Last month, I read an article about two Evanston condominium developments that have slashed prices in an attempt to sell some of their vacant units. This is a common event in residential real estate sales in Chicago and the North Shore. Potential buyers generally like these units because they are new and have never been lived in. There is also a small the chance for appreciation in these units. However, the risks seem to outweigh the rewards. When I show condos in buildings that have not sold all existing units, I make sure that the buyer(s) understand the risks that are associated with purchasing these types of properties.
Most common risks:
1. May not get funding: Procuring a mortgage committment is difficult because lenders have many new rules that they must adhere to.
2. Market Decline: There is still evidence of price depreciation in many local markets. You might buy at $150,000 and 1 month later someone else might purchase a similar unit for$140,000.
3. Short-sales and Foreclosures: The original owners who paid far more than the current market prices might fall into short-sale or foreclosure status. This would decrease the value of your condo.
4. The entire development might go into foreclosure.
5. Leasing vacant units: The developer/owner might lease all vacant units as a means to generate income. This would negatively affect the owner occupied level and the image of the development.
If you are considering purchasing a condo in Chicago or the North Shore suburbs, please contact me and I will help guide you through the process.
A home for your car…
“How important is a garage for resale value?” “Should I even look at properties that do not have a garage or attached parking because it will adversely effect the resale of the property?” These are common questions that buyers as k me when searching for properties in Chicago and the North Shore.
The easy answers to these questions are;
1. “A garage is very important for resale value, especially if you are purchasing a condo because parking is often limited and the change in demographics imply that areas that are within walking distance to public transportation are going to witness a population growth. Thus, the long-term importance of a garage or, at the very least, an outdoor parking space, will increase as available street parking decreases.”
2. “Of course you should look at properties that do not have parking.”
Both of these questions can not be answered fully without considering the importance of LOCATION. Location is the most important factor in buying and reselling a home. The importance of location is also a key factor of the emotional response that a buyer has towards a property because it centers around the lifestyle that they envision themselves living. If a buyer is looking a two condos, one that is a short walk from retail and public transportation and the second is a similar condo with a parking space that is 2 miles from the nearest retail and transportation area, the buyer will most often choose to purchase the condo without parking because the location fits in perfectly with the lifestyle that he envisions himself living. If you are buying a property in Chicago or the North Shore, first choose where you want to live and then order the rest of your criteria as you see fit. Remember, that this is not only an investment, but also your home and the objective is for you to enjoy your time there.
I recently purchased a home in Evanston without garage parking, but in a great location, and the only time that I have had regrets is during the Blizzard of 2011 when I had to find and shovel my car out !
Please contact me if you are buying or selling your home in Chicago, Evanston, Wilmette, or anywhere on the North Shore.
If you bought a home in 2010…
I received an email today from Kathy O’Malley, an excellent real estate attorney who works in Chicago and the North Shore about filing for property tax exemptions. If you purchased a home in Cook County in 2010 be sure to read this.
If you are in the market for a new home in Chicago or the North Shore suburbs, please contact me.
With the NFC Championship Game just around the corner…
In honor of Sunday’s showdown between the Bears and Packers, I have linked an article from the Sun-Times to this blog about why Chicago is far superior to our lonely neighbors to the north. One difference which was not mentioned was the superiority of architecture and housing in Chicago and Chicago’s North Shore communities. Remember to contact me with any questions regarding real estate in Chicago and the North Shore Chicago suburbs. And, of course… BEARS!!!
http://www.suntimes.com/3355976-417/packers-green-bears-fans-bay.html
ets, appliances and granite counters. New roof and gutters (Sept 10′), central air, water heater, tuckpointing and painted through out. Hardwood floors, 2 fireplaces, sunroom, updated baths, large tranquil backyard, finished basement with a large family room. It is located near the Metra and downtown Park Ridge.
