When it’s time to sell your condo and put it on the market, many people wonder if they are better off selling as a “by owner” or using the services of a Realtor®. The reason for the quandary is typically a financial one. It is a common myth, actually, that the seller will net greater proceeds from the sale if they sell it themselves. In reality, buyers are typically looking for the “by owner” to drop the price of the realtor’s commission as much as a whopping 6-10% below the price of comparable homes listed by real estate firms. Otherwise, they can find more selection of homes and a more trusted sale if they use the services of the realtor.
Time is Money
How much is your time worth? If you don’t use a real estate professional, expect to spend at least 100 hours selling your condo – assuming there are no problems! Considering your work, family, and personal commitments, is that the best use of your time?
It’s a Big Deal
Selling a condo is a big deal. Most people don’t sell more than two homes in their lifetime, so it’s not something they develop expertise in. There are ever-changing laws, ethical practices and practical considerations that you don’t want to learn on your own through trial and error or relying on a book or information off the Internet. It’s just not worth the risk.
When selling a condo Your REALTOR®...
1 - Helps you understand the home selling process from putting your home on the market through closing
2 - Advises you as to the right price for the home based on their knowledge of what comparable condos are being sold for
3 - Assists you in determining the necessary home improvements required to get your property in the best selling condition possible for the lowest cost possible
4 - Develops your personalized condo marketing plan and places your listing on the exclusive Realtor® Multiple Listing System to reach as many buyers as possible
5 - Handles the showing of your property so your schedule is not tied up keeping appointments with prospective purchasers
6 - Conducts informative and professional tours of your home through open houses
7 - Negotiates the offers to purchase to obtain the highest price possible for your condo
8 - Tracks the various phases involved in meeting your contractual obligations as the seller
9 - Leads you through the home inspection phase and negotiates on your behalf
10 - Coordinates the supporting contractual paperwork required for settlement
11 - Organizes the details of your settlement amongst all parties to ensure a smooth transition
All we hear right now is about unemployment, health care reform and bailouts. That doesn’t mean there has not been talk of the real estate market and what is happening in that part of the economy. The question I am hearing more each day is, why should I buy now? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it. Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward. And down is not always a bad place to be since the only other way is up. Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.
Why should I buy now? There are several factors that are in your favor by acting now.
Pride of ownership is the number one reason people want to buy a home. Home ownership offers you and your family a sense of stability and security while making an investment in the future.
Home ownership is currently one of the best tax shelters available with the volatility of today’s stock market. Mortgage interest is fully deductible on your tax return which lessens your tax burden year after year.
Mortgage reduction builds equity in your home. Each month you make a payment the principal portion of your loan goes down and as the principal goes down and the price of your home goes up, you are building equity or more asset value.
Another reason to ask yourself why should I buy now is interest rates are lower than they have been in years. Do you realize that you may be able get a 30 year fixed rate for less than 5% which makes a purchase start to look very appealing and if you tie that with anticipated inflation you will be paying back the loan with devalued dollars meaning you are getting more for your money than when you started. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent. Would you have imagined several years ago that you could get free money and a great interest rate on buying a home? If you are like most of us you would have laughed us out of the place, but it is happening now. We would never have guessed it, just like we are never going to guess the bottom of the housing market. So just do it!
Let’s be honest. The national real estate market is certainly facing its challenges and the Chicago Condo market is no different but there are some reasons to be optimistic about what is happening across the nation and more specifically in the Chicago market. The Chicago Tribune reported new housing and condo developments have undergone a record seven month decline, which may be the reason the Chicago condo market is somewhat stable. The lack of new developments has helped to slow a glut in the housing and condo markets for Chicago and we are beginning to see prices stabilize. I am hearing from many potential condo buyers that they expected a big collapse in prices so they could pick up a condo cheap but they now think that collapse may never happen. We could very well be at the bottom of the housing market which means there is no way to go but up encouraging buyers to get in the market for those great deals before they are all gone.
The Chicago condo market is improving due to the current rental market. Chicago is known for the consistency in which rents increase. The media has sensationalized the troubles in the real estate market regarding the difficulties in getting financing to purchase a home or condo which has encouraged landlords to increase their rents year after year believing the market is glutted with renters. Nothing could be further from the truth. With the advent of rent to own programs and the $8000 tax credit more and more potential first time home buyers are entering the market. There is no question even in today’s real estate market that owning a property is a much better alternative if you intend on staying for at least 4 or more years.
Historically, the Chicago condo market has been volatile with its many well known developers, political movers and shakers and just the attitude of its residents. Chicago is such a mix of cultures and nationalities with over 77 different neighborhoods that condo buyers have a variety of choices from the more upscale Gold Coast to the excitement of Wrigleyville. There is no place like the city of Chicago and all it has to offer from the dozens of museums to professional sports for those who want to live in one of the most exciting cities in the world. Check out the condo market in Chicago, you will be pleasantly surprised.
$950 Down
There is no better time than the present to buy condos, because along with low interest rates and tax incentives that make it a buyer’s market, motivated developers are offering incentives such as the $950 down program, which allows qualified buyers to get their own condo for an initial down payment of $950.
That’s right, just $950 is all that is needed as a down payment to buy one of the hundreds of condos being sold through the condo program for people with credit scores of at least 620. More than 820 condos located in developments throughout the Chicago area are available for $950 to first-time buyers and repeat buyers, with initial 6.5 percent interest-only financing provided by the developer.
One-. two- and three-bedroom condos with prices as low as $69,900 are available in attractive developments such as Grays Point in Grayslake; Waterfall Glen in Willowbrook; Lloyd Place in Worth; Scenic Tree in Palos Hills; and the Oak Lawn developments of Menard Manor and Park Place. Monthly payments for the condos, including assessments, average between $750 and $1,000.
But the time is limited for those who want to take advantage of the program, which will end April 30, so anyone interested is advised to act quickly and lock in a deal for the condo of their dreams. The deadline coincides with the expiration date for the Government-Sponsored Tax Credit, which participants in the $950 down program will apply for and receive after the initial land contract, and use to build up their down payment for a conventional loan. First-time home buyers could get as much as $8,000 as a tax credit, or $6,500 for a Repeat Buyer.
When the buyer refinances, within 18 months, the tax refund will go toward the down payment. Bank of America, the exclusive partner of OwnACondo.com, can gets loans with excellent interest rates that could be as low as 5.25 percent.
The $950 down condo program is especially good for people who are renting, and would like to buy a condo, but might have thought they could not afford one. You can’t beat $950 as a starting price, and there are a lot of condos to choose from.
All the condo developments are in great suburban locations. Many buildings have been recently renovated, and they all have attractive amenities inside and outside the buildings. They are close to transportation, shopping, restaurants and parks, too.
In short, you can’t really go wrong with the $950 down program. It is one of the best incentives anyone could ask for to become a property owner.
There are a few things to consider when you buy a condo. Many people make the mistake of shopping for a condo the same way they would for a house. It is a similar investment but there are several things you need to consider. Many people want to buy real estate to be free of the hazards of apartment dwelling. When buying a condo you are buying a piece of a larger property, basically an apartment. Next, there will be regulations. Condo associations have regulations and bylaws that you must abide by. With the associations you will need to know where your money is going. What does the association fee take care of and what is the breakdown. Next is to thoroughly review emergency maintenance plans. When you buy a condo you are buying a larger piece of real estate, other people’s problems can also affect you. Be sure you know the emergency numbers for your association and what problems they cover. Lastly, you should have an inspection before you buy. You not only want the unit evaluated but the entire building and grounds.
Another area to consider when you buy a condo is the community in which you are buying. Does it fit the lifestyle you want? What is the financial status of the condo association? How many units are vacant and how many units are rented? If at all possible, talk to some of the unit owners and find out if they are happy living there, how well the complex is being run, or if they have had past problems and how those problems were resolved. Remember you are buying into an entire community and it is important that you know all you can before making a decision.
Condo living offers so many advantages and can accommodate many different types of people. It has become increasing popular with singles all the way to retired couples. Buying a condo is a very viable option for anyone who wants maintenance free living and the freedom to spend their free time as they wish not being pinned down with snow removal, lawn maintenance, or any of the other activities owning a single family home requires. Condo living can also offers many types of amenities not otherwise affordable such as, pools, tennis courts, exercise rooms and much more. All the reasons above is why condo living has become such an attractive home ownership option. If you are thinking of purchasing a home in the near future you may want to consider the condo lifestyle.
If you are looking for a low-maintenance lifestyle, maybe in a popular downtown location there is no better place to look than Chicago condos for sale. Living in a condo in downtown Chicago can offer many benefits that you will not find in a home in the suburbs. They can offer more plentiful amenities, such as snow removal and lawn care maintenance, and an active close-knit community. All of these offer a different lifestyle that many find appealing.
Chicago condo listings are poised to take off due to the economic policies our government has put in place to encourage home or condo ownership. Congress passed an $8000 non-repayable tax credit this year which will give Chicago a shot in the arm in housing activity. The credit is available to anyone who has not owned a primary residence during the past three years and is equal to 10 per cent of the home’s purchase price up to a maximum of $8000. It is the perfect incentive for first time homebuyers who are interested in owning their own home or condo in an exciting city as Chicago.
Chicago condos for sale are seeing a great deal of activity. Owning a condo has many things in common with owning a traditional home, but it is the differences that count. Cities like Chicago can offer a diverse style of living that may not be for everyone so it is important before you make that jump into condo ownership that you know what is important to you regarding your personal tastes and lifestyle. Recently the Chicago Tribune reported new housing and condo developments have undergone a record seven month decline, which may be the reason the Chicago condo market is somewhat stable. The lack of new developments has helped to slow a glut in the housing and condo markets for Chicago and we are beginning to see prices stabilize. I am hearing from many potential condo buyers that they expected a big collapse in prices so they could pick up a condo cheap but they now think that collapse may never happen. We could very well be at the bottom of the housing market which means there is no way to go but up encouraging buyers to get in the market for those great deals before they are all gone.
There are many Chicago condos for sale in a variety of communities and neighborhoods. Chicago is known for its ethnic groups and communities and condos are being built or re-furbished in almost all of these areas. If you are looking for a different lifestyle in a vibrant community atmosphere there is no better place to look than Chicago!
To put it simply a condominium is a form of home ownership in which individual units of a larger complex are purchased, not rented. They may be commercial warehouses, townhouses, converted apartment buildings or newly constructed buildings designed specifically as condominiums. The word condominium does not apply to the unit itself but how the unit is held legally. Those who purchase a condominium technically own everything from the walls inward and individual condo owners have shared rights for the areas such as hallways, grounds, pools, clubhouses, and elevators. The maintenance of these common areas is usually the responsibility of the condominium association. Each owner shares a common interest and has an obligation to pay monthly dues or special assessment fees.
Condominium ownership many times is the best option for potential homeowners. If you would like to have a pool, playground area, clubhouse or many of the other amenities a condo offers then buying into a complex with all of these is your best choice. You just need to remember you are paying for these with your association fees and there will be others who use these facilities also. Most veteran apartment dwellers benefit from purchasing a condo because they are used to having neighbors close by and using the same amenities with others. Normally the overall price of a condominium is less than single family homes but still allows equity to build so it is no different in regards to recouping costs assuming the property will appreciate.
Before you run out to purchase a condominium there are several things you need to consider. Find out if the building has a good reputation. Ask current residents how often repairs and maintenance are done and remember the association decides what is done and at what cost to each of the members. Check out parking and security arrangements before you buy especially if you have multiple cars or are concerned about your own well being. Another area to consider is budgeting in the association dues. When you are thinking of buying a condo you will know what your mortgage payments will be but an added unexpected fee could strain your budget to the breaking point.
Condominium living is not for everyone but can be advantageous financially since you now own your own home. You are able to enjoy many of the amenities normally not affordable with ownership of a single family home. You have the pride of ownership and a financial investment that will pay off future dividends.
There are a few things to consider when you purchase a condo. Many people make the mistake of shopping for a condo the same way they would for a house. It is a similar investment but there are several things you need to consider. Many people want to buy real estate to be free of the hazards of apartment dwelling. When buying a condo you are buying a piece of a larger property, basically an apartment. Next, there will be regulations. Condo associations have regulations and bylaws that you must abide by. With the associations you will need to know where your money is going. What does the association fee take care of and what is the breakdown. Next is to thoroughly review emergency maintenance plans. When you purchase a condo you are buying a larger piece of real estate, other people's problems can also affect you. Be sure you know the emergency numbers for your association and what problems they cover. Lastly, you should have an inspection before you buy. You not only want the unit evaluated but the entire building and grounds.
Another area to consider when you purchase a condo is the community in which you are buying. Does it fit the lifestyle you want? What is the financial status of the condo association? How many units are vacant and how many units are rented? If at all possible, talk to some of the unit owners and find out if they are happy living there, how well the complex is being run, or if they have had past problems and how those problems were resolved. Remember you are buying into an entire community and it is important that you know all you can before making a decision.
Condo living offers so many advantages and can accommodate many different types of people. It has become increasing popular with singles all the way to retired couples. Condos are a very viable option for anyone who wants maintenance free living and the freedom to spend their free time as they wish not being pinned down with snow removal, lawn maintenance, or any of the other activities owning a single family home requires. Condo living can also offers many types of amenities not otherwise affordable such as, pools, tennis courts, exercise rooms and much more. All the reasons above is why condo living has become such an attractive home ownership option. If you are thinking of purchasing a condo in the near future you may want to consider the condo lifestyle.
If you plan to search for condos in Chicago keep in mind the condo market is expected to be positively impacted by a shift in the values of the American homebuyer. The generation of home buyers for the next few years is more inclined to low maintenance and high technology buildings than their predecessors. These prospective purchasers, the twenty-something's and thirty-something's have needs and preferences quite similar to the baby boomers but they want modern, high-quality homes convenient to amenities without a lot of upkeep. Just like the baby boomers who are retiring these condo buyers are looking to be near exciting locales such as Chicago.
There are a few things to consider when you search for a condo in Chicago. Many people make the mistake of shopping for a condo the same way they would for a house. It is a similar investment but there are several things you need to consider. Many people want to buy real estate to be free of the hazards of apartment dwelling. When buying a condo you are buying a piece of a larger property, basically an apartment. Next, there will be regulations. Condo associations have regulations and bylaws that you must abide by. With the associations you will need to know where your money is going. What does the association fee take care of and what is the breakdown. Next is to thoroughly review emergency maintenance plans. Since you are buying a larger piece of real estate, other people's problems can also affect you. Be sure you know the emergency numbers for your association and what problems they cover. Lastly, you should have an inspection before you buy. You not only want the unit evaluated but the entire building and grounds. If you make a wise decision, you will be rewarded with many conveniences and a great home.
Condos are king in Chicago when it comes to residential real estate. When it comes time to search for a condo in Chicago, there are many areas in which to choose. Chicago is certainly known for its downtown skyscrapers but there are numerous other areas that have their own flavor which offers some of the best values in residential real estate. One definite advantage in the Chicago real estate market when buying a condo is that prices are holding steady and there are numerous developments currently underway or proposed for this year. Construction crews are putting up new buildings and older places are being refurbishing to create condos and lofts. It is estimated that over 4000 units will be built in Chicago in 2009 which puts buyers in a great position to get what they want for a good deal.
All we hear right now is about unemployment, health care reform and bailouts. That doesn't mean there has not been talk of the real estate market and what is happening in that part of the economy. What I am hearing a lot about is should I buy now or wait for the market to bottom out? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it. Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward. And down is not always a bad place to be since the only other way is up. Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.
Should I buy now? Absolutely, and let me tell you several factors that are in your favor by acting now and not trying to guess at a target that may always keep moving.
We have a tax credit! Let me say that again since you probably did not get the full impact of what that statement means in today's economic climate. A tax credit means you do not have to pay it back. That's right, it is free money and when is the last time you received free money. It is not as perfect as it could be because there are several requirements but all in all they are not that difficult. First, you must be a first time home buyer or not owned your principle residence in the last three years. Second, if you are single your income cannot exceed $75,000 per year and married couple's income cannot exceed $150,000 per year. The last part might be a little trickier since the tax credit is only if you close your home or condo on or before November 30, 2009. That is less than 90 days away and if you don't get moving now you are not going to make the deadline.
Another reason to ask yourself if I should buy now is interest rates are lower than they have been in years. Do you realize that you can get a 30 fixed rate for less than 6% from many lenders. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent. Would you have imagined several years ago that you could get free money and a great interest rate on buying a home? If you are like most of us you would have laughed us out of the place, but it is happening now. We would never have guessed it just like we are never going to guess the bottom of the housing market. So just do it!
