The Chicago real estate market is currently one of the hottest markets in the US. In 2020, the home values in Chicago increased by 8.6%. The constantly rising home value and prices are attributed to the inventory shortages due to the rising demand for homes for sale in this region.
If you are looking at buying homes in Chicago, you must be well prepared to beat the stiff competition to ensure you get the best-valued homes at the best prices. Here are seven critical things to consider during your search for homes for sale in Chicago to ease your purchase process.
1. Identify Your Needs
Every homebuyer has their precise needs. From the location to amenities, size, and design of the home, it will help to put together a list of things you wish to have in your new home.
Suppose you got a job in Chicago and want to live close to your office. You may want to buy a home that is only a few miles from your workplace. If not, the property should be located near reliable public transport systems.
On the other hand, if your priority is your kids’ education, look for homes near school districts. If you work from home, the ideal home should have a home office and a backyard or a patio. Most importantly, ensure that the size and design of your home match the size of your family.
2. Set Your Budget
How much are you willing to spend on buying a home in Chicago? As much as you want to own a home, that does not mean that you should break the bank. Consider your financial capability to establish the best home size and features that suit your budget.
If you are on a tight budget, look for single-family homes for sale in Chicago. Smaller houses are certainly cheaper than big family homes.
You can also look for foreclosed homes in Chicago. Lenders dispose of such homes at low prices, and with the right strategy, you can acquire a high-value home at a throwaway price.
Take your time to research the Chicago real estate market and the cost of living. You may realize that your financial situation will be different from your current location, and this will help you plan your finances to cater to other expenses.
When setting a budget, consider your mortgage qualification depending on your credit score as well as additional costs like homeowners insurance (find Illinois rates here) and maintenance and upkeep. Also, ensure that you can afford to make the expected monthly payments.
It would be best to seek guidance from expert house buyers who understand the market best to guide you in setting a reasonable budget. They will also advise you on the must-have features and what you can sacrifice.
3. Raise Enough Downpayment
Putting as much as possible for a downpayment is the secret to cutting down on debt. While a mortgage comes to help actualize your dream of owning a home, you should not entirely depend on loans to finance such a huge investment.
Having your finances in order before you embark on searching for a home for sale in Chicago increases your chances of getting approved for a loan. It shows the lender that you are serious about acquiring the house.
4. Embark on Your Search for Homes in Chicago
Thanks to technological advancement, the internet provides you with a comprehensive platform to quickly search for homes for sale in West Chicago IL. You do not necessarily have to travel all the way to Chicago to view the available properties.
On your computer or mobile phone, you can access different listing sites. You can then narrow down your search based on your specific region, home type, and price.
A lot comes into play when choosing a neighborhood; safety, schools, markets, hospitals, transport system, and recreational options.
Pay attention to the period in which the homes have been on the market. If a property has been on the listings for long, the chances are that something is wrong with the home. It is unreasonably priced, lacks the basics such as a yard, or is too old and unkept.
It will also help to entrust a trustworthy real estate agent with your search for homes for sale in Chicago. The realtor understands the ins and outs of the market, so you can trust the expert to get you the best deals.
5. Look Out For Amazing Deals
As earlier mentioned, you do not have to break the bank to own a high-value home. Every season comes with amazing deals to help you acquire top-value homes you would otherwise not afford to purchase.
Be sure to check out rent-to-own homes in Chicago, including auction homes at slashed prices. Also, you cannot go wrong with foreclosed homes.
While foreclosures are bad news for the original homeowners, they are a perfect chance for you to acquire a home at discounted prices in the strongest neighborhood.
Even better, foreclosed homes demand lower down payments. And the fact that you will purchase directly from the lender shortens the purchase process.
By April 2021, there were about 33,669 homes with foreclosure filings in the US market, some with default notices and others with bank repossessions. You only need to search from government listing sites and be prepared to do a complete makeover on the property, and you are good to go.
6. Loan Application and Appraisal
By now, you are confident that your home-buying endeavor is going forward. You have spotted a home that meets your needs and have a good amount for a down payment.
You can confidently apply for a mortgage to finance your dream. Prepare all the necessary documents to speed up the application process. Strive to show the lender that you are serious about the purchase, and you can do so by gathering your bank statements and raising a large amount for a downpayment.
Compare different types of loans and online lenders in terms of interest rates and the repayment period. Do background research to determine the reputation and reliability of the lender.
7. Make a Fast Offer
Considering the competitive nature of the Chicago real estate market, you should not risk waiting too long before making your offer.
However, don’t make a hasty purchase decision without considering the numerous amazing properties. It is better to miss out on a home than get stuck with the wrong one.
Pay Less for High-Value Homes in Chicago with the Right Tips
Buying homes in Chicago is a significant life and financial decision. It requires proper planning, and with the tips above, you are assured of acquiring a home whose value exceeds the amount you pay for it.
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