Michigan Avenue  Magazine
Site menu
  • Parties
  • People
  • Food & Drink
  • Home & Real Estate
  • Style & Beauty
  • More
    • Culture
    • Lifestyle
    • Watches & Jewelry
    • Magazine
    • Video
    • GreenGale Network
    • Media Kits
  • Digital Edition
  • Contact Us
  • Advertising Info
Sign Up     

Parties

See More
Read More
Michigan Avenue Feed Your Senses Event
Read More
First Bites Bash 2019
Read More
CityGuide Chicago Launch Event

People

See More
Read More
Asrai Garden's Elizabeth Cronin and Varyer's Mike Renaud & Chris Kaskie Talk Their New Collab
Read More
Actress Annie Ilonzeh Talks Starring in 'Chicago Fire'
Read More
Letter from the President: January/February 2019

Food & Drink

See More
Read More
Cold Comforts: Top Chicago Chefs Share Their Favorite Winter Meals
Read More
With Posh In-Store Restaurants, These En Vogue Hotspots Redefine the Retail Experience
Read More
Barton G. Amps up River North with Picture-Perfect Plates

Home & Real Estate

See More
Read More
How One Bennett Park Is Showcasing Chicago Artist Nick Cave
Read More
Embrace the Bright Bathtub Trend with One of These Colorful Brands
Read More
Elevate Your Interior with Donna Mondi's New En Vie Collection

Style & Beauty

See More
Read More
Givenchy's Sporty JAW Sneaker Is a Must-Add to Your Closet
Read More
Chanel Launches a Jaw-Dropping New High Jewelry Collection
Read More
Virgil Abloh's First Collection for Louis Vuitton Hits the Mag Mile This Friday
Culture
Read More
Lifestyle
Read More
Watches & Jewelry
Read More
Magazine
Read More
Video
Read More
GreenGale Network
Read More
Media Kit
Read More

Search Our Site

Real Estate Trend: Cash is King

By Lisa Skolnik | March 13, 2018 | Home & Real Estate

Share

Fierce competition in Chicago’s luxury real estate scene is spurring all-cash offers, often above asking price.

Real-Estate-Experts-1-0001.jpg

Flush boomers are breaking out the greenbacks to snag their dream retirement pads—and bankroll their millennial children in sweet starter homes. In Chicago, single-family homes in good school districts and stunning aeries in high-touch buildings are selling faster than Stan’s lemon pistachio old fashioneds. So buyers must act fast and ante up cash, advise Baird & Warner’s Pamela Sage (312.318.8008) and @properties’ Phil Skowron (312.612.0303).

HOW FAST IS FAST?
Pamela Sage: Immediately. Good luxury units in great condition are so scarce right now that you need to make a strong offer quickly to get what you want. An all-cash offer without contingencies is much stronger; even if someone bids higher, sellers always go with the stronger contract.

HOW DOMINANT ARE THOSE ALL-CASH OFFERS?
Phil Skowron: The luxury condo market is on fire right now, especially for larger units, so if a place is really great it takes cash to get it—competition is that fierce. In the last 12 months, there were 651 sales for condos $1 million or more along Lake Shore Drive down to the Loop, and 258, or 40 percent, went for cash and 26 of those closed above ask. So even cash isn’t always enough.

WHAT ABOUT SINGLEFAMILY LUXURY HOMES?
Sage: The market is softer for luxury homes, so sellers are waiting. For detached single-family homes $2 million and over in Chicago, there were 151 listings at this time last year and there are only 120 right now.

WHY DO WE KEEP HEARING THAT SINGLEFAMILY HOMES ARE GOING SO FAST?
Skowron:
Because good starter homes are also on fire, fueled by boomers who are helping their children pay cash. In the last 12 months for detached single-family homes between $700,000 and $999,999 in the area south of Addison, east of Western and north of Cermak, there were 193 sales and 95 of those—almost 50 percent—were all-cash, with 26 of those going at or above ask.

HOW COMMON IS IT FOR REALLY GOOD PROPERTIES TO GO ABOVE ASK?
Sage: Pretty common. Last year, 18 percent of Chicago-area home buyers paid more than the asking price, according to Zillow. And the numbers have risen every year since 2012. If you want to buy something that’s in demand—from those great starter homes to condos in prime buildings—be prepared to pay cash as well as more than ask.

WHAT KIND OF PROPERTIES ARE IN DEMAND?
Sage: Luxury buyers are looking for fullamenity buildings in great neighborhoods. People want to walk everywhere and still prefer Streeterville, the Gold Coast and Lincoln Park. I just sold a beautifully redone 2,400-squarefoot, three-bed, 3.5-bath vintage coop at 1120 N. Lake Shore in a week for $1.062 million, a price that far exceeded the sellers’ expectations. Another great unit I have right now is a 3,100-squarefoot, three-bed, 3.5-bath at The Palmolive (159 E. Walton, 8D) for $2.099 million with two valet spots, which is a great price for the location and amenities.
Skowron: Size also counts, especially with boomers. They may say they’re scaling down, but they still want large units. We just sold a 2,500-square-foot unit at 1035 N. Dearborn in 10 days for $1.375 million. We’re seeing a lot of action on a 3,000-squarefoot, three-bed, 2.5-bath unit at 190 E. Walton that just went up for $1.695 million, and a combination unit on the 80th floor at 401 N. Wabash that’s a spectacular deal. It’s two contiguous units that together make up 5,000 square feet for $7 million; a similarly sized unit on the 88th floor just closed for over $2 million more.

Tags:
Categories: Home & Real Estate

Photo©VHT Studios

Around the Web

All Calendar Culture Food & Drink Home & Real Estate Lifestyle Magazine Parties People Style & Beauty Video Watches & Jewelry


Behind the Scenes with Modern Luxury


Popular Posts

Read More

January 15, 2019

How One Bennett Park Is Showcasing Chicago Artist Nick Cave
Read More

December 28, 2018

Embrace the Bright Bathtub Trend with One of These Colorful Brands
Read More

December 17, 2018

Elevate Your Interior with Donna Mondi's New En Vie Collection

Behind the Scenes with Modern Luxury


Read the digital edition from Modern Luxury

View Digital Edition

 

 

Click here to read  
the Digital Editions

or Subscribe to the Print Edition:

SUBSCRIBE

  • Contact Us
  • Advertising Info
  • Digital Editions
  • Online Ad Specs
  • Print Ad Specs
  • Press
  • Privacy Policy
  • Terms & Conditions
     logo
    • Aspen
      • Aspen
      • Aspen Peak
      • Epic Life
    • Atlanta
      • The Atlantan
      • Jezebel
      • Modern Luxury Weddings Atlanta
      • Modern Luxury Interiors Atlanta
      • Charity & Social Datebook Atlanta
    • Boston
      • Boston Common
      • Modern Luxury Weddings Boston
      • Modern Luxury Interiors Boston
    • Chicago
      • CS
      • NS
      • Michigan Avenue
      • Modern Luxury Weddings Chicago
      • Modern Luxury Weddings North Shore
      • Modern Luxury Interiors Chicago
      • Men's Book Chicago
      • Modern Luxury City Guide Chicago
      • Charity and Social Datebook Chicago
    • Dallas
      • Modern Luxury Dallas
      • Modern Luxury Weddings Dallas
      • Modern Luxury Interiors Texas
      • Charity and Social Datebook Dallas
    • The Hamptons
      • Beach
      • Hamptons
    • Hawai'i
      • Modern Luxury Hawaii
      • Ala Moana
    • Houston
      • Houston
      • Modern Luxury Weddings Houston
      • Modern Luxury Interiors Texas
      • Charity and Social Datebook Houston
    • Las Vegas
      • Vegas
    • Los Angeles
      • Angeleno
      • Los Angeles Confidential
      • Modern Luxury Weddings California
      • Modern Luxury Interiors California
      • Charity and Social Datebook Los Angeles
    • Miami
      • Miami
      • Ocean Drive
      • Modern Luxury Weddings South Florida
      • Modern Luxury Interiors South Florida
      • Charity and Social Datebook Miami
      • Styled
    • New York
      • Manhattan
      • Gotham
      • Charity and Social Datebook Manhattan
    • Orange County
      • Modern Luxury Orange County
      • Modern Luxury Weddings California
      • Modern Luxury Interiors California
      • Charity & Social Datebook Orange County
    • Palm Beach
      • Modern Luxury Palm Beach
    • Philadelphia
      • Philadelphia Style
    • San Diego
      • Modern Luxury San Diego
      • Modern Luxury Weddings California
      • Modern Luxury Interiors California
      • Charity & Social Datebook San Diego
    • San Francisco
      • San Francisco
      • Modern Luxury Weddings California
      • Modern Luxury Interiors California
      • CityGuide
      • Charity & Social Datebook San Francisco
    • Scottsdale
      • Scottsdale
      • Modern Luxury Interiors Scottsdale
    • Silicon Valley
      • Modern Luxury Silicon Valley
    • Washington, D.C.
      • DC
      • Capitol File
      • Modern Luxury Weddings Washington
      • Charity and Social Datebook DC
    • Watches
      • Tourbillon