Chicago's Most Expensive Homes: A Non Price Reduction On Ann Lurie's Mansion

Back in January I posted on a significant price reduction on Ann Lurie’s Mansion from $13.75 MM to $11 MM. Almost 7 months later and the house at 1547 N Dearborn still hasn’t sold and it’s been on the market now for 766 days.
About a week ago I noticed that the listing got cancelled and came back at the exact same price. I assumed this was the Hail Mary pass of real estate – relist the property as NEW in hopes of getting everyone’s attention one more time just in case they missed it the first time around.
However, Dennis Rodkin in a Crain’s article pointed out yesterday that the new listing is now offering a $1 MM “customization credit”: Ann Lurie cuts mansion price, but she doesn’t call it a cut. This strategy is indeed odd. For one, how is this different from a price cut? And obviously it’s pretty easy to miss this new offering as I certainly did. It’s in the description and who reads that a second time?
In Rodkin’s story the listing agent attempted to explain how this is different from a price cut: “we thought this was a more interesting way of putting this out there.” The article also says that “A buyer financing the purchase with a mortgage ‘might want the extra cash in hand to do upgrades.'”
Uhhhh. I don’t think so. Not only is it not more interesting it’s actually convoluted. Furthermore, a lender might not let the buyer get a 9% credit at closing. It could exceed their threshold, which depends upon the size of the down payment. It could be allowed if the down payment is large enough but in that case the buyer could just pay a lower amount and reduce their down payment.
Personally I think this has all the hallmarks of a seller thinking they know more about real estate than their agent. I’ve seen it before. The conversation goes something like this:
Seller: “It’s not selling because the property is not being marketed well enough, not because it’s priced too high.”
Realtor: “We’re getting a lot of feedback that it needs to be updated.”
Seller: “Then let’s offer them a credit.”
Realtor: “That’s no different than a price reduction.”
Seller: “A credit will have more appeal. Back when I _____ we used to _________”
Realtor: “OK.”
What’s going through realtor’s head: “Whatever I have to do to keep this listing long enough for her to realize that it’s overpriced. I’ll give out candy canes at the door if that will keep the peace.”
#AnnLurie #ChicagoRealEstate #ChicagoExpensiveHomes
Gary Lucido is the President of Lucid Realty, the Chicago area’s full service discount real estate brokerage. If you want to keep up to date on the Chicago real estate market, get an insider’s view of the seamy underbelly of the real estate industry, or you just think he’s the next Kurt Vonnegut you can¬†Subscribe to Getting Real by Email.¬†Please be sure to verify your email address when you receive the verification notice.

Leave a Reply