Tag: Buying a Chicago home

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

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

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

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.

Tips for Buying or Selling a Home in Spring

Posted on by LLCR Staff

Flowers are not the only thing in full bloom during the spring; the housing market also flourishes during this season of new beginnings.

Spring continually ranks as the busiest time of the year to buy or sell a property. With buying and selling a home in the spring proving to be a popular move, consider taking advantage of this busy real estate season.

Spring Selling Season

Why is the spring selling season so busy in the world of real estate? Well, there are various incentives that motivate sellers to list during this season

Here are a few advantages of selling your home in the spring:

  • Warmer weather: After a long, chilly Chicago winter, sellers are eager to put their homes on the market once the weather starts clearing up. Sunshine and higher temperatures attract more buyers, increasing the odds and profitability of a sale. Additionally, better weather naturally improves marketing efforts and showings.
  • Competitive pricing: Sellers tend to have the upper hand during the spring. With so many properties for sale, sellers can list their house for the highest and best dollar
  • Quicker Sales: According to a study conducted by Zillow, homes listed between mid-March and mid-April sell 15 percent quicker than homes listed any other time. Many buyers are eager and ready to purchase as fast as possible after the winter and before the summer hits.

Buying a Home in the Spring

Spring home buying season is just as busy as spring selling season.

Buyers love the abundant listing options available on the market during the springtime. This array of choices allows buyers to be more selective in narrowing down their dream home.

While buyers have the advantage of a wide selection, they also have to prepared to pay more competitive prices. Don’t expect to be the only one making an offer for your home of choice.

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 worthwhile deal.

Spring Moving Tips

If you are seriously considering buying or selling a home in the Spring, here are some helpful tips to keep in mind:

  • Don’t delay– Since springtime is such a popular time to move, it is wise to get a head start and begin the house hunting and listing process as soon as possible.
  • Hire a professional- Team up with a licensed broker to help to help make your move as efficient and effective as possible.
  • Figure out your mortgage– Unless you plan on purchasing a house with cash, you will need to apply and qualify for a mortgage. A loan prequalification calculator is a great tool to figure out how to qualify for a loan.

During the busy spring selling and buying season, it is critical to understand how to take advantage of this time of year. Now that you have insight into buying a selling a home in the spring make the big move today!

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!

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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