Condo Rentals in Chicago
Condo rentals are a means to many different types of ends. Condo rentals in Chicago can help you to find the perfect place for you no matter what your motivation might be, from a place to call home until you can purchase or possibly for that much needed vacation residence.
Condo rentals in Chicago for your vacation are open to everyone, no matter your age, background, or lifestyle. The jazz clubs in which Chicago is well known for will delight music lovers. If the national pastime is more to your liking, Chicago offers two major league teams each in a different part of the city. Everyone in the family will enjoy the many architectural and historical landmarks that Chicago is known for from the Sears Tower to Soldier Field. Other sights to see are the many museums that are home to Chicago such as, Shedd Aquarium, Field Museum, Museum of Science and Industry and the Kohl’s Children’s Museum known for it’s hands on learning laboratory. But that’s not all for the kids! The attraction-filled Navy Pier and Lincoln Park zoo will make your vacation one that the kids will remember for a long time. A relatively new addition to Chicago will excite the kids beyond belief with a trip to Millenium Park and “the bean” where reflections of the city makes incredible photos to take home to their friends. Last but not least is Lake Michigan which is always fun when it is sunny and warm out. If this doesn’t sound appealing to you yet then perhaps you are wondering about how affordable condo rentals can be. Don’t worry you can definitely find cheap accommodations no matter if it is a weekly rental or one night accommodations.
What if you are not looking for a vacation rental? Condo rentals in Chicago are also an excellent source to find a place to live. You may just need a place to rent until you decide to buy or possibly enter into a rent to own agreement which is becoming more and more popular in today’s real estate market. Either way finding a condo in Chicago is just a click away but there are several things you show know.
- All rental agreements are not alike – a lease us for a definite period of time, generally one year. A month to month rental agreement is not for a set period and continues until you decide to move or the owner asks you to leave.
- Rental agreements do not have to be in writing, they can be oral. However, a lease for more than a year generally must in writing.
- You have rights! The law says that your apartment must be livable. You must have hot and cold running water, heat, and electrical lighting in good working order.
Finding a condo to rent or buy can be a daunting task but doing your homework and finding the right real estate agent to help will pay off many times over.
REO Properties
The challenges facing the real estate market in the last few years have brought to the forefront a term that many have never heard of, REO properties. REO stands for Real Estate Owned and most times is property taken back by a bank or mortgage company when they could not sell it at the foreclosure auction. Most foreclosure auctions do not result in any sort of bid because if there was enough equity in the property the owner would have probably sold the property and paid off the bank or mortgage company. Most foreclosure sales begin with a minimum bid that will include the loan balance, accrued interest, attorney's fees and any other costs associated with the foreclosure process. Since what is owed the bank or mortgage company almost always exceeds what the property is worth, foreclosure auctions normally do not result in a successful sale which means the property reverts back to the bank or mortgage company which then becomes an REO, real estate owned property.
A bank REO property may or may not be a good deal. Many people think that by buying these properties they are getting a great deal and making a killing in the market. That sometimes is true but most often not. These are things to think about before an offer is made. You should always ask, are there any inspection reports, what work has the bank agreed to, how long will it take for the bank to accept the offer and are there any special forms that will be needed to complete the sale. Bank owned properties are almost always sold "as is" meaning there may be repairs needed or other liens on the property which will need to be satisfied before clean title will be conveyed. It may sound like the bank is just dumping these properties but they may be of assistance with handling an eviction, do some repairs, pay off homeowner's association fees and negotiate with the IRS to remove any tax liens.
It is a lot of work but there are advantages to purchasing REO properties over foreclosed properties. Once a property becomes an REO property most times but not always the liens are removed and taxes are paid in full. REOs are normally listed with real estate agents and inspections are allowed prior to contract which means the property is typically restored to a salable condition. An additional benefit with REO properties is that the bank or mortgage company will many times offer better financing than they might offer for traditional properties. Lenders and mortgage companies do not want to hold on to these properties very long because of the cost to maintain so if you do your homework and are willing to take a risk it just might be your entry into the homeowner market.
Condo Association Questions
So you are thinking about buying a condo but you are not sure where to start. There are many aspects to buying condos such as what areas, how big and what condo association questions should I be asking. Condo associations were originally created as a legal entity for the purpose of developing, managing and selling the development. It allows the developer to exit the financial and legal responsibilities typically by transferring ownership to the condo owners after selling off a pre-determined number of units. Once this is done the important thing for any condo buyer to know regarding the association that will be overseeing their common property is what are the responsibilities of all involved? You are spending your hard earned money and the last thing you want to do is get stuck with a lemon or live someplace that is not what you expected.
There are a lot of condo association questions to ask before you buy but we will only cover a few.
- 1. Ask to see the condo association board meetings minutes. What have the owners been talking about, what are their concerns and issues, are there a common thread for some of the complaints, etc.
- 2. What is the renter to owner percentage? If the renter population is very high are there rental policies in place either in the bylaws or by an amendment. Always remember the association can change its bylaws so make sure you are well informed of any changes.
- 3. Ask for a copy of the certificate of insurance from the association which is a summary of the association's policy. Are the replacements costs enough to cover rebuilding if need be? Another important area to question regarding the association insurance policy is if it has a building ordinance clause. This clause insures that the building will be up to the current code if rebuilding is required.
- 4. How much is the repair fund? This will tell you if the association has the funds available for maintenance. If the fund is not high enough then the complex may not be as well kept as it should be or be living beyond its means.
- 5. Ask to see the delinquency rates of the current owners. When people do not pay their association dues on time it may be a sign of discontent and you will need to find out why.
Asking the right condo association questions is as important as finding the right real estate agent or the right financing. We all want to make sound financial decisions and the only way to accomplish this is with the right questions.
Real Estate Market in Chicago
The real estate market in Chicago is 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. There is even now talk the program will be extended and not only to first time buyers but others as well.
Historically, the real estate market in Chicago 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.
The Chicago real estate market is improving due to the current rental market. 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.
Recently the Chicago Tribune reported new housing and condo developments have undergone a record seven month decline, which may be the reason the real estate market in Chicago 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.
Short Sales
The real estate market has certainly seen its challenges over the past couple of years but for buyers there are opportunities available that have not been seen in decades, the short sale. Short sales are becoming more prevalent in the Chicago area and buyers are seeking them out as never before. It is not rocket science to understand the basics of a short sale. Short sales are when a lender agrees to accept less than the amount owed against the home because there is not enough equity to sell and pay all costs of the loan. It used to be that lenders would not even consider short sales if your payments were current but with the changing real estate and mortgage markets more and more lenders are more agreeable to negotiate.
There are several areas you need to be aware of if you intend to pursue a short sale. First of all hire a real estate agent who has short sale experience. Not all agent even know what a short sales is or ever been involved in this type of transaction. An experienced agent can help expedite the transaction and protect your interests. It is important that you not miss any details that could affect the sale somewhere down the road. Next is to prepare the seller for demands made by the lender. Remember the seller has no equity and is unable to pay the difference between the sales price and existing loans. Your seller may need to provide a hardship letter indicating their inability to pay the difference as well as taxes they may owe. Another very important area to address is to make certain the lender is given a deadline in which to respond once the seller has accepted an offer. Some lenders submit short sales to committees but that does not mean a decision could be reached in two to three weeks which lessens the possibility of getting further behind. Remember the lender may not be under any pressure to make a decision and the paperwork could sit on someone's desk so a deadline can be beneficial to everyone involved. One last area to consider with short sales is commissions. The seller may agree to pay a commission but actually the lender is who ultimately will pay. The reason is the seller is not receiving any money in which to pay the commission. Since the lender is losing money they will likely negotiate the commission directly with the listing broker.
Short sales in Chicago can be the path to home ownership for many buyers which are expected enter the market in the next few months. It is not always an easy way to purchase your home or condo but the benefits can be enormous.
Condo Rentals in Illinois
Condo rentals are a means to many different types of ends. Condo rentals in Illinois can help you to find the perfect place for you no matter what your motivation might be, from a place to call home until you can purchase or possibly for that much needed vacation residence.
Condo rentals in Chicago for your vacation are open to everyone, no matter your age, background, or lifestyle. The jazz clubs in which Chicago is well known for will delight music lovers. If the national pastime is more to your liking, Chicago offers two major league teams each in a different part of the city. Everyone in the family will enjoy the many architectural and historical landmarks that Chicago is known for from the Sears Tower to Soldier Field. Other sights to see are the many museums that are home to Chicago such as, Shedd Aquarium, Field Museum, Museum of Science and Industry and the Kohl's Children's Museum known for its hands-on learning laboratory. But that's not all for the kids! The attraction-filled Navy Pier and Lincoln Park zoo will make your vacation one that the kids will remember for a long time. A relatively new addition to Chicago will excite the kids beyond belief with a trip to Millenium Park and "the bean" where reflections of the city makes incredible photos to take home to their friends. Last but not least is Lake Michigan which is always fun when it is sunny and warm out. If this doesn't sound appealing to you yet then perhaps you are wondering about how affordable condo rentals in Illinois can be. Don't worry, you can definitely find cheap accommodations whether it is a weekly rental or one night accommodations.
What if you are not looking for a vacation rental? Condo rentals in Illinois are also an excellent source to find a place to live. You may just need a place to rent until you decide to buy or possibly enter into a rent to own agreement which is becoming more and more popular in today's real estate market. Either way finding a condo in Chicago is just a click away but there are several things you show know.
- All rental agreements are not alike - a lease us for a definite period of time, generally one year. A month to month rental agreement is not for a set period and continues until you decide to move or the owner asks you to leave.
- Rental agreements do not have to be in writing, they can oral. However, a lease for more than a year generally must in writing.
- You have rights! The law says that your apartment must be livable. You must have hot and cold running water, heat, and electrical lighting in good working order.
Finding a condo to rent or buy can be a daunting task but doing your homework and finding the right real estate agent to help will pay off many times over.
Realtors
Many people still do not know what a Realtor does or even why to use a realtor. Most think that what we do is drive people around to look at houses and make tons of money in the process. Nothing could be further from the truth! Today a real estate agents job is much more complicated and difficult than most people think. Just think of all the technology out there today and how we use it. You may not think much of going on the internet and looking for a home or condo but a realtor must be up to date on all the technology and what you can get for free off a search engine costs a real estate agent hard cash.
Realtors today work long hours and must wear many different hats to be successful. Most will work with buyers and sellers which present its own set of challenges. When working with sellers the agent works diligently to represent their client and the property to be sold. Agents must be adept at staging properties or something akin to an interior designer to make certain the property is presented in the best possible light to entice as many buyers as possible. The agent's responsibility to the seller to find the highest and best price possible, definitely a challenge in today's market. On the other side is the coin is working with buyers which can be some of the most challenging customers in which to work. The agent works to assist the buyer in the purchase of a property but in most cases has a fiduciary responsibility to the seller. The agent will guide the buyer through the maze of purchase contacts, termite inspections, home inspectors, property appraisers, lenders and many more of the requirements necessary to purchase a home or condo today.
Technology today for the Realtor has become just as important as being the consummate sales person. Without all the tools today an agent can find themselves lacking in important and costly ways if they don't keep up. Instant communication is a must for a successful agent with Blackberry's and I-Phones leading the way capable of searching the web for newly listed properties, receiving e-mails instantly for showings or just simply to make and receive a phone call. Laptops capable of wi-fi connections have taken the place of older forms of accessing information so now agents can see properties and obtain pertinent information while sitting in their car or restaurant. The technology of all business today has made life easier for all involved but when it comes to buying or selling your home there is nothing like the personal touch of a trusted Realtor.
The Rent-to-Own Program
The Rent-to-Own Program is just another great program to take advantage of in today’s market. The Rent-to-Own program means that there is a lease combined with an option to purchase the condo, within a specified time period, for an agreed-upon price. The Rent-to-Own program is a great program for two types of situations. The first being that you are unable to come up with a large enough down payment and the second being that you need time to repair your credit but you want to secure this property.
This program is a good idea for the people who just can’t come up with a large enough down payment. The way that the Rent-to-Own program works is that you would pay the market value rent each month for the property. On top of the agreed upon rent, you would also pay an additional amount of money that will go in a reserve and will be used toward your future down payment at the end of the lease. You will have to come up with more money every month, but this way you don’t lose out on the property and you are making sure that you are saving money.
This program is also fantastic for people who need that additional time for credit repair. The buyers and the sellers agree on the lease period and so the buyer just needs to confirm that the agreed upon time is lengthy enough for them to repair their credit. There are many programs that one can try, including a program called NACA, to learn more about repairing your credit.
The only downside for a buyer in a Rent-to-Own program, is that if that the buyer decides for whatever reason not to purchase at the end of the lease, then their additional money that was put into the reserve and also your 1%-5% down payment will probably be forfeited depending on the terms of the contract. This program is meant to have the buyer purchase at the end and that is why it is designed the way that it is.
