Category: Blog

Finding the Right Condo with Chicago Real Estate Agents vs. Zillow: Get a Competitive Edge

Posted on by LLCR Staff

In the age of technology, homebuyers often turn to online platforms like Zillow to search for their dream homes.

While Zillow offers a vast array of listings, it’s important to recognize the unique advantages that come with working with expert real estate agents, especially in competitive markets like Chicago.

In this blog, we will explore why turning to real estate agents can give buyers a significant edge, from accessing off-market and pre-market listings to benefiting from their knowledge and expertise in pricing, trends, and negotiation.

1. Access to Off-Market and Pre-Market Listings

While Zillow provides an extensive range of listings, real estate agents have access to off-market and pre-market properties that may be a better fit for their clients.

Through their strong professional networks, agents can offer clients exclusive opportunities to view and purchase properties before they even hit the market.

This advantage allows buyers to get ahead of the competition and increase their chances of finding the perfect condo in Chicago.

2. Connection to Essential Professionals

Real estate agents not only help clients find the right property but also connect them with other crucial professionals in the homebuying process.

From mortgage brokers to home inspectors and attorneys, agents have a network of trusted professionals ready to assist their clients. This guidance ensures that buyers have access to reliable resources, making the entire transaction smoother and more efficient.

3. Insights into Pricing and Trends

Experienced real estate agents possess valuable knowledge and insights into pricing and market trends.

They have a deep understanding of local neighborhoods, market conditions, and recent sales, allowing them to provide clients with accurate pricing guidance. This information arms buyers with a competitive advantage when negotiating the best possible deal.

While Zillow provides some data, it lacks the nuanced expertise that comes with working directly with a knowledgeable agent.

4. Streamlined Search Process

Searching for the perfect condo can be a time-consuming task, sifting through countless listings and determining which ones align with your needs.

Real estate agents, on the other hand, understand their clients’ preferences and save them countless hours by filtering and presenting the most suitable options.

Their expertise helps buyers focus on the properties that truly match their requirements, saving them time and effort.

5. Effortless Transaction Management

Managing a real estate transaction involves numerous details, paperwork, and negotiations. By working with an expert agent, buyers can save themselves the time and effort of handling these complexities on their own.

Agents are well-versed in navigating the intricacies of the buying process, ensuring that all necessary documents are completed accurately and deadlines are met.

This level of support and guidance alleviates stress for buyers and allows them to focus on their excitement for their new condo.

While Zillow provides a convenient platform for searching listings, there are clear advantages to working with expert real estate agents when buying a condo in Chicago.

By leveraging the knowledge and expertise of a broker, buyers gain a competitive edge and increase their chances of finding the perfect condo that meets their needs and exceeds their expectations in the dynamic Chicago real estate market.

Ready to start your Chicago condo search? Reach out to our team or follow the link below to get started!

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6 Questions to Ask When Buying a Condo in Chicago

Posted on by LLCR Staff

Buying a condo in Chicago can be an exciting and overwhelming experience. With so many options available, it can be challenging to determine which condo is right for you. That’s why it’s crucial to ask the right questions when buying a condo in Chicago. To help you through the process, we’ve compiled a list of some of the most common questions to ask when buying a condo.

1. What is the monthly association fee, and what does it cover?

One of the most significant differences between owning a condo and owning a single-family home is the association fee. This fee covers maintenance and other services for the building and shared amenities. It’s important to understand what this fee covers, how much it costs, and if it fits your budget.

2. What are the rules and regulations of the building?

Each condo building has its rules and regulations that you must follow. These can include restrictions on pets, noise levels, and rental policies. Before buying a condo, make sure you understand the rules and regulations and are comfortable with them.

3. What are the building’s amenities?

Condo buildings often have amenities like a fitness center, pool, or rooftop deck. Find out what amenities are available in the building and whether they fit your lifestyle. Some amenities may come with additional fees, so make sure you understand the cost.

4. What is the condo’s resale value?

While you may not be thinking about selling your condo right away, it’s essential to consider its resale value. Ask your realtor about the condo’s history, including past sales and appreciation rates in the area.

5. What is the condo’s location like?

Location is everything when it comes to buying a condo. Consider the neighborhood’s safety, proximity to public transportation, shopping, and dining options. It’s essential to understand the area’s character and whether it fits your lifestyle.

6. What is the condition of the condo?

Before buying a condo, make sure you understand its condition. Ask about any recent renovations, repairs, or maintenance issues. You may also want to consider hiring a professional inspector to assess the condo’s condition.

Buying a condo in Chicago can be an exciting and rewarding experience, but it’s important to ask the right questions. By understanding the association fee, building rules, amenities, resale value, location, and condo’s condition, you’ll be better equipped to make an informed decision.

If you need support during your condo search, connect with one of our experts. Our experienced realtors can help you navigate the condo buying process and find the perfect condo for you. Click the link below to start your search today!

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Common Condo Questions and Answers — Expert Advice from Our Agents

Posted on by LLCR Staff

Buying a condo or home – especially for the first time – can feel like a daunting task. Where do you begin? How do you know what’s best for your budget? There are many questions to think through before making this decision, especially because buying a condo is a financial and personal milestone.

As you consider taking this next step, read on for our commonly-asked questions – and more importantly, expert advice from our team on all things related to buying a condo for the first time.

What is an adjustable rate mortgage and how does it work?

An adjustable rate mortgage (ARM) is a home loan that’s divided into two periods: a fixed period and an adjustment period. Unlike a fully fixed-rate mortgage, this type of loan relies on market conditions and can change from month to month during the adjustment period.

  • During the fixed period, which comes first, the loan is at a set rate that’s lowered to compensate for any changes that could occur during the adjustment period. 
  • After the fixed period, the loan during the adjustment period is tied to a benchmark that reflects market conditions. 

While ARMs aren’t the right choice for everyone, this mortgage type can be a beneficial option for first-time homebuyers who might sell their home before the adjustment period ends (thus allowing for a lower fixed-period loan). It’s worth discussing both options with your mortgage lender to ensure you’re opting for the one that’s right for you.

Who pays closing costs? When are closing costs due? 

Closing costs – or fees incurred during the homebuying process – can be confusing, as they vary by state and individual transaction. While the individual costs themselves can change, they usually fall into one of the following categories: property-specific costs, loan-specific costs, mortgage costs, property taxes and insurance. 

Both the buyer and seller of the condo are responsible for paying closing costs, though buyers shoulder the majority of the fees. Generally, a homebuyer can expect to pay for the title search fee, title insurance, attorney’s fee, appraisal fee, recording fees, credit report, termite inspection, lender’s origination fee, insurance, taxes, and interest. Sellers handle part of the title search fee, title insurance, recording fees and the real estate agent’s commission. 

The actual closing costs vary by area and transaction size, but you can expect to pay around two to five percent of your home’s purchase price on closing day (when these fees are due). Closing cost calculators can be a great way to determine what the exact amount might be for your condo.

Should I continue renting or buy a condo?

Though condo (and rental) prices fluctuate due to market conditions, the decision to continue renting or purchase a condo for the first time is up to your individual goals and finances. A rent vs. buy analysis is designed to audit these areas of your life and help determine desire and readiness to buy. Steps in this analysis include:

  • Use a cost calculator to understand what mortgage you can afford, as well as closing costs, taxes and HOA fees – which should all be factored into the equation.
  • Consider your life stage goals, and why you want to purchase a condo. Talking through these questions with a trusted friend or counselor is a great way to ensure that the time is right to take this next step.
  • Think about other people, such as a partner or family, who might be involved in this decision. Discuss the implications with them to weigh their opinions, too.

One of the biggest components of a rent vs. buy analysis is what you want and what you can afford. As you look at different price points and their impact on your budget, use your current rent as a starting point for what an affordable mortgage would look like.

How can I understand mortgage interest rates?

As a first-time buyer, understanding mortgage interest rates is critical. This rate is what you pay to the lender in exchange for borrowing money, and there are three types of these loans:

  • Conventional loans, which require a higher credit score and a down payment between five and 20 percent of the home’s value. These are not issued by the government.
  • FHA loans, which are issued by the government, allow you to put down as little as 3.5 percent.
  • VA loans are for veterans and active-duty military personnel, and are guaranteed by the Department of Veterans affairs. They carry no down payment requirement.

These mortgages can be paid on a fixed or adjustable basis, and last 15 or 30 years. The difference between these payout times is that a 15-year mortgage carries higher monthly payments, but lower interest rates – meaning you pay off your mortgage sooner. A 30-year mortgage means that you have more time to pay off the loan with a lower monthly payment – but at the cost of higher interest over a longer period of time.

Do you pay property taxes on a condo?

Property taxes are a hot topic in Illinois, especially in Chicago’s Cook County, where the annual average property taxes are $10,950. While it’s common to think that these taxes don’t apply to condo owners, this is unfortunately not the case – condo owners are required to pay property taxes, even if a property was gifted to you or you own a rental property.

Property taxes are, in fact, determined by a home’s assessed value and the local tax rate (which is 2.19 percent in Chicago). While these taxes can add up, there are tax credits and exemptions that can ease the burden of this cost. Upon filing your taxes, these deductions include:

  • The amount paid in property taxes
  • The amount paid in the interest on your mortgage
  • The amount of any casualty loss to your property to the extent not compensated by insurance

As you consider the cost of owning a condo, property taxes are an important line item to add to your budget. Work with your mortgage lender and realtor to understand exactly what these costs might mean for you depending on your choice of a new home.

What’s changing with mortgages this year?

One of the biggest changes to mortgage costs this year is that it’s now cheaper to have a lower credit score. Specifically, if your score is 659 and you’re borrowing 75 percent of your new home’s value, you’ll only need to pay a fee equal to 1.5 percent of the loan balance (as opposed to 2.75 percent of the loan balance, which was the fee last year). This change only applies to loans starting May 1, 2023.

While the changes to Loan Level Price Adjustments (LLPAs) can change each year, the easiest way to ensure you’re paying as little interest as possible is to ensure your credit score is in top shape before purchasing a home.

With a mortgage, interest rates, closing costs and property taxes to consider, it’s no surprise that taking the step to own a condo is a huge decision. At Luxury Living, we pride ourselves on working through every step in the process together – ultimately leading you to your dream condo at the right price. If you’re ready to take this step, reach out to our knowledgeable team today or click the link below to get started!

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Small Condo Design Ideas

Posted on by LLCR Staff

City living sometimes means forfeiting space. If you want to make the most of your limited square footage, check out these small condo design ideas for each room of the house.

Small Condo Design Ideas for Your Living Room

For many, the living room serves as the primary gathering place. Whether it’s your spot to unwind after a long day or the place to entertain guests, most folks want this room to make a good impression. There are a few tricks to spruce up and open up a living room that naturally feels small:

  • Find multi-functional furniture. Whether you find a nice pull-out couch or an ottoman that provides storage, go for pieces that serve several purposes.
  • Incorporate mirrors. Not only do mirrors add a fun aesthetic touch, but they also make a room feel brighter and bigger by adding light and dimension.
  • Go with a large rug. While a smaller living room doesn’t need large furniture, it does benefit from an expansive rug. This staple piece can help anchor the room, giving it a larger appearance.
  • Take advantage of lights. Lighting is a key design element in any room, especially the living room. Brighten your space with a mix of lights- including floor lamps, end table lamps, a ceiling fixture, or even wall sconces.

Small Condo Dining Room Design Ideas

The dining room is another area that can be great for hosting guests. Even if the room is tight, you can create an inviting and warm space with a few expert design recommendations:

  • Go for a round table. Not only does this table shape often make conversing easier, but in a smaller space, it can feel softer than a square one. If you’re leaning toward a rectangular table, try finding a slim and sleek one.
  • Find tables that extend. This adjustable feature allows you to seat more folks when needed or keep the table smaller when you’re not hosting.
  • Opt for wall lights. Rather than bulky floor lamps, add soft dining room lighting with sconces of your choice. Also, when choosing your ceiling light, consider it a main statement piece in the room. Pendant lights are also elegant options for the dining room.

Design Ideas for a Small Condo Bedroom

The bedroom is where you start and end your day, so it’s worth styling this room to your liking. If you’re working with a small bedroom, try these tips:

  • Look into a storage bed. Finding a bed that can hide your belongings is a great start to maximizing this room. Not only can you find beds with storage below, but some headboards also double as storage.
  • Stick with lighter paint colors. Think off-whites, soft neutrals, and pastels. These colors help give the illusion of larger, brighter rooms.
  • Utilize shelves. When floor space is limited, shelves are a great practical addition. Beyond traditional floating shelves, you can also get creative and add mounted magazine holders.
  • Install wall lamps. Consider installing wall lamps if you don’t have room for side tables next to your bed (or if they’re tiny) but still need some reading light.
  • Find a floor-to-ceiling wardrobe. If you have room for this furniture piece, find one that is sleek and tall. In a small space, it’s strategic to maximize the vertical space when floor space is limited.

Small Condo Bathroom Design Ideas

When discussing condo design, the bathroom isn’t often the priority. However, this room is frequented daily and should be practical and inviting. So, how can you achieve both?

  • Find aesthetically pleasing storage solutions. To keep your bathroom organized, opt for nice organizers that match your home’s overall look and feel. You may opt for something modern, like this freestanding bathroom shelf, or something a bit more elegant, like this corner shelving unit.
  • Consider storage that maximizes floor space. If you don’t have room for free-standing storage, there are other options. Consider floating shelves, over-the-toilet storage, or mirrors that double as a cabinet.
  • Incorporate a houseplant in your bathroom. Plants add a nice touch of life to a bathroom, and particular plants thrive in this humid environment. Check out this list to find which plants work well in this room.
  • Replace the hardware. It’s surprising what a difference updated hardware can have on a room. Ensure you’re happy with your bathroom fixtures, including the doorknobs, faucets, and towel rings.
  • Stick with one color scheme. Sometimes (especially in a small bathroom), less is more. Too many patterns or colors can feel like too much.

Small Condo Design Ideas for Your Kitchen

The kitchen is often referred to as the heart of the home. Many memories (and meals) are made in this room. You certainly don’t want to neglect the kitchen when designing your condo. Make the most of the special, but possibly small, space by implementing these expert opinions:

  • Invest in dividers. Adding dividers to your drawers, cabinets, or fridge will instantly help declutter your kitchen and maximize this precious space. You will quickly notice how helpful it is to have a designated spot for all your kitchen items.
  • Hang things up. If you have limited counter or cabinet space, consider adding attractive hooks to your walls and hanging up your favorite mugs or cooking utensils.
  • Keep it simple. Often less is more when it comes to the kitchen. Try and avoid going overboard with the decor or items you keep out.
  • Use light colors. This tip applies to any room, but it especially makes a big difference in the kitchen. Consider combining light colors with reflective surfaces, such as glass or stainless steel, to maximize light reflection and create a spacious feel.

Small Condo Office Design Ideas

If you work from home but have a small office, maximize this room and your productivity with these pointers:

  • Choose small and multifunctional furniture. When working out of a tight space, less is always more. Try to avoid bulky and clunky furniture or decorative items. Also, when space is premium, you can make the most of it by choosing furniture that serves more than one purpose. For example, you may opt for a storage ottoman as your seat or a foldable desk that can be easily stored away.
  • Find smart storage solutions. Thoughtful and well-organized storage can make a huge difference, especially in a small shared working space. Try finding desks with built-in drawers, file cabinets that can fit under desks, or overhead shelving that can hold storage containers. 
  • Don’t waste wall space. Don’t forget about vertical space when decorating, especially when the floor space is limited. Consider installing floating shelves or bookcases.

Design Ideas for a Small Condo Patio

If you are fortunate to have outdoor space, there are ways to intentionally enhance and set this area up:

  • Set the tone with the right furniture. Not only is outdoor furniture often the focal point, but it is also where you’ll most likely spend your time if you are outside. Find furniture that fits your style while remaining practical. You can find multi-purpose furniture pieces, like ottoman benches, that provide storage and seating.
  • Outdoor throws are a must. Not only do blankets add a nice decorative touch to a space, but they also come in handy when the temperature cools down. Store the throws in an outdoor ottoman, and bring them out when you spend an evening on the balcony.
  • Consider a fireplace.  Along with blankets, outdoor fireplaces are ideal on cooler nights. They also add a cozy element to the space. There are plenty of smaller firepits intentionally built for patios with limited square footage.
  • Spruce it up with greenery.  Outdoor plants bring a space to life. Spend a day at a local plant shop or farmer’s market and find plants that fit your preference. You can then pot your plant in unique pot stands, hang them from the ceilings, or take advantage of window boxes. 
  • Distinguish zones. If your space allows, consider separating it into different spots to maximize the functionality. Maybe one section is for dining, while the other is for games or grilling.
  • Incorporate mirrors. Instead of traditional wall art, try hanging mirrors on your exterior walls. This move can accentuate a good view and ensure people can capture it, regardless of where they’re seated.

With these small condo design ideas, we hope you are prepped and ready to make the most of your home, no matter the square footage! If you are in the market for a new condo, let our experienced team walk you through the process to secure your dream home. Click the button below to start your search today!

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8 Small Condo Patio Ideas

Posted on by LLCR Staff

Living in a condo with limited outdoor space doesn’t mean you can’t enjoy the fresh air and sunshine. A small condo patio can be transformed into a cozy outdoor oasis with a little creativity and some smart design choices. Here are some small condo patio ideas to help you make the most out of your space.

8 Small Condo Patio Ideas

  1. Keep it simple. In a small space, less is often more. Stick to a simple and cohesive design scheme that includes only the essentials. Choose furniture that can be easily moved around and stored away when not in use.
  2. Add greenery. Plants are a great way to bring life to a small patio. Consider adding a vertical garden, hanging plants, or potted plants to add some color and freshness to your outdoor space. Just make sure to choose plants that can thrive in your patio’s lighting conditions.
  3. Incorporate lighting. Outdoor lighting can create a cozy and inviting ambiance in a small patio. String lights, lanterns, or candles can add warmth and brightness to your space.
  4. Use a color scheme. Choose a color scheme that complements your condo’s interior and creates a cohesive look. Stick to two or three colors to avoid overwhelming the space.
  5. Optimize storage. In a small patio, storage is key. Use multifunctional furniture, such as a bench with storage underneath, or install shelves or hooks to maximize vertical space.
  6. Add seating. A small patio can still be a great spot for outdoor lounging. Choose a small bistro set or a couple of chairs and a small table to create a cozy seating area.
  7. Use outdoor rugs. Outdoor rugs are a great way to define your patio space and add texture and color. They can also help make your space feel more like an extension of your indoor living space.
  8. Incorporate water. features If you have the space, consider adding a small water feature like a fountain or a bird bath. The sound of running water can create a calming atmosphere and add an extra element of relaxation to your outdoor space.

A small condo patio can be transformed into a cozy and inviting outdoor oasis with a handful of design ideas. By incorporating elements like greenery, lighting, storage, and seating, you can create a space that feels like an extension of your indoor living space.

Interested learning about more small condo design ideas? Follow the link below!

Small Condo Design Ideas

8 Small Condo Bedroom Design Ideas

Posted on by LLCR Staff

When it comes to small condo bedroom design, the goal is to create a space that feels cozy and inviting while maximizing the limited space available. Here are some ideas to help you make the most out of your small condo bedroom.

8 Small Condo Bedroom Design Ideas

  1. Opt for a Murphy bed. A Murphy bed, also known as a wall bed, is a great space-saving solution for small bedrooms. It can be folded up and stored away during the day, leaving you with ample space to move around. You can also customize it to include built-in storage or a desk.
  2. Use multifunctional furniture. In a small bedroom, every piece of furniture needs to serve more than one purpose. Consider a storage ottoman that can double as a seating area or a bedside table with built-in drawers.
  3. Add mirrors. Mirrors are a great way to create the illusion of more space. Hang a large mirror above the bed or place a full-length mirror in a corner of the room.
  4. Keep it light and bright. A small bedroom can feel cramped if it’s painted in dark colors. Opt for light and neutral colors to make the space feel larger and brighter. You can also add pops of color through accessories like throw pillows or artwork.
  5. Hang curtains high. Hanging curtains close to the ceiling and letting them touch the floor creates the illusion of taller ceilings and more space. Choose light and airy curtains to keep the space feeling open.
  6. Invest in good lighting. Proper lighting can make a small bedroom feel larger and more welcoming. Use a combination of overhead lighting, table lamps, and floor lamps to create a cozy and inviting ambiance.
  7. Embrace vertical space. When you’re short on floor space, it’s important to think vertically. Install floating shelves or bookcases to maximize wall space and create additional storage.
  8. Keep it clutter-free. In a small bedroom, clutter can quickly take over and make the space feel even smaller. Keep surfaces clear and use storage solutions like baskets or under-bed storage to keep items out of sight.

A small condo bedroom can be transformed into a cozy and functional space with a little creativity and some smart design choices. By incorporating space-saving solutions and maximizing every inch of available space, you can create a bedroom that feels like a peaceful retreat.

For more design ideas for your small condo, click the link below!

Small Condo Design Ideas

5 Small Condo Bathroom Ideas

Posted on by Lindsay Huth

Whether you’re a brand-new condo owner or have been in the game for a while, you know that great condo design means maximizing your space. Unlike a stand-alone house, a condo offers unique challenges and opportunities when it comes to making your area both beautiful and functional.

In no room is this adage more prevalent than the bathroom. As likely the smallest room in the house, it needs to serve many purposes while feeling clean and aesthetically pleasing; this is especially true if you’re living in a condo with one bathroom.

Read on for 5 ideas to brighten a small condo bathroom.

5 ideas for your small condo bathroom

  1. Use beautiful storage solutions. Your bathroom will doubtless need to utilize storage for toiletries, cleaning supplies and makeup. While it might be tempting to use cheap storage bins, upgrading to storage that catches the eye, like a cabinet (we like this one from Wayfair), is a simple way to maximize space while keeping things pretty.
  2. Select a color scheme. As crazy as it sounds, a small room such as a bathroom can easily become crowded if colors clash. By choosing one color or color scheme, each element of the room – from your towels to your bath mat – will feel cohesive and selected.
  3. Consider swapping out lighting. Depending on how old your condo building is, your overhead/vanity light fixture might make your bathroom look outdated (no matter how updated your decor is). While slightly more intensive, opting for more modern lighting (we like this affordable yet chic sconce from Pottery Barn) will instantly brighten (literally!) your bathroom space.
  4. Embrace tile. If you’re willing to roll up your sleeves, a tile change might be the best way to make a small bathroom space feel large. White tile, especially, catches light and instantly makes the room feel bigger and brighter. 
  5. Think vertically. As you consider storage and design solutions for your bathroom, think about showing your walls some love, too. Whether you opt for fun posters, shelving or over-the-toilet storage, adding vertical elements to the room will draw the eye upward, making your space feel tall.

No matter how you would approach taking advantage of your small condo bathroom, the Luxury Living agents are here to help you find the condo of your dreams. Reach out today or click the link below to explore more small condo design ideas!

Small Condo Design Ideas

7 Small Condo Dining Room Ideas

Posted on by LLCR Staff

If you’re living in a small condo, you may be challenged with limited space when it comes to setting up your dining room. But even with a small space, you can create a functional and stylish dining area that suits your needs. In this blog, we’ll share some small condo dining room ideas to help you maximize your space.

7 Small Condo Dining Room Ideas

  1. Go for a Round Table. Round tables are a great option for small spaces as they can easily fit into a corner or against a wall. They also make it easier to navigate around the room without bumping into sharp edges. A round table also provides a cozy atmosphere that encourages intimate conversations.
  1. Use Foldable or Extendable Tables. If you need a larger table for when you have guests over, consider using a foldable or extendable table. This type of table can be expanded or folded down when needed, saving space when it’s not in use.
  1. Use Multi-functional Furniture. Furniture that serves multiple purposes can help you save space in a small dining room. For example, a bench with built-in storage can provide seating while also serving as a place to store your extra dishes and linens.
  1. Hang a Mirrored Wall. Mirrors can create the illusion of a larger space, and hanging a mirrored wall in your dining room can do just that. Mirrors reflect light and can make the room feel brighter and more spacious.
  1. Use Light Colors. Lighter colors can make a space feel more open and airy. Consider using a lighter color palette for your dining room walls, curtains, and furniture to create a bright and welcoming space.
  1. Opt for Slim Seating. Choose seating options that don’t take up too much space, such as slim chairs or stools. This will allow you to fit more seats around your table without overcrowding the room.
  1. Hang Pendant Lights. Pendant lights can add a touch of elegance to your small dining room while also saving space. Hang them above your table to create a focal point that draws the eye upwards.

Creating a functional and stylish small condo dining room is possible with the right ideas and inspiration. If you’re ready to ready to start gathering design ideas for the rest of your condo, be sure to check out our small condo design guide below!

Small Condo Design Ideas

Chicago Rent vs. Buy Analysis for 2023

Posted on by LLCR Staff

Buying a home or condo is a huge deal; doing so is both a life milestone and financial transition. But how can you know you’re ready for that jump? 

A rent-versus-buy analysis is a great place to start.

What’s a rent vs. buy analysis?

As the name of this exercise suggests, a rent vs. buy analysis is an audit of your life goals and financial outlook to understand if renting or buying is the right decision for you. There are many different approaches to this analysis, but a logical starting point is a rent vs buy calculator from financial institutions such as Fidelity.

A step-by-step approach to this analysis might look like:

  1. Use the financial calculator to give yourself an understanding of what your existing financial situation enables you to do. As you do so, note that closing costs, your mortgage, taxes and HOA fees should all be factored into a home-buying budget.
  2. Consider your life stage and goals. Is owning a home part of starting a family for you? Do your financial goals include investing or owning property? Is there a neighborhood you’ve always dreamed of living in? While these reflections are possible on your own, it might be helpful to speak with a trusted friend or counselor.
  3. Consider others involved in the decision. Is owning a condo or home a mutual desire between you and your spouse? Do you have other family members who need taking care of? This step is especially important, as it’s directly linked to property values: if being close to loved ones necessitates living in a certain area, that area’s home values will impact your mortgage costs.

As you walk through this exercise, consider the fact that you can flex your budget to different home options. If owning a home in the short-term is important, you might aim for a lower cost; conversely, you might prefer to wait and save for a higher home price.

Buying at different price points

In addition to a rent vs. buy calculator, you might also consider your current cost of rent when assessing your readiness to purchase a home. The below mortgage estimates (over 30 years at current interest rates) are based on current interest rates and rent costs, and are inclusive of budget for closing costs, taxes and HOA fees; they also assume a 20% down payment. For example:

  • If you live in a studio at The Elle (801 S. Financial Place), your $1,700 monthly rent would translate to a mortgage for the same amount for a $310,000 home. 
  • If you live in a one-bedroom at Emme (165 N. Desplaines), your $2,500 monthly rent would translate to a mortgage for the same amount for a $500,000 home.
  • If you live in a two-bedroom at Park ONE (1140 N. Wells), your $3,500 monthly rent would translate to a mortgage for the same amount for a $700,000 home.

No matter your price point or timeline, our experienced and knowledgeable Luxury Living team would love to help you on your home- or condo-buying journey. Reach out to us or follow the link below to get started!

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Do You Pay Property Taxes on a Condo? Find Out in Our Condo Taxes Guide

Posted on by LLCR Staff

The topic of taxes may not make for the most riveting conversation, but it’s important to understand your lingering tax questions if you anticipate buying a home soon. A question our real estate team commonly hears is, “do you pay property taxes on a condo?”

If you’ve wondered the same thing, sit back, relax, and let us walk you through condo taxes in this condo property tax guide.

Property Taxes on a Condo

To get straight to the point, the answer to the above question is “yes.” Condo owners should expect to pay property taxes on a condo. In Illinois, you are required to pay taxes on any property you own, even if a property was gifted to you or you own a rental property.

While there is a common assumption that property taxes are lower for condo owners than single-family homeowners, this is not always the case. Property tax is determined by a home’s assessed value and the mil levy or local tax rate.

In Illinois, there is no standard property tax rate. Chicago’s average property tax rate is 2.19 percent, and the average annual property taxes are $10,950. Unfortunately, Illinois, Chicago in particular, is known to have steep property taxes. In fact, it’s the second-highest property tax burden following California.

However, Illinois does have a list of property tax exemptions to help ease the tax burdens for some folks.

The property tax cycle in Illinois generally extends over a two-year period. A tax year is the year of assessment and reflects the value of real property from January 1 through December 31 of that year. The actual tax bills are paid in the year following the tax year. In most counties, property taxes are paid in two installments, usually June 1 and September 1.

Other Condo Tax Implications

As a condo owner, there are a few other helpful tax pointers to keep in mind.

When you file your taxes, you should see if you qualify for the property tax credit on the individual income tax return.

To save on annual taxes, homeowners can take the following deductions:

  • The amount paid in property taxes
  • The amount paid in interest on your mortgage
  • The amount of any casualty loss to your property to the extent not compensated by insurance.

If you ever sell your condo, the State of Illinois charges a transfer tax of $1 per $1000 of the sale price. The county will charge $. 50 per $1000 of the sale price. For example, a sale price of $350,000 will generate a state and county transfer tax of $525.

Additionally, since property taxes are paid in arrears, home sales generally include a prorated property tax credit to the buyer. For example, if the annual taxes on your home are $5,000, and your sale closes beginning of April, you will credit the buyer the taxes for the three months of the year before they purchased the home. At the end of the year, the buyers would pay the full property taxes owed. 

We hope this brief guide has helped answer some of your questions beyond “do you pay property taxes on a condo.” If you want additional support during your condo search, connect with one of our experts today!

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How Does an Adjustable Rate Mortgage Work? Learn About ARMs

Posted on by LLCR Staff

As inflation cools and mortgage prices dip, especially in the Chicagoland area, more renters might consider becoming homeowners for the first time. This life milestone is also a financial decision that comes with many choices along the way; once you’ve worked your way through the house or condo selection process, your next step is choosing which type of mortgage you want to move forward with.

When buying a home, you have two choices for how to structure your mortgage: a fixed-rate and adjustable rate mortgage. Just as it sounds, a fixed-rate mortgage keeps your interest rate (you guessed it!) fixed for the full life of the loan. Conversely, an adjustable rate mortgage is slightly more complex, but might offer more flexibility.

What is an adjustable rate mortgage (ARM)?

An adjustable-rate mortgage features pricing that reflects benchmarks created by market conditions for at least part of the life of the loan. The life of an adjustable rate mortgage is divided into two distinct periods:

  • Fixed period: just like a fixed-rate mortgage, the fixed period of an adjustable rate mortgage is the initial loan period where your rate does not change. What differs from a fixed-rate mortgage, though, is that this rate is lower to compensate for fluctuations during the adjustment period.
  • Adjustment period: following the fixed period, your rate will either increase or decrease based on a benchmark that reflects market conditions.

During the adjustment period, the benchmark is based on a variety of factors, such as the specific type of ARM loan you opt for. According to Investopedia, this benchmark is also capped to ensure there’s a maximum amount that a buyer would pay – regardless of what happens in the market.

Comparing ARMS and fixed-rate mortgages

There are many pros and cons to ARMs, and it’s important to consider these options carefully, as they have long-term financial implications. While fixed-rate mortgages certainly offer predictability and protection from increases in interest rates, ARMs are also worth considering, according to Rocket Mortgage, for a few reasons.

Given the recent fluctuations in the mortgage market and continued impacts of inflation, adjustable rate mortgages are becoming a popular option. ARMs are especially beneficial for first-time home-buyers who might sell their home before the adjustment period is up. This loan type also offers the benefit of lower rates for the first few years (during the fixed period), allowing buyers to reap savings during that time before transitioning to a rate that reflects market conditions.

No matter where you are on your home buying journey, our experienced and knowledgeable team at Luxury Living Chicago is here to help every step of the way. Reach out today or follow the link below to start your search!

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Who Pays Closing Costs? When Are Closing Costs Due? & More FAQs

Posted on by LLCR Staff

Closing on a home is an exciting step but one that often comes with questions. Our realtors typically get a batch of inquiries from prospective condo buyers around closing costs specifically. Folks want to know who pays closing costs, when are closing costs due, and how you avoid unexpectedly not being able to afford them.

Find out answers to these common questions in this guide below..

What are closing costs?

If you’re brand new to home-buying and the corresponding lingo, don’t worry. We are starting with the basics by defining closing costs.

Closing costs are the fees accrued during the home-buying process. 

Common costs include lender fees, title search fees, title insurance, attorney’s fee, appraisal fee, recording fees, credit reports, inspections, and agent’s commission.

It’s helpful to note that most of these fees and additional ones fall into one of the following four categories:

  • Property-specific costs
  • Loan-specific costs
  • Mortgage costs
  • Property taxes and insurance

Who pays closing costs?

So, who’s dishing out the cash to cover these costs? Well, both the buyer and sellers are responsible for a portion. However, note that the homebuyer generally shoulders most of these fees.

A buyer can expect to pay for the title search fee, title insurance, attorney’s fee, appraisal fee, recording fees, credit report, termite inspection, lender’s origination fee, insurance, taxes, and interest.

On the other hand, the seller should be prepared to fund a portion of the title search fee, title insurance, recording fees, and real estate agent’s commission.

When are closing costs due?

Closing costs typically must be paid on closing day when you sign off for your condo. Hence, why these additional fees are called “closing costs.”

How much are closing costs?

While budgeting for your exact closing costs can be challenging, you can certainly guestimate beforehand by looking at average fees, professional trends, and expert advice.

In Illinois, the average closing costs run around $4,893.99 before tax and $6,529.74 after tax. Keep in mind, though, that homes in Chicago are more expensive than those in other areas of the state. And higher home prices generally mean higher closing costs.

As another helpful rule of thumb, expect to pay roughly two to five percent of the home’s purchase price on closing costs. You can also use online closing costs calculators to help gauge what you would owe in additional costs.

How do you avoid unexpectedly not being able to afford them?

Although it’s hard to anticipate exactly what you’ll owe on closing costs, you can use that two to five-percent rule of thumb mentioned above to reserve an approximate amount of money beforehand.

Consider having more than five percent of the home price set aside just to be on the safe side. 

While you can now answer important questions like “who pays closing costs” and “when are closing costs due,” connect with one of our experts if you need additional support during your condo search. We would love to guide you through the exciting process of buying a home!

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How to Save for a House in 2023

Posted on by LLCR Staff

Homeownership is an exciting and worthwhile milestone, but it requires strategic planning. If you’re looking to buy your first home, you’ll need to start putting away more money in advance to save up. Learn about the different costs of owning a condo and how to save for a house of your own.

How to Save for a House

The Average Condo Cost in Chicago

How much you save for your future home depends on how much you plan to spend. Before you even begin the saving and planning process, it’s crucial to research and set goals beforehand.

If you are leaning toward a condo, rest assured that these homes may be more affordable than a free-standing home, especially in downtown Chicago. 

At the moment, the average condo in the Windy City runs around $438,000, while the average free-standing home costs $466,000.

Many factors affect the cost of a home, but as you browse other condos on the market, begin to set some price goals. Consider having your “non-negotiable” goal, along with a stretch goal, which could allow you to afford more of your dream home wishlist possibly.

Keep in mind, the average price point of Chicago condos also varies depending on the neighborhood.

Condo Closing Costs

As you figure out exactly how much your ideal home will cost you, you’ll have to also consider condo closing costs. These are the fees charged for obtaining a mortgage.

While your closing costs include expenses beyond your down payment, the down payment will be your most significant fee. A down payment is money that you provide during a real estate transaction and typically is a percentage of the property’s sale price. 

Depending on your loan program, you may be required to put anywhere from 0% to 20% or more down. Veterans and qualifying service members can take advantage of a VA loan with no down payment requirement, as long as the condo is on their approved list. First-time buyers can use an FHA home loan with only 3.5% down required (again, if the condo is approved).

The overall loan amount also factors in. A higher down payment may be required in certain high-cost areas, such as downtown Chicago, since your loan amount may exceed the conforming loan limit. Also, note that putting less than 20% down will result in mortgage insurance — an additional fee added to your monthly payment.

Be prepared to possibly pay for other costs as part of the mortgage process. There may be an application fee, processing fee, origination fee, and underwriting fee.

Additional condo closing costs include homeowners insurance, attorney fees, title fees and title insurance, municipal fees, credit report fees, discount points, and recording fees. Fee amounts will vary depending on where you’re moving, what mortgage company you financed the condo with, the attorney you’re working with, and so on.

Monthly Expense Tracking

As you start to save up, it’s essential to track your spending habits and learn where you may need to cut back.

There are plenty of practical ways to track those expenses every month, so find what method works best for you.

If you don’t want to give much thought to this effort, consider downloading an app, such as Mint, to help. This free and simple-to-use app connects with your bank and automatically categorizes all of your expenses for you. Those spreadsheets fans can create their own from scratch or download free templates online. 

Regardless, you want to make sure there is more coming in than going out. Most experts recommend putting at least 20 percent of your income into savings, but when you have big financial goals, like buying a home, you may want to try to set a bit more aside.

As you look at your regular spending habits, evaluate where you’re doing well and what could change. Maybe you’ll be shocked by how quickly Uber rides cost you and commit to taking public transit more moving forward. Whatever improvement you find you need to make, be sure to hold yourself accountable (or find someone to help you).

Easy Ways to Save Money

Even if your end goal is a stretch, don’t feel overwhelmed. Saving begins with small steps. It’s about learning practical ways to cut back on your everyday purchases.

Many people swear by apps to help them save. There are a handful of free apps out there designed with this intention. Acorns is a fan favorite that makes saving simple. This app keeps the change every time you swipe your linked credit card and then sends that spare money to an investment portfolio for you.

Others rely on coupons to help cut down on costs. If you’re more old school, there are still weekly printed ads, but the online world has also made deal hunting much easier. 

On the topic of online shopping, consider purchasing your must-have items this way. You are less likely to make impulse purchases when you don’t have shiny objects catching your attention every time you walk down an aisle.

As you save, don’t underestimate small sacrifices. Forgoing that regular Starbucks beverage to stick with at-home coffee or choosing to walk home instead of Uber will make a difference on your bank account. Just be patient!

Save Money Online

These days, many of us shop from the comforts of our own homes. As you online shop, it’s still important to be spending-conscious.

Similarly to in-person shopping, it’s essential to shop with tunnel vision. Know what you need, write down what you need, and only buy those items.

Using coupons is just as important online. In fact, it may be even easier to hunt down those deals. Consider downloading the honey web browser extension to ensure the lowest price. It automatically applies eligible coupons to your cart.

Once items are in your cart, let them sit there. Step away from your computer for a bit to help you decide if it’s a must-have purchase or if it was more of an impulse decision.

While online shopping, it may also be worth it to chat with customer service. Ask a few questions about the products you’re considering and see if there are any discounts available.

Save Money on Groceries

For many, too much money is spent on delicious food and dining out. And we don’t blame you— especially with all of the Chicago restaurant options.

However, these expenses can really backtrack those trying to save, especially for a home.

Eating is a necessity, but there are ways to spend more wisely on food. Often the first step involves limiting how often you eat out. Then, it may be deciding to pick the more affordable grocery store. 

Regardless of which store you choose, it’s helpful to prepare before your grocery trips. Make a list of exactly what you need, and hunt for any coupons that may shave a few bucks off your purchase.

As you browse the isles, look down low and go for the generic brands. These options are often identical and always less expensive than those specialty brands.

Taking notes on how to save for a house isn’t too tricky – the hard part is putting those tips into practice. As you save up for your dream home in Chicago, let the Luxury Living Chicago Realty team help you in the process!

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5 Small Condo Office Ideas

Posted on by LLCR Staff

Working from home has become increasingly popular in recent years, and the COVID-19 pandemic has accelerated this trend even further. If you live in a small condo and need to set up a home office, you might be wondering how to make the most of your limited space. Don’t worry – with a little creativity, you can create a functional and stylish workspace that fits your needs. In this blog post, we’ll share some small condo office ideas to help you get started.

5 Small Condo Office Ideas

1. Opt for a small desk

When it comes to setting up a home office in a small condo, one of the most important considerations is the size of your desk. While you might be tempted to go for a large, imposing desk, this will only take up valuable space in your already-limited room. Instead, opt for a small desk that can fit comfortably in a corner or against a wall. Look for a desk with built-in storage or drawers to help you stay organized.

2. Make use of vertical space

In a small condo, it’s important to make use of every inch of available space. One way to do this is to take advantage of your vertical space. Consider installing shelves or floating bookcases above your desk to store books, files, and other items. You can also use wall-mounted organizers, such as a bulletin board or a pegboard, to keep your workspace tidy.

3. Choose multifunctional furniture

When space is at a premium, it’s important to choose furniture that serves more than one purpose. For example, you could use a storage ottoman as a seat for your desk, as well as a place to store files and other items. Or, you could invest in a desk that can be folded up and stored away when not in use. Look for furniture that can be easily moved or repurposed as your needs change.

4. Use lighting to create a cozy atmosphere

Lighting can play a big role in making your small condo office feel cozy and inviting. Consider using a mix of natural light and task lighting to create a warm and inviting atmosphere. You could also add some soft, ambient lighting, such as a desk lamp or a string of fairy lights, to create a calming effect.

5. Incorporate plants and art

Finally, don’t forget to add some personal touches to your small condo office. Incorporating plants or artwork can help make the space feel more welcoming and less sterile. Choose plants that are easy to care for, such as succulents or air plants, and hang some of your favorite artwork or photos on the wall to add a personal touch.

Setting up a home office in a small condo can be challenging, but it’s not impossible. By using these small condo office ideas, you can create a functional and stylish workspace that fits your needs and makes the most of your limited space. Remember to choose multifunctional furniture, make use of vertical space, and incorporate personal touches to make your workspace feel like a true reflection of your style and personality.

Ready to find the condo home office space of your dreams? Connect with our team today, we’re here to help!

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Small Condo Design Ideas

7 Small Condo Living Room Ideas

Posted on by LLCR Staff

Small condo living rooms can be challenging to decorate, as you want to maximize the space while still creating a comfortable and stylish environment. But don’t worry, there are plenty of small condo living room ideas that can help you make the most of your space.

7 Small Condo Living Room Ideas

  1. Choose a light color scheme. A light color scheme can make a small living room feel more spacious and airy. Consider painting the walls a light shade of white, beige, or pale gray. You can also use light-colored furniture and accessories to create a cohesive look.
  1. Use multifunctional furniture. When dealing with a small living room, every piece of furniture counts. Consider using a sofa bed or a daybed that can double as a guest bed. A storage ottoman can serve as both a coffee table and extra storage. A console table with storage can serve as a media center and a place to store books and magazines.
  1. Hang shelves or built-ins. Shelves and built-ins can provide extra storage and display space without taking up valuable floor space. You can hang shelves on the walls or install built-ins around the TV or fireplace. This will also help to add some depth and character to your living room.
  1. Create a focal point. A focal point can draw the eye and make the space feel more open. Consider using a statement piece of art, a bright accent wall, or a statement rug to create a focal point in your living room. This will help to create a visual interest in the room and make it feel less cramped.
  1. Keep window treatments simple. In a small living room, it’s important to keep window treatments simple. Avoid heavy curtains or window treatments that take up too much space. Instead, opt for simple blinds or sheer curtains that let in natural light and create a more open feel.
  1. Use mirrors. Mirrors can help to create the illusion of a larger space by reflecting light and adding depth to the room. Consider hanging a large mirror on the wall or using mirrored furniture to create a more open and airy feel in your living room.
  1. Don’t overdo it with accessories. When it comes to small condo living room ideas, less is often more. Avoid over-cluttering the space with too many accessories. Instead, choose a few statement pieces that can add personality and style to the room without overwhelming the space.

In conclusion, decorating a small condo living room can be challenging, but it’s definitely doable. With these small condo living room ideas, you can create a comfortable and stylish space that maximizes every inch of your living room.

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Small Condo Design Ideas

Our Complete 2023 Winter Preparation Checklist

Posted on by LLCR Staff

As a homeowner, Chicago winters require preparation, mentally and practically.

Before a harsh winter sets in, use this winter preparation checklist to fully winterize your condo and prepare you and your family to weather any storm.

Make Your Home More Energy Efficient

Decrease your spending and increase your energy efficiency with a few simple steps. Start by completing a quick audit – either by yourself or by hiring a professional. The audit will assess the current state of your home’s efficiency and help identify areas for improvement.

Here’s what you want to look out for:

  1. Locate air leaks. Make sure all windows and doors are properly sealed to keep the heat in and cold out. Also, examine the less obvious spots where air may be getting out. Check for cracks in places like exterior corners, electrical outlets, switch plates, baseboards, vents and fans, and fireplace dampers. If you find any leaks, begin sealing! Depending on the leak, this may involve plugging and caulking holes or weatherstripping.
  2. Check insulation levels. Poor insulation levels can lead to a significant loss of heat through your home’s floor, ceilings, and walls. While this is more common with older properties, it always helps to check and avoid costly projects later. There are a few ways to check these levels non-invasively. Replacing old or inefficient windows can also improve your home’s insulation.
  3. Inspect HVAC systems and equipment. Regular maintenance on your heating and cooling systems can extend the life of your equipment while saving you energy and money. This involves cleaning your air conditioning filters and replacing your furnace filters about once a month during winter months. Upgrading to higher energy-efficient products can also make a big difference.

Prepare Your Patio

If you’re fortunate to have a patio to enjoy during the nice seasons, protecting it during the chilly seasons is important. There are a few easy ways to prep this outdoor space:

  1. Store or cover outdoor furniture.
  2. Remove plants or bring them inside.
  3. Remove leaves or debris from the patio floor.
  4. Add sealant to any stone groundwork.
  5. Periodically check on the area.

Snow Removal

Snow may be easy to admire from the inside, but it can be a real pain when you have to leave home. Make sure you have a snow removal game plan before it falls.

Keep in mind that condo homeowner associations often cover the cost of snow removal for common areas, like parking lots and community amenities. Also, a third party may handle shoveling snow if you have a unit on the first floor. However, make sure you confirm with your HOA.

If you have a unit with a balcony or patio, you will likely be responsible for maintaining this space. Consider investing in a personal shovel before snowfall.

Test Smoke Detectors

With most house fires happening during the winter, testing your smoke detectors before the snowy season hits is an easy way to keep your place safe. Smoke detectors should be tested at least once a month, according to the U.S. Fire Administration (USFA), and batteries should be replaced at least once or twice a year (or whenever you hear an ongoing chirping sound).

Follow these simple instructions to make sure your condo’s smoke detectors are working properly:

  1. Alert anyone in your home (especially children) before you start the test. When active, the detectors make a loud, high-pitched noise.
  2. Station someone else at the furthest point from the alarm in your home to ensure the alarm can be heard throughout the entire house. 
  3. Press and hold the button on the smoke detector. It may take a few seconds to start, but you should soon hear the device making a loud, ear-piercing siren. If the sound is weak or nonexistent, replace your batteries.

Avoid Freezing Pipes

No one wants to deal with frozen pipes in the wintertime, especially the hassle that can ensue. Follow these tips to keep your lines functioning properly:

  1. Pay attention to the weather forecast. Know when temperatures are expected to drop below 32 degrees Fahrenheit. These freezing temps put indoor and outdoor pipes at risk of freezing.
  2. Keep the thermostat above 55 degrees, even if you’re heading out of town. This will help keep your bill down while also protecting your pipes.
  3. Disconnect external hoses or exposed pipes outside your unit. This allows water to drain from the supply line, preventing an overnight freeze from bursting either the faucet or the supply line.
  4. Open cabinets under kitchen or bathroom sinks when temperatures reach freezing, especially those located against an outside wall. It allows warmer air to circulate around the pipe. You can also set a small lamp with an incandescent bulb near the lines. 
  5. Keep faucets dripping during a hard freeze. Running water will help generate some heat, and the open faucets also relieve pressure, so even if some water freezes, it will be less likely to burst the pipe. Make sure to drip both hot and cold water because even water from the hot water heater can free quickly after leaving the heater.

Prepare for a Blizzard

It is highly unlikely you’ll go through a Chicago winter without experiencing a few blizzards. You can proactively prepare for these snow storms to help keep you and your loved ones safe and comfortable when they hit the forecast.

Here are some strategies:

    1. Stay up-to-speed with the forecast. Follow the storm’s progress and be ready to adjust your plans if needed.
    2. Stock up on essentials. Ensure you have enough food, water, and other emergency items you may want on hand if you’re stuck at home for an extended period.
    3. Insulate your home. Double-check that there aren’t any cracks or gaps in your windows and doors.
    4. Prepare your heating system. It’s important that your furnace and chimneys are clean and in good working condition. It may be worth investing in backup heating options, such as a portable heater.

We hope that this winter preparation checklist gives you the steps and confidence to stay safe as the temperatures drop and the external conditions worsen. If you’re looking for a condo this winter, connect with one of our licensed brokers to help you secure your dream home that you can enjoy during any season!

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What You Need to Know About the Changing Mortgage Costs in 2023

Posted on by LLCR Staff

If you’re thinking of getting a new mortgage in 2023, it’s important to know that some things have changed that will affect the cost of your mortgage. These changes are because of updates made to Loan Level Price Adjustments (LLPAs) by Fannie Mae and Freddie Mac, who guarantee most new mortgages.

The Future of Mortgage Costs in 2023

One big change is that it will now be cheaper to have a low credit score. Before, if your score was under 680, you would have to pay a fee equal to 2.75% of the loan balance. Now, if your score is 659 and you’re borrowing 75% of the home’s value, you’ll only have to pay a fee equal to 1.5% of the loan balance. That’s a difference of $3,750 in closing costs on a $300,000 loan.

It’s worth noting that these changes only apply to loans that are guaranteed by the agencies starting May 1st, 2023. This covers most loans in the US, but there are exceptions, such as FHA/VA loans, certain jumbo and specialty products, and non-conforming loans that are not guaranteed by the agencies.

So, what does this mean for potential homeowners in 2023? It’s crucial to be aware of the updates to LLPAs and how they will affect the cost of your mortgage. Additionally, having a good credit score before applying for a mortgage is essential, as this will have a direct impact on the fees and costs you will incur.

In short, the changes to LLPAs from Fannie Mae and Freddie Mac could mean higher costs for those with a low credit score when it comes to getting a mortgage. To avoid these extra fees and costs, it’s important to familiarize yourself with the changes and make sure your credit score is in top form. By doing so, you can increase your chances of securing the mortgage you need to purchase your desired home.

To learn more about what this means for you, contact one of our experienced professionals today! Our team is well-versed in the Chicago condo market and can help answer any questions you have on this topic and more.

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7 Small Condo Kitchen Ideas

Posted on by Lindsay Huth

Small condo kitchens can be a challenge when it comes to designing and decorating, but with the right ideas and strategies, they can also be beautiful, functional, and efficient. Here are some small condo kitchen ideas to inspire your next renovation or remodel.

7 Small Condo Kitchen Ideas

  1. Maximize Storage: Make use of every inch of space by installing smart storage solutions like pull-out pantry shelves, cabinet organizers, and under-cabinet lighting. This will keep your kitchen clutter-free and organized, making the most of your limited space.
  2. Go Vertical: Take advantage of vertical space by adding floating shelves or a tall pantry cabinet. This will give you more storage without sacrificing valuable floor space.
  3. Invest in Multifunctional Furniture: Furniture that serves multiple purposes is a must in small kitchens. Consider adding a kitchen island that can double as a breakfast bar or a dining table that can be tucked away when not in use.
  4. Use Light Colors: Light colors, such as white, cream, or light grey, can make your kitchen appear larger and brighter. Combine light colors with reflective surfaces, such as glass or stainless steel, to maximize light reflection and create a spacious feel.
  5. Get Creative with Lighting: Proper lighting is key in any kitchen, but especially in small kitchens. Consider installing pendant lights over your kitchen island, under-cabinet lights to brighten countertops, and task lighting over your sink or stove.
  6. Consider an Open-Concept Design: An open-concept design can help make your small kitchen feel larger and more connected to the rest of your home. Remove any walls or partitions that separate the kitchen from the living or dining areas to create an open and airy feel.
  7. Keep it Simple: Small kitchens can often benefit from a minimalist design. Stick to a few key pieces of furniture and minimize clutter to keep the space feeling open and spacious.

By incorporating these small condo kitchen ideas, you can transform your cramped kitchen into a beautiful and functional space that meets all of your needs. With a little creativity and the right design choices, you can have a small kitchen that is both stylish and practical.

Looking for more small condo design ideas? Check out our guide below!

Small Condo Design Ideas

How to Make Sure Pipes Don’t Freeze in Your Chicago Condo

Posted on by LLCR Staff

Frozen pipes can pose a huge issue for Chicagoans in the wintertime, especially for those looking to travel during the holiday season. Follow these tips to avoid problems and know how to make sure pipes don’t freeze in your home.

How to Make Sure Pipes Don’t Freeze in Your Chicago Condo

  1. Pay attention to the weather forecast. Know when temperatures are expected to drop below 32 degrees Fahrenheit so you can prepare. These freezing temps put indoor and outdoor pipes at risk of freezing.
  2. Keep the thermostat above 55 degrees at all times. Even if you’re heading out of town, don’t let your condo get below this temperature. This will help keep your bill down while also protecting your pipes.
  3. Disconnect external hoses or exposed pipes outside your unit. This allows water to drain from the supply line, preventing an overnight freeze from bursting either the faucet or the supply line.
  4. Open cabinets under kitchen or bathroom sinks when temperatures reach freezing. This is especially important if the cabinets are located against an outside wall. It will enable warmer air to circulate around the pipe. You can also set a small lamp with an incandescent bulb near the pipes. If you do this, be sure to remove anything flammable from the area.
  5. Keep faucets dripping during a hard freeze. There are a few ways this step can help prevent broken pipes. First, running water will help generate some heat. Although this doesn’t guarantee a pipe won’t freeze, it certainly helps. The open faucets also relieve pressure, which means even if some water freezes, it will be less likely to burst the pipe. Make sure to drip both hot and cold water because even water from the hot water heater can free quickly after leaving the heater. 

When freezing temps hit, the condo association is responsible for shared plumbing that owners and tenants are not responsible for. However, it is on you to take steps to prevent pipes from freezing within your own unit. These precautions can help save you unnecessary time, money, and frustration.

A single frozen pipe can result in a ton of damage and consequent costs — It’s not worth the risk.

Now that you know how to make sure pipes don’t freeze, you can feel confident moving into the chilly months! If you are looking to buy a Chicago condo this winter, reach out to Luxury Living. Our experienced team of brokers would love to help you find your dream place.

For more ways to keep your condo in top shape this winter, click the button below.

Winter Preparation Checklist

How to Prepare for a Blizzard at Home

Posted on by LLCR Staff

If you’re looking for how to prepare for a blizzard, you came to the right place.

Blizzards can be incredibly dangerous and disruptive, with strong winds, heavy snowfall, and low visibility making travel and everyday activities difficult or impossible.

Preparing for a blizzard in advance can help you and your loved ones stay safe and comfortable during the storm. Here are some tips for preparing for a blizzard at home.

How to Prepare for a Blizzard

  1. Stock up on essentials: Make sure you have enough food, water, and other essentials to last for several days in case you are unable to leave your home. This includes non-perishable food items, as well as bottled water, batteries, flashlights, and any medications you or your family members may need.
  2. Insulate your home: Seal any cracks or gaps in your windows and doors to keep cold air out and warm air in. This will help keep your home warmer and reduce the strain on your heating system.
  3. Prepare your heating system: Make sure your furnace and chimneys are clean and in good working condition, and ensure that you have enough fuel to keep your home warm during the storm. Consider having backup heating options such as a fireplace, wood stove, or portable heater.
  4. Gather emergency supplies: Have an emergency kit ready with essentials such as blankets, extra warm clothing, and a first aid kit.
  5. Have a plan for communication: Make sure all family members know how to contact each other, and have a plan for checking in if you become separated during the storm.
  6. Check on your neighbors: Blizzards can be particularly hard on the elderly and disabled, so be sure to check on your neighbors to make sure they are okay, and offer to help if needed.
  7. Keep updated on the weather forecast: Stay informed about the storm’s progress, and be prepared to adjust your plans accordingly.

By following these tips, you can help ensure that you and your loved ones stay safe and comfortable during a blizzard. Remember, it is always better to be prepared for the worst, and hope for the best.

Be sure to check with your local authorities for any specific recommendations for your area, and always follow any evacuation orders issued by officials.

For more ways on preparing your home for winter, follow the link below!

Winter Preparation Checklist

How to Test a Smoke Detector to Keep Your Condo Safe This Winter

Posted on by LLCR Staff

More house fires happen during the winter than any other time of the year. Prepare to keep your home safe by testing your smoke detector ahead of this season. 

We will walk you through a step-by-step process of how to test your smoke detector, replace batteries, and prevent a fire.

How to Test a Smoke Detector

According to the U.S. Fire Administration (USFA), smoke detectors should be tested at least once a month and batteries should be replaced at least once or twice a year. A chirping detector also indicates that the device is low on juice.

To test your alarm, follow these basic instructions:

  1. Alert anyone in your home beforehand. When active, smoke detectors make a very high-pitched noise and may frighten some, especially small children.
  2. Station someone else at the furthest point from the alarm in your home. This ensures the alarm can be heard throughout the entire house. You may want to install additional detectors where the sound is low or muffled.
  3. Press and hold the button on the smoke detector. It may take a few seconds to start, but you should soon hear the device making a loud, ear-piercing siren. If the sound is weak or nonexistent, replace your batteries.

If you need additional guidance on replacing your smoke detector’s batteries, keep these simple steps in mind:

  1. Gently move the cover or unclip the body of the detector from its base with a slight twisting motion. Inside, you will find three main parts: the sensing chamber, a loud horn, and a battery (and, in some cases, house voltage power source).
  2. Unclip the old battery from its holder. Most detectors utilize a 9-volt battery—use a brand new lithium 9-volt battery as a replacement. Be sure the male and female terminals are properly oriented and connect soundly with the base.
  3. Snap the cover shut or lock the body of the smoke detector back into its base.
  4. Press the test button on the detector’s surface to ensure the battery is working. When the button is pressed, the detector should beep or chirp.

Specific instructions on battery replacement or tests may vary depending on your smoke detector. So, be sure first to find your manufacturer’s instructions. If this physical guide is long gone, don’t fret. Try searching online. 

Also, note that the normal life span of a smoke detector is around a decade. This will also be indicated in the manufacturer’s guide.

Learning how to test a smoke detector will help keep you and your home safe! 

Looking to buy a Chicago condo this winter? Reach out to Luxury Living and let one of our experienced brokers help you find a cozy place to call home!

For more ways on how you can prep for the winter months, click the button below.

Winter Preparation Checklist

How to Prep Your Condo Patio for Winter

Posted on by LLCR Staff

Chicagoans have a love-hate relationship with many things: our sports teams, our lake, and, perhaps most prominently, winter itself. On one hand, winter offers a welcomed respite from the incessant activity and socializing of summer. It’s a cozy time of year that evokes hangouts by the fireplace and the skyline glistening in the snow.

On the other hand, winter also implies some inconveniences like additional traffic and higher gas bills. If you’re a condo owner, increased use of your (hopefully indoor!) parking facility and need to winterize your outdoor areas are highly-important to-dos once the cold weather rolls around.

How to Prep Your Condo Patio for Winter

If you’re lucky enough to have a patio as part of your condo space, there are a few steps you’ll need to take to ensure your outdoor area “hibernates” properly and is ready for spring. We recommend:

  • Removing any leaves or debris from the patio floor. This step will keep that debris from freezing to the ground and impacting the integrity of the cement, wood or other material that forms the floor.
  • Adding sealant to any stone ground work. Sealants are designed to protect against salt and other harsh winter conditions, which will keep your area safe and looking beautiful come springtime.
  • Storing your patio furniture, if possible. If your condo building comes with a storage space, allocating that area to your furniture is well worth-it to keep it out of the elements and cold.
  • Cleaning and covering your furniture if storage isn’t possible. If storage isn’t possible, the next-best option is to clean debris from your patio furniture and cover it, ideally with covers or tarps that are as fitting to the furniture as possible.
  • Remove plants or bring them inside. While greenery adds a beautiful touch to an outdoor space during non-winter months, keeping your plants inside when it’s cold will keep them (and you!) happier.
  • Check on the area periodically throughout the season. As tempting as it is to stay indoors throughout the winter, check on your patio throughout the season to make sure all of your winterization efforts are still intact.

Interesting in learning more ways to prepare your home for the winter months? Click the button below!

Winter Preparation Checklist

How to Make Your Home More Energy Efficient Before Winter

Posted on by Lindsay Huth

Are you looking for ways to decrease your spending and increase your efficiency? Doing an energy audit ahead of the wintertime can help you save on gas AND money when winter weather rolls around.

Check out this step-by-step overview on how to make your home more energy efficient.

1. Complete a Quick Audit

The first step is assessing your home’s current efficiency and determining improvement opportunities.

You can certainly conduct an audit on your own or you can schedule a professional energy audit to ensure you don’t miss or overlook anything.

If you opt to complete this step independently, consider following an already-completed DIY home energy audit checklist.

Regardless of the outcome of your audit, there are easy considerations and fixes before fall is over.

2. Locate Air Leaks

This may be the most obvious step when it comes to energy efficiency, but it is a super critical step nonetheless. Reducing drafts in your home may save you 10 to 20 percent in energy bills a year; plus, it will make your home much more comfortable!

For starters, make sure all windows and doors are properly sealed to keep the heat in and cold out.

There are also less-obvious spots where air may be escaping, inside and outside of your home. Don’t miss inspecting the following for cracks or gaps that could lead to air leaks:

  • Exterior corners
  • Outdoor water faucets
  • Where siding and chimneys meet
  • Electrical outlets
  • Switch plates
  • Baseboards
  • Electrical and gas service entrances
  • Weather stripping around doors
  • Fireplace dampers
  • Wall- or window-mounted conditioners
  • TV and phone lines
  • Where dryer vents pass through walls
  • Vents and fans

As soon as you locate leaks, you can begin sealing. Plug and caulk holes or penetrations for faucets, pipes, electric outlets, and wiring. Look for cracks and holes in the mortar, foundation, and siding, and investigate leaks around windows and doors. Seal them with the appropriate material. If you need more guidance, read up on how to choose weatherstripping or more about caulking.

3. Check Insulation Levels

Poor insulation levels can lead to a significant loss of heat through your home’s floor, ceilings, and walls. This is typically a more common concern with older properties.

If you want to avoid removing large portions of drywall from your walls, check out ways to easily and non-invasively inspect your home’s insulation.

Additionally, consider replacing old or inefficient windows if it’s been a while. This will help improve the insulation of your home.

4. Inspect HVAC Systems and Equipment

Routine maintenance on your heating and cooling system can help your equipment last longer while saving you energy and money. 

Be sure to clean your air conditioning filters and change your furnace filters about once a month.

If your HVAC system could use an upgrade, consider investing in higher energy-efficient equipment, which could save you 65% of energy.

Programmable thermostats can also reduce a considerable amount of energy, especially if used intentionally. This is especially great if you leave your house forgetting to turn the heat down or off but realize it after the fact.

Now that you know how to make your home more energy efficient, make this your most cost-effective and energy-efficient winter yet!

For more tips on preparing your home for the winter months, follow the link below.

Winter Preparation Checklist

The Effects of Inflation By U.S. City for 2023

Posted on by LLCR Staff

Regardless of where you reside, you have likely felt the effects of inflation over the past few years. All across the nation, we’ve seen prices rise across industries. 

In 2022, the national inflation rate was higher than it had been since the early 1980s. According to the Bureau of Labor Statistics, the annual inflation rate in May was 8.6%, its highest level since 1981, as measured by the Consumer Price Index (CPI). Other inflation metrics also have shown significant increases over the past year or so, though not quite to the same extent as the CPI.

However, at the end of the year in October 2022, the Consumer Price Index rose much slower than expected, indicating that inflation is headed in the right direction. This led to a dramatic increase in the stock market and hope for the Federal Reserve. 

It looks like inflation is slowing down in 2023, but unfortunately not entirely out of sight or mind.

All that said, inflation isn’t impacting every place the same. Let’s take a closer look at the effects of inflation on major U.S. cities and how they specifically compare to the Windy City.

Chicago Inflation

Chicago inflation mirrored the national trend when it reached a 40-year high last summer. In June 2022, the Windy City hit 9.1 percent, which took a hit on consumers and businesses alike. Costs for food, labor, rent, gasoline, and food rose dramatically.

Over the past year, Chicago’s Consumer Price Index for All Urban Consumers (CPI-U) increased by 6.8 percent. However, since the heat of summer, inflation is cooling down even more than expected, easing some consumer concerns. The most recently reported CPI-U inflation rate for Illinois is 7.1 percent. 

According to the U.S. Bureau of Labor Statistics, prices in the Chicago area were down 0.6 percent over the past month but up 6.8 percent from a year ago.

Let’s take a look at some of the current living expenses for an average Chicagoan:

  • Basic monthly utilities: $164.26
  • Internet: $65.48
  • Monthly minimum for food: $385.28
  • Gasoline per gallon: $4.41
  • Monthly pass for public transit: $80

The price per square foot to buy an apartment in downtown Chicago is $382.14

New York Inflation

The Big Apple has always been known as one of the most expensive places to call home. So, inflation hasn’t made affording a New York lifestyle any easier.

At this point, New York is considered the second priciest city in the United States.

Reports indicate that the soaring prices for rent, meals, and everything else in NYC are pushing younger workers to seek more affordable cities. According to the U.S. Census Bureau population estimates, New York lost more residents than any other state between April 1, 2020, and July 1, 2021.

However, this month has also provided hope for the city. According to a recently released New York Fed Survey, the one-year inflation outlook declined to 5 percent, the lowest level since July 2021. Household spending expectations tumbled an entire percentage point to 5.9%, the lowest level since January 2022.

Consumers expect gas prices to increase 4.1% and food prices to rise 7.6% over the next year, in both cases a 0.7 percentage point decline from the previous month.

Living in New York City, you could expect to spend the following based on averages:

  • Basic monthly utilities: $183.83
  • Internet: $70.04
  • Gasoline per gallon: $4.08
  • Monthly pass for public transit: $129

A whopping $1,372.51 is the average price per square foot to buy a home in downtown New York City. That is almost four times the cost of purchasing a place in Chicago.

Los Angeles Inflation

The City of Angels has always come at a cost. As the second largest city in America, many people pay a premium for the city’s amazing weather, attractions, culture, and more.

Not surprisingly, inflation has made LA living even more of a financial stretch. Last year, LA also experienced inflation rates higher than it had been in forty years.

In November of 2022, Los Angeles felt a sense of relief when the local inflation took the largest one-month drop in a decade. However, the local CPI is still up an unhealthy 6% in a year, a modest improvement from 2022’s 8.6% inflation high.

Here are some of the average and common LA living expenses:

  • Basic monthly utilities: $144.95
  • Internet: $67.69
  • Gasoline per gallon: $5.46
  • Monthly pass for public transit: $99.50

If you’re trying to purchase a home in downtown Los Angeles, prepare to pay around $852.25 per square foot.

San Francisco Inflation

The Bay Area is another area that will cost you a pretty penny.

A new report by the Economist Intelligencer Unit recently ranked San Francisco as one of three U.S. cities ranked as the most expensive in the world amid rising inflation and cost of living.

Toward the final months of 2022, area prices were up one percent and 6 percent from the previous year. Currently, the cost of living in San Francisco is 38 percent higher than the state average and 96 percent higher than the national average. 

Let’s break down some of those specific expenses:

  • Basic monthly utilities: $251.24 (24 percent higher than the national average)
  • Internet: $68.06
  • Gasoline per gallon: $6.19
  • Monthly pass for public transit: $88.50

Housing here will really cost those looking to buy. It’s 238 percent more expensive than the U.S. average, with the price per square foot to buy a city apartment at $1,074.84.

Boston Inflation

According to research conducted by Beacon Hill Institute, the inflation rate in Massachusetts is outpacing the country in several key categories, including gas, used vehicles, and electricity.

The U.S. Bureau of Labor Statistics indicates that prices in Boston, Massachusetts are seven percent higher in 2022 compared to  2021. That’s a $1.40 difference in value. This historic rise is partly attributed to growing housing and motor vehicle costs.

The rise in inflation also explains the expensive cost of living:

  • Basic monthly utilities: $183.55
  • Internet: $60.02
  • Gasoline per gallon: $3.80
  • Monthly pass for public transit: $90

Prospective homeowners can expect an average cost of $1,022.99 per square foot to buy a home in downtown Boston.

D.C. Inflation

A new study by WalletHub indicates that the D.C. region is seeing some of the highest levels of inflation in the country. Currently, the D.C./Arlington/Alexandria region is ranked 21 nationwide.

D.C. experienced an increased inflation rate of 6.5% in 2022 compared to the prior year.

Check out some of the average costs associated with D.C. living that have been affected by inflation:

  • Basic monthly utilities: $159.71
  • Internet: $75.65
  • Gasoline per gallon: $3.78
  • Monthly pass for public transit: $104

You can purchase a home for roughly $732.26 per square foot in downtown D.C. According to Business Insider, the median home value here has continued to increase year-over-year while some markets are beginning to cool off.

Nashville Inflation

The charming Music City is not singing happy tunes when it comes to inflation. New people have poured in, prices have soared, and longtime residents have been pushed out.

Merchant Maverick ranked Tennessee as having the third highest impact based on a score that included rankings of consumer price index change, regional price parity, state sales tax rate, and median household income.

Here are where average daily expenses are sitting in Nashville:

  • Basic monthly utilities: $185.33
  • Internet: $83
  • Gasoline per gallon: $3.32
  • Monthly pass for public transit: $67.50

Housing prices have more than doubled in 10 years, as a population boom has brought nearly 400,000 new residents to the area. Buying a home in downtown Nashville means you’ll pay around $452 per square foot.

Austin Inflation

This trendy Texas city is now considered one of the most expensive big cities in the country, coming in at number 8. According to a recent inflation report, consumer prices here are rising faster than expected.

Here is what Austin residents can expect to pay on certain living expenses:

  • Basic monthly utilities: $193.83
  • Internet: $71.66
  • Gasoline per gallon: $3.45
  • Monthly pass for public transit: $49.96

Prices of single-family rental homes are up 36%, with the price per square foot around $845. 

The effects of inflation have been felt everywhere. While the Windy City isn’t immune, Chicago’s inflation has not been as severe as other large cities.

So, if you’re considering relocating to Chicago or purchasing a home here, let our team of experienced brokers help you find your dream home.

Looking to learn more about other expenses you can expect while living in Chicago? Follow the link below!

Chicago Living Expenses You'll Need to Consider

2023 Major City Inflation Guide: Los Angeles Inflation

Posted on by LLCR Staff

As the second-biggest city in the U.S., Los Angeles has many perks: its famously beautiful weather, a fabulous food scene, and a packed calendar of sports, music and cultural events are all wonderful reasons to seek the City of Angels. 

Los Angeles Inflation

For these and more reasons, you’ll pay a premium if you choose to move to L.A.: according to Payscale, the cost of living there is 54 percent above the national average. Perhaps most importantly, housing expenses in the area fall at a whopping 141 higher than the national average; the median home price is $958,932.

It’s no surprise that it was expensive to move to L.A. before inflation began setting in throughout the country – but unfortunately, inflation has only exacerbated the high costs associated with living in Los Angeles 

While your mortgage will undoubtedly be your biggest expense, food, energy and consumer goods still make up a sizable portion of your wallet. According to the U.S. Bureau of Labor Statistics, food prices in Los Angeles have increased 10.3 percent year-over-year – a change which impacts both groceries and your bill at a restaurant.

As opposed to a public transportation-reliant city like Chicago, L.A. almost exclusively relies on cars to get around – making the price of gas directly correlated to month-to-month living expenses. While gas prices are falling nationwide, the average cost per gallon in the area still hovers around $4.23, according to the Los Angeles Almanac.

There’s no doubt that there’s a pretty notable weather discrepancy between Chicago and its Californian counterpart. That said, for those willing to embrace all four seasons, Chicago’s lower cost of living offers a reward: according to payscale, it’s 119 percent lower than LA. Additionally, living in a more condensed city makes life more convenient – neighborhoods are easier to navigate, and public transportation makes getting from A to B a breeze without LA’s infamous traffic. 

If you’re considering purchasing your next home or condo in Chicago, our Luxury Living agents are here to make the process a breeze.

For a deeper dive into the effects of inflation across the U.S., follow the link below.

The Effects of Inflation by U.S. City for 2023

2023 Major City Inflation Guide: New York Inflation

Posted on by LLCR Staff

While inflation has impacted the entire country, we’re going to examine New York inflation and how it compares to Chicago and other cities. Whether you live in the big apple or are contemplating your next move, it’s important to learn how inflation may impact your daily living.

New York Inflation

Reports indicate that the soaring prices for rent, meals and everything else in NYC are pushing younger workers to seek more affordable cities. MoveBuddha, a site where people can calculate their moving costs, confirmed that there’s a mass exodus happening in the Empire State. According to the U.S. Census Bureau population estimates, New York lost more residents than any other state between April 1, 2020 and July 1, 2021

Even without the burden of the current inflation, New York has always been known as one of the country’s most expensive city. Inflation has only made people’s budgets even tighter. As of 2022, New York is the second priciest place to call home.

Earlier this year, the U.S Bureau of Labor Statistics released new data indicating consumer prices grew 6.1 percent in the New York City Metropolitan.

When comparing inflation by cities, it looks like New York’s increase beats Chicago’s. New York is ranked 16th on the list, while the Windy City is 20th. Cities like Phoenix, Miami, Tampa, and Atlanta take the lead with the highest inflation increase  in the nation.

If you are considering New York, note that the cots of living here is 55% higher than the national average. Housing is 148% higher than the national average. It’s also 85 percent more expensive than in the Windy City.

While living costs like groceries and utilities are steeper in the big apple, the biggest difference is housing. Chicago and New York mortgage rates are comparable, but the price tag for other homeowners is by far higher in the Big Apple. The average sales price of a New York home is $745,000, while tentative Chicago residents can expect to pay around $315,000.

Fees such as property taxes and homeowner association will also cost more for homes in the New York area compared to those in the Chicagoland area.

Your money will certainly stretch further in Chicago compared to NYC, but you can also get a similar urban living experience. 

Chicago provides amazing neighborhoods, dining, and attractions. Lake Michigan is also a huge pull if you don’t want to forfeit the water. Looking to avoid New York inflation and relocate to the Windy City? Let the Luxury Living team help you find a home and location that suits your lifestyle.

To learn more about the effects of inflation in other cities across the U.S., click the button below.

The Effects of Inflation by U.S. City for 2023

2023 Major City Inflation Guide: San Francisco Inflation

Posted on by LLCR Staff

If you’re considering relocating within the US, it’s natural to think about the culture, landscape and lifestyle of the west coast. The San Francisco area, specifically, draws many transplants because of its proximity to gorgeous nature (hello, Napa Valley!) and incredible jobs.

Considering supply and demand, it makes sense that the demand of this area has resulted in a notoriously high cost of living for San Franciscans: according to Redfin, the average cost of a home was $1.35M in November 2022. While high mortgage rates affect the whole country, the already-high cost of housing in San Francisco is especially impacted.

It’s no surprise that living in the Bay Area is expensive; this isn’t a new dynamic. That said, in addition to high housing costs, inflation continues to contribute to a rising cost of living in this region.

San Francisco Inflation

This year, specifically, residents of San Francisco can expect to pay $4,400 more annually for major goods and services, according to the San Francisco Chronicle. Households in the area already pay an average of $91,700 on those goods and services annually (data from 2019 – 2020). 

While inflation has a nationwide impact, controlling your housing costs is one of the best ways to adjust for a higher cost of goods and services. According to Payscale, the median home price in Chicago $613K – less than half of San Francisco. 

While the Bay Area can offer sunnier skies than Chicago, the Windy City offers culture and world-renowned museums, nationally-known sports teams and – juxtaposed to California’s infamous traffic – an efficient and expansive public transportation system.

Our Luxury Living team would love to tout the benefits of Chicago while helping you find your dream home here. Reach out to one of our agents to get started.

Want a deeper dive into the effects of inflation across the rest of the U.S.? Click the button below!

The Effects of Inflation by U.S. City for 2023

2023 Major City Inflation Guide: Boston Inflation

Posted on by LLCR Staff

If you’re debating between living in Chicago or Boston, or you’re planning on relocating from Boston to Chicago, it’s important to understand Boston inflation and how it compares to the Windy City.

Boston Inflation

According to research conducted by Beacon Hill Institute, the inflation rate in Massachusetts is outpacing the country in several key categories, including gas, used vehicles, and electricity.

Those living in Boston can attest to the climbing costs. The U.S. Bureau of Labor Statistics indicates that prices in Boston, Massachusetts are seven percent higher in 2022 compared to  2021. That’s a $1.40 difference in value. This is a historic rise, partly attributed to growing housing and motor vehicle costs.

Consumers are finding that while almost all categories are increasing in price, gas, used vehicles, and electricity in the state are higher in Massachusetts than in many other places around the nation. 

When it comes to cities with the fasting climbing inflation rates, recent findings rank Boston as number 13. Other cities finding themselves higher on the list include Phoenix, Miami, Atlanta, and Seattle.

So, how does Boston’s inflation stack up against Chicago’s?

Boston vs Chicago Inflation

While the Windy City has not been immune from the effects of inflation, the impact has not been as severe. Currently, Chicago is 20th on the list of highest inflation rates.

The overall cost of living is still around 26 percent higher in Boston than in Chicago. But let’s break it down a bit, starting with the cost of owning a home.

In 2022 the median price for a home for sale in Boston is $780,000, with a 3.6% year-over-year increase, while the median sales price for a Chicago home is $352,000, with a 0.7% increase over the previous year.

At the beginning of 2022, mortgage rates in Massachuchettes averaged around 3 percent. Over the past year, the average climbed four percent. In the last quarter, the average homebuyer would expect to pay around seven percent interest on a home loan. That four percent jump has greatly impacted the cost of owning a home, limiting who can afford to buy.

While mortgage rates are comparable in Chicago and access the nation, the price tag for other homeowners and living expenses are currently higher in Boston than in Chicago.

Fees such as property taxes and homeowner association will cost more for homes in the Boston area compared to those in the Chicagoland area.

Additionally, Boston residents can expect to pay roughly seven percent more on food, two percent more on transportation, 13 percent more on entertainment, and eight percent more on healthcare than if they lived in Chicago.

Consider Chicago living if you want to avoid the aggressive Boston interest rates and give your bank account a break. This magical city is comparable to Boston, offering phenomenal attractions, dining, housing, and lakefront wonder.

Whether you are definitely or tentatively relocating to Chicago, let our team of experienced brokers help you find your dream home.

Interested in learning more about the inflation effects on other U.S. cities? Follow the link below!

The Effects of Inflation by U.S. City for 2023

2023 Major City Inflation Guide: Austin Inflation

Posted on by LLCR Staff

As many jobs welcome remote work, it’s natural to wonder about moving to a different city. The pandemic had many effects on the dynamic and cost of living in various parts of the U.S. – and these implications are especially apparent in Austin.

Home to the University of Texas, great food and what’s shaping up to be a tech boom, Austin is becoming a city of choice for many young people: in 2021, it was ranked in the top five of cities chosen by millennials, according to SmartAsset. Whether returning home or seeking something new, many are drawn to the area for the big city feel that’s proximate to natural areas such as Lake Travis.

There are many wonderful things to consider when thinking about a move to Austin. As with any city, there are pros, cons and budget to factor in. In Austin, inflation plays a big role in the cost of living – especially if you’re considering buying and settling down there.

Inflation in Austin

The Austin housing market reflects the increase in mortgage rates across the country. According to Norada Real Estate investments, in September 2022, the median price of a home sold was up 15% year-over-year at $620K. 

While a mortgage is one of the biggest components of your budget, the rise in housing costs is also paired with a rise in the cost of living in Austin: in October 2022, the average Austin consumer was paying 2.2% more for food than the average U.S. consumer, according to the Bureau of Labor Statistics.

Driven mostly by an influx of tech jobs, Austin is weathering the storm of inflation – but as you think about the cost of living in various cities, these dynamics are worth considering.

If Chicago is at the top of your search for new cities, the Luxury Living team would love to discuss options that are right for your budget and lifestyle.

Follow the link below for more information on inflation effects by various other cities across the U.S. this year.

The Effects of Inflation by U.S. City for 2023

What You Need to Know About Interest Rates and Adjustable Rate Mortgages

Posted on by LLCR Staff

If you’re in the market for a new home, it’s essential to be well-informed before making such a significant choice.

Interest rates and adjustable-rate mortgages are topics worth considering beforehand. Regardless of your existing knowledge on these topics, we’re here to help provide or reiterate the basics.

Interest Rates

Interest rates, also known as mortgage rates, come into play when taking out a loan to pay for your home. Simply put, this is the fee charged by your lender for loaning you money. 

As homeowners work to pay off their loans, they pay the principal (payments on the amount of money borrowed) and interest. These two are lumped together as one monthly payment.

When it comes to the interest rates and the relationship to home prices, keep in mind the two tend to have an inverse relationship. As interest rates rise, it becomes harder for prospective homeowners to afford property, so the price tags on homes tend to drop. The opposite is true as interest rates decline.

Higher mortgage rates make it more difficult to afford a home now. However, the reduced demand also means less competition, providing buyers an opportunity to get a home for less than the list price, making sellers more likely to compensate for those high rates. They may do this by contributing toward closing costs or paying mortgage points.

Adjustable Rate Mortgages

On the topic of interest rates and home purchases, it’s helpful to understand adjustable-rate mortgages or ARMs for short.  Unlike fixed interest rate mortgages, which stay the same over time, this is a home loan with an interest rate that can change periodically. The initial interest rate may involve lower monthly payments than fixed interest rates, but over time your adjusted rate will be based on your individual loan terms and the current market.

So, when should a homeowner consider this type of mortgage?

Those who anticipate moving or selling their home within five years or before the adjustment period of the loan may find this type of loan more attractive due to the lower monthly fees. Folks who stay past this point take a gamble, not knowing what interest rate they may incur. Therefore, a fixed interred rate mortgage may be a wiser move if you’re looking for a long-term investment.

If you have home-buying questions beyond interest rates and adjustable-rate mortgages, connect with one of our experienced team members. Our licensed brokers are eager to help answer questions and help you secure your dream home! Connect with us today to get started.

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