Tag: Buying a Condo

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

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!

 

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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

How Much Money Do You Need to Buy a Condo?

Posted on by Lauren Bozarth

When purchasing a dream home in the Windy City,  prospective buyers commonly ask, “How much money do you need to buy a condo?” This financial move involves more than just the purchase price, and understanding the full scope of expenses is essential for a sound investment.

In this post, we’ll explore the various costs involved in buying a condo and offer insights into budgeting and financial planning.

How Much Money Do You Need to Buy a Condo?

  1. Down Payment: Your initial down payment is a significant part of the total cost of buying a condo. The typical down payment for a condo in Chicago is around 5% to 10% of the purchase price—the larger your down payment, the lower your monthly mortgage payments. Also, note that the average Chicago condo price tag is $438,000.
  2. 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.
  3. Monthly Expenses: Once you’ve purchased your condo, you’ll have ongoing monthly expenses to consider. These include insurance, electricity, gas, other utilities and homeowners’ association (HOA) fees. HOA fees cover exterior maintenance, amenities, and communal services.
  4. Additional Costs: Beyond the basics, there are other expenses and condo fees to consider. Moving costs, renovations, and furnishing your condo can add to your initial outlay. You can also prepare for property taxes annually.
  5. Reserve Funds: These are funds used for maintaining the long-term financial health of the condominium complex. They are crucial for covering unexpected expenses or necessary repairs. Understanding the strength of the condo association’s reserve funds is vital to assessing its financial stability and potential assessments.

Determining a Comfortable Budget

To set a solid budget for your condo purchase, start by conducting an affordability assessment. Take into account your monthly income, existing debts, and other expenses to establish a clear picture of what you can afford. If you would like to enlist the help of an expert in the process, consider teaming up with a financial advisor.

First-Time Condo Buyers

If you’re a first-time condo buyer, it’s essential to know how much you should spend. A standard guideline is that your monthly housing costs, including mortgage, HOA fees, property taxes, and insurance, should not exceed 30% of your monthly income. Ensure you have an emergency fund in place and that your other financial goals, such as retirement savings, are not compromised.

Additionally, you’ll want to get pre-approved for a mortgage, work with an experienced real estate professional, and conduct thorough research on the condo complex and the neighborhood. With the right guidance, you can navigate the complexities of buying a condo with confidence.

Keep in mind that condo insurance differs from townhouse insurance.

Saving Up

Before buying your condo, it’s wise to save up an emergency fund and have a substantial down payment. The larger your down payment, the better the terms you may secure on your mortgage. Plus, having savings can provide a safety net for unexpected expenses.

With this information, we hope you feel better equipped to answer, “How much money do you need to buy a condo?” By understanding the costs involved, assessing your budget, and saving prudently, you can soundly invest in your dream condo.

Our team at Luxury Living is here to assist you every step of the way, ensuring that your condo purchase is a seamless and rewarding experience. Connect with us today!

 

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Easily Compare Different Types of Condos with a Licensed Broker

Posted on by LLCR Staff

Searching for the perfect condo can be an exciting but overwhelming process. With so many options available, it can be challenging to compare different types of condos and make an informed decision.

That’s where a licensed broker comes in, offering valuable expertise and guidance that surpasses what alternative websites can provide.

Easily Compare Different Types of Condos with a Licensed Broker

A licensed broker brings a deep understanding of the Chicago real estate market to the table. They stay up-to-date with market conditions, trends, and pricing, allowing them to navigate the market with precision. When it comes to comparing different types of condos, their knowledge and insights are invaluable. They can help you assess the pros and cons of each option, taking into account factors such as location, amenities, square footage, and more.

While alternative websites can provide a wealth of information, they often lack the personalized guidance that a licensed broker offers. A broker takes the time to understand your specific needs, preferences, and budget. Armed with this knowledge, they can present you with a curated selection of condos that best match your criteria. This saves you time and effort in sifting through countless listings and allows you to focus on properties that truly meet your requirements.

One of the key advantages of working with a licensed broker is their ability to provide detailed insights into the market. They can give you a comprehensive analysis of recent sales data, market trends, and neighborhood dynamics. This information is crucial for making informed decisions and understanding the potential value of different condos. Additionally, a broker can guide you on the best time to buy, helping you take advantage of market fluctuations and favorable conditions.

When it comes to comparing different types of condos, a licensed broker acts as your trusted advisor throughout the entire process. They can answer your questions, address your concerns, and provide professional guidance based on their experience and expertise. Their goal is to ensure that you have all the information you need to make a confident and well-informed decision.

In Chicago, there is a wide range of condo options available to buyers. Here are 7 common types of condos that people can purchase in the city.

7 Different Types of Condos in Chicago

  1. High-Rise Condos: Chicago’s iconic skyline is dotted with towering high-rise buildings that house luxurious condos. These condos often offer stunning views of the city or Lake Michigan and come with a variety of amenities such as fitness centers, swimming pools, rooftop decks, and 24-hour concierge services.
  2. Loft Condos: Chicago is known for its vibrant loft-style condos, especially in neighborhoods like the West Loop and River North. These condos feature open floor plans, high ceilings, and exposed brick or ductwork, giving them a trendy and industrial aesthetic.
  3. Townhouse-style Condos: For those who prefer a more townhouse-like living experience, townhouse-style condos are a popular choice. These condos are usually multi-level units with private entrances and may include features like private patios or rooftop decks.
  4. Vintage Condos: Chicago has a rich architectural history, and many buyers are drawn to the charm and character of vintage condos. These units are often located in historic buildings and feature unique architectural details, such as ornate moldings, hardwood floors, and fireplaces.
  5. New Construction Condos: Chicago’s real estate market is constantly evolving, and new construction condos are in high demand. These condos offer modern amenities, contemporary designs, and the opportunity to customize finishes and features to suit individual preferences.
  6. Boutique Condos: In addition to larger developments, Chicago also has a selection of boutique condos. These smaller-scale buildings offer a more intimate and exclusive living experience with fewer units and a greater sense of community.
  7. Luxury Condos: For buyers seeking the ultimate in luxury living, Chicago boasts a range of high-end condo options. These condos often feature top-of-the-line finishes, premium appliances, high-end amenities, and coveted locations in prestigious neighborhoods.

So, if you’re in the market for a condo and want to easily compare different types of properties, consider working with a licensed broker. Their in-depth knowledge of the Chicago market, detailed insights, and personalized guidance will streamline your search and empower you to make the best choice. Take advantage of the expertise and experience of a licensed broker and embark on your condo-buying journey with confidence!

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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 You Need to Know About Buying a Condo Today

Posted on by LLCR Staff

These past few months have been nothing but a rollercoaster, but that doesn’t mean you have to scratch all future home-buying plans. Here’s what you should know when looking to buy a condo in Chicago right now:

The Impact of COVID-19 on Buying a Condo

COVID-19 has altered the way we do business in real estate. Moving to completely digital for the time being has allowed us to look into various streams of communication and showing homes while at a distance. Thanks to the 3D touring technologies, you can now virtually tour condos from the comfort of your own home. We have also implemented various safety and wellness measures when touring in-person, such as PPE, daily temperature checks, and social distancing.

The rest of the condo-buying process can also be done almost completely virtual. Sign all contracts online using an electronic signature system. Wire your deposit or one of our team members can pick up the deposit check for you. Inspections are also completely online, as they will send all documents digitally with detailed photos and descriptions. Mobile notaries bring the closing to you. And lastly, we will hand-deliver your keys when it’s time to move into your new condo!

What You Should Know if You’re Looking to Buy

If you’re ready to make that next step in buying a condo, there are a few things to note.

First off, make sure you are ready to buy! Dig into the reasons for your current move and compare those motives to your life goals. If they align, great! If not, it may be best to really look into whether this is the right time to move. 

Once you’ve decided that this move makes sense to you, it’s time to start making your checklist. Before even looking at condos, make a list of your must-haves, would-like-to-haves, and no thank-yous. Think about what is important in your lifestyle and really whittle down what’s necessary for your move. This will be extremely helpful when starting the condo-buying process.

Before you start the buying process, make sure to find the right realtor, and discuss your checklist. Purchasing a condo is a big decision, especially if it’s your first time. Having an experienced agent to help you along the steps of home buying helps you tremendously from finding the perfect condo to making sure all necessary steps are taken throughout the process. 

When you start the hunt for your perfect home, be sure to get pre-approved first. Sellers want to see that you’re a serious buyer and that you’re ready to purchase with a lender in hand.

Luxury Living Chicago is committed to helping you safely find your dream home. Ready to begin the search for your new condo? Take advantage of these condo buyer tips and get in touch with a broker today!

10 Steps to Buying Your First Home

Posted on by Katie Dickemann

Buying a home, either in Chicago or elsewhere, is a big step that involves a lot of financial and market research. There’s a whole new vocabulary of words and acronyms to learn. For mortgages alone, there are endless resources dedicated to the many details and varying types.

If you are just beginning the process, here is an overview of 10 steps to buying your first home.

  1. Ask yourself: are you ready to buy?
    • Be realistic about your long-term financial and personal goals to see if buying makes sense for you.
    • Start researching early, and take your time.
    • Get a sense of housing trends in specific areas.
    • Check your credit report and score
  2. Check your credit report and score
    • By law, you can get one free credit report annually. You can expect a good mortgage rate with a credit score at or above 720.
  3. Start gathering for a down payment
    • Historically, 20% was the benchmark for most individuals, but currently, down payments 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.
    • Start shopping for a home
  4. Find the right partners
    • Your real estate broker will be your lifeline. Take your time to find the right fit, and ask a lot of questions.
    • Finding the right lender is also important, so make sure to shop around before making your choice.
  5. 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.
  6. Start shopping for a home
    • It’s important to not only be informed about new listings but to be able to see listings as soon as possible.
    • Our experienced brokers recommend seeing between three to five listings in one day.
    • If you see too many at once, specific properties may start to blend together.
  7. Make the offer
    • Every property is different, and therefore, every offer is different. A trusted agent will help guide you in the right direction based on the present market.
    • When making the offer, it’s a good idea to include all signed disclosures and your pre-approval letter.
  8. Get a home inspection and appraisal
    • A home inspection determines if there is any damage or issues with the home in need of fixing, while a home appraisal determines if the home is a good investment.
  9. Close on your new home
    • At closing, you sign all of the paperwork required to complete the purchase, including your loan documents.
    • It’s important to have a good mortgage broker and attorney who can advise you on what you need to bring and how much your closing costs will be.
  10. Move-in & consider various post-closing tasks
    • As you settle in, it’s helpful to think about tasks such as changing the locks, updating your address, and informing the necessary parties of your move.
    • Maintain an emergency savings fund to give yourself a comfortable cushion for any unexpected expenses.

Looking for a more in-depth guide? Click the button below for our First Time Homebuyer Guide!

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Top Chicago Condo Buyer Moving Tips

Posted on by LLCR Staff

Purchasing a condo in the Windy City is an incredibly exciting opportunity. However, this big endeavor requires preparation and research beforehand.

To help streamline the moving process, the Luxury Living team is here to share essential condo buyer moving tips.

Get to Know the Neighborhoods

Each Chicago neighborhood has its own unique look and feel. It’s important that you feel at home in the community that you choose to call home.

If you’re looking for the true downtown experience, consider browsing condos in the Loop, the heart of downtown Chicago.

Streeterville, River North, and South Loop also provide authentic city living, with easy walking access to anything one may need, as well as some of the Windy City’s most popular attractions.

For those looking for a bit more peace and quiet, neighborhoods like Lincoln Park or Uptown may provide more of that ‘neighborhood charm’. You’ll find less high rises in these areas and more of a residential vibe.

Check out some of the West Chicago neighborhoods, including West Loop, Wicker Park, and Logan Square, for the trendiest spots to live. These booming areas have experienced exponential growth over recent years and showcase plenty of housing, dining, and retail options.

It’s also crucial to figure out which neighborhoods provide the most practical location for you. Is there a neighborhood you like that’s near your work or your school? 

If you’re moving without a car, consider living somewhere near public transit options. 

Determine Your Non-Negotiables

Along with narrowing down your preferred location, there’s plenty of other factors to take into consideration during house hunting.

When it comes to buying a condo in Chicago, it helps to create a list of must-haves to help direct your search.

Think about what’s necessary for you and your lifestyle.

Do you need an in-unit washer/dryer? Would you prefer a view? Would you like to be near public transit or do you need private parking? What type of amenities are important to you? Are you looking for a brand new building?

Once you narrow down features that you need in your new condo, it’ll be easier to filter your search.

Be sure to have realistic expectations and a budget that aligns with your non-negotiables.

Understand How Condo Associations Operate

Once you purchase a condo, chances are you will become an automatic member of a condo HOA (homeowner’s association).

These associations are comprised of other unit owners in a condominium building who are required to pay regular HOA dues and follow HOA rules. An elected board of directors also oversees the operations of the HOA.

The monthly or annual HOA fees help fund community maintenance services, such as snow and garbage removal, building repairs, and upkeep of amenities. 

Not only does this maintenance help alleviate resident’s stress and responsibilities, but it also helps ensure community curb appeal. The condo associations help keep condominium communities in pristine condition, promoting a desirable location for potential buyers and an enhanced environment for residents.

As you begin to condo shop, be sure to compare HOA fees. These costs can run anywhere from $80 to $500 a month.

It’s also important to inquire about your potential condo’s special assessments. 

Special assessments are funds that the condo association requires to complete a large project. While these significant projects aren’t very common, it’s important to know that they may come up and require you to pay more in association fees to cover the costs.

When narrowing down properties, ask about any planned special assessments or how one might work if there isn’t one in effect.

Figure Out Your Financing 

Buying a condo is a major investment. It’s critical to ensure that this endeavor is financially wise and feasible

Obtaining a mortgage to purchase a condo can be more difficult than a mortgage for a single-family home.

With this in mind, prospective buyers should be qualified and prepared for the process of applying for a loan.

When you walk into the bank to apply for a mortgage, the bank begins the underwriting process. During the phase, the bank will evaluate whether you have the means and credit to repay the loan and assess the property you’re purchasing.

The bank wants to verify that if you default on your mortgage, it can sell your property and recover most of its money.

Unlike mortgages of a single-family home, before banks will approve a mortgage for condos, they also will need to see the finances of your homeowner’s association, the legal condo documents, and the percentage of owner-occupied units at your prospective condo building.

Take Other Costs Into Consideration

Apart from the cost of your mortgage and HOA fees, purchasing a condo comes with additional expenses that you should budget for.

First, be prepared to pay homeowners insurance. Although Chicago doesn’t mandate homeowner’s insurance for condo owners, many homeowner’s associations require it. And even if it’s not required, it’s an excellent idea to keep your condo and assets protected.

Furnishing a condo can also quickly drain the bank account. Be sure to figure out how much money you are going to allocate towards the necessities to complete your home.

If your condo doesn’t have a controlled utility package, you’ll also have to add these costs to your list of expenses.

Find an Experienced Broker

Purchasing a condo is a substantial financial decision, especially if it’s your a first-time as a homebuyer. 

Consider teaming up with a licensed broker to assist you step-by-step through the process. These types of professionals can help alleviate stress, help in the decision-making process, and advocate on your behalf to get the best deal possible.

Our experienced team of real estate brokers includes top producers, negotiation experts, and savvy marketers who are eager to help you find your dream condo.

If you’re ready to begin the search for your new home, don’t feel like you have to walk through this process blind. Take advantage of these condo buyer moving tips and get in touch with a broker today!

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