Is There Any Demand For Horse Properties in Northern Illinois – Summer 2016. It’s a big question for horse property owners thinking of selling.
Statistics can help us with the demand and supply economics of selling Northern Illinois horse property. And for any property, horse or not, it always comes down to the basics of supply and demand. Let’s look at some statistics first.
- At the time of writing there are 46,927 single family homes for sale in Northern Illinois using the MLS I belong to.
- Over the last 6 months we’ve had 40,720 single family properties sold.
- Over the last 6 months there have been 974 single family homes sold that were zoned for horses, representing about 2.3%
- Of those 974 properties, 500 had either a barn, stalls or stable indicating they are horse ready. That’s under 1.3%
- Of the existing active listings, 1001 have the same terms included.
- Of those 1001 listings 248 are under contract, so about 25%.
What does this tell me? Actually it tells me what I already know. The demand for horse properties right now, as in summer 2016, is low. I have two existing horse property listings and neither are getting much action. No showings, or very few, and no offers.
What should Northern Illinois horse property owners do?
- Make sure you understand that the economics of the property you own is very different.
- Accept that you are in it for the long haul.
- Hire a Realtor that understands the demand for horse property right from the get go.
- Hire a horse property Realtor that can price your property correctly to start with.
- Understand your showing requests will be minimal compared with let’s say subdivision housing.
- Delay your attempted sale? Maybe.
- Know that there are some buyers, just not many.
- Don’t ever deny a request to view.
- Consider alternatives to selling as a horse property. Ask your Realtor for suggestions based on your location and what’s in demand locally. Maybe it’s time to subdivide your land.
- If you list stay committed to the process.
- Don’t blame the Realtor!
- Don’t fall into the “drop” the price concept. While over-priced properties will not sell, when demand is low it likely is not going to help very much. Unless you do drastic cuts which eventually will yield the result you desire. (This may be for you).
I don’t like writing depressing posts but I am being inundated with requests by sellers, and other agents who have no clue about why their horse property listings are not selling. Actually it’s not my job to be counseling those agents, they are supposed to discuss these issues with their own office managers or managing brokers. But clearly there’s only one top horse property Realtor for Northern Illinois and I am it!
If you have a horse property to sell in Northern Illinois, I am being very picky right now about what I will accept, because it is quite a challenge.
Here are some things that will NOT work when selling Northern Illinois Horse properties!
- Offer a bonus to agents if property under contract by a certain date. I am not sure why any agent thinks this has merit! Sellers certainly should not fall for this bait idea.
- Giving your agent limited time frame to sell or move on. Supply and demand rules here, nothing else.
- Test the market at a higher price. This is one tough competition, go low! Beat your competitors pricing, don’t match or exceed it.
- Fall for any, and I mean, any, promises an agent will make.
- Opt in to a “we’ll buy your house if we cannot sell it” program. Unless you are ready to lose your shirt! Or be 100% duped. (Agents can cancel the day before your agreement is up! Read the fine print, it’s awful.)
Northern Illinois horse property buyers are in short supply. Accept it and list, or wait until demand comes back.
When will that be? Sorry I don’t have a crystal ball folks but I’ll try to come back in about 6 months to update the stats. Is there a sweet spot? Yes, under $350,000 is where the bulk of the sales are, we do have some short sales and foreclosures in these numbers.
Call Corinne with questions at 847-363-3686