This market report is provided by Chip Wagner and Robert Headrick of the [Headrick-Wagner Consulting Group](http://www.headrick-wagner.com/report.asp) in their monthly eNewsletter. I have had the pleasure of knowing Chip and Bob for a good part of my appraisal career. They are both very active in appraisal industry matters having held many leadership positions. They also each have their own firms: Chips’ firm is A. L. Wagner Appraisal Group, Inc. and Bob’s firm is Robert E. Headrick & Associates, Inc. and have been covering the Chicagoland market for many years. Their focus is on relocation, litigation and lending appraisals as well as [slayers of appraisal myths](http://www.alwagner.com/myths.shtml). Chip writes a column on our other blog Soapbox called Chip Shots. …Jonathan Miller

LOOKS RIGHT AND PRICED RIGHT

>…The oversupply of inventory makes it very difficult for homeowners to sell their home. Many agents are
telling me there are more buyers active right now as we are enter our Spring market, yet it remains a
challenge. The buyers have many residences to look at. Homes are still selling – but unfortunately the
types of homes appear to fall into two major categories: Looks Right and Priced Right, everything else in
between is sitting unsold.

>The houses that Look Right are those that stand out above the competition. They have positive attributes
that their competitors cannot match. This may include Location/Site features such as a cul-de-sac lot with
reduced front yard traffic, or a view of the park or Forest Preserve. It could also include homes that have
been remodeled that stand out above its competition; e.g., adding trendy features such as granite
countertops and stainless steel appliances to the kitchen. Or it could be about the impeccable condition of
the property with brand new carpeting, recently refinished flooring and a fresh coat of neutral paint. Good
interior staging is going a long way to make the home show the best that it possibly can. The homes that
look right are being purchased, those that have a couple of faults here and there, are being overlooked and
sitting on the market. This is exactly what happens when there is an oversupply and it is a Buyers Market.

>The houses that are Priced Right are also getting a lot of attention. These are the homes that are sometimes
called ‘short sales,’ or ‘quick sales.’ They might be properties where a seller has to sell because of a job
transfer or a job loss. They could be properties in pre-foreclosure where the owner is distressed to get out
of the property before they must turn the keys over to the bank. It could be a corporate-owned home, either
by a bank, or a corporation who moved their transferee. These are some of the most motivated sellers on
the block.

>Or, it could be the builder who is willing to ‘wheel and deal’ and give away the spec home at an
unbelievably low price, just to keep their sub’s paid, and able to work on that next home. I recently met a
transferee who could not sell his home which was priced under the market at $325,000 when all of the
comparable homes were over $350,000. He told me the feedback received was that people are choosing
new construction of more expensive homes – of homes originally priced $400,000 to $450,000 that builders
were selling for $350,000 with the discounts and concessions. It remains a difficult resale market in areas
where sellers are competing with builders…..

Here are the reports…

eNewsletter February 2008
Detached Property Inventory: February 2008
Attached Property Inventory: February 2008