Tag: Buying a Chicago condo

What Are Important Things to Keep In Mind During a Condo Inspection?

Posted on by Lauren Bozarth

As you seek to secure your dream place, it’s crucial to understand and execute a condo inspection. In this post, we’ll dive into key considerations during this step of the home-buying journey.

What is a Condo Inspection?

Let’s start with the basics. A condo inspection is a thorough examination of a condo unit to assess its overall condition and identify any potential issues. It helps a buyer determine any red flags or extra steps needed before closing on the property.

When Should I Hire an Inspector for a Condo?

As you prepare to schedule a condo inspection, the timing matters. This crucial step should take place right after you go under contract on a property but before closing the deal.

Conducting an inspection during this timeframes helps ensure the following:

  • Due Diligence
  • Negotiation Leverage
  • Investment Protection
  • An Understanding of Maintenance Needs
  • Peace of Mind

What Is Checked During a Condo Inspection?

Take a look at everything that a condo inspection typically covers:

  • Structural Elements: This involves checking the condition of the walls, ceilings, floors, and other structural components to ensure they are sound and free of defects.
  • Mechanical Systems: Inspectors will assess the functionality and condition of heating, ventilation, air conditioning (HVAC) systems, plumbing, and electrical systems.
  • Appliances: It’s essential to check the condition and operation of appliances included in the condo, such as stoves, refrigerators, dishwashers, and others.
  • Interior Features: This includes evaluating the condition of doors, windows, flooring, and other interior elements.
  • Safety Concerns: Inspectors will look for potential safety hazards, such as electrical issues, trip hazards, or other safety concerns.

What Can Buyers Demand at Final Walk-Through?

If, during the final walk-through, you discover any issues or areas of concern, it’s crucial to address them promptly. Buyers should request solutions for any unresolved issues, whether it be a commitment to further repairs or an adjustment to the closing agreement.

How Long Does a Condo Inspection Take?

Inspections typically take between 1 and 3 hours, depending on the size of your condo and how many inspectors are on site. Be sure to discuss this with your prospective inspector beforehand and have sufficient time blocked off for this step.

Should I Waive A Condo Inspection?

Although condo inspections aren’t legally obligated, we highly encourage this step of the home-buying process. They provide early awareness of current or potential home issues, offering a timely heads-up and an advantageous negotiating strategy. This allows you to request the seller to take responsibility for covering the expenses associated with any necessary repairs.

Do I Need to Hire a Professional for My Condo Inspection?

This answer is up to you, but our team sees real value in hiring a professional and typically recommends this service to our clients. A licensed and experienced inspector provides an unbiased evaluation of the property along with the knowledge of what to look for and how to identify discreet issues. They can help prevent higher unforeseen costs due to problems in your unit.

What Should a Condo Walk-Through Checklist Include?

To make the most of your condo inspection, be sure to take advantage of this condo walk-through checklist:

  1. Bring your checklist.
  2. Take photos and videos for visual documentation.
  3. Review the walls, ceilings, and floors.
  4. Take a second look at windows, doors, and balconies.
  5. View all the appliances.
  6. Ask questions regarding recent repairs and the state of things.
  7. Inquire about shared amenities.
  8. Scope out the exterior.
  9. Note any agreed-upon repairs and review them.

What is the Estimated Cost of a Condo Inspector? 

The cost of a condo inspection can vary based on factors such as location and property size. On average, condo inspections may range from a few hundred to over a thousand dollars. While there is a cost involved, we consider this step worth every penny.

We hope you feel better equipped as you prepare for your condo inspection.

For lingering questions and support during your home-buying journey, partner with our experienced and compassionate team!

Get in Touch With Us

When Should I Hire an Inspector For a Condo?

Posted on by Lauren Bozarth

As prospective homeowners navigate their home-buying journey, many often ask, “When should I hire an inspector for a condo?”

We’re here to help answer that question and further equip you to close the deal on your dream place successfully.

The Right Time for an Inspection

The timing matters when it comes to setting up a condo inspection. This crucial step should take place right after you go under contract on a property but before closing the deal.

Here are several reasons why a condo inspection is conducted during this timeframe:

  • Due Diligence: An inspection allows the buyer to thoroughly assess the condition of the condo and identify any potential safety issues or needed repairs before finalizing the purchase.
  • Negotiation Leverage: If the inspection reveals any issues or defects, the buyer may have grounds to negotiate with the seller for repairs or a reduction in the sale price. This negotiation is often more effective before the deal is closed, as the seller may be more motivated to address concerns to ensure a smooth transaction.
  • Peace of Mind: Knowing the condo’s condition before closing can relieve a buyer’s anxiety. It reduces the risk of unpleasant surprises after the deal is finalized, helping the buyer confidently move into their new home.
  • Protecting Your Investment: Purchasing a condo is a significant financial commitment. By inspecting the property before closing, buyers can proactively identify potential problems that may affect the property’s value or their ability to live comfortably in it.
  • Contingency Period: Many condo contracts include a contingency period, during which the buyer can conduct inspections and back out of the deal without penalties if significant issues are discovered. Inspecting during this period allows the buyer to exercise their contingencies based on the inspection results.
  • Understanding Maintenance Needs: An inspection can provide valuable information about the current state of the condo and its components. This information is helpful for planning future maintenance and repairs, allowing the buyer to budget accordingly.

Other Common Condo Inspection Questions

Here are other queries we often receive regarding condo inspection:

  • Is hiring an inspector required for a condo? While it’s not legally required, real estate professionals highly recommend that condo buyers conduct a thorough inspection as part of their due diligence and for the above reasons.
  • What types of issues can a condo inspector help uncover? They can bring to light various issues, including structural problems, plumbing and electrical issues, HVAC system malfunctions, water damage, mold, and other potential concerns that may affect the property’s value or the buyer’s living conditions.
  • What are the benefits of a professional condo inspector? A licensed and experienced inspector provides an unbiased evaluation of the property along with the knowledge of what to look for and how to identify discreet issues.
  • What is the estimated cost of a condo inspector, and is it worth it for condo buyers? The cost of a condo inspection can vary based on factors such as location and property size. On average, condo inspections may range from a few hundred to over a thousand dollars. While there is a cost involved, we consider this step worth every penny.

Along with addressing, “When should I hire an inspector for a condo?” hopefully, the other information helps you triumphantly move forward in the home-buying process.

For further confidence in this substantial purchase, let our team of licensed and experienced professionals support you!

Learn More: The Homebuying Process

An Overview of What is Checked During a Condo Inspection

Posted on by Lauren Bozarth

If you’re preparing to secure your dream home, it’s beneficial to understand the inspection step of the process, particularly what is checked during a condo inspection.

Keep reading to learn the ins and outs!

What is a Condo Inspection?

A condo inspection is a thorough examination of a condo unit to assess its overall condition and identify any potential issues. It helps a buyer determine any red flags or extra steps needed before closing on the property. This inspection is typically conducted by a qualified home inspector or a professional with expertise in building inspections. 

What is Checked During a Condo Inspection?

During a condo inspection, the inspector will examine various components of the unit, often including the following:

  • Structural Elements: This involves checking the condition of the walls, ceilings, floors, and other structural components to ensure they are sound and free of defects.
  • Mechanical Systems: Inspectors will assess the functionality and condition of heating, ventilation, air conditioning (HVAC) systems, plumbing, and electrical systems.
  • Appliances: It’s important to check the condition and operation of appliances included in the condo, such as stoves, refrigerators, dishwashers, and others.
  • Interior Features: This includes evaluating the condition of doors, windows, flooring, and other interior elements.
  • Safety Concerns: Inspectors will look for potential safety hazards, such as electrical issues, trip hazards, or other safety concerns.

After the inspection, the inspector typically provides a detailed report to the buyer, highlighting any issues found during the inspection. This information is valuable for buyers to make informed decisions about the purchase and may be used in negotiations with the seller.

It’s important to note that condo inspections are not mandatory, but they are highly recommended for buyers to ensure that they are aware of the property’s condition and potential maintenance or repair needs.

Other Common Home Inspection Questions

  • How are condo inspections unique? Condo inspections don’t always involve scoping out the exterior since these areas are made up of common areas often covered by the homeowners associations. However, some inspectors take a proactive approach and still inspect the shared spaces to ensure everything’s in proper order and there are no noticeable risks for a major special assessment down the road. Also, if your property includes personal outdoor space, then the inspection will likely include this. 
  • Why should I inspect a new condo? Although a new condo minimizes the risk of issues, it’s still worth being proactive and ensuring there are no hidden issues before moving in.
  • How do you inspect a condo yourself? If you opt out of hiring a professional inspector, prepare yourself with a condo inspection checklist. Bring this list and critical eyes with you to your prospective place before the closing.
  • How long does a condo inspection take? Inspections typically take between 1 and 3 hours, depending on the size of your condo and how many inspectors are on site.
  • Should I waive an inspection on a condo? We highly advise against waiving an inspection. They provide early awareness of current or potential issues in the home, offering not only a timely heads-up but also an advantageous negotiating strategy. This allows you to request the seller to take responsibility for covering the expenses associated with any necessary repairs.

While it’s crucial to know what is checked during a condo inspection, there are other considerations to keep in mind when buying a Chicago condo. To ensure a smooth and successful process, team up with our experienced team of real estate professionals today!

Learn More: The Homebuying Process

What Can Buyers Demand at Final Walk-Through? A Checklist Before Closing

Posted on by Lauren Bozarth

The final walk-through is a pivotal step in the home-buying process, happening just before closing to ensure the property is in expected condition.

This blog will help equip any prospective buyer and answer the common question posed at this stage of the journey, “What can buyers demand at final walk-through?”

Understanding the Purpose of the Final Walk-Through

The final walk-through serves as a last-minute check to ensure the property is as it should be before ownership is officially transferred. Buyers should use this opportunity to verify that any negotiated repairs or improvements have been done satisfactorily. Additionally, it’s a chance to make sure that appliances are in working order and the overall cleanliness of the condo meets expectations for move-in.

Checklist for the Final Walk-Through

As you complete the last walk-through, also make sure to walk through this checklist

  • Repairs Completed: Confirm that any repairs agreed upon during negotiations have been executed to your satisfaction.
  • Cleanliness: Ensure that the condo is clean and ready for occupancy. Pay attention to details like floors, countertops, and overall tidiness.
  • Appliance Functionality: Double-check that all appliances, such as the dishwasher, refrigerator, and stove, are in good working condition.
  • Utilities: Test utilities, including lights, faucets, and heating/cooling systems to ensure they are functioning properly.

Addressing Outstanding Concerns

If, during the final walk-through, you discover any issues or areas of concern, it’s crucial to address them promptly. Buyers should request solutions for any unresolved issues, whether it be a commitment to further repairs or an adjustment to the closing agreement.

Helpful Tips and Reminders:

Along with keeping the checklist handy, consider these pointers during your final walk-through.

  •  Documentation: Keep records of any agreements, repair requests, or communications related to the final walk-through. This documentation can be valuable if issues arise later.
  • Clear Communication: Maintain open communication with your real estate agent and the seller. If there are concerns, articulate them clearly and promptly to ensure they are addressed before closing.
  • Reviewing Documents: While the final walk-through primarily focuses on the property’s physical condition, it’s also a good time to review any relevant documents. Ensure that you have all the necessary paperwork and that there are no surprises.

Knowing how to answer, “What can buyers demand at final walk-through?“ will help ensure your property is pristine before you close on it.

For any other questions or support during the home-buying journey, partner with our experienced and knowledgeable brokers!

Get In Touch With Us

The Ultimate Condo Walk-Through Inspection Checklist

Posted on by Lauren Bozarth

For buyers, a thorough inspection is a crucial step that helps avoid unexpected issues and ensure everything is as expected. 

In this post, we’ll provide an in-depth condo walk through inspection checklist to provide extra preparation and peace of mind.

The Purpose of an Inspection Checklist

Condo buyers should prioritize conducting a thorough walk-through inspection before finalizing their purchase, and having a comprehensive checklist is crucial for this process. The checklist serves as a systematic guide to ensure that every aspect of the condo is thoroughly examined, emphasizing safety and assessing overall conditions. 

A well-organized checklist ensures that no crucial aspect is overlooked, empowering condo buyers to make informed decisions and negotiate any necessary repairs or adjustments before closing the deal.

Condo Walk Through Checklist

Before moving forward with a home purchase, take advantage of this condo walk through checklist :

  1. Bring your checklist: 
    • Make sure you have it handy, either printed or written down, to bring it to the inspection.
  2. Take photos and video:
    •  Capture visual documentation of the entire condo, both the interior and exterior.
    • Focus on any existing damage or potential issues, such as cracks, leaks, or signs of wear and tear.
    • These visual records serve as valuable references during negotiations and can be crucial in case of disputes.
  3. Review the walls, ceilings, floors:
    • Inspect for cracks, water stains, or any structural abnormalities.
    • Check the quality of paint or wallpaper for signs of poor maintenance.
    • Evaluate the condition of the flooring, looking for damages, uneven surfaces, or signs of pest infestation.
  4. Take a second look at windows, doors and balconies:
    • Test windows for proper sealing, functionality, and signs of drafts.
    • Check doors for easy opening and closing, and ensure appropriate locking mechanisms.
    • Assess the structural integrity and safety of balconies, looking for visible damages or hazards.
  5. View the appliances:
    • Check for signs of wear, rust, or leaks in kitchen and bathroom appliances.
    • Find out the age of major appliances to estimate their remaining lifespan.
  6. Ask questions about recent repairs and the state of things:
    • Inquire about any current maintenance or repairs on plumbing, electrical systems, and HVAC.
    • Check for water pressure in faucets and inspect pipes for leaks.
    • Test light fixtures, switches, and outlets to ensure they function correctly.
  7. Inquire about shared amenities:
    • Verify the condition and functionality of shared amenities like elevators and patios.
    • Ask about scheduled maintenance or recent improvements in shared spaces.
  8. Be sure to review and inspect the exterior and inquire about any recent repairs:
    • Examine the exterior of the building for signs of damage, such as cracks or water damage.
    • Seek Information about recent repairs to the building’s structure or exterior features.
    • Check the condition of common areas outside, including parking lots and landscaping.
  9. Take note of any agreed-upon repairs and review them:
    • Confirm that any previously agreed-upon repairs have been addressed.
    • Review the quality of completed repairs and ensure they meet the agreed-upon standards.
    • If repairs are pending, inquire about the timeline for completion and documentation of the agreed-upon changes.

We hope this thorough condo walk through inspection leaves you feeling more equipped to move forward with your home purchase. For extra confidence and support, team up with our experienced team of brokers today!

 

Get In Touch With Us

Navigating Condo Loans and Your Financing Options

Posted on by Lauren Bozarth

If you’re seeking condo ownership, planning and preparation are needed to ensure this dream becomes a reality. One of the most critical areas of exploration is condo loans and financing options. 

Regardless of your current level of knowledge or savings, we’ve put together an extensive guide that breaks down the financial basics and clarifies this part of the home-buying process.

How Much is a Down Payment for a Condo?

As you save for your condo, anticipating the down payment is crucial. While this amount varies drastically from buyer to buyer, down payments for condos typically range from 3% to 20% of the total purchase price. The percentage depends upon factors like the price of the condo, the lender you choose, and the type of loan you qualify for. In Illinois, the average down payment percentage is 14.3%.

As a prospective Illinois home buyer seeking a conventional loan, down payments often run 3% to 5% of the home purchasing price. While this might seem attractive for those with limited funds, it’s essential to consider that a smaller down payment often leads to higher monthly payments and private mortgage insurance (PMI) costs.

10% to 20% is often seen as a balance between affordability and favorable loan terms. A higher down payment can lead to lower interest rates and less risk for the lender.

For condos in the lower price range, you may be required to make a down payment of 3% to 5%. Mid-range condos often have down payment requirements of 5% to 10%. Luxury condos, with a higher purchase price, may necessitate a down payment of 10% to 20% or more.

How Much Money Do You Need to Buy a Condo?

Purchasing a condo involves more than the down payment. Check out these additional costs that should be accounted for when saving for your future home:

  • Closing costs: In addition to the down payment, you’ll need to budget for closing costs, which include appraisal fees, inspection fees, insurance, and other miscellaneous expenses. Keep in mind these costs can add several thousand dollars to your purchase.
  • Monthly expenses: Once you’ve purchased your condo, you’ll have ongoing monthly expenses to consider. These include insurance, electricity, gas, Internet, and homeowners’ association (HOA) fees. HOA fees cover exterior maintenance, amenities, and communal services.
  • Additional costs: Beyond the basics, there are other expenses to consider. Moving costs, renovations, and furnishing your condo can add to your initial outlay. You can also anticipate annual property tax. 

Overcoming Common Condo Financing Problems

As you work toward securing a condo loan, be prepared for potential financing issues. Here are some hurdles that many prospective home-buyers face and suggestions for overcoming them:

  • High HOA fees: Condo living often comes with the perk of shared amenities and external maintenance, but that can also mean hefty Homeowners Association (HOA) fees. High fees can strain a buyer’s budget and affect their loan eligibility. The solution? Prioritize properties with reasonable HOA fees or negotiate with the seller to cover some costs.
  • Low reserves: Reserves are funds set aside for future repairs or unexpected expenses and are crucial for the long-term health of a condo community. Low reserves can signal financial instability and make lenders hesitant. Buyers should inquire about a condo association’s reserve fund and choose properties with well-maintained financial health.
  • Appraisal issues: Appraisal problems can arise when the condo’s appraised value doesn’t align with the purchase price. To avoid this, ensure the property is in good condition and research recent comparable sales. If issues persist, consider renegotiating the price or exploring alternative financing options.
  • Difficulty obtaining loans: Some condos fall into the “non-warrantable” category, meaning they don’t meet conventional loan criteria. To avoid this scenario, buyers can explore alternative loan options or work with lenders specializing in non-warrantable condos.

Are Condo Mortgage Rates Higher Compared to Single-Family Homes?

Unfortunately, the answer to this question isn’t an easy “yes” or “no” answer. However, to better make sense of mortgage rates for a condo vs. single-family home, check out the variables that will affect the rate for your prospective property:

  • Property type: From a lender’s perspective, condos are deemed riskier properties because of the potential influence of the association on overall maintenance and, consequently, the property’s value. 
  • Homeowners Association’s financial health: A well-managed and financially stable association can contribute to more favorable mortgage rates. Buyers should scrutinize the association’s financial statements, budget, and pending assessments to gauge its overall health.
  • Property taxes: Property taxes are one of the components of your monthly mortgage payment, often collected by the lender and then used to pay the property taxes on your behalf. When property taxes increase, it can lead to higher monthly mortgage payments for homeowners. In turn, this may affect a borrower’s debt-to-income ratio. Click here for a closer comparison between the property taxes of a condo and a single-family house.
  • Credit score: Your credit score is a pivotal factor for lenders in determining your reliability and likelihood of default. Having a higher credit score can reduce your mortgage rate. Conversely, borrowers with lower credit scores face elevated interest rates and a narrower range of loan options. 
  • Loan-to-Value (LTV) ratio: The LTV ratio assesses the relationship between your loan amount and the property’s price. A reduced LTV commonly leads to a decreased mortgage rate. Your down payment influences your LTV—the higher the down payment, the lower your LTV, enhancing your perceived creditworthiness.
  • Debt-to-Income (DTI) ratio: The DTI ratio is determined by dividing your monthly debts by your gross monthly income, indicating your financial stability and ability to handle debt while affording your loan. Typically, a higher DTI ratio makes you appear riskier to a lender on paper, resulting in a higher interest rate.
  • Loan amount: A higher loan generally results in a lower mortgage rate, offering the lender a greater net dollar margin. This essentially means that larger loans can lead to better rates for borrowers, but it’s crucial to demonstrate strong financials to ensure your ability to cover a larger loan.

Assessing finances is a crucial step in the condo-buying process that shouldn’t be overlooked. A better understanding of financing can help you secure funding, particularly in an environment where condo loans are notoriously complex. 

If you’re ready to begin the condo hunt, don’t navigate the financing or any step of the process alone. Let our informed and eager team of real estate professionals support your journey!

 

Learn More: The Homebuying Process

Are Condo Mortgage Rates Higher Compared to Single Family Homes?

Posted on by Lauren Bozarth

When seeking to make a financially savvy move, new homebuyers or investors often ask, “Are condo mortgage rates higher? (Than compared to single family homes)” While the answer isn’t black and white, we’re here to help you better understand crucial considerations. 

Determining Mortgage Rates

While the property type can impact mortgage rates, many other factors are at play. Let’s start by breaking down those variables that can affect your mortgage rate:

  • Property type: As indicated above, the specific type of property matters when it comes to mortgage rates. Financing a condo poses a higher risk compared to single-family homes. 
  • Homeowners Association’s financial health: A well-managed and financially stable condo association can contribute to more favorable mortgage rates. Buyers should scrutinize the association’s financial statements, budget, and pending assessments to gauge its overall health.
  • Property taxes: This is one of the components of your monthly mortgage payment, often collected by the lender and then used to pay the property taxes on your behalf. When property taxes increase, it can lead to higher monthly mortgage payments for homeowners. In turn, this may affect a borrower’s debt-to-income ratio. Click here for a closer comparison between the property taxes of a condo and a single family house.
  • Credit score: Your credit score is a pivotal factor for lenders in determining your reliability and likelihood of default. Having a higher credit score can reduce your mortgage rate. Conversely, borrowers with lower credit scores face elevated interest rates and a narrower range of loan options. 
  • Loan-to-Value (LTV) ratio: The LTV ratio assesses the relationship between your loan amount and the property’s price. A reduced LTV commonly leads to a decreased mortgage rate. Your down payment influences your LTV—the higher the down payment, the lower your LTV, enhancing your perceived creditworthiness.
  • Debt-to-Income (DTI) ratio: The DTI ratio is determined by dividing your monthly debts by your gross monthly income, indicating your financial stability and ability to handle debt while affording your loan. Typically, a higher DTI ratio makes you appear riskier to a lender on paper, resulting in a higher interest rate.
  • Loan amount: A higher loan generally results in a lower mortgage rate, offering the lender a greater net dollar margin. This essentially means that larger loans can lead to better rates for borrowers, but it’s crucial to demonstrate strong financials to ensure your ability to cover a larger loan.

While condo mortgage rates can run higher than single-family homes, all the factors above affect the ultimate percentage lenders will offer. 

Understanding the Market

Market trends, particularly those tied to economic conditions and inflation, can also significantly impact mortgage rates- for both condos and single-family homes. 

When the economy is thriving, interest rates may rise as demand for loans increases, influencing higher mortgage rates. Conversely, central banks might lower interest rates during economic downturns to stimulate borrowing and spending, potentially leading to lower mortgage rates. 

Inflation is another key factor; if inflation rises, lenders may raise rates to safeguard against diminishing returns. On the other hand, low inflation may contribute to more stable or lower mortgage rates. Monitoring market trends, economic indicators, and inflationary pressures is crucial for individuals seeking to understand and anticipate fluctuations in mortgage rates.

Right now, in Chicago and nationwide, it’s a tough market for loans, whether you’re seeking one for a condo or single-family home. Mortgage rates are incredibly high compared to the last three to four years. Additionally, banks are tightening their mortgage requirements, making it harder for prospective buyers to obtain a loan.

Teaming Up With An Expert

If you want to obtain a favorable mortgage rate and secure your dream home, navigating these waters with an experienced professional is beneficial.

Our team of licensed brokers can help further answer questions like, “Are condo mortgage rates higher? (Than compared to single-family homes),” or “What are the pros and cons of a house vs. condo?” We can also help you confidently walk through each home-buying step.

Connect with us today!

 

Learn More: The Homebuying Process

How Much is a Down Payment For a Condo?

Posted on by Lauren Bozarth

If you’re in the market for a new Chicago condo, there are various considerations to make before taking the plunge. Assessing your financial situation and available payment options may be one of the most crucial first steps.

Our team wants to help you navigate your loan, particularly your down payment, so you can feel confident in the journey to ownership and ultimate purchasing decision. This blog will cover common questions, from “How much is a down payment for a condo?” to “Are there down payment assistance options for condo buyers?”

Understanding the Down Payment

A down payment is a lump sum of money you pay upfront when buying a condo. It’s a crucial component of your home purchase as it directly affects the loan amount you’ll need to secure. The larger your down payment, the lower your loan amount, which can lead to more favorable loan terms and reduced monthly payments.

Down Payment Requirements

The down payment requirements for condos can vary based on factors such as the price of the condo, the lender you choose, and the type of loan you qualify for. Typically, down payments for condos range from 3% to 20% of the total purchase price. 

In Illinois, the average down payment percentage is 14.3%.

Let’s break down what you should know about these requirements:

  • 3% to 5% Down Payment: As a prospective Illinois home buyer seeking a conventional loan, required down payments typically run 3% to 5% of the home purchasing price. While this might seem attractive for those with limited funds, it’s essential to consider that a smaller down payment often leads to higher monthly payments and private mortgage insurance (PMI) costs.
  • 10% to 20% Down Payment: This percentage range is often seen as a balance between affordability and favorable loan terms. A higher down payment can lead to lower interest rates and less risk for the lender.

Down Payment Percentages

The percentage of the down payment you’ll need depends on the total purchase price of the condo. Here’s a general breakdown:

  • For condos in the lower price range, you may be required to make a down payment of 3% to 5%.
  • Mid-range condos often have down payment requirements of 5% to 10%.
  • Luxury condos, with a higher purchase price, may necessitate a down payment of 10% to 20% or more.

Minimum Down Payment vs. Ideal Down Payment

While you may meet the minimum down payment requirements, it’s essential to consider the ideal down payment based on your financial situation. Making a larger down payment not only reduces your loan amount but also can help you secure a more favorable interest rate, potentially saving you money in the long run.

Down Payment Assistance Options

If you’re concerned about meeting down payment requirements, it’s worth exploring down payment assistance options that may work for your situation.

Within the Illinois Housing Development Authority (IHDA), the IHDA Mortgage division offers a variety of programs designed to assist first-time home buyers. Eligible home buyers have the opportunity to secure a 30-year fixed-rate mortgage and access down payment and closing cost assistance of up to $10,000

Veteran status is another factor that can significantly impact down payment requirements. If you’ve served in the United States military, you’re eligible for special veteran home-buying mortgage programs that enable you to make a 0% down payment while covering only the closing costs. This valuable benefit is a well-deserved privilege for our dedicated armed service veterans.

Understanding how much down payment for a condo is necessary for making an informed and confident purchasing decision. Your down payment significantly impacts your loan amount and monthly payments, making it an essential consideration in your condo-buying journey. 

Explore your options, assess your financial situation, and consider the ideal down payment that aligns with your homeownership goals. In the meantime, let one of our experienced brokers help you secure your dream home today!

 

Learn More: The Homebuying Process

Is Buying a Condo a Good Investment? Uncover Why Condos Make an Excellent Investment Opportunity

Posted on by Lauren Bozarth

Is buying a condo a good investment? If this question has crossed your mind, you’ve come to the right place.

Condos can make an excellent investment and an opportunity to diversify your portfolio. However, to make a wise investment, it’s important to equip yourself with a thorough understanding of condo investments and professional real estate guidance. 

In this post, we’ll highlight the advantages and considerations of Chicago condo investments. We’ll explore the various facets of buying a condo for investment, including how much condos appreciate per year and neighborhood matchups for potential investors in Chicago. You can also expect to learn why condos can be a lucrative addition to your investment portfolio.

 

The Benefits of Buying a Condo for Investment

Let’s delve into some key reasons why buying a condo for investment might be a wise decision:

  1. Steady Appreciation: One of the first questions potential condo investors ask is, “How much do condos appreciate per year?” While appreciation rates can vary depending on location and market conditions, condos often appreciate steadily over time. Unlike single-family homes, condos are part of a community and benefit from shared amenities, which can boost their long-term value. Throughout the last decade, Chicago has maintained an average annual real estate appreciation rate of 4.88%. This consistent growth has positioned the city as one of the nation’s most prosperous real estate markets. 
  2. Rental Income Potential: If you’re not planning to live in the condo yourself, renting it out can provide a reliable source of income. Chicago condo’s proximity to companies, transportation, and popular attractions can significantly impact the rental income potential. A well-located condo can generate a strong income stream, making it an attractive option for investors.
  3. Diversification: Diversifying your investment portfolio is essential for risk management. Owning a mix of property types, including condos, can help you spread your risk and provide additional stability. The real estate market doesn’t always follow the same trends, and having a variety of investments can help protect your financial interests.

 

Tips for Buying a Condo for an Investment

When considering buying a condo for investment, our team has some helpful pointers to keep in mind:

  1. Strategic Timing: When you invest in a condo, timing matters. The best time of year to invest in a condo in Chicago typically falls during the late fall and winter months. During this period, the real estate market often experiences a slowdown, presenting potential buyers with a favorable window of opportunity. Reduced competition and lower demand can translate to advantageous negotiating power and potentially more flexible pricing from sellers. Additionally, this time of year may offer a chance to explore various options on the market, enabling investors to make informed decisions with less pressure, potentially leading to a more strategic and advantageous purchase.
  2. Smart Location: Location also matters when purchasing a Chicago condo and is paramount for long-term success. The neighborhood sets the stage for the property’s desirability, affecting its current value and potential appreciation over time. Factors such as proximity to transportation, local amenities, schools, entertainment, and safety greatly influence the property’s attractiveness to potential tenants or future buyers. Smart location choices can secure consistent rental income and ensure the property’s sustained value, making it a crucial consideration for any prudent condo investor in the vibrant city of Chicago.
  3. Condo Renovations: While a fixer-upper may initially appear less appealing, it often comes at a more affordable price point, allowing investors to potentially capitalize on undervalued properties. Investors can enhance the condo’s appeal, functionality, and market value by implementing wise and targeted renovations. Smart condo renovations, such as updating kitchens, bathrooms, or modernizing living spaces, can significantly boost the property’s resale value and rental income potential. With careful planning and execution, these improvements can turn a neglected condo into a highly desirable asset, offering substantial returns on investment in the long run. Even if you purchase a unit requiring minimal changes, a few strategic updates may increase value. Just be sure to understand the condo association’s renovation rules and regulations beforehand to avoid any unexpected hurdles.

 

Chicago Neighborhood Matchups for Potential Investors

Since we know location plays an important role when purchasing a condo, let’s explore some popular Windy City neighborhood matchups:

  1. West Loop vs. South Loop: Both West Loop and South Loop offer excellent investment opportunities. West Loop is known for its trendy restaurants and proximity to the downtown area, making it a popular choice for renters. On the other hand, the South Loop boasts cultural attractions like museums and parks. Consider your target audience and investment goals when choosing between these neighborhoods.
  2. Wicker Park vs. Lincoln Park: Wicker Park is a vibrant neighborhood with a thriving arts and music scene. It’s a great option for investors looking to attract a younger, artistic crowd. Lincoln Park, on the other hand, is known for its family-friendly atmosphere and beautiful parks. The choice between these two neighborhoods largely depends on your desired tenant demographic.
  3. Streeterville vs. River North: Streeterville is an upscale neighborhood with a waterfront location, making it an attractive choice for luxury condo investments. River North, known for its nightlife and art galleries, appeals to a younger and trendier crowd. 

Ultimately, Understanding your target market and rental income goals will help you decide which Chicago neighborhood is the best fit.

 

Final Thoughts

So, is buying a condo a good investment? The answer lies in your investment strategy, financial goals, and the specific condo you choose. Condos offer the potential for steady appreciation, rental income, and portfolio diversification. Additionally, Chicago offers various neighborhoods to consider, each with its unique charm and investment prospects.

At Luxury Living Chicago Realty, we understand the nuances of the Chicago real estate market and can help you navigate the complexities of buying a condo for investment. Our expertise in the city’s neighborhoods, market conditions, and investment opportunities positions us as the ideal partner for your real estate investment journey.

Reach out to our team of experienced real estate brokers, and let us guide you through buying a condo for investment with confidence.

 

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Overcoming Common Condo Financing Problems

Posted on by Lauren Bozarth

In the realm of luxury real estate, condos can make a wise home and investment, promising modern living, impeccable amenities, and a prime location. However, prospective buyers may face a maze of potential financing challenges. Fear not; overcoming common condo financing problems is possible with careful planning and expert guidance.

Common Condo Financing Problems

Let’s first delve into some common condo financing problems and how to triumph over them.

  1. High HOA Fees: Condo living often comes with the perk of shared amenities and external maintenance, but that can also mean hefty Homeowners Association (HOA) fees. High fees can strain a buyer’s budget and affect their loan eligibility. The solution? Prioritize properties with reasonable HOA fees or consider negotiating with the seller to cover some costs.
  2. Low Reserves: Reserves are funds set aside for future repairs or unexpected expenses and are crucial for the long-term health of a condo community. Low reserves can signal financial instability and make lenders hesitant. Buyers should inquire about a condo association’s reserve fund and choose properties with well-maintained financial health.
  3. Appraisal Issues: Appraisal problems can arise when the condo’s appraised value doesn’t align with the purchase price. To avoid this, ensure the property is in good condition and research recent comparable sales. If issues persist, consider renegotiating the price or exploring alternative financing options.
  4. Difficulty Obtaining Loans: Some condos fall into the “non-warrantable” category, meaning they don’t meet conventional loan criteria. To avoid this scenario, buyers can explore alternative loan options or work with lenders specializing in non-warrantable condos.

Additional Tips for Success

To navigate or even avoid these common condo financing challenges successfully, prospective buyers should consider the following:

  1. Maintain Good Credit: A solid credit score enhances your eligibility for favorable loan terms. Regularly check and improve your credit to secure the best financing options.
  2. Financial Preparedness: Save for a substantial down payment to improve loan approval chances and reduce the risk of private mortgage insurance (PMI) requirements.
  3. Be Proactive: Start the financing process early and team up with a knowledgeable real estate professional. Being proactive allows you to address potential issues before they become roadblocks.

Common Questions Answered

Here are some answers to questions we often hear from hopeful buyers overcoming common condo financing problems:

  1. How much down payment is required? A larger down payment, often 20-25%, is advisable to secure better loan terms and avoid PMI.
  2. Can I use FHA or VA loans for condo financing? FHA and VA loans are available for condos, but the property must meet specific eligibility criteria.
  3. What is Private Mortgage Insurance (PMI)? When is it required? PMI is insurance that protects the lender if the borrower defaults. It’s necessary when the down payment is less than 20%.
  4. What is a condo questionnaire? What role does it play in financing? A condo questionnaire is a document detailing vital information about the condo association. Lenders use it to assess the condo’s eligibility for financing.

When overcoming common condo financing problems, be informed but also leverage expert guidance and advocacy. Let our team of compassionate brokers help you secure your dream home today!

 

Learn More: The Homebuying Process

Benefits of Investing in Condos for First-Time Investors

Posted on by Lauren Bozarth

In today’s ever-evolving real estate market, first-time investors often grapple with where to put their money. Many also wonder, “Is real estate a good investment during inflation?”

Condos, often considered the unsung real estate heroes, offer an array of benefits that make them an excellent choice for novice investors. This post delves into the benefits of investing in condos, showcasing why they are an ideal starting point for those looking to dip their toes into real estate investments.

Lower Entry Costs

One of the primary reasons condos are an attractive choice for first-time investors is their lower price point compared to single-family homes. Condos provide an excellent entry into the real estate market without the substantial upfront costs required for a house. This affordability can be a game-changer for budding investors, enabling them to get their foot in the door.

Convenience and Amenities

Condos come with the added perk of convenience and attractive amenities that are often not readily available to first-time investors of single-family homes. The condo association typically takes care of the maintenance and upkeep of the building and common areas, which means fewer headaches for the investor. Additionally, many condo communities offer amenities like fitness centers, swimming pools, and community spaces, making it an enticing package for potential renters and buyers.

Location

When it comes to real estate, location is everything. Chicago can make it even more enticing for future buyers, enhancing the long-term value. The Windy City is known for continuous growth, attracting a steady stream of residents and businesses. It also has ample attractions, historic charm, waterfront access, and other factors that make it a prime territory for condo investments.

Rental Income Potential

Condos can be a goldmine for first-time investors looking to generate rental income. Depending on the rules and regulations of the condo association, you may have the opportunity to rent out your unit, providing a consistent stream of income. This income potential can be particularly attractive for those looking to diversify their investment portfolio and secure their financial future.

Tax Benefits and Deductions

Another noteworthy advantage of investing in condos is the array of tax benefits and deductions available for condo investors. These tax advantages can help you maximize your return on investment and reduce your tax liability. Be sure to consult with a tax professional to make the most of these opportunities and ensure you’re in compliance with local tax laws.

So, if you’re pondering, “Is real estate a good investment during inflation?” We hope you feel more confident moving forward with investing in a Chicago condo. With the right strategy and guidance, condo investments can be a savvy move for those beginning their journey in the real estate market.

Let our team of experienced professionals help you navigate the process and reap the benefits of investing in condos!

 

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5 Steps to Prepare to Purchase a Home

Posted on by Katie Dickemann

As we head into the springtime sales season in Chicago, I thought you would be interested in these five steps to help you prepare to purchase a home. 

If you are thinking about buying a home in Chicago, now is a great time to start the conversation.

Step 1: Connect with Your Real Estate Agent and Conduct a Buyer’s Consultation

A buyer’s consultation helps clarify the home buying process, sets the expectations on both sides, and lays the foundation for a happy client/agent relationship.

Step 2: Get Pre-Approved by a Lender

A mortgage pre-approval means that a lender has looked into your credit history, income stability, and current finances and is tentatively prepared to loan you money for a house. A mortgage pre-approval is usually good for up to 90 days.

Step 3: Start Gathering for a Down Payment

Historically, 20% was the benchmark for most individuals, but down payments are currently as low as 3% are common. Determine how much you can afford before you start your home search, and remember to consider how much your monthly payments will be.

In addition to the down payment, there are a few other costs associated with closing on your home, so be prepared to pay a few thousand dollars more to cover lawyer, mortgage, inspection, transfer, and a few other fees.

Step 4: Find the Right Partners

Your real estate broker will be your lifeline. So ask a lot of questions. Your broker will also have professional relationships in place for lenders, lawyers, inspectors, and other professionals who will all be there to make the home buying process as smooth as possible.

Step 5: Consider Your Timeline

It can take up to 30-60 days after you go under contract to close if you are securing a mortgage. Make sure your timeline for moving considers this timing.

Searching for a home or condo to buy in Chicago? Our team has access to all types of listings throughout every neighborhood in the city. From new construction to fixer-uppers, we’re ready to guide you through the home-buying process and find the perfect new home that fits all of your search criteria. Our trained and licensed agents specialize in the downtown Chicago area real estate market and are prepared to find the right home and get the best price.

Work with Luxury Living Chicago.

 

What Chicago Condo Appreciation Means for You

Posted on by LLCR Staff

There are quite a few factors that go into purchasing a condo. 

If you’re considering pulling the trigger on a condo in the Windy City, it’s essential that you feel confident moving forward with such a significant investment. 

Understanding Chicago condo appreciation is one way to put your mind at ease before committing to the big purchase.

What is Condo Appreciation?

As a homebuyer, you want to know that your potential property will appreciate, meaning an increase in value over time.

Ideally, if and when you ever re-sell your condo in the future, you would hope that you can profit and get more than what you paid for.

Condos can appreciate for a number of reasons, but the most significant factor is demand. Generally, the greater demand in a market, the greater the value of the property.

When it comes to finding a condo that will appreciate, you want to first start by looking at a promising real estate market. The state of the market directly impacts a property’s appreciation.

How the Chicago Market is Changing

When it comes to real estate, appreciation is local. While national trends can impact local markets, it’s important to understand the specific market that you’re considering buying in.

If you’re browsing the Chicago market, the good news is that the Windy City is considered a good spot for a real estate investment. The market is expected to continue heating up, thanks to its large population, diverse economy, and stable market.

The real estate appreciation rate in Chicago in the latest quarter was around 1.29%, which equates to an annual appreciation forecast of roughly 5% to 6%. While this percentage may seem small, even slight changes in the appreciation rate can change the long-term value of buying considerably.

The affordability and projected appreciation of Chicago homes are promising factors for prospective condo buyers.

What LLCR Condos Have to Offer

Luxury Living Chicago Realty boasts an impressive portfolio of Chicago condos throughout the downtown and surrounding areas.

Our luxury condos make a wise investment for any potential homebuyer. All of our properties offer a competitive location and top-notch features and amenities.

Additionally, Luxury Living team members can help you through the entire buying purchase to ensure you make a wise investment and take advantage of Chicago condo appreciation.

If you’re ready to find your Chicago condo, connect with one of our experienced brokers today!

 

Condo Board Meeting Rules — What You Need to Know

Posted on by LLCR Staff

Whether you’re planning on attending or running a condo board meeting, it’s crucial to have a grip on the rules.

Don’t worry—the Luxury Living team is here to break down everything you need to know about condo meeting rules.

Overview of Condo Board Meeting Rules

Condo board meetings designate a time and space for the association’s board of directors to manage the day-to-day administration of the condo association, such as the rules, regulations, and maintenance of housing development.

While specific condo board meeting rules depend on the community’s bylaws, there are standard expectations for any board meeting.

Condo board meetings must remain open to the members of the association unless it is a closed or “executive” meeting. These exclusive meetings are occasionally arranged to discuss more confidential matters, such as a legal issue or a homeowner’s financial status. 

Condo boards are always required to notify association members of meetings, often between seven and thirty days in advance. The notice should include an agenda of topics to be discussed.

During the board meeting, the agenda needs to be followed unless the governing documents provide an open forum during which new members may raise new business.

A member of the board is also required to keep minutes of each meeting and make those minutes available to HOA members.

Know What You Can Ask, Bring Up, Etc.

If you have an upcoming board meeting to attend, it’s helpful to know what’s appropriate to discuss beforehand.

One of the most important rules of thumb is sticking to the agenda. Make sure your questions and comments are relevant to the current discussion unless you’re provided an open forum at the end of the meeting.

Also, keep in mind that the board meeting is focused on more specific, day-to-day matters. if you have any concerns dealing with broader issues, such as rules of the association, or the annual budget, you can bring up these topics at the condo membership meeting.

Additional Resources 

If you’re an existing member of a condo association, don’t hesitate to reach out directly to your board for more clarity regarding the condo board meeting rules. You can also examine the association’s bylaws yourself if you feel comfortable.

A licensed broker is another excellent resource if you have questions or you’re still looking for the right condo. Connect with our experienced team today!

Can You Renovate a Condo?

Posted on by LLCR Staff

Condo renovations can help transform a house into your dream home. These projects also have the potential to increase the value of your property drastically.

If you’ve questioned whether or not you can renovate a condo, then keep reading.

Whether you have experience with home renovations or this is a new venture, rest assured that the Luxury Living team is here to share how to remodel a condo and what you need to know beforehand.

 

Condo Renovations That Improve Your Home Value

Renovations have great potential to maximize your property’s worth. Improving your condo’s value can help ensure a return on investment if you decide to resell your property.

Check out some of the best condo upgrades to improve your home value:

  • Kitchen: According to real estate experts, the kitchen is the most significant upgrade. Many new home buyers rank ‘modern kitchen’ as a top priority in their house hunt. Invest in refitting this area with brand new quartz countertops, refitted cabinets, and stainless steel appliances.
  • Hardwood Floors: Floors are also a major selling point for your home. While hardwood floors may cost more out of pocket, they prove to be a worthwhile investment by helping units sell faster and for higher prices. There’s nothing worse than bad, outdated carpet.
  • Bathroom: The bathroom speaks volumes to potential homebuyers. It is worth your dime to upgrade the cabinets and other features throughout your bathroom. Good news is that these upgrades tend to run at a much lower cost compared to kitchen renovations.
  • Paint: Even a fresh paint job can work wonders for increasing the value of a condo. Play it safe and stick with a neutral color scheme. Whites and off-whites remain the top-selling interior colors and appeal to most homebuyers.

 

What You Need to Know About Condo Renovation Rules

Homeowner associations (HOAs) are responsible for managing condo communities. These associations have tight control over establishing rules that unit owners must follow, especially when it comes to remodeling.

Condo owners are often under many more rules when it comes to remodeling a unit than single-family homeowners.

Before beginning any renovations, it is critical to examine your HOA’s condo renovation rules to see what is permissible. You can find these guidelines laid out in the CC&R (covenants, conditions, and restrictions).

Condo owners considering remodeling often inquire if they can remove a wall in a condo.  Generally, the answer is ‘yes.’ However, the unit owner must first go to the HOA board for approval.

Unit owners require permission to remove a wall is because it is considered a structural change.

So what exactly is a structural change in a condo?

In many HOA bylaws, when defining structural change, a standard clause reads, “Nothing shall be done in any unit or on the common areas which may impair the structural integrity of the building or which may structurally change the building.”

Essentially, a structural change involves changing your condo unit’s original floor plan and knocking down walls.

Anytime you change your unit’s layout, you need to run your design plans by HOA to ensure the safety of your unit and the entire building.


How to Use Condo Remodeling Contractors

Teaming up with condo remodeling contractors helps optimize the outcome of your home renovations. It also saves you time and stress associated with home improvement projects.

However, before moving forward with a contractor, you need to find a good fit.

Narrowing down a suitable contractor involves finding one who you trust and one who fits into your condo renovation budget.

Do some research beforehand and get recommendations. Speak with local real estate experts or friends to help find someone with a good track record. If no one in your circle of friends has a referral, check in with the National Association of the Remodeling Industry for a list of reliable members in your area.

If you think you’ve found your potential hire, meet for an in-person interview to be sure the contractor is a good match before making anything official.

Once you’ve secured the right person for the job, ensure that the contractor is up to speed with your HOA’s renovation rules and regulations.

The final step before contractors can begin residential contractor condo work is putting everything in writing.

Write up a contract that details every phase of the project: payment schedule; proof of liability insurance and worker’s compensation payments; a start date and projected completion date; specific materials and products to be used; and a requirement that the contractor obtain lien releases (which protect you if he doesn’t pay his bills) from all subcontractors and suppliers.

 

What Are Condo Flooring Requirements?

Homeowner associations often implement condo flooring requirements to minimize noise complaints and keep residents happy.

Hard-surfaced floors can lead to noise nuisances and frustrations from the downstairs neighbors.

Therefore many HOAs include restrictions on hard surface flooring in the rules and reference sections of the CC&Rs to ensure quiet flooring for condos. There may also be an adoption of guidelines as to what an owner can do to get approval for hard surface flooring if possible.

If you are considering tearing out that old carpet and replacing it with beautiful hardwood, be sure this condo renovation follows the HOA’s guidelines.

Laminate makes one of the best floorings for condos. This material looks as beautiful as hardwood, but is more affordable and know for its soundproof qualities.

Vinyl is another popular option that tends to provide the quietest flooring option.

Before moving forward with any home improvement project, be sure to understand and follow your HOA flooring rules to avoid conflict and complaints.


Can You Convert One Bedroom Into Two in Your Condo?

If you want to convert one bedroom into two, be sure to check out your condo HOA’s CC&Rs. Odds are you will need to get approval from the board before moving forward with the remodeling, especially since it is a structural change.

When examining what is considered a structural change in a condo, it is clear that if you add an extra room to your condo you will be changing the original floorplan of your unit and knocking down walls.

Before making any structural change, remember that you need to run the project pass your homeowners association to avoid fines or court. Many associations ask homeowners to file an architect’s plan for any alterations on a unit.

While it is likely that your HOA will allow this structural change, they need to be in the loop during this process, especially if it will be a loud and possibly disruptive project.

Homeowners associations generally try to grant unit owners as much freedom as possible, as long as they don’t upset or violate the rights of community members.

Renovating a condo provides an exciting opportunity for homeowners to bring their dream house to life. Begin your property’s transformation today!

Buying a Home in the Summer? Use These Tips

Posted on by LLCR Staff

Any Chicagoan will agree that there is nothing like a Chi-Town summer- from the sunny Saturdays spent lounging on the beach to the constant energy felt among the city streets.

Not only does the city come alive during this sunny season, but the real estate market heats up as well.

Take advantage of the hot Chicago market and consider buying a home in the summer.

Buying a Home in the Summer

Summer house hunters are bound to find plenty of listings on the market to choose from. While the number of listings dwindles a bit from the springtime, this means that many buyers will see price drops or sellers will be more likely to negotiate for a better deal.

If you have a family, summer makes for the ideal time to move, before the new school year starts up. It allows kids to adjust to a new home and relax before classes are back in session.

Additionally, many leases tend to end at the beginning of summer, providing the perfect window of opportunity for first time home buyers.

Selling a Home in the Summer

While spring is known as the peak season in the world of real estate, the summer is still a great time to sell. According to Realtor.com, the summer months account for 50 percent of homes sold.

Although the real estate rush slows down after May, rest assured that there are still plenty of house hunters on the market during the summer. Furthermore, many of those buyers are serious and extremely motivated to close before the end of summer, before the cold and school start up again.

Summertime weather also ensures high-quality photos and much better showings than the gloomy seasons. The constant sunshine and landscaping in full bloom always help with the presentation.

Summer Moving Tips

The Luxury Living team has compiled a few pointers to keep in mind if you plan on moving during a toasty Chicago summer:

  • Hire a professional agent– To fully take advantage of the summer market, utilize an experienced broker to help narrow down the best housing options and secure the best possible price.
  • Move in the middle of the summer– The beginning and end of summer consistently prove the busiest times to move. Avoiding the craziest times will alleviate the stress of finding available moving trucks and empty elevators.
  • Prepare for the heat– During the moving process, be prepared for high temperatures and intense sun. Dress appropriately, stay hydrated, and layer on that sunscreen.

If you are ready for a new place and think you can handle the heat, consider buying or selling a home in the summer. Don’t let this hot summer selling season pass you by.

Why You Should Consider Selling or Buying a Home in the Fall

Posted on by LLCR Staff

Fall is a season of change-  temperatures dropping, leaves falling and sweaters making an appearance.

Among this time of transitions, consider making a big move of your own by selling or buying a home in the fall.

Selling a Home in the Fall

The fall season, including dates between September 1 and November 30, often makes for a promising time to sell a home.

Naturally, selling a home during any season comes with advantages and disadvantages.

Here are a few pros and cons to be aware of if you plan on selling your home in the fall:

Advantages of selling a house in the fall:

  • The fall tends to bring in serious buyers. Fall house hunters are often motivated to purchase quickly- before the winter hits and the busy holiday season begins.
  • After the summer, there are fewer listings on the market. This means less competition for sellers and more opportunities to get close to or over asking price.

Disadvantages of selling a house in the fall:

  • Fall is considered an off-peak season, which means sellers won’t see as many prospective buyers as the springtime.
  • As the weather declines during the fall, this has the potential to hinder showings and curb appeal.

Fall Moving Tips

To ensure a smooth and successful fall move keep these tips in mind:

  • Begin the search or sale early- Typically the real estate market stays pretty strong, until about October when it starts to slow down. Therefore, if you are considering listing your home in the fall, don’t delay to increase the odds and timeline of a closing.
  • Photograph ASAP– The earlier you can take those professional house photos, the more promising they will turn out. Not only is the weather more likely to cooperate, but you are also more likely to still have some pretty landscaping intact and better lighting for the photo-ops.
  • Hire a professional agent– Teaming up with a licensed broker helps ease the buying and selling process, and also promotes closing the best deal. Brokers understand the local real estate market and have insight into maximizing the city’s season for a successful sale.

Best Time to Buy a Condo

If you are a new or younger buyer in the market for a condo, fall remains a great season to shop.

According to Trulia’s Q3 inventory report, peak home buying season for “starter” home buyers typically begins in the fall. With more homes listed during this season, buyers not only receive more options to choose from, but will also see the prices of homes soften.

If condo buyers are on a tight budget, winter may be a wise time to buy. This season generally guarantees the best deal on a purchase. However, be aware that there tends to be a limited array of listings on the market during this time.

Before it gets too cold or too busy, team up with an experienced broker who can make selling or buying a home in the fall the best decision of the season.

How to Go About Buying or Selling a Home in the Winter

Posted on by LLCR Staff

The Chicago winters are a great time to bundle up, prepare for the holidays, and enjoy the plenty of restaurants. This season also makes for a fantastic time to buy or sell a home in the Windy City.

Buying or selling a home in the winter proves to be a smart move for both parties, and the Luxury Living team is here to tell you why.

Buying a Home in the Winter

Whether you are in the market for your first house or a new place to call home, consider buying your dream place in the winter.

Although winter may not be the most popular time to house hunt, this proves beneficial to buyers. The winter season provides the most affordable time to close on a new place.

With fewer people shopping for homes during the winter, competition is limited. This minimized competition means lower demand, which also helps keep the housing prices down.

Not only are there fewer buyers during the winter, but there are also fewer houses on the market. While this reduces buyers’ options, it helps keep the listing prices down.

Also, be aware that purchasing a house at the end of the year will provide significant tax benefits. If you close on a house before the new year, you can deduct closing costs, mortgage interest, and property taxes. Additionally, interest rates are generally lower before the new year.

Why Sell in Winter

The winter also makes for an ideal time to sell your property.

With a smaller pool of houses for sale during the winter, sellers have less competition as well. Naturally, with less competition, homes can be listed and sold for higher prices than during busy seasons.

A study conducted by online brokerage Redfin found that average sellers net more above asking price during December, January, February, and March. The same study also revealed that homes listed during the winter months sell faster than those listed in the spring.

Winter Moving Tips

Moving in the winter is a wise financial move, but it may also present some challenges.

To alleviate some of the stress associated with the Windy City winters here are a few moving tips:

  • Hire professional movers- We promise this is an investment that will prove worthwhile. Save yourself the time, trouble, and cold by allowing moving experts to take on the task.
  • Keep an eye on the forecast- Monitor the weather leading up to moving day to make sure there’s not an unexpected storm on the way. If the radar isn’t looking too promising you may want to adjust your moving schedule.
  • Find an experienced broker– Teaming up with a real estate and Chicago expert can help ease and speed up the process and make the transition easier.

Don’t let the cold keep you from buying or selling a home in the winter. Get in touch with a broker and begin the process today!

Here’s the Best Time of Year to Buy a Condo in Chicago

Posted on by LLCR Staff

While there may not be a magic formula to determine the perfect time to invest in a property, an understanding of the real estate market and the Windy City seasons can help suggest the best time of year to buy a condo in Chicago.

With years of experience and a thorough understanding of the Chicago market, the Luxury Living team is here to help you decide on when you should start looking for a condo.

Best Time to Buy a Condo

Why is the timing of your condo purchase so important? The time of year that you chose to house hunt can impact various factors of your purchase- from the number of listings to choose from to the price of your desired property.

By understanding the seasonal market trends, you can better make a strategic and worthwhile investment.

Based on the Chicago market, every season has its own set of advantages for potential buyers.

For young home buyers, or anyone looking to save money, the winter months, specifically January and February, may be the best time to make an offer. Numbers show that average condo price drop around $6,000 in the winter, compared to the late spring and summer.

If buyers are more concerned with options rather than price, springtime offers Chicagoans with the highest number of housing listings to choose from. Just keep in mind that with more competition on the market, spring tends to increase the price of listings.

Best Time to Buy a Home in Chicago

While condos are a hot housing option in a large city, you may still be considering buying a single-family home in Chicago. If this is the case, keep in mind that the seasons affect the market similarly for both condos and homes.

Since many families occupy homes in the city, it is common for these families to chose to move around the summertime, before the new school year starts, especially if they are changing school districts. Therefore, this is a promising season to house hunt if you are looking for a large selection of listings on the market.

How Long Does it Take to Buy a Condo?

Once you are ready to pull the trigger and buy a property in Chicago, keep in mind that this journey may take a while. The entire process, from beginning the house search to closing on your purchase, can take anywhere from three to six months; or even longer if issues arise.

While the house hunting period depends largely on the efficiency of the buyers and agent, the average closing period in Chicago hovers around 45 days.

Make sure to keep up with these seasonal market trends and team up with an experienced broker to help you narrow down the best time of year to buy a condo in Chicago.

What’s the Best Time of the Year to Buy a Home?

Posted on by LLCR Staff

Timing is crucial- especially when it comes to buying a home.

While there are plenty of factors to consider when purchasing a property, timing can drastically affect the market, which directly impacts your purchase.  

The Luxury Living team is here to help provide insight into determining the best time of year to buy a home.

Here’s the Best Time of Year to Buy a Condo in Chicago

If you are considering purchasing a condo in the Windy City, it is vital to figure out the best time of year to begin your house hunting to ensure a strategic and worthwhile investment.

While there is no perfect formula for timing your condo purchase, there are certain seasonal trends that help indicate the ideal time to buy.

For young home buyers, or anyone looking to save money, the winter months, specifically January and February, may be the best time to make an offer. Numbers show that average condo price drop around $6,000 in the winter, compared to the late spring and summer.

If buyers are more concerned with options rather than price, springtime generally proves to be a better time to house hunt. This season tends to offer Chicagoans with the highest number of housing listings to choose from. Just keep in mind that with more competition on the market, springtime tends to increase the price of listings. March through May are the months that homes find themselves selling for record high prices.

While condos are a hot housing option in a large city, we can’t forget about the single-family homes. If you’ are curious when the best time to start browsing for this home type, the rule of thumb is generally the same as condo purchases.

Once you are ready to pull the trigger and buy a property in Chicago, keep in mind that this journey may take a while. The entire process, from beginning the house search to closing on your purchase, can take anywhere from three to six months; or even longer if issues arise.

While the house hunting period depends largely on the efficiency of the buyers and agent, the average closing period in Chicago hovers around 45 days.

How to Go About Buying or Selling a Home in the Winter

While the Chicago winter is a time of holiday hustle and bustle and frigid temperatures, don’t let this deter you from buying or selling your home.

With the wintertime proving to be a wise time to buy a home, consider using this season to find your dream home.

While buying a home in the winter is often the most affordable time to purchase a property, keep in mind that listing options are not as abundant during this season. The smaller pool of homes helps keep the listing prices down but also limits your selection.

The winter is also an excellent time for people looking to sell their property, especially because of the tax benefits. Buying and selling in the winter allow both parties to apply credits or claims on taxes before the new year.

Moving during the Chicago winter is a wise financial move, but it may also present some challenges.

To alleviate some of the stress associated with the Windy City winters here are a few moving tips:

  • Hire professional movers- We promise this is an investment that will prove worth it. Save yourself the time, trouble, and cold by allowing moving experts to take on the task.
  • Keep an eye on the forecast- Monitor the weather leading up to moving day to make sure there is not an unexpected storm on the way. If the radar isn’t looking very promising you may want to adjust your moving schedule.
  • Find an experienced broker– Teaming up with a real estate and Chicago expert can help ease and speed up the process.

Why You Should Consider Selling or Buying a Home in the Fall

The fall season is another promising time to consider selling or buying a home. During this time the normal market typically sees a second “rush” of buyers, especially as many leases come to an end, schools start back up, and people want to buy or sell before the winter comes.

Typically the real estate market stays pretty strong, until about October when it starts to slow down. Therefore, if you are considering listing your home in the fall, be sure to begin the sale early to increase the odds and timeline of a closing.

If your home has a nice amount of outdoor space, keep in mind that as the season begins to approach winter, your landscaping may start to die. You want to try and capture buyers attention while your outside is still pretty.

Tips for Buying or Selling a Home in Spring

Springtime in Chicago often proves to be a busy time in the world of real estate. Many sellers like to wait for the winter to pass until they list their property. Vice versa, many buyers also hold off searching for the dream house until the weather clears up and more listings pop up on on the market.

The main appeal for home buyers to shop in the spring is the listing options. This season tends to boast a variety of housing options, providing house hunters with endless choices and the opportunity to be more selective.

While buyers have the advantage of a wide selection, they should also be prepared to pay more competitive prices. If you end up finding a home during the spring, make sure to work closely with a licensed broker to help find a suitable property in your budget and negotiate a fair closing cost.

While these higher listing prices may deter some potential buyers on a budget, this competitive market tends to entice sellers. With so many properties for sale, sellers can list their house for the highest and best dollar. The nicer spring weather also enhances properties’ curb appeal and online pictures, which further helps attract potential buyers.

Buying a Home in the Summer? Use These Tips

There is nothing like a Chi-town summer. Not only is this the perfect time to explore Chicago, but it also makes for a great season to buy a home for yourself.

Summer house hunters are bound to find plenty of listings on the market to choose from. While the number dwindles a bit from the Springtime, this means that buyers will likely see price drops or sellers will be more willing to negotiate.

To fully take advantage of the hot summer market, be sure to utilize a broker to help narrow down the best house options and ensure you get the best possible price. Don’t forget that during this season you are likely to pay less than the asking price.

The summer is also a suitable time to put your house on the market if you are ready to sell. While your home may not sell as fast as it would in the Spring, the likelihood of a contract is still very high. Just be prepared for interested buyers to negotiate during this time of year.

As a seller, also keep in mind that the beautiful summer weather helps ensure better quality photos and better showings than during the gloomy seasons.

With a greater understanding of the Chicago seasons and how they impact the housing market, hopefully you feel more confident determining the best time of the year to buy a home.If this season is right for you, contact an experienced broker to help you find your dream home today!

Tips for Buying a Condo to Rent

Posted on by LLCR Staff

Buying a condo to rent can make for an extremely rewarding investment. While this process is exciting, keep in mind that it is also a big endeavor.

It is critical first to understand the best approach to buying a rental property to equip yourself to make a wise and confident purchase. With this in mind, the Luxury Living team is here to help prepare you for buying and renting a condo.

Why People Buy Condos to Rent Them

Purchasing a condo to rent is an excellent opportunity to leverage additional monthly income, as well as tax benefits.

You will find yourself saving big money during tax season if you take advantage of all the deductions you are entitled to receive for expenses related to your condo rental. These deductions reduce the amount of money you are taxed, ultimately increasing your rental profits.

Many investors are also drawn to condos for rental purposes because these property types are often more affordable and easier to maintain than single-family homes, especially in a large city like Chicago.

Additionally, homeowners associations help alleviate stress for condo owners renting out their units. Since HOAs manage condo building, they are often responsible for handling many of the basic services. This means owners don’t have to sweat building repairs or managing garbage removal, a luxury that not all property owners have.

How to Approach Finding a Condo to Rent Out

Before narrowing down a condo to rent out, research is critical. Teaming up with a licensed broker can streamline the search process and ensure a suitable rental property.

We’ve compiled a list of key factors to consider when finding a condo to rent out:

  • Find a desirable location: When it comes to any property purchase, location is everything. Finding a hot or up-and-coming neighborhood will increase the value of your property.
  • Examine the HOA: Homeowners associations can impact your potential investment immensely. Before buying, make sure you feel comfortable with the HOA’s monthly dues, as well as their rules and regulations.
  • Consider financing: Before purchasing a condo, you need to apply for a mortgage. Lenders will often review the condo board documents and building operations.

What to Know About Having Renters

Before leasing out your condo, you also need to understand what it is like dealing with renters.

Condo owners seeking to lease out their property need to thoroughly examine renter applications to ensure a wise choice in a tenant. Since renters will be residing in your property, you want to choose a responsible tenant who will likely take care of the unit and keep up with rent.

Hopefully, with more insight into the world of renting, you can feel more confident buying a condo to rent out. Get in touch with an experienced broker to begin the process today!

Are Condos Hard to Sell?

Posted on by LLCR Staff

Before investing in a property, particularly a condo, it’s natural for prospective buyers to question the difficulty or ease of the resale process.

While the resale process can vary, the Luxury Living team is here to break down the burning question, “Are condos hard to sell?”

Brief Overview of Selling a Condo

When it comes to selling a condo, one of the most critical factors to take into consideration is the homeowner association. This is one of the major distinctions between the sale of a condo and a single-family home.

Since the HOA manages the community, they are also responsible for laying out the rules and regulations regarding resales. Therefore they need to be the first point of contact before any resale.

Improving the chances and timeline of a condo sale also involves listing your property’s assets. These are all of the features that make your apartment great. Assets help your property stand out among all of the other current listings and attract potential buyers.

Additionally, ensuring a deal and profit involves pricing your property right. This involves having an understanding of the market and the value of your condo.

Teaming up with a licensed broker throughout this entire resale process will streamline the sale and help close a profitable deal.

Tips on the Current Market

Understanding the state of the current market is critical in deciding the timing and pricing of your property sale. Selling your condo during a prime market time can increase the odds and profitability of a sale.

Various factors, including the job market and time of year, may impact the market. However, even in down markets, the refreshing news is that condos tend to sell faster than single-family homes.

When it comes to pricing your condo with the market, it is pertinent to find a competitive price for your property. This involves researching similar listings and understanding how yours compares.

How Finding an Awesome Broker Makes it Easier

Finding an experienced real estate broker increases the odds of selling your condo, especially as a new investor. These licensed professionals have a thorough knowledge of the process as well as the current market.

Brokers also can help stage your condo, or find a professional stager, to help improve the presentation of your property so that it can stand out when it comes time to show.

Additionally, brokers have the experience to list your property appropriately. They can help market your property by highlighting your condo’s assets and putting your condo on the map.

If you have wondered if condos are hard to sell, rest assured that understanding the condo resale process and teaming up with an insightful real estate expert will ensure a smooth operation!

What You Need to Know About Buying a Condo as an Investment Property

Posted on by LLCR Staff

If you have a desire to profit from the robust Windy City real estate market, consider buying a condo as an investment property.

For any new or experienced buyer, condominiums provide a more affordable and low-maintenance investment in a large city.

What Are Investment Properties

An investment property is real estate property that is purchased with the intention of earning a return on investment, or a profit on the original purchase. This ROI is often gained through either rental income or the future resale of the property.

While there is no magical secret to finding the perfect investment property, investors do rely on certain skills and strategies to help narrow down a property that is likely to be profitable.

Teaming up with an experienced broker is one of the first steps any buyer should take to ensure an informed and strategic property investment.

Why do People Choose Condos as An Investment

If you are considering investing in a condo, know that you are not the only one who recognizes the advantages that this property type offers. Condominiums attract investors for multiple reasons.

First, condos tend to be more affordable than single-family homes; especially in a large city like Chicago.

Condo investments also provide the opportunity to profit on monthly rental income and receive substantial tax write-offs.

Additionally, if you invest in a condo, there is less maintenance to worry about. The real estate investors are not directly responsible for caring for the building or common grounds area, which means more time and less stress.

How to Find the Right Option for Your Investment

To ensure a wise investment and maximize your ROI, it is essential to find a condo unit that best fits your needs.

Here are a couple of items to keep in mind when searching for the right investment:

  • HOA Fees: Investors appreciate condos because the homeowner association provides beneficial maintenance and services to residents. However, to fund these activities, unit owners are required to pay monthly or annual dues. Before closing on a property determine how much you would be expected to pay as a member of HOA.
  • HOA Rules: Along with fees, HOAs also establish a set of rules for condo owners and residents to follow. Some HOAs enforce stringent regulations regarding rentals, including the number of units that may be rented out. Examine your potential properties to ensure that the guidelines won’t interfere with any plans to rent or resell.
  • Financing the Investment: Be sure to sort out your plans to fund your investment. While obtaining mortgage loans is a common method of financing, keep in mind that these loans are generally more expensive to obtain than single-family detached homes.

If you are ready to break into the world of property investment and start building equity, consider buying a condo as an investment property. Let the Luxury Living team help you find the perfect property today!

Are Condos a Good Investment?

Posted on by LLCR Staff

Investment properties open the door to various financial benefits. With multiple property types for investors to choose from, you may be wondering if condos are a good investment.

The answer is yes. However, to ensure a worthwhile investment, make sure you chose the right condominium to fit your needs. A wise selection is crucial to profiting on your property and building equity.

What You Need to Know About Buying a Condo as an Investment Property

Many people get involved with investment properties with the intention of earning a return investment. This involves purchasing a real estate property and receiving additional income either through rental income or the future resale of the property.

Condo units attract investors for multiple reasons.

First, condos tend to be more affordable than other properties, such as detached single-family homes; especially in a large city.

Condo investments also provide the opportunity to profit on monthly rental income and receive substantial tax write-offs.

Additionally, if you invest in a condo, there is less maintenance to worry about. The real estate investors are not directly responsible for caring for the building or common grounds area, which means more time and less stress.

If you are considering buying a condo as an investment property, it is essential to find a unit that best fits your needs.

To find the best option here are a couple of items to keep in mind:

  • HOA Fees: Condos are great because the homeowner association provides beneficial maintenance and services to residents. However, to fund these activities, unit owners are required to pay monthly or annual dues. Before closing on a property determine how much you would be expected to pay as a member of HOA.
  • HOA Rules: Along with fees, HOAs also establish a set of rules for condo owners and residents to follow. Some HOAs enforce stringent regulations regarding rentals, including the number of units that may be rented out. Examine your potential properties to ensure that the guidelines won’t interfere with any plans to rent or resell.
  • Financing the Investment: Be sure to sort out your plans to fund your investment. While obtaining mortgage loans is a common method of financing, keep in mind that these loans are generally more expensive to obtain than single-family detached homes. Also, if you are looking into a loan, be aware the lenders will not only evaluate you but the condo HOA as well.

Are Condos Hard to Sell?

If you are considering investing in a condo, it is natural to question the difficulty or ease of selling this type of property.

One of the most important factors to consider when answering this question is the HOA. Your homeowners association is responsible for laying out the rules and regulations regarding resales. This is also why it is important to understand your HOA’s guidelines before you ever purchase.

Improving the chances and timeline of a condo sale also involves listing your property’s assets. These are all of the features that make your apartment great. Assets also help your property stand out among all of the other current listings.

Finding an experienced real estate broker will also increase the odds of selling your condo, especially as a new investor. These licensed professionals have a thorough knowledge of the process as well as the current market.

Understanding the state of the current market is critical in deciding if it is a wise time to sell. Various factors, including the job market and time of year, may impact the market. However, even in down markets, the refreshing news is that condos tend to sell faster than single-family homes.

Tips for Buying a Condo to Rent

Many investors purchase condos to rent because it leverages monthly rental income and provides tax benefits.

Buying a condo to rent may prove a big endeavor, especially as a new investor. It is critical to understand the process beforehand to equip yourself in making a wise and confident purchase.

Here a few tips before closing a deal:

  • Find a desirable location: When it comes to any property purchase, location is everything. Finding a hot or up-and-coming neighborhood will increase the value of your property.
  • Examine the HOA: Homeowners associations can impact your potential investment immensely. Before buying, make sure you feel comfortable with the HOA’s monthly dues, as well as their rules and regulations.
  • Consider financing: Before purchasing a condo, you need to apply for a mortgage. Lenders will often review the condo board documents and building operations.

Before leasing out your condo, you also need to understand what it is like dealing with renters.

Condo owners seeking to lease out their property need to thoroughly examine renter applications to ensure a wise choice in a tenant. Since renters will be residing in your property, you want to choose a responsible tenant who will likely take care of the unit and keep up with rent.

What is an HOA Resale Package?

When a buyer is ready to purchases a condo, the homeowners association administers a resale package, often prepared by the seller, within ten days of the initial offer. This package is a packet of crucial information, including a complete set of record documents that govern the association.

While this package may vary depending on the state, it commonly includes the following documents:

  • Annual Financials
  • Articles of Incorporation, Budget
  • Bylaws
  • Covenants, Codes, & Restrictions (CC&Rs)
  • Insurance Declaration Page
  • Regular Meeting Minutes
  • Resale Certificate/Demand
  • Reserve Report, Rules and Regulations.

Every potential buyer should obtain an HOA resale package to gain critical information regarding the purchase, which may impact the decision to move forward with the purchase.

The resale package also eases the buying and selling process by laying out information that protects both the buyer and the seller from potential disagreements and litigation.

If you make an offer on a property and do not receive a resale package, your real estate agent should be the first point of contact.

Is a Home or Condo a Better Investment?

Potential investors commonly inquire if homes or condos are a better investment. The truth is that the answer is not black and white. It depends entirely on the buyer’s needs and the local market.

If you are looking to invest in a big city, specifically the Windy City, it is safe to say that a condo is a wise move.

Purchasing a condo allows for easier entry into the housing market at a much more affordable cost. New buyers have an easier opportunity to take advantage of tax deductions and build equity.

Finding affordable single-family homes in a big city tends to be unreachable for new or young buyers, with many of these properties reaching the millions.

Condo investments also mean less maintenance and more free time for buyers. Instead of worrying about keeping up with the yard or dealing with building repairs, condo owners can leave these concerns in the hands of the homeowners association.

Securing a worthwhile investment also involves a thorough knowledge of the market and the needs of the buyer. For new and experienced investors, licensed brokers can help ease the search process and find the most suitable property.

Don’t let the opportunity to invest and build equity pass you by. Team up with an experienced broker and find the perfect condo today!

10 Tips to Know Before Buying in Chicago

Posted on by LLCR Staff

Luxury Living Chicago Realty’s brokers are here to help with your home search every step of the way. Every team member is dedicated to providing personalized, professional, and prompt service. Our experienced agents share insights and recommendations of proven partners, including lenders, inspectors, and attorneys. We’ll ensure exceptional service for all your real estate needs. If you’re just getting started with the buying process, we’ve rounded up 10 helpful tips from our team:

Getting Started

#1) “Start early and take your time. Chicago’s housing market has limited inventory and if you’re trying to time a lease you could get stuck with a home you either don’t love, or worse, have to move into your parent’s basement. While overlapping rent and mortgage can pose a short-term challenge, the long-term benefits are almost always worth it.” – Jake Tasharki

#2) “Make sure you speak to a lender first and foremost.  It’s imperative to speak to the “financial part of the equation first.”  Ask someone you know what lender they have used.  Ask your current real estate agent who he recommends.  I’d recommend comparing both lenders; your friend/family referral and your agents’ recommendation.  Tell the agent in layman’s terms your ideal plan because  not everyone is destined for 10% with a 30 year loan.  Lenders also have first-time buyer programs and they view you as a long-term client.  Get a feeling for pricing and budget and then go to your real estate agent.  Much easier if you tell your real estate agent your budget then them telling you what it should be.” – Sam Kahn

#3) “Don’t let a large down payment scare you from becoming a homeowner. Many people are unaware that you can buy a home with a down payment of less than 20%. There are lenders that offer loans with down payments of 5% or less. It is important to discuss your budget and goals with your lender to see all of the loan options available and determine what will work best for your situation. If a buyer puts less than 20% down they will be responsible for Private Mortgage Insurance (PMI) which is an additional expense that certainly needs to be considered, but even with PMI the numbers will often make sense for buyers that would otherwise be priced out.” – Riely Joosten

Remember the Big Picture

#4) “Make your mark. Remember that this will be your own home, so little cosmetic things can be changed to your liking: paint, counters, cabinets, doors, flooring etc. can become a statement of your personality and taste so do not let a bright or ugly color deter you from a solid investment opportunity.” – Spencer Terry

#5) “Be realistic. Take a deep look into your long-term financial and personal goals to see if buying makes sense. Your first home purchase will most likely not be your last and while it doesn’t need to be your dream home, make sure you are planning ahead with a home that will suit your needs 3-5+ years down the road.” – Travis Smith

#6) “Don’t write off small improvements as large and costly projects. No home is perfect and everyone has different tastes. If the home is very appealing to many buyers you can bet you’re going to pay a premium. Part of the fun in being a homeowner is putting your stamp on your own home. Don’t pay for someone else’s upgrades, which you may not care for in the near future anyway. Things like paint, hardware, and flooring are often low cost for high impact/return.” – Jake Tasharki

Find a Team You Can Trust

#7) “Shop around and ask questions. Talk to multiple mortgage companies and real estate agents. You want to make sure you can connect on a personal level, as trust and communication are paramount when you take on the biggest purchase of your life.” – Travis Smith

#8) “Trust your resources.  A lender specializes financing.  A real estate attorney specializes it contract, disclosure, document language.  A real estate agent specializes in finding you the best home that suits your needs.  Many times my clients love working with me because I have like-minded individuals that specialized in their craft working alongside me. The more you can narrow down what information you get from certain partners throughout this process, the better.  Go to Sam for finding the home.  Go to Mike for the numbers.  Go to Adam to make sure everything legally is covered for you.  That way you can focus on falling in love with a home.” – Sam Kahn

#9) “Home-buying is a massive investment and huge undertaking so it’s important to not let your emotions take hold. Partner with a broker who will take the time to sit down with you 3-6 months ahead of time to outline your goals, the entire buying process, and current climate of the market. It’s critical to align and refine realistic parameters and a sensible budget ahead of time; otherwise you are setting yourself up for headache and heartbreak. Extra points in finding a broker that will be candid about their professional opinion even if it’s not necessarily what you want to hear.”  – Jake Tasharki

Making an Offer

#10) “When you’ve found “the one” and are ready to make an offer, consult with your broker to determine a fair opening bid. This should be based on what you believe the property is truly worth and what you can afford. Many buyers’ first instinct is to submit an offer far below market value. This strategy often offends the seller and will not work when inventory is low.” – Vanessa Kanavos

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