If you’re thinking about selling, one of the first questions you probably have is: How much is my home actually worth?
Online estimates can give you a general idea, but determining the value of a Chicago home takes a closer look at the property, recent sales, current competition, and what buyers are willing to pay in today’s market.
Start With Recent Comparable Sales
One of the best indicators of your home’s value is what similar homes nearby have recently sold for.
We look at properties with similar square footage, bedrooms and bathrooms, condition, location, parking, outdoor space, and other features. In Chicago, even a few blocks can make a difference, so the most relevant comparable sales aren’t always the ones that simply appear closest on a map.
Your Home’s Condition Matters
Two similar homes in the same neighborhood can sell for very different prices depending on their condition.
Renovated kitchens and bathrooms, newer mechanicals, updated flooring, natural light, storage, outdoor space, and overall maintenance can all affect what buyers are willing to pay.
That doesn’t mean you need to renovate before selling. Sometimes a few smaller improvements and thoughtful preparation can make a bigger difference than an expensive project. However, appraisers are now taking a closer look at a home’s renovations and updates when comparing it to properties that are dated or show more wear.
Your Exact Location Matters, Too
Chicago is a neighborhood-driven market, and value can vary considerably within the same neighborhood.
The block, school district, proximity to transportation, nearby restaurants and shopping, views, noise, and even where a condo is located within a building can affect value.
For condos and townhomes, we also consider factors such as monthly assessments, building amenities, parking, reserves, recent special assessments, and the association’s overall financial health.
Current Competition Is Important
Recent sales tell us where the market has been. Active and coming-soon listings help tell us what your home would be competing against if it were listed today. We are also looking at the competition that has sold and doing a deeper dive on whether there were multiple offers, how much it sold over list price, did the buyers buy the property “As Is” and much more.
If buyers have very few similar homes to choose from, that can work in a seller’s favor. If several comparable properties are already available, pricing becomes even more important.
What About Zillow and Other Online Estimates?
Online home-value estimates can be a useful starting point, but they’re based largely on available data and algorithms.
Online sites haven’t walked through your home. They may not know that you remodeled your kitchen, have a better floor plan than the unit next door, added a roof deck, or that your home gets significantly more natural light.
They also don’t always capture the nuances of Chicago’s different neighborhoods, buildings and property types.
The Highest Price Isn’t Always the Best Price
It’s tempting to choose a list price based on the highest number you think you might get, but pricing a home correctly from the beginning is an important part of the selling strategy.
The goal is to position your home where buyers see the value and want to act. Depending on the property and current market, this may create stronger interest and even multiple offers, including an appraisal waiver, a buyer-waived inspection, and more.
So, How Do I Find Out What My Home Is Worth?
The best place to start is with a comparative market analysis, or CMA.
We look at recent sales, what’s currently on the market, your home’s individual features and condition, and what’s happening in your specific neighborhood to determine a realistic price range.
And you don’t have to be ready to sell tomorrow to ask.
If you’re simply curious about your home’s current value or thinking you may sell sometime in the next year, we’re always happy to take a look. Knowing where you stand today can help you make a more informed decision whenever the time is right.
