I was called to list an Oak Lawn home by someone who found my website doing a Google search. I checked our tax records to 
see a photo of the home. I was already told that it was a unique home with a combination of an original Oak Lawn "farmhouse" style blended with a couple of additions. I love unique homes so I was excited to go on this listing presentation.
The main level was pretty nice, but once I went upstairs my excitement dwindled. The bedrooms were teeny tiny and a couple weren't even actual bedrooms per our MLS as they did not have closets. There was a weirdly located den/family room (one of the additions), that was on a mid-level. The basement was the most recent update and I'm not sure why they bothered. The main "room" was more like a large hallway with another small room that they wanted to call a bedroom, but there was no escape window, nor the elusive closet. This house was only partly functional.
These sellers were very prideful of this mishmash of a home. I could tell they would never understand that the home they lived in for years would not appeal to today's buyers. Those tiny bedrooms without closets were good enough for them and their children, and they were very happy with their strange basement remodel. I could tell they would be trouble. I could not pinpoint any price a buyer would pay for this house, and I could tell they did not like what my CMA had as a market value. I did not want this listing! When I checked out if anyone else took it, I laughed when I saw the list price - probably $50,000 overpriced. The average list price in Oak Lawn (based on 2010 sales) is about $198,000, so $50,000 is a big deal in this village.
Why I'm Taking an Overpriced Listing
I will be listing another home that will be around the same amount overpriced. But there's a huge difference between the two homes. This Orland Park home is a McMansion that was purchased in 2004 and was completely gutted and redone inside. It is absolutely beautiful with a gorgeous chef's kitchen, one of the 4 bedrooms expanded, all updated baths and a basement with it's own Irish pub. It's not just a bar, it's a pub!
The average price in this subdivision is about $560,000, and we'll be listing it around $625,000. The seller needs a certain amount or they cannot sell. They will let it foreclose as they can no longer afford it. He was in the building trades and lost around $500,000 cash in real estate investments that did not close. He needs to net a certain amount so he can afford to pay cash for a modest condo. If they foreclose on this home, they will have to rent a place.
The other difference with this house is that we might find a buyer that will fall in love with this updated home with all of the pricey upgrades. If it doesn't appraise, this is a price range where the buyers might make up any difference. I do not see that happening with the Oak Lawn home. I can't see a buyer even considering that home, especially at the high price the listing agent took it at. But the Orland Park home has a chance.
The sellers of the Orland Park home know the market, he was in the building trade after all. They are friends of my real estate partner and they know that we cannot guarantee a sale at the price they need. They truly appreciate that we are taking a chance with them and they do not have high expectations, just hope. We all agreed that it's worth it to try rather than just walk away. We wouldn't take the listing if we felt there was no way the house would sell. We feel this is a special house that might attract a buyer, even priced too high based on our market analysis.
If worse comes to worse, the sellers might need to sell at a lower price but they at least could walk away with some money. Maybe not what they need to purchase a condo with cash, but it's better to get some of your investment back in cold hard cash than to just give it away to the bank. So although that is not their plan, if all we can get is market value, they will still be ahead of the game.
Real estate is not cut and dry. All homes are different, areas have different values. Sellers have differing personalities, needs and expectations. I do not make it a habit to take overpriced listings, but sometimes it is definitely worth a try.
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