Chitownproperty

The New York Times ran a great piece this weekend about the thought process that goes into setting a market price. The number are huge because they’re talking about New York, but whatever the market, an asking price isn’t so much a flat statement of how much the seller would like to get for their property. It’s a complex calculation of value, strategy,and pride:

The asking price of a property is rarely a straightforward reflection of comparable values. While comparables may be a starting point, the price at which a seller offers a property is often also based on wishful thinking, propaganda and ploy.

Buyers, in turn, parry by deconstructing the price. They aim not merely to assess a dwelling’s fair value but also to plumb a seller’s bottom line and vulnerabilities. How a price tracks with similar properties, how large and hasty any reduction is, and even how parsed or rounded a number is — all these are grist for concluding, rightly or not, whether a price is firm, desperate or a sign of painful dealings to come.

It may seem silly on the surface, but the Super Bowl typically marks the kickoff of the annual “spring market” in real estate, when sellers finally put their homes on the market and buyers hit the pavement in earnest. It makes more sense in Chicago this year with the Bears playing in the big game, but nationally the Super Bowl has pretty much become part of the extended holiday season, the last excuse real estate procrastinators could hold on to before making a move. So if you’re in the market, expect some more action, and competition, starting today.