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Helpful Tips for Buying a Condo in Chicago

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A number of first time home buyers are ready to enter the real estate market.  Young professionals who are looking to purchase their first home might find it appealing to own a property in one of the many Chicago neighborhoods; however, the prices for a single family home are too steep.  Purchasing a condo is an attractive alternative; in fact, owning a condo can be very appealing to many home buyers who want to move into one of these hot areas but also don’t want to take on the maintenance single family home.

FotoFlexer_PhotoNevertheless, purchasing a condo in Chicago can offer its own set of issues if not researched thoroughly by the buyer.  An article published by Alex Mayster in U.S. News Real Estate offers many considerations buyers should remember when purchasing a condo in the city.

For example,  Mayster encourages the buyer to find out how many units in the building are rented out currently.  “If it’s over 50 percent rented, you could have trouble getting a loan,” says Jennifer Mills Klatt with the Berkshire Hathaway HomeServices KoenigRubloff Realty Group.  Even if the buyer is able to secure a loan, home owners in a building with more than 50 percent of the properties rented out may find that their neighbors don’t share the same level of financial investment in the property.  This could also lead to frustration when owners renting their property vote to spend to less money on improvements and maintenance.  A high percentage of rental units may also affect the resale value of the property.

The article goes on to provide other helpful tips for condo buyers such as researching and exploring the neighborhood first-hand,  personally investigating the availability of parking, whether it be street parking or an included parking spot, and researching the condo association minutes and assessments.

Read the entire article.

 

 

Photo Credit:  Gregory Richard

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The Housing Market is on the Road to Recovery, But Not for All Homeowners

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The Chicago-land real estate market has made a notable recovery since the housing crash in 2007. However, a closer look at the types and price point of homes that are in demand among home buyers reveals that smaller, lower priced home8305084971_6dc5966044_bs have made the most significant turnaround.

On the other hand, the large homes that popped up at an explosive rate in the early 2000s, which came to be known as “McMansions”, have not recovered at nearly the same rate.  In fact, many of the home owners looking to sell their homes, once valued at $2.5 million, are preparing to take a $600,000 loss on their investment.  Further, these homes are on the market an average of 155 days before receiving an offer.

According to an article published by the Chicago Tribune by Gail MarksJarvis, the allure of these homes has faded.  Many Generation X home owners lost money on the homes they purchased before the housing market crashed and are not financially able to purchase homes in the luxury price range, or are hesitant to make such a large investment in real estate.   These large suburban, family-oriented homes do not appeal to a significant portion of millennials or baby boomer home buyers either.  To add, home buyers who are in the market for luxury properties prefer to purchase new homes with the most up-to-date decor and amenities.

To read more about the luxury home market in Chicago-land, read the entire article.

 

 

Photo Credit:  Ray Sawhill

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