South Barrington homes are a magnet for luxury home buyers. The location is good, close to I-90 and Route 59. There are more luxury homes here and the typical cost of properties is higher than any other Barrington area. However I see a disconnect and I am not sure what can be done about it. We are talking about what a buyer wants and what’s available in terms of age of house.
Having worked with several buyers recently looking to buy in South Barrington it’s a fair statement to make that many of them looking above the $1 Million price tag are looking for homes that are either new or fairly new. New construction in South Barrington is very limited and before long likely will not exist at all. There is not a lot of land left that can be developed, and for now builders are not rushing to build spec homes for fear of not being able to sell them. Not many buyers are willing to buy a home from a rendition of what it might look like, they just don’t have the imagination.
The price ranch of $1 Million to $1.5 million will buy a home of about 5,000 square feet and this seems to be a target price and size for many of the buyers. It’s a fair statement that a buyer who wants to spend that amount of money and have a new home, would not get the size they want. There are limited homes in this price range in South Barrington but due to the age the buyers are having a hard time committing to buy them.
How can this disconnect be resolved?
- South Barrington home buyers can wait the market for as long as they want until a house that is younger in age hits the market but who knows how long they’ll have to wait. They should also know they have competition. To think you are the only person looking for a younger house in South Barrington and make an offer based on that thought, will likely mean your offer will be trumped by someone else.
- Dare I say look elsewhere? Likely not because South Barrington is known to be the best in 60010 for the luxury properties and location here is king!
- Low ball offers until you score? Again this rarely works. Listing agents don’t just pluck numbers from the sky when they advise sellers what homes should sell for. We look at comparable sales. So sellers are not going to give in and sell because you try to get a cheap house. Knowing the market is more than knowing a price, it’s also about knowing market action, average market times, your competition.
- Watch the mortgage interest rates. Absolutely. There has never been a time to get jumbo mortgages at such a low rate. Even this week we have seen the rates rise and this might affect your monthly outgoings more than you think. Lower payments could provide you the money you need to upgrade or change a house to be what you want it to be.
- South Barrington home sellers cannot change the age of their homes but it might be worth updating the property to make it appeal to those buyers. Kitchens and bathrooms sell houses but windows, roofs and driveways are also big ticket items that buyers look at.
Either way there’s no way of making South Barrington’s housing stock any younger, buyers cannot tag older kitchens or windows as worthless, and something will have to give. With mortgage rates on the rise buyers may have to grasp hold of the fact that they cannot get all that they desire and take the plunge before prices start to rise. These limited choices are fully functioning and quite frankly beautiful homes,so why not update them over time. Sometimes you have to give to get, and an older kitchen in a superb waterfront location is an example.