinois? The average seller closing cost in Illinois is $5,807 after taxes. This ranges between 1.94% and 2.9% of the final home sale price.

Given that an average home in Illinois sells for $200,000 to $300,000, the seller closing costs can fall between $3,871 and $8,710 depending on the county transfer taxes and other variables.

While closing on a home can be exciting to a seller, it can also be challenging and stressful if you aren’t well prepared. As a seller, especially in Illinois, it’s important to go to your closing prepared. This means that you have to know everything that’s included in closing costs for a seller and how much it will cost.

Click Here for 6 Steps to Selling a Home in Illinois.

Closing Costs in Illinois

If you’ve been wondering how much it would cost to sell your home in Illinois, you’ve come to the right place. Of course, you’re aware that some costs will go into selling your home. As such, it’s important to have a solid understanding of what you’re expected to pay to avoid getting blindsided by costs that arise down the road.

For those who aren’t aware of what closing costs are, these are fees that are associated with purchasing a property such as realtor commissions, filing fees, transfer taxes, title-related fees, and many others. These costs do vary depending on the value of the property, its location, type, and the type of loan involved. Closing costs may be incurred by the seller, the buyer or both depending on the agreement.

Illinois has one of the most expensive closing costs in the nation if you factor in everything including transfer taxes. Various factors and regulations make it one of the most challenging states as far as selling a home and closing costs are concerned. This is why you have to be well prepared when it comes to closing costs in Illinois.

Closing Costs Breakdown

As we’ve just noted, seller closing costs in Illinois can be quite tedious. It’s, therefore, important to break them down into categories, at least to give you a rough estimate of what you should expect to pay at closing, the things that you might owe after the home goes under contract, as well as any fee that’s associated with selling your home.

A typical seller closing cost in Illinois include:

State of Illinois Transfer Tax

This is a one-time tax that you pay to the state of Illinois on a change of ownership of a property. Even though state transfer taxes are customarily paid by the seller as part of the closing costs, you (the seller) can negotiate during the contract talks for the buyer to pay a part of the entire transfer taxes. In Chicago, both the buyer and the seller must pay a transfer tax.

Your state transfer tax is calculated based on a percentage of the sale price or the value of the real estate. In Illinois, the state transfer tax is $1 for every $1,000 of the sale price.

Here’s a perfect example. Say you sell your house for $300,000; the state of Illinois will expect you to pay a one-time transfer tax of $300. Here’s is a list of transfer taxes in the state of Illinois.

County/City Transfer Tax

Like state transfer tax, county transfer tax is a one-time payment paid to the county where the property is located. Country transfer taxes vary from area to area. For example, the transfer tax for DuPage County is $1 for every $1,000 of the sale price while the transfer tax for the city of Naperville, IL is $3 for every $1,000 of the sale price.

Going by our previous example of selling your home for $300,000, this means that you’ll have to pay a country transfer fee of $300. You’ll also pay a city transfer fee of $900. With this in mind, the total transfer tax for selling your house will total $1,500. To make it a lot easier for you, here’s a list of transfer tax rates for the state of Illinois including counties such as DuPage County and Cook County. The list also includes who is expected to cover the transfer taxes.

Title Fees

These are the fees that you incur to transfer ownership of your property. They include:

Title Insurance – As the seller, you’ll be required to pay for the insurance policy of your property. The cost is generally based on the sale price and may vary slightly from title insurance companies. You should expect to pay around $1,750 for a normal Illinois property and about $3,500 for properties costing up to $1 million.

Title Search Fees – This is paid by the buyer and is to ensure that the seller is the rightful owner of the property. The fee can cost between $275 and $475.

Update Fee – Costing about $200, this is to cover the period of the contract from the time the title commitment is issued to the closing. The idea here is that damage can occur to the property during this period and the amount should cover that.

Title Policy Registration Fee – This is a $30 fee that’s paid to the state of Illinois to keep track of all the documents of the contract.

Water and Zoning Fees – This is based on the type of home you’re selling. For example, you can expect to pay about $250 for a water and zoning certificate if you’re selling a single-family home. On the other hand, you can expect to pay about $150 if you’re selling a condo. The idea for water and zoning fees is to protect the buyer from incurring huge water bills after closing.

Attorney fees

This will vary from company to company and is meant to cover the services that the attorney offers to perform the title work and/or represent you. As a seller, you’ll typically pay a fee ranging between $500 and $700.

Mortgage Payoff (If Applicable)

Chances are this could be the largest closing cost to incur when selling a property. Needless to say, this will vary depending on the amount you owe on your mortgage. This has to include any interest accrued.

Realtor Commission

Other than the mortgage payoff, realtor commission is one of the largest closing costs that you can accrue when selling your home. As a contingency fee, you’ll only pay the realtor if the home closes and can cost you about 6% of the sale price. So if you sell your property for $300,000, the realtor will command about $18,000 but you can negotiate to reduce this.

Who Pays for Closing Costs in Illinois?

Typically, the buyer and the seller should share the burden of paying for closing costs if a home sale is successful. However, the two won’t pay for the same things and the buyer is likely to pay more than the seller.

The main closing costs for the seller include:

· Title insurance fees

· Mortgage payment (if applicable)

· Seller’s attorney fees

· Transfer taxes and recording fees

· Update fees

· Water and zoning fees

· Title policy registration fees

· Any liens that exist on the property

The main closing costs for the buyer include:

· Title search fees

· Appraisal fees

· Home inspection fees

· Survey fees (if applicable)

· Buyer’s attorney fee (if applicable)

· Credit report fees

· Settlement fees

Other Seller Expenses when Selling a Home

Even though every home sale is unique, there are always some additional seller costs that you have to be on the lookout for. While you may be required to pay some of them before closing, most of them will come when closing, so you need to be aware of them so that they do not get you by surprise. Some of these additional seller expenses include:

HOA dues – If you’re selling your home, you’re required to pay your HOA dues until the end of the closing date month.

Special Assessment – As a seller, you’re liable for any special assessment fee levied on your property by HOA before closing.

Miscellaneous Buyer Credit – There are instances where the house may need repair after inspection. However, you may agree with the buyer to offer credit instead of making the repairs for a higher price. If this is the case, you’ll be required to offer buyer credit at closing as agreed.

Other may include:

· FHA or VA charges

· Prepaid rent proration

How to Save on Seller Closing Costs

As a seller, it’s advantageous that the closing costs will come out of your home sale proceeds. This means that you do not have to come up with extra cash out of your pocket. But even with that, you can try a few ways to lower your closing costs and maximize your proceeds.

Ask the Realtor to Take a Lower Commission

If you’re working with an agent, you’ll probably be tasked with covering the entire realtor commission fees. You can either consider working with an agent who offers discounted services or try to negotiate with the agent to take a lower commission.

Negotiate for Better Prices and Terms

You can shop around for better rates on various services such as title insurance and attorney fees. You, however, have to consider that these fees are fairly consistent across the board, and finding better rates might be a long shot.

Negotiate for the Buyer to Pay

If you’re selling in an area where there’s fierce buying competition, you can negotiate with the buyer to pay a part of the entire closing costs.

Although closing costs take money out of your pocket, they can increase your capital gain tax on the sale and this can have a positive impact on your bottom line.

Conclusion

The Illinois housing market has been on the rise in the last couple of years. This means that it’s a great time to sell your house. But before jumping on this bandwagon, it’s important to understand inherent closing costs that you may be expected to pay down the line. By doing this, you won’t be blindsided or taken by surprise when these costs arise. If anything, you can come with better ways to negotiate for lower closing costs such as negotiating with the buyer to pay part of closing costs or pay them in their entirety.

And because the process of selling your home is tedious and challenging, you definitely need a realtor to help you make the process a lot simpler. As one of the best realtors in Chicago, you can contact us today and we’ll help you save not just money but also the hassles that come with selling a house.

Staging helps to make your house look more appealing by making it appear larger, cleaner, or better cared for than it actually is. Staged homes also help to draw in buyers who might have otherwise overlooked them because they don’t like the outside appearance of the property.

Staging is something that many people are not aware of but can make a world of difference in how quickly your home sells. Staging can be done by an interior designer or you can do it yourself. Home staging costs vary depending on who does it and what they use to stage the house. We will give you tips and tricks to save money while still making sure your home looks its best!

Is home staging worth it?

Several different studies have determined that staging your home is usually a worthwhile investment. 

According to a recent study report by the NAR, buyers were willing to raise the dollar value offered between 1% and 5% on staged homes, compared to non-staged homes. Buyers agents also revealed staging helped the buyers visualize them selfs in the home.  Staged homes are also less likely to get price reductions. Staging does not add value when it comes time for the homeowner to sell but can increase the speed at which they do so and increase how much money is offered on their house, according to a study by Remodeling Magazine.

Is Staging Worth It? Yes!

Unfortunately, there isn’t a one size fits all answer as to whether staging is worth it for you or not. Any form of staging by you or a professional will increase the likeliness that your home sells faster and for more money.

How does staging work?

Home staging is usually done by a professional staging company that serves sellers when selling their homes. Staging takes on an emotional approach that emphasizes the value of your home to buyers by making it look larger, cleaner, and better-taken care of.

Staging can be done with a variety of different items ranging from furniture appliances, plants and can even include cars.

If you planning on selling your home and would like to hire a professional to help you, you should first perform a deep clean and declutter.  Another option is to have your house professionally cleaned before letting in-home stagers. Your design professional will have an easier time evaluating the space and determining the best use of it.

Your staging professional will first have a consultation with you to discuss your home, needs, and design preferences. Stagers will then walk around the house with their client in order to best determine how to make it look bigger while also making sure furniture placement encourages buyers’ views of different rooms.

Staging companies will usually need only a few weeks to make your home look its best. We would recommend meeting with at least two stagers at least a month before listing. Stagers usually charge for time staged, make sure you know when your listing photos are and when the listing will go live, and coordinate with the stagers.

Who pays for staging?

Who pays for staging? Staging is usually paid for by the seller but may be negotiated between real estate agents and clients.  Staging is usually something that you need to pay for if you are selling your home through a real estate agency. You could decide to stage yourself or consult with your real estate for other options.

Stagers will often provide different plan options and can also work with the homeowner’s budget in order to make sure staging meets their needs while staying within their means.  Stagers will usually do their best to keep costs down while still making sure the home looks its absolute best. Staging is often seen as a luxury item but can actually help save you money and time in your selling process.

Stagers typically charge by the hour or square footage of space staged so be sure to ask your Stager about their prices and what is included. Some Stagers may also provide a flat fee for different sized homes or properties to help make the process easier.

How much does home staging cost?

The average cost of a home staging in Chicago is $1,500, but fully staged homes can be over $2,200 and above depending on staging, home size, and time.

Stagers can also charge by the hour if you would like to hire for a consultation. You can expect anywhere from $150-$500 per hr.  Fully furnished large homes can be $6,000 a month and above.  Stagers can also offer flat rates if you have a small home. Staging companies usually charge $35-$100 per room for staging by the hour or square footage, in addition to delivery and pick-up costs (if necessary).

Homeowners should expect staging fees to be around 30-50% of what they would spend on furniture but it is important to remember that Stagers are experts and will be able to make your home look its best.

How to save on home staging?

Use Used furniture

Staging items are usually an afterthought. Stagers may use furniture from local thrift stores or Craigslist at a lower cost. Consider shopping for used furniture if you have an old couch or old furniture piece, but still, make sure that everything is cohesive with the design of your home. You know your style best – keep it consistent!

Don’t Over Fix the fixer-upper

When performing small repairs I have often felt it’s also easy to keep peeling back layers. If you cant remove wallpaper, consider painting. If the bathroom floor needs replacing, don’t continue with replacing the vanity. This goes back to defining your priorities and sticking with them. You should decide what needs immediate attention and what is not as important. Remember deep cleaning and decluttering is a priory, don’t skimp out on it.   

Hire a Consultant

If a fully furnished home is not an option. Hiring an advisor or consultant might fit the bill. An interior designer can use your own furniture and decore to rearrange your home to appeal to the right buyer. Also, consult with your realtor, they will be able to point out eyesores that a buyer might be turned off by.

Virtual Stage

Virtual staging has been around for a while, however today you can find high-quality staged images that really help the buyer through the door.  Staging a home using professional photography, video tours, and floor plans will help your home shine. Realtors can also work with local photographers or companies that offer virtual staging for a lot less than a fully furnished home.

Conclusion

If you’re planning to sell your home in the Chicago or Naperville area, don’t worry about whether or not it’s worth staging. Staging a home for sale can make all of the difference when listing and attracting potential buyers; it also saves time by allowing you to focus on other things like deep cleaning and decluttering. Stagers will usually do their best to keep costs down while still making sure that your house looks its absolute best before putting it out there on the market.