Market Updates

This page contains market analysis and insights directly from several different data sources and my current experiences in Chicago Real Estate. Let me know if there is an area of the market that you would like information about.

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How to Choose the Right Mortgage Lender When Buying a Home in Chicago

When preparing to buy a home, most buyers spend a great deal of time thinking about neighborhoods, home prices, property taxes, and what features they want in their new home. One decision that sometimes receives far less attention is choosing the right mortgage lender or loan professional.

That decision can have a significant impact on your home purchase.

The right lender isn't necessarily the company advertising the lowest interest rate. A good mortgage professional should help you understand your financing options, accurately estimate your costs, communicate clearly, meet important deadlines, and be available when you need them.

Here are some things I recommend home buyers consider when choosing a lender.

1. Don't Choose a Lender Based on the Interest Rate Alone

Naturally, the interest rate matters. Even a relatively small difference in rate can affect your monthly payment and the total amount of interest you pay over the life of the loan.

But the advertised rate doesn't tell the entire story.

When comparing lenders, ask about:

Interest rate
APR
Origination charges and lender fees
Discount points
Available lender credits
Mortgage insurance, if applicable
Estimated closing costs
Rate-lock terms
Prepayment penalties, if any

One lender could quote a lower interest rate but require you to pay thousands of dollars in points or additional fees to obtain it.

Instead of simply asking, "What's your rate?", ask the lender to explain what it will actually cost to obtain that rate.

2. Talk to More Than One Lender

There is nothing wrong with comparing lenders.

In fact, I generally encourage buyers to speak with two or three reputable mortgage professionals before deciding whom they want to use.

This provides an opportunity to compare rates and costs, but it also allows you to compare something equally important: the people themselves.

Does the lender explain things clearly?

Do they return calls and emails promptly?

Do they ask questions about your goals?

Are they willing to explain different loan options?

Do you feel comfortable asking questions?

You're potentially going to communicate with this person frequently during one of the largest financial transactions of your life. You want someone you trust and can reach when something important happens.

3. Ask About Different Loan Options

A good mortgage professional shouldn't simply tell you what loan to get.

They should be able to explain your options and help you understand the advantages and disadvantages of each.

Depending on your circumstances, those options might include:

Conventional financing
FHA financing
VA financing for eligible borrowers
Adjustable-rate mortgages
Jumbo loans
First-time buyer programs
Down-payment assistance programs
Different down-payment amounts
Temporary or permanent interest-rate buydowns

For example, putting 20% down isn't automatically the best decision for every buyer. A buyer might prefer to put less down and maintain additional cash reserves for renovations, emergencies, investments, or other expenses.

A good lender can show you the numbers so you can make an informed decision.

4. Get Fully Pre-Approved Before You Start Seriously Shopping

There's an important difference between casually discussing affordability with a lender and obtaining a meaningful mortgage pre-approval.

Before you become serious about making offers, your lender should review your financial situation and tell you what documentation will be required.

Depending on the loan, that can include income documentation, employment information, assets, debts, credit history, and other financial information.

The goal isn't simply to obtain a letter saying you're pre-approved.

It's to identify potential financing issues before you've found the home you want to purchase.

Discovering a problem before making an offer gives you time to address it. Discovering the same problem a week before closing can be considerably more stressful.

5. Make Sure Your Lender Understands Your Local Market

Real estate transactions can vary significantly from one market to another.

For buyers purchasing a condominium in Chicago, for example, the lender may need to evaluate not only the buyer but also aspects of the condominium association and building.

Association finances, insurance, litigation, owner occupancy, special assessments, reserves, deferred maintenance, and other building-related issues can potentially affect financing.

A mortgage professional who regularly works with the type of property you're buying may be better prepared to identify potential issues early in the transaction.

6. Availability Matters More Than Buyers Sometimes Realize

Imagine finding the perfect home on Saturday afternoon.

There are multiple interested buyers, and the seller is requesting offers by Sunday evening.

You want to adjust your financing scenario and need an updated pre-approval letter.

Can you reach your lender?

Real estate doesn't operate exclusively between 9 a.m. and 5 p.m. Monday through Friday. Offers are frequently written during evenings and weekends.

That doesn't mean your lender needs to be available every minute of every day. But you should understand how they handle time-sensitive situations outside normal business hours.

Ask before you need them.

7. Ask Your Realtor About Their Experience With Local Lenders

Your Realtor can be a useful resource when evaluating lenders.

An experienced Realtor has likely worked with many mortgage professionals and has seen firsthand which lenders communicate well, anticipate problems, meet deadlines, and successfully get transactions to the closing table.

Your Realtor may be able to provide the names of several mortgage professionals they've had positive experiences with.

However, the lender you choose is ultimately your decision.

You should feel free to interview lenders, compare their costs and financing options, and select the professional you believe is the best fit.

8. Consider How the Lender Could Affect Your Offer

This is an aspect of lender selection that many buyers don't consider.

In a competitive real estate market, sellers and their Realtors don't necessarily look only at the purchase price.

They may also evaluate the likelihood that each offer will successfully close.

A strong pre-approval from a lender who has thoroughly reviewed the buyer's qualifications can provide additional confidence.

When appropriate, a proactive lender may also be willing to speak with the listing agent and confirm the strength of the buyer's financing without disclosing confidential financial information.

That can become particularly valuable when competing against several other offers.

9. Ask About the Lender's Closing Process

Before choosing a lender, ask:

How quickly can you typically close?

When does underwriting begin?

Who will be my primary contact after I apply?

How will I receive updates?

How quickly are appraisals ordered?

What happens if an appraisal comes in below the purchase price?

How early do you typically issue final loan approval?

The answers can tell you a lot about how organized the lender is.

A great rate isn't particularly valuable if the lender can't meet the financing deadlines contained in your purchase contract.

10. Pay Attention to How You're Treated Before You're a Client

One of the simplest ways to evaluate a lender is to observe their behavior during your initial conversations.

If it takes several days to receive a response while they're trying to earn your business, communication probably isn't going to improve once you're under contract.

The best mortgage professionals tend to be educators as much as salespeople.

They should be willing to answer questions, explain terminology, run different scenarios, and make sure you understand the financial commitment you're considering.

The Bottom Line

Choosing a mortgage lender shouldn't simply be a search for the lowest advertised interest rate.

You're selecting one of the key professionals responsible for getting you from an accepted offer to a successful closing.

Compare rates and fees, but also compare experience, communication, availability, loan options, local knowledge, and reliability.

Your Realtor, lender, attorney, inspector, and other professionals all play different roles during the transaction. When those professionals communicate well and work together, the home-buying process can become considerably easier.

If you're thinking about buying a home and aren't sure where to begin with financing, your Realtor can help you understand the process, discuss questions you should be asking, and provide referrals to mortgage professionals they've had successful experiences working with.

Can I Buy a New Home Before Selling My Current Home? One of the most common questions I hear from homeowners who are thinking about moving is: “Can I buy my next home before I sell the one I’m living in?” The answer is yes — and in many cases, buying first can make the moving process much easier. The bigger question is whether it makes financial and strategic sense for your particular situation. If you own a home in Chicago or the surrounding suburbs and are considering a move, here are the most important things to understand. Why Do Homeowners Want to Buy Before They Sell? The biggest reason is simple: you don't want to sell your home and then have nowhere to go. Selling first can put you on a deadline. Once your current home is under contract, you may have only a few weeks to find another property, negotiate the purchase, complete inspections, secure financing and close. That can create pressure to compromise on the location, condition or features of your next home. Buying first can give you more control. You can find the right property, move at a more comfortable pace and prepare your old home for sale after you've moved out. The challenge is figuring out how to make the finances work. Do I Need Enough Cash for Two Homes? Not necessarily. Many homeowners assume they can't buy until they receive the proceeds from their current home. However, there may be several ways to access the money needed for the next purchase. Depending on your finances, these could include: Qualifying for the new mortgage while still owning your current home Using a home equity line of credit (HELOC) Using a bridge loan Borrowing against certain investment assets Making a smaller down payment and applying sale proceeds to the new mortgage later Structuring the purchase around the expected sale of your current property The right approach depends on your income, existing mortgage, available equity, cash reserves and the requirements of your lender. This is why I recommend speaking with a knowledgeable lender before beginning the home search. You may have more options than you realize. What If I Can't Qualify While Carrying Two Mortgages? This is one of the biggest concerns for homeowners who want to buy first. Even if you have substantial equity in your current home, your lender will still look closely at your income, debts and ability to carry both properties. If qualifying for two mortgages isn't possible, selling first isn't necessarily your only option. A lender and your Realtor can work together to explore alternatives and determine whether the timing of the sale and purchase can be coordinated. Can I Make My Purchase Contingent on Selling My Current Home? Yes. A home-sale contingency can make your purchase dependent upon selling your existing property. This can reduce your financial risk, but there is a tradeoff. In a competitive market, a seller may prefer an offer from a buyer who doesn't need to sell another property first. If multiple buyers are competing for the same home, a home-sale contingency can make your offer less attractive. That doesn't mean you shouldn't use one. It means the strength of the local market and the particular property you're pursuing should be considered before deciding how to structure your offer. What Happens If I Buy First and My Home Takes Longer to Sell? This is the scenario you should plan for before making an offer. Ask yourself: What happens if I own both homes for 30, 60 or even 90 days? Your budget should account for more than two mortgage payments. You could temporarily be responsible for two sets of property taxes, insurance, utilities, assessments and maintenance expenses. A good move-up strategy isn't based solely on the best-case scenario. We should understand what happens if the sale takes longer than expected. Could Buying First Actually Make My Current Home Easier to Sell? Absolutely. Once you've moved into your new home, your existing property can often be prepared for the market without disrupting your everyday life. That may make it easier to: Declutter and clean the home. Rooms tend to show larger and better with fewer belongings. Complete repairs and improvements. Painters, contractors and cleaners can work without interfering with your schedule. Stage the property. An empty or partially empty home gives you greater flexibility when deciding how it should be presented. Accommodate showings. You don't have to clean the house and leave every time a buyer wants to visit. That convenience can be especially valuable when the goal is to generate as much interest as possible during the first days your home is on the market. What About Selling First and Renting Temporarily? That's another option, particularly if you're unsure where you want to move or don't want the financial responsibility of owning two properties. Selling first gives you certainty about exactly how much equity you have available for your next purchase. The downside is that you may have to move twice — first into temporary housing and then into your new home — along with potentially paying for storage and short-term housing. For some people, that's worth it. Others would rather accept some short-term financial overlap to avoid moving twice. What About Closing Both Homes on the Same Day? It's possible, and transactions are sometimes structured so the sale of your existing home occurs shortly before the purchase of the new one. However, back-to-back closings require careful coordination. A delay involving your buyer's financing, inspection, appraisal or closing could potentially affect your purchase as well. This is one reason your Realtor, lender and attorneys should understand the entire plan from the beginning rather than treating the purchase and sale as two unrelated transactions. So, Should You Buy or Sell First? There isn't one answer that works for everyone. For someone with substantial equity, strong income and adequate reserves, buying first may provide the most flexibility and least stressful move. For someone who needs the proceeds from their current home to qualify for the next purchase, selling first or carefully coordinating the two transactions may make more sense. And sometimes the best strategy depends on the properties themselves. If your current home is likely to sell quickly but the type of home you're looking to purchase is difficult to find, buying first could be advantageous. If you're moving into an area with plenty of inventory while your current property could take longer to sell, the strategy may be different. Start With a Plan — Not a Home Search If you're thinking about moving, one of the biggest mistakes you can make is falling in love with a new home before figuring out what you're going to do with your current one. Before we start looking at properties, I like to answer three questions: What is your current home realistically worth? How much equity should you expect to have after selling? What purchasing options does your lender give you if you buy before you sell? Once we know those answers, we can build a strategy around your finances, your timeline and what's actually happening in your local real estate market. Thinking About Buying and Selling at the Same Time? You don't have to figure out the timing on your own. Contact me and we can put together a buy-before-you-sell strategy based on your current home's value, your available equity and the type of property you're hoping to purchase. Sometimes the question isn't “Can I buy before I sell?” It's “What's the safest and smartest way for me to do it?”

How to Help Prevent Basement Flooding and Water Damage in a Chicago Home Water intrusion is one of those homeownership issues that can go unnoticed—until a major Chicago storm exposes a problem. For both Chicago homebuyers and current homeowners, understanding how water moves around a property can help identify potential problems before they turn into expensive repairs. From gutters and grading to sump pumps and sewer backups, here are some of the most important things I recommend paying attention to when evaluating a Chicago home. Start Outside: Where Does the Rainwater Go? One of the simplest things you can do is walk around the exterior of the property and look at what happens to rainwater coming off the roof. 1. Check the Gutters Gutters are designed to collect rainwater from the roof and direct it toward the downspouts. When they're clogged, damaged or improperly pitched, water can overflow and end up next to the house. Look for: Clogged gutters Sagging sections Water stains on siding or masonry Evidence of water overflowing the gutters Loose or disconnected downspouts For homeowners, regular gutter cleaning can be a relatively inexpensive piece of preventative maintenance. 2. See Where the Downspouts Discharge A functioning gutter system doesn't accomplish much if the downspouts dump all that water directly next to the foundation. Ideally, water should be directed away from the house. When looking at a property, pay attention to downspout extensions, underground drainage systems and areas where water appears to collect. One of the simplest questions to ask is: “Where does all the water from this roof go during a major storm?” 3. Look at the Grading Around the House The ground surrounding a home generally should slope away from the foundation. If the yard, landscaping, patio or other surfaces slope toward the house, rainwater may collect along the foundation. Pay particular attention to: Low spots next to the house Soil that slopes toward the foundation Patios pitched toward the building Sidewalks or walkways directing water toward the house Standing water after rain These are easy things to overlook when you're focused on kitchens, bathrooms and finishes. Go Downstairs: What Is the Basement Telling You? A basement doesn't need to have standing water for there to be evidence of a previous moisture problem. 4. Look for Signs of Previous Water Intrusion When I'm walking through a basement, I'm not only looking for water. I'm looking for clues that water has been there before. Those clues can include: Water stains White, chalky residue or efflorescence on masonry Peeling or bubbling paint Musty odors Discoloration Rust around mechanical equipment Damaged baseboards or drywall Uneven patches of fresh paint None of these automatically means that a home has a serious water problem, but they can be reasons to ask additional questions or have the area evaluated by the appropriate professional. 5. Find the Sump Pump If a property has a sump pump, take a look at the system rather than simply checking off a box that says “sump pump.” Questions worth asking include: Is the pump operational? Where does it discharge? Is there a battery backup? Is there a secondary pump? Does the sump pit appear properly maintained? When was the pump last replaced? For homeowners, testing the sump pump periodically is much better than discovering a problem in the middle of a severe thunderstorm. 6. Understand the Home's Sewer-Backup Protection Basement water doesn't necessarily come through the foundation. During significant rain events, sewer backup can also be a concern for some Chicago properties. Depending on the home, you may encounter systems such as: Overhead sewers Backwater valves Check valves Sump systems Ejector pumps If you're purchasing a home with a finished basement, understanding what type of sewer-backup protection is present can be especially important. Ask the seller what system is installed and whether there is any known history of sewer backup or basement flooding. Don't Forget to Look Up Water intrusion isn't only a basement problem. 7. Inspect the Roof, Flashing and Roof Penetrations Roof leaks can travel before they become visible inside a home, which means the location of a ceiling stain isn't necessarily the location where water is getting through the roof. Areas that deserve particular attention include: Chimneys Skylights Plumbing vents Roof-to-wall connections Flashing Gutters Flat-roof drains Inside the home, look for staining, bubbling paint, damaged drywall and other indications of previous moisture. 8. Examine Windows and Doors Water can also find its way into a home around windows and exterior doors. Look for: Staining underneath windows Soft or deteriorated wood Damaged trim Cracked or missing caulk Discoloration Evidence of previous repairs Pay Special Attention to Basement Window Wells Window wells can collect a surprising amount of water during a heavy Chicago storm. Check whether they appear to drain properly and whether the window and surrounding materials show evidence of previous water intrusion. Chicago Brick Homes Require Another Look 9. Check the Masonry Chicago has an enormous inventory of brick homes, two-flats, three-flats and small multifamily buildings. While brick and masonry can be extremely durable, they still require maintenance. Look for: Deteriorating mortar joints Cracked masonry Failed sealant around windows and doors Damaged parapets Deteriorated flashing Areas showing evidence of repeated moisture Tuckpointing and masonry repairs aren't necessarily just cosmetic improvements. Proper maintenance can be an important part of keeping water outside the building. The Big Picture: Follow the Water When evaluating a home for potential water problems, I like to think about the property as an entire system. Roof → Gutters → Downspouts → Grading → Foundation → Drainage The goal is to collect water and move it away from the home before it has an opportunity to get inside. For buyers, this is also a good reminder that some of the most important parts of a home showing aren't necessarily the most exciting ones. A beautiful kitchen is easy to notice. Where the downspouts discharge isn't. But the second one could ultimately have a much bigger impact on the cost of owning the home. Buying a Home in Chicago? Know What to Look For As a Chicago Realtor, part of my job is helping buyers look beyond finishes and understand the property they're considering purchasing. That doesn't mean replacing the role of a licensed home inspector, structural engineer, roofer, plumber or other qualified professional. When something raises a concern, the appropriate specialist should evaluate it. It does mean helping buyers know what questions to ask, what deserves a closer look and when additional investigation may make sense.

What Does It Really Cost to Buy a $600,000–$800,000 Condo in Chicago? The purchase price is only part of the cost. When shopping for a Chicago condo, most buyers naturally focus on the asking price and down payment. But there are several other expenses—both upfront and monthly—that can have a major impact on what a condo actually costs to own. Here’s a practical look at the expenses associated with buying a $600,000, $700,000, or $800,000 condo in Chicago, including several costs buyers may not think about until after they start the process. HOW MUCH CASH MIGHT YOU NEED? $600,000 Condo Purchase Price $600,000 10% Down Payment $60,000 Estimated Closing Costs ~$16,000 Approximate Cash Needed at Closing ~$76,000 $700,000 Condo Purchase Price $700,000 10% Down Payment $70,000 Estimated Closing Costs ~$18,500 Approximate Cash Needed at Closing ~$88,500 $800,000 Condo Purchase Price $800,000 10% Down Payment $80,000 Estimated Closing Costs ~$21,000 Approximate Cash Needed at Closing ~$101,000 BUYER TIP Your down payment is not the same thing as the amount of cash you need to buy the property. A buyer planning to put $70,000 down on a $700,000 condo could need closer to $90,000 by the time closing costs and other expenses are included. And ideally, you’ll still have money left over after closing. What Could Your Monthly Condo Expenses Look Like? For illustration, these examples assume a 30-year mortgage at approximately 6.5% with 10% down. Actual mortgage rates, property taxes, HOA assessments, insurance, and other costs will vary by buyer and property. $600,000 CHICAGO CONDO Mortgage – Principal & Interest ~$3,413/month Property Taxes ~$750/month HOA Assessment ~$600/month Condo Insurance ~$50/month Utilities & Internet ~$225/month Estimated Monthly Housing Cost ~$5,038 $700,000 CHICAGO CONDO Mortgage – Principal & Interest ~$3,982/month Property Taxes ~$875/month HOA Assessment ~$700/month Condo Insurance ~$55/month Utilities & Internet ~$250/month Estimated Monthly Housing Cost ~$5,862 $800,000 CHICAGO CONDO Mortgage – Principal & Interest ~$4,551/month Property Taxes ~$1,000/month HOA Assessment ~$800/month Condo Insurance ~$60/month Utilities & Internet ~$275/month Estimated Monthly Housing Cost ~$6,686 The HOA Assessment Can Change Everything Two Chicago condos with identical purchase prices can have dramatically different monthly carrying costs. Consider two condos priced at $700,000. CONDO A HOA Assessment $500/month CONDO B HOA Assessment $1,200/month Difference $700/month Annual Difference $8,400/year That doesn’t automatically mean the condo with the higher assessment is a worse value. A higher assessment may include expenses such as: Heat Water Cable or internet Door staff Fitness facilities Elevators Building maintenance Common-area expenses Landscaping Snow removal Instead of simply asking: “Is the assessment too high?” Ask: “What does the assessment include, and is the association financially healthy?” You’re Also Buying Into the Condo Association One of the most overlooked parts of buying a Chicago condo is the financial condition of the building itself. When buying a condo, you’re purchasing your individual unit—but you’re also becoming part of an association responsible for maintaining the entire property. Important items to investigate can include: ✓ Association reserves ✓ Recent special assessments ✓ Pending or proposed special assessments ✓ Planned capital improvements ✓ Building insurance ✓ Pending litigation ✓ Delinquent assessments ✓ Recent HOA increases ✓ Upcoming major building repairs Potential projects might include: Roof • Masonry • Windows • Elevators • Balconies • Parking Garage • Plumbing • HVAC • Other Mechanical Systems LOW HOA FEES AREN’T ALWAYS BETTER An unusually low monthly assessment can look attractive. But if a condo association hasn’t adequately saved for future repairs and improvements, owners may eventually have to pay for those projects through a special assessment. Those assessments can sometimes total thousands—or even tens of thousands—of dollars per unit. Expenses Chicago Condo Buyers Often Forget BEFORE CLOSING Home Inspection $500–$800+ Real Estate Attorney $700–$1,000+ Appraisal $600–$800+ MOVING INTO THE BUILDING Professional Movers $1,000–$3,000+ Building Move-In Fee $250–$750+ Refundable Moving Deposit $250–$1,000 Keys, Fobs & Garage Remotes $50–$300+ AFTER YOU MOVE IN Painting & Minor Improvements $2,000–$7,500+ Window Treatments $1,500–$5,000+ Furniture $3,000–$15,000+ HVAC Maintenance or Repairs $200–$1,000+ Parking Varies by building Special Assessments Potentially thousands of dollars How Much Should You Have Available? There’s a difference between having enough money to close and being financially comfortable after you close. A buyer may want to consider keeping additional reserves available for moving, improvements, unexpected repairs, and other expenses. $600,000 CONDO 10% Down Payment $60,000 Estimated Closing Costs $16,000 Suggested Post-Closing Cushion $10,000–$15,000 Suggested Available Funds $86,000–$91,000 $700,000 CONDO 10% Down Payment $70,000 Estimated Closing Costs $18,500 Suggested Post-Closing Cushion $12,000–$18,000 Suggested Available Funds $100,500–$106,500 $800,000 CONDO 10% Down Payment $80,000 Estimated Closing Costs $21,000 Suggested Post-Closing Cushion $15,000–$20,000 Suggested Available Funds $116,000–$121,000 These figures aren't requirements. They're simply examples designed to illustrate why buyers may want to budget for more than the down payment. Purchase Price Isn't the Whole Story Here's something that surprises many buyers: A $650,000 condo could cost more each month than a $700,000 condo. The purchase price is only one part of the equation. Your actual monthly ownership cost can also depend on: Property Taxes HOA Assessments Parking Insurance Utilities Building Amenities Loan Terms Potential Special Assessments So instead of starting with: “How expensive of a condo can I buy?” Consider starting with: “What monthly housing expense am I comfortable with?” Once you establish that number, you can work backward and identify Chicago condos that make sense for both your lifestyle and your finances. THINKING ABOUT BUYING A CHICAGO CONDO? The right condo isn't necessarily the one with the lowest price or lowest HOA assessment. It's the property where the purchase price, monthly costs, building condition, association finances, location, and lifestyle all make sense together. When I work with Chicago condo buyers, I help them look beyond the listing price and evaluate factors including: ✓ Property taxes ✓ HOA assessments ✓ Building reserves ✓ Special assessments ✓ Parking costs ✓ Building amenities ✓ Condo association information ✓ Overall monthly ownership costs Thinking about buying? Let's figure out what your Chicago condo will really cost. CONTACT TIM The figures shown above are estimates provided for general educational purposes only. They are not lending, legal, tax, or financial advice. Mortgage rates, property taxes, HOA assessments, insurance, closing costs, and other expenses vary based on the property, building, buyer, and financing.

What Should Your Realtor Be Doing at Your Final Walkthrough? A good buyer’s agent should be actively involved during the final walkthrough, not simply open the door and let the buyer look around. The walkthrough is the buyer’s last opportunity before closing to confirm that the property is in the expected condition. The Realtor should help the buyer: Confirm the property’s condition hasn’t materially changed since the buyer last saw it. Verify agreed-upon repairs were completed. Bring the inspection repair agreement, attorney modification, or other documentation identifying items the seller agreed to address. Confirm included personal property remains, such as appliances, window treatments, mounted TVs if included, garage remotes, shelving, etc. Check that the seller has removed belongings and debris if the contract requires the property to be delivered vacant/broom-clean. Look for new damage caused during the seller’s move—scratched floors, damaged walls, broken doors, damaged cabinetry, etc. Operate major systems and fixtures. Run faucets, flush toilets, check for leaks, turn lights on, test appliances, operate the HVAC, garage door, fireplace and other relevant equipment. Look for evidence of water intrusion. Check under sinks, around toilets, near appliances, basement walls/floors and ceilings for leaks or new staining. Confirm utilities are still on so these items can actually be tested. Document problems immediately with photographs/video and communicate them to the buyer’s attorney before closing. Help distinguish a legitimate walkthrough issue from a cosmetic concern. The final walkthrough generally isn't an opportunity to renegotiate things the buyer already knew about; the focus is whether the property is being delivered according to the contract. What the Realtor should not do This distinction is particularly important. A Realtor isn't performing another professional home inspection and shouldn't represent themselves as an electrician, plumber, HVAC technician, structural engineer or attorney. The agent's role is to help the buyer observe, test and document, then bring the appropriate professional in when something questionable appears. For example, instead of saying: "There's nothing wrong with the furnace." A better response is: "Let's make sure it's operating, and if something doesn't seem right, we'll document it and contact your attorney and/or inspector before closing." A simple final-walkthrough routine I like the idea of treating the walkthrough systematically: Outside → room by room → mechanicals → repairs → included items → seller belongings → final photos. For a Chicago condo, I'd add a few specific items: check the parking space, storage unit, keys/fobs/remotes, appliances, HVAC, plumbing under every sink, signs of water intrusion around windows and ceilings, and any seller-owned fixtures or improvements specifically included in the contract. The biggest value the Realtor provides isn't necessarily finding defects. It's knowing what was agreed to, recognizing when something doesn't look right, documenting it, and getting the buyer's attorney involved before the transaction closes.

New Condo Underwriting Rules: What Chicago Condo Buyers and Sellers Need to Know

If you're buying or selling a condominium in Chicago, there are important changes to mortgage underwriting that could affect your transaction.

While buyers often focus on interest rates and monthly payments, lenders are placing much greater emphasis on the financial health of the condominium association itself. These updated lending guidelines are designed to reduce risk by ensuring condominium buildings are financially prepared to maintain their properties for years to come.

Why Are the Rules Changing?

Following several high-profile condominium structural failures around the country and increasing concerns over deferred maintenance, Fannie Mae and Freddie Mac have strengthened their condominium underwriting standards.

Rather than focusing solely on a buyer's financial qualifications, lenders are now taking a much closer look at the condominium association itself. In many cases, the financial strength and physical condition of the building can determine whether a buyer is able to obtain financing.

How Different Sized Condo Buildings Are Affected

Not every condominium association will experience these changes in the same way. In Chicago, where everything from two-unit conversions to high-rise towers are common, the impact varies depending on the size and complexity of the building.

Two- to Four-Unit Associations

Many Chicago condominium buildings contain only two, three, or four units. These smaller associations often operate with:

Limited reserve funds
Informal budgets
Volunteer management
Minimal financial documentation
No professional management company

While these buildings remain financeable, lenders are increasingly requesting documentation that demonstrates the association is financially healthy.

For buyers, this means it is becoming more important to review:

Reserve balances
Association budgets
Insurance coverage
Planned repairs
Special assessments

Small buildings that have organized financial records and consistently collect assessments are generally positioned to move through underwriting more smoothly than associations with little documentation.

Five- to Twenty-Unit Buildings

These boutique buildings represent a large portion of Chicago's housing market.

Many are professionally managed and maintain reserve accounts, but the quality of financial management can vary significantly.

Lenders are paying closer attention to:

Reserve funding
Delinquent assessments
Insurance coverage
Upcoming capital improvements
Deferred maintenance

Buildings that have delayed maintenance projects or rely heavily on special assessments may experience greater underwriting scrutiny.

Mid-Size and Large Condominium Associations

Larger associations often have professional management, engineering reports, reserve studies, and stronger financial reporting.

While these buildings generally have an advantage from a documentation standpoint, lenders are now reviewing much more than just the financial statements.

Large buildings may also receive additional scrutiny regarding:

Structural inspections
Deferred maintenance
Reserve studies
Insurance coverage
Pending litigation
Large special assessments

Simply being a large association no longer guarantees an easier approval process.

What Buyers Should Know

More Buildings Will Receive a Full Financial Review

Many condominium purchases previously qualified for a streamlined review. Under the updated guidelines, more buildings will require a comprehensive review before a conventional loan can be approved.

Lenders may review:

Association budgets
Reserve fund balances
Insurance coverage
Special assessments
Deferred maintenance
Financial statements
Structural concerns

Buyers should expect additional documentation requests and, in some cases, a longer underwriting process.

Reserve Funds Are More Important Than Ever

Beginning in 2027, many associations will generally be expected to contribute approximately 15% of their annual operating budget toward reserves unless they have a recent reserve study supporting a different funding level.

Healthy reserve accounts help pay for major projects such as:

Roof replacements
Masonry repairs
Porch reconstruction
Elevator modernization
Plumbing replacements
Parking lot resurfacing

Buildings with well-funded reserves are generally viewed as lower lending risks.

Reserve Studies Matter

Reserve studies estimate the remaining useful life of a building's major components and recommend how much money should be saved for future repairs.

Associations with current reserve studies are often better positioned during the mortgage approval process because lenders can better evaluate the building's long-term financial planning.

Insurance Requirements Continue to Tighten

Lenders are paying closer attention to the association's insurance coverage than ever before.

They may review:

Property insurance
Replacement cost coverage
Deductibles
Fidelity/crime coverage where required
Compliance with Fannie Mae and Freddie Mac lending standards

As insurance costs continue to rise throughout Chicago, this has become an increasingly important factor during underwriting.

What Sellers Should Know

The Financial Health of Your Building Matters

Today's buyers aren't just purchasing your unit—they're buying into your condominium association.

Buildings with:

Strong reserve funds
Well-maintained common areas
Organized financial records
Appropriate insurance coverage
Minimal deferred maintenance

are generally easier to finance and may appeal to a broader pool of qualified buyers.

Prepare Association Documents Before Listing

Having important association documents available before your property goes on the market can help reduce delays and provide buyers with greater confidence.

Helpful documents include:

Current operating budget
Reserve account balance
Reserve study (if available)
Insurance certificate
Information regarding special assessments
Recent board meeting minutes

Providing these documents early can make the underwriting process smoother and help prevent financing surprises.

Why This Matters in Chicago

Chicago is unique because it has thousands of condominium associations ranging from two-unit conversions to large downtown high-rises.

The new underwriting standards place greater emphasis on how well each association plans for future maintenance—not simply how many units it contains.

Whether your building has two units or two hundred, lenders increasingly want to see evidence that the association is financially prepared to maintain the property and address future repairs without relying on emergency special assessments.

Bottom Line

These underwriting changes represent one of the most significant shifts in condominium financing in years.

For buyers, evaluating the financial health of the association is becoming just as important as evaluating the home itself.

For sellers, belonging to a well-managed association with healthy reserves, adequate insurance, and organized financial records can make your property more attractive and easier to finance.

Working with a Realtor who understands these evolving lending standards can help buyers avoid financing obstacles and help sellers position their homes for a smoother transaction in today's Chicago condominium market.

Buying in a 2- to 4-Unit Chicago Condo Building?

Read This First

Many of Chicago's most desirable neighborhoods—including Lincoln Park, Lakeview, Roscoe Village, North Center, West Town, Wicker Park, Logan Square, Avondale, Lincoln Square, and Andersonville—are filled with two-, three-, and four-unit condominium buildings.

These smaller associations often offer lower monthly assessments, more privacy, and a neighborhood feel that many buyers love. However, under today's lending guidelines, buyers should take a closer look at how the association is managed before making an offer.

Ask These Questions Before You Buy

Does the association have reserve savings?
A reserve account helps cover major expenses such as roof replacements, masonry repairs, porches, and tuckpointing. Buildings with little or no savings may be more likely to require future special assessments.

Are monthly assessments keeping up with expenses?
Very low HOA dues may sound appealing, but they can also indicate that the association isn't setting aside enough money for future maintenance.

Is the association financially organized?
Lenders may request documents such as:

Annual budget
Current reserve balance
Insurance certificate
Information on any special assessments
Recent meeting minutes
Reserve study (if available)

Having these documents readily available can help prevent financing delays.

Are all owners current on their assessments?
If multiple owners are behind on dues, it can create financial strain for a small association and may raise additional questions during underwriting.

Are there any major repairs planned?
Ask whether the building expects to replace the roof, repair masonry, rebuild porches, or complete other significant projects in the near future.

Good News for Buyers

Small condominium buildings are not becoming difficult to finance simply because they have fewer units. In fact, many 2- to 4-unit associations continue to qualify for conventional financing without issue.

The difference is that lenders are placing greater emphasis on the association's financial health and documentation than in years past.

A well-managed three-unit building with healthy reserves, adequate insurance, and organized financial records may present fewer underwriting concerns than a much larger association that has deferred maintenance or inadequate reserve funding.

A Realtor's Tip

Before submitting an offer, ask your Realtor to request the association's budget, reserve information, insurance certificate, and any planned capital improvements. Reviewing these items early can uncover potential financing issues before they delay—or derail—your purchase.

The Second Half of The Chicago Real Estate Market Explained

Historically, the second half of the year in the Chicago housing market follows a fairly predictable seasonal pattern. While every year has its own economic factors (interest rates, inventory, employment, etc.), the market typically shifts from speed and competition toward strategy and negotiation.

July–August: The market starts to normalize

This is usually when:

Families have completed moves before the school year.
Buyer traffic begins to decline from the spring peak.
Inventory remains relatively strong.
Open houses become a little less crowded.

Well-priced homes still sell quickly, but sellers generally receive fewer offers than they might have in April or May. Buyers often gain a little more breathing room to make decisions.

September: One last active push

September is often one of the better months that doesn't get enough attention.

You'll frequently see:

Serious buyers who want to purchase before winter.
Sellers motivated to close before the holidays.
Less competition than during spring.
Strong activity in move-up homes and luxury properties.

Many experienced Realtors consider September one of the most balanced months of the year because inventory is still available while competition has eased.

October: Buyers gain leverage

By October:

Showings generally decline.
Homes stay on the market a little longer.
Price reductions become more common.
Inspection and closing-cost negotiations become easier.

Homes that are move-in ready and priced correctly still sell well, but sellers often need to be more realistic about pricing than they did in spring. Nationally, mid-October is often when buyers begin to see more negotiating power.

November–December: The market slows, but doesn't stop

The holiday season brings:

Fewer new listings.
Fewer casual buyers.
Highly motivated buyers and sellers.
Faster decision-making because everyone still in the market usually has a reason to move.

Although transaction volume drops, homes that sell during this period are often purchased by buyers with immediate needs such as relocations, job changes, downsizing, or life events.

What this means for sellers

The biggest mistake sellers make in the second half of the year is assuming the spring market is still in effect.

Instead, successful sellers typically:

Price accurately from day one.
Invest in professional photography and staging.
Prepare for fewer showings but higher-quality buyers.
Stay flexible during inspections and negotiations.

What this means for buyers

The second half of the year often provides buyers with:

More negotiating leverage.
Less competition.
More time to evaluate homes.
Better opportunities to negotiate repairs or seller concessions.

The trade-off is that inventory usually begins to shrink as the year progresses.

For Chicago specifically

Chicago often behaves differently than Sun Belt markets because inventory remains relatively constrained in many neighborhoods. Even as the market slows, desirable areas such as Lincoln Park, North Center, Lakeview, West Town, Roscoe Village, and Avondale can continue to see multiple offers on well-priced homes. At the same time, properties that are overpriced or poorly presented tend to sit noticeably longer than they would have in the spring. Inventory has improved somewhat in 2026, but it remains below long-term norms in many parts of the metro, supporting prices in desirable neighborhoods.

Chicago Rental Laws: How Mayor Brandon Johnson's Proposed Changes Could Affect Landlords, Investors, and Renters

If you own rental property, invest in real estate, or are considering becoming a landlord, understanding Chicago rental laws is more important than ever.

Mayor Brandon Johnson has proposed new tenant protection measures that could significantly change Chicago rental laws and the way rental housing is managed throughout the city. While the proposal is intended to improve housing affordability and tenant stability, it could also impact property owners, real estate investors, and the overall Chicago housing market.

Below is an overview of the proposed changes and what they may mean for anyone involved in Chicago real estate.

How Chicago Rental Laws Could Change

The proposal includes several measures that would expand tenant protections and introduce additional responsibilities for landlords. Although the ordinance has not been finalized, these are some of the most discussed provisions.

Limits on Security Deposits and Move-In Fees

One proposed change to Chicago rental laws would limit the amount landlords can collect from new tenants before move-in. Lower upfront costs may make renting more affordable, but they could also reduce a landlord's ability to protect against potential property damage or unpaid rent.

Stronger Tenant Protections

The proposal would expand tenant rights by increasing protections against eviction and establishing additional requirements before landlords can terminate or choose not to renew a lease.

For property owners, this could mean longer timelines, additional documentation, and increased legal compliance.

Longer Notice Requirements

The proposed ordinance would require landlords to provide more advance notice before rent increases, lease non-renewals, or other significant changes. These provisions are intended to give tenants more time to prepare while creating additional planning requirements for landlords.

Additional Compliance Requirements

As Chicago rental laws continue to evolve, landlords may be required to provide additional disclosures, written notices, and documentation throughout the leasing process. While these changes promote transparency, they could also increase administrative costs for rental property owners.

How New Chicago Rental Laws Could Affect Landlords

Many Chicago landlords own just one or two investment properties rather than large apartment portfolios. Because of that, even modest regulatory changes can have a significant financial impact.

Potential effects include:

Higher operating and compliance costs
Increased legal and administrative responsibilities
Reduced flexibility when managing leases
Greater importance of professional property management
More careful tenant screening and financial planning

Some landlords may decide to continue renting their properties, while others may consider selling or converting their investment strategy depending on how the final ordinance is written.

What Investors Should Know

Anyone considering purchasing an investment property should closely monitor changes to Chicago rental laws.

Cash flow projections may need to account for:

Increased operating expenses
Longer turnover timelines
Additional legal compliance costs
Changes in rental income expectations
Future legislative updates

Despite these challenges, Chicago continues to offer strong long-term investment opportunities thanks to its diverse economy, stable rental demand, and relatively affordable pricing compared to many major U.S. cities.

What Renters Could Experience

The proposed changes are designed to provide greater housing stability and reduce financial barriers for renters.

However, changes to Chicago rental laws may also have indirect effects. If landlords experience higher operating costs, some may respond by increasing rents where market conditions allow, delaying property improvements, or becoming more selective during the tenant screening process.

As with any major housing policy, the long-term effects will depend on housing supply, demand, interest rates, and the final version of the ordinance.

The Bottom Line

Changes to Chicago rental laws can have a lasting impact on landlords, tenants, buyers, and investors alike. Whether you're purchasing your first investment property, selling a multi-unit building, or simply trying to stay informed about the Chicago real estate market, understanding these proposed regulations is essential.

As the ordinance moves through the legislative process, additional revisions are possible before any final rules take effect. Staying informed will help property owners and investors make smarter decisions in an evolving market.

If you have questions about buying, selling, or investing in Chicago real estate—or how changing Chicago rental laws could affect your property—I'd be happy to help you understand what these changes may mean for your specific situation.

Why The Housing Market (Especially Rentals) Is So Competitive Right Now

If you’ve been searching for a home or apartment in Chicago lately, you’ve probably noticed one thing right away—it’s competitive.

Homes are getting multiple offers. Rentals are leasing quickly. And in many cases, prices feel higher than expected.

So what’s actually driving this?

Let’s break it down.

1. Higher Mortgage Rates Are Changing Buyer Behavior

Mortgage rates are still elevated compared to the historically low rates we saw just a few years ago.

What does that mean for buyers?

Higher monthly payments—and for many people, that’s enough to pause their home search. Instead of stretching their budget, they’re choosing to rent a little longer and wait for better conditions.

Result: More demand on the rental side.

2. Homeowners Are Staying Put

At the same time, many current homeowners are locked into very low mortgage rates—often in the 2–3% range.

If they were to sell today, they’d likely be taking on a new loan at a much higher rate. Because of that, many are choosing not to sell.

Result: Fewer homes available on the market.

3. Low Inventory Across the Board

When fewer people are selling, inventory stays tight.

That creates:

More competition among buyers
Faster-moving listings
Increased pressure on pricing

And this isn’t just happening in the for-sale market—it impacts rentals too.

4. Rental Demand Is Surging

Because many buyers are hitting pause, they’re entering (or staying in) the rental market.

At the same time:

New construction has slowed due to higher costs
Fewer new units are being delivered in the short term

Result: More renters competing for fewer available units.

5. The Return to City Living

Chicago has seen a strong return to city living, especially in neighborhoods like West Loop, River North, and the South Loop.

People are prioritizing:

Walkability
Lifestyle and amenities
Shorter commutes with hybrid work

Result: Increased demand in already popular rental and condo markets.

6. More Household Formation

Another factor that often gets overlooked—more people are living alone or moving out of shared spaces.

Even without major population growth, this creates more households, which increases overall housing demand.

What This Means for You

When you combine all of these factors, the equation is simple:

Low inventory + high demand = a competitive market

Whether you’re renting or buying, it’s important to:

Be prepared to move quickly
Understand pricing strategies
Have a clear plan before you start your search

Final Thoughts

While today’s market can feel challenging, it’s not impossible to navigate—it just requires the right strategy and guidance. I’m always happy to help you make a smart, informed decision.

Should You Try to Time the Market When Buying or Selling a Home in Chicago?

If you’re thinking about buying a home in Chicago, you’ve probably asked yourself:
“Should I wait for the perfect time to buy?”

It’s a fair question—but the reality is, trying to time the real estate market rarely works the way people hope.

The Truth About Timing the Market

Many buyers wait for one of two things:

Interest rates to drop
Home prices to come down

But here’s what usually happens: when rates fall, more buyers jump back into the market. That increased demand often pushes prices higher and brings back competition—especially in popular Chicago neighborhoods.

In other words, waiting can sometimes put you in a more competitive (and more expensive) situation.

Why Chicago Is Different

Unlike some markets that see dramatic ups and downs, Chicago tends to be more stable. Home values generally move gradually, and well-priced properties—especially in areas like Lincoln Park, Lakeview, West Town, and the Near North Side—continue to attract strong demand.

That means there’s rarely a “perfect dip” to jump in on.

A Smarter Strategy: Time Your Life

Instead of trying to predict the market, focus on your personal situation. The right time to buy is when:

You can comfortably afford the monthly payment
Your job and income are stable
You plan to stay in the home for at least 3–5 years

If those boxes are checked, you’re in a strong position—regardless of short-term market conditions.

Buy Now, Refinance Later?

One strategy many Chicago buyers are using right now is buying at today’s prices and refinancing later if interest rates drop. While no one can predict the future, this approach allows you to secure a home now and potentially improve your payment down the line.

Final Thoughts

The best time to buy a home in Chicago isn’t when the market is perfect—it’s when your finances and goals align.

If you’re thinking about buying and want to understand what opportunities exist in today’s market, it’s worth having a conversation. A smart strategy will always outperform perfect timing.

Thinking about buying in Chicago? Let’s talk through your options and create a plan that works for you.

Why Are Some Homes Getting 10 Offers While Others Sit?

If you’ve been watching the market lately, you’ve probably noticed something confusing: one home gets multiple offers within days while another nearby sits for weeks with little activity.

So what’s causing the difference?

The answer isn’t just the market. It’s strategy.

1. Buyers Are Extremely Price Sensitive Right Now

Today’s buyers are dealing with higher monthly payments than they were a few years ago. That means many buyers have become laser focused on value. Homes priced correctly are attracting attention immediately, while homes priced even slightly too high are often being skipped.

In many cases, the home that sells fastest isn’t necessarily the nicest home — it’s the one buyers feel is the best value.

2. Presentation Matters More Than Ever

Professional photography, staging, decluttering, floor plans, video walkthroughs, and strong marketing can dramatically change buyer interest.

Buyers often decide whether they like a property before they ever walk through the door.

If the first impression online doesn’t connect, showings slow down quickly.

3. Inventory Is Low — But Not Every Home Benefits Equally

Low inventory still exists in many Chicago neighborhoods, but demand is concentrated.

Updated homes in move-in ready condition often receive strong activity while homes needing work, unusual layouts, or aggressive pricing can sit much longer.

4. Hyperlocal Markets Are Moving Differently

Real estate is becoming increasingly neighborhood specific.

A condo in one neighborhood may receive multiple offers while a similar property elsewhere struggles. School boundaries, walkability, transit access, assessments, and even street location are creating bigger differences than many people realize.

What This Means for Sellers

The strategy of “let’s price high and see what happens” is becoming riskier.

Homes that launch correctly often create momentum. Homes that miss the mark can quickly become stale.

What This Means for Buyers

Not every listing requires a bidding war.

Some homes remain negotiable, especially properties with longer days on market, while others still require aggressive offers and strong terms.

Bottom Line

The market isn’t hot everywhere. It’s selective.

Understanding where buyers are competing — and where opportunities exist — is becoming more important than ever.

Thinking about buying, selling, or just curious how your home would perform in today’s market? Reply to this email and I’m happy to help.

What Should My Realtor Do During a Home Showing?

What Should Your Chicago Realtor Do During a Home Showing?

If you're buying a home in Chicago, touring properties is one of the most exciting parts of the process. But many buyers wonder: What is my Realtor actually supposed to do during a home showing?

A professional Chicago Realtor does much more than unlock the front door. A great buyer's agent serves as your advisor, educator, and advocate throughout the home-buying process. At the same time, there are certain things a Realtor should not do during a showing.

Understanding the difference can help you get the most value from your real estate agent while making informed decisions about one of the biggest purchases of your life.

What Your Chicago Realtor Should Be Doing

Point Out Important Features

During a home showing, your Realtor should help you identify features that may affect the home's value, functionality, or resale potential.

This includes discussing:

Floor plan and overall layout
Natural light and room flow
Storage space
Potential renovation opportunities
Outdoor living areas
Parking and garage access
Neighborhood amenities
Resale considerations

An experienced Chicago Realtor should also help you compare each property to others you've seen so you can make an informed decision.

Help You Evaluate the Neighborhood

Buying a home means buying into a neighborhood as well.

Your Realtor should discuss factors such as:

Walkability
Public transportation options
Nearby parks
Restaurants and shopping
Commute times
Future development that could affect property values
Local market trends

These insights help buyers understand not only the home but also the lifestyle that comes with it.

Explain Current Market Conditions

One of the biggest benefits of working with a Realtor is understanding how the home fits into today's market.

Your agent should explain:

Comparable recent sales
Average days on market
Whether the home appears overpriced or competitively priced
The level of buyer competition
Possible offer strategies

This guidance becomes especially valuable in competitive Chicago neighborhoods where multiple-offer situations are common.

Answer Questions About the Buying Process

Your Realtor should be prepared to explain:

The offer process
Earnest money
Home inspections
Financing timelines
Attorney review
Appraisals
Closing procedures

A showing is often the first opportunity for buyers to ask questions, and a knowledgeable Realtor should welcome those conversations.

Protect Your Interests

Your Realtor works for you—not the seller.

During a showing, your agent should help you identify potential concerns, discuss negotiation opportunities, and make sure you have the information needed to make confident decisions.

That advocacy continues well beyond the showing and throughout the entire transaction.

What Your Realtor Should Not Do

Just as important as knowing what your Realtor should provide is understanding what they should avoid.

Diagnose Property Defects

Although experienced Realtors often notice potential concerns, they are not licensed home inspectors, engineers, electricians, plumbers, or contractors.

Your Realtor should never state that:

The roof is in perfect condition.
The foundation has no issues.
The electrical system is safe.
The plumbing is problem-free.
The HVAC system will last another 20 years.

Instead, your Realtor should recommend that qualified professionals evaluate any concerns during the inspection period.

Provide Legal or Tax Advice

Real estate transactions involve legal contracts and tax considerations.

While Realtors understand the transaction process, they should not provide legal opinions or tax advice. Buyers should consult a qualified real estate attorney, accountant, or tax professional when those questions arise.

Guarantee Future Home Values

No Realtor can accurately predict future appreciation or guarantee that a property will increase in value.

Instead, your Realtor should explain current market trends, comparable sales, and historical data so you can make an informed investment decision.

Make Decisions for You

A Realtor's role is to provide information, guidance, and professional advice—not to tell you which home to buy.

The final decision should always belong to the buyer.

The Importance of Professional Referrals

One of the most valuable services a Realtor provides is connecting buyers with trusted professionals.

If additional expertise is needed, your Realtor should be able to recommend experienced:

Home inspectors
Real estate attorneys
Mortgage lenders
Structural engineers
Electricians
Plumbers
Roofing contractors
HVAC professionals

Building the right team helps ensure you have expert advice at every stage of the purchase.

The Bottom Line

A great Chicago Realtor is much more than someone who opens doors. They help you understand the market, evaluate homes objectively, negotiate strategically, and guide you through one of the largest financial decisions you'll ever make.

At the same time, professional Realtors know where their expertise ends. They don't diagnose construction issues, provide legal advice, or make promises they can't guarantee. Instead, they rely on experienced professionals when specialized knowledge is needed, ensuring you receive the most accurate information possible.

If you're planning on buying a home in Chicago, choosing a knowledgeable Realtor who understands both their responsibilities and their limitations can make the entire home-buying experience smoother, less stressful, and far more successful.

Below is a practical estimate of the costs a first-time Chicago condo buyer should expect. The numbers assume a conventional loan with 10% down, a 6.5% interest rate, and a typical North Side condo. Taxes, HOA fees, insurance, and utilities vary by building, so these are intended as realistic planning estimates rather than exact figures.

Expenses Many First-Time Buyers Don't Budget For

Often Overlooked ExpenseTypical Cost

Home Inspection$450-$700

Attorney$600-$900

Appraisal$550-$700

Moving Expenses$800-$2,000

Initial Repairs & Paint$1,000-$3,000

Furniture & Window Treatments$2,000-$10,000+

HOA Move-In/Move-Out Fees$200-$600

Elevator Reservation Deposit (Refundable)$250-$500

Mailbox/Key/Fob Fees$50-$250

Utility Transfers & Deposits$100-$300

Annual HVAC Service$150-$300

Special HOA Assessments (Occasional)Varies—often $500-$10,000+

Parking Space Purchase/Rental (if separate)$150-$350/month or $20,000-$40,000 to purchase

Property Tax Reassessment IncreasesCan increase annual ownership costs

Budget Rule of Thumb

A buyer purchasing a condo should plan for approximately:

$300,000 Condo: Have $42,000-$47,000 available before closing (not just the down payment).
$400,000 Condo: Have $56,000-$62,000 available.
$500,000 Condo: Have $69,000-$77,000 available.

This cushion helps cover closing costs plus the "surprise" expenses that almost every new homeowner encounters during the first few months.

The Hidden Costs of Buying Your First Condo

Selling Your Home During a Divorce In Chicago: 10 Things You Should Know

1. Agree on a neutral real estate agent

Choose an agent both spouses trust. A neutral professional helps keep the process focused on the sale rather than personal conflict.

2. Understand the divorce agreement

Make sure you clearly understand what the divorce agreement says about the home—including when it must be sold and how the proceeds will be divided.

3. Get an accurate market price

Start with a realistic pricing strategy based on current Chicago market conditions. Overpricing can delay the sale and create more stress.

4. Decide how expenses will be handled

Agree ahead of time on who pays for things like:

Repairs
Staging
Mortgage payments
Property taxes
Utilities while the home is listed

5. Prepare the home for showings

Even during a divorce, presentation matters. Focus on cleaning, decluttering, and basic repairs to make the home attractive to buyers.

6. Create a clear communication plan

Decide how decisions will be made about:

Price reductions
Offers
Inspection negotiations
This helps prevent delays and misunderstandings.

7. Be flexible with showings

The faster buyers can see the home, the faster it can sell. Try to keep the home available for showings whenever possible.

8. Keep emotions separate from the transaction

The home may carry a lot of memories, but it’s important to treat the sale as a financial transaction rather than an emotional one.

9. Plan for closing costs and mortgage payoff

Before accepting an offer, understand how the mortgage balance, commissions, taxes, and closing costs will affect the final amount each spouse receives.

10. Focus on moving forward

Selling the home is often a key step toward financial separation and starting the next chapter. Keeping that goal in mind can help both parties stay cooperative.

Should I Price My Home High or Leave Room for a Bidding War?

This is one of the most common questions Chicago homeowners ask before listing their home. It’s also one of the most important decisions you’ll make when selling.

Many sellers assume the best strategy is to price high and leave room to negotiate. It sounds logical—start high and let buyers talk you down. But in today’s market, that approach often works against you.

Why Pricing Too High Can Hurt Your Sale

Most buyers start their search online and compare dozens of homes before they even schedule a showing. If your home is priced noticeably higher than similar properties, many buyers simply skip it.

When a home sits on the market too long, it can start to raise questions. Buyers may wonder if something is wrong with the property, even if the only issue was the initial price. Once a listing starts reducing its price after a few weeks, sellers often end up accepting less than they might have if they priced correctly from the beginning.

A Better Strategy: Let the Market Work for You

In many cases, the most effective strategy is to price your home at or very close to its true market value. This attracts more buyers right away and increases the chances of multiple interested parties.

When several buyers feel the home is priced well, competition can naturally push the price higher. That’s when bidding wars can happen—not because the home was overpriced, but because it was priced in a way that encouraged strong demand.

The First Two Weeks Are Critical

The first two weeks your home is on the market are usually when it gets the most attention. Buyers who have been watching the market closely are quick to schedule showings when a new listing appears.

If your home is priced right and shows well, this early activity can lead to stronger offers and a faster sale.

The Bottom Line

Instead of pricing high and hoping to negotiate down, most sellers are better off pricing strategically and letting buyer demand create competition. When done right, that strategy often leads to better offers and a smoother sale.

If you’re thinking about selling your home in Chicago, reviewing recent sales and current buyer demand in your neighborhood is the best place to start. The right pricing strategy can make a big difference in how quickly your home sells—and for how much.

How to Win in a Multiple Offer situation in Chicago without Overpaying

Buying in a competitive market like Chicago can feel intense—but the buyers who win aren’t always the ones paying the most. They’re the ones who are prepared, strategic, and decisive.

Here’s the best practical advice you can give (or follow):

1. Get Fully Underwritten (Not Just Pre-Approved)

A standard pre-approval isn’t enough in Chicago’s fast neighborhoods.

Ask your lender for full underwriting upfront
This makes your offer almost as strong as cash
Listing agents will take you much more seriously

In multiple-offer situations, this alone can beat higher offers.

2. Move Fast—but Stay Disciplined

Good properties in areas like Lincoln Park, Lakeview, and West Town often go in days (or hours).

Set up instant alerts
Be ready to see homes the same day
BUT: know your max price before you walk in

Speed wins deals—but discipline keeps you from overpaying.

3. Use an Escalation Clause (When appropriate)

Instead of blindly overbidding:

Offer: “$X,000 over the highest competing offer (up to $Y max)”
Protects you from overpaying unnecessarily

Especially effective in Chicago’s mid-range market ($400K–$900K).

4. Understand “Micro-Markets”

Chicago isn’t one market—it’s dozens.

Some neighborhoods = bidding wars (North Center, Lincoln Square)
Others = more negotiable (parts of Edgewater, Uptown)

A local agent who knows block-by-block trends gives you a real edge.

5. Strengthen Terms (Not Just Price)

Sellers don’t always pick the highest offer.

Ways to stand out:

Flexible closing date
Shorter inspection window
Larger earnest money deposit

Clean, low-risk offers often win over higher messy ones.

6. Do a “Pre-Inspection” (When Appropriate)

In super competitive situations:

Inspect before making the offer
Then waive inspection contingency (carefully)

Risky—but sometimes necessary to compete with aggressive buyers.

7. Write a Clean, Simple Offer

In multiple-offer situations:

Avoid unnecessary contingencies
Keep paperwork tight and easy to understand

Listing agents favor offers that feel “easy to close.”

8. Be Financially & Emotionally Ready

Have your down payment + reserves ready
Expect to lose a few deals (it’s normal in Chicago)
The buyers who win are the ones who stay in the game.

9. Work With a Data Driven Agent

This is a big one.

A strong Chicago agent will:

Know what homes are actually worth (not just list price)
Call listing agents for intel (huge advantage)
Help you structure a winning offer

This alone can be the difference between winning and losing.

10. Don’t Chase Every Bidding War

Not every home is worth fighting for.

Some listings are intentionally underpriced to spark bidding wars
Others sit longer and offer better value

The smartest buyers know when to walk away and wait for leverage.

If you want a clean, client-friendly takeaway:

“In Chicago, the best buyers aren’t just the highest bidders—they’re the most prepared, flexible, and confident. If you get your financing tight, move quickly, and structure a clean offer, you can win without overpaying.”

Download Buying Guide

First Time buyer FAQs (Chicago Edition)

Do I need to put 20% down?
Many first time buyers do not put 20% down. Many first time buyers put between 5% and 10% down. There are some closing costs to be aware of and you will want to keep some cash on hand for your life after the closing.

Can I Really Afford a Home in Chicago?
If you’ve been living and working with future homeownership in mind you’re likely in good shape. Focusing on what a good monthly payment would be and how that aligns with the properties that interest you will shed light on whether it’s a good time for you.

How Hot is the Market?
Every neighborhood is different and every pricepoint within that neighborhood varies as well. Once we identify what’s currently happening in your areas of interest we put together a plan to solidify our expectations. Chicago as a whole has a very healthy real estate market and demand is not slowing down.

What do I do First?
Are your finances solid? Have you thought about what’s most important in your search for a home? Are you pre-approved or thinking about it? Do you have an ideal timeline in mind? That’s when it’s time to bring in the professionals.

Chicago's Most Competitive Neighborhoods

Some will appreciate this list because it represents what is considered to be the hottest neighborhoods in Chicago. Other people will find this list helpful because it will help define their expectations in finding a home within these neighborhoods. The following list ranks Chicago MLS areas by percentage of homes that have closed above asking price over the last 30 days. Please note that this is the percentage of homes that sold for above ask, NOT the percentage of price above the asking price.

Does a property that sells above asking price always do so as a result of a bidding war? It actually does not. Some close above ask due to a credit while others may have received a strong initial offer to avoid a bidding war.

Does this mean you should price high if you live in one of these neighborhoods? I would say no. You'll notice that some properties sell above ask, but after a couple of price reductions due to a lack of attention while the property was listed at the higher prices. Buyers are doing their homework. Many looking in these neighborhoods have been looking for a long time and they know how far their money should go. Well cared for homes that are move in ready will go fast, while homes that will require a lot of time, energy, and money to attend to general maintenance items or dated finishes will require additional market time.

This list was constructed on February 17, 2026 and contains data from the last 30 days.

Avondale, January 2026

As we move into 2026, the Avondale real estate market is showing strong signs of stabilization. After several years of rapid price growth and intense competition, the neighborhood has transitioned into what many would consider a more balanced and sustainable housing market.

Pricing Trends

Home values in Avondale remain strong and relatively steady. Recent data shows average sale prices sitting in the high-$500,000 range, with median sale prices in the mid-$500,000 range. This price consistency suggests continued demand for housing in the neighborhood, even as the market normalizes.

Rather than rapid appreciation or price drops, Avondale is currently experiencing steady, predictable pricing — which is typically a sign of a healthy long-term market.

Days on Market

Homes are currently averaging just under 50 days on the market. This represents a shift away from the ultra-fast sales seen during peak pandemic years, but it still reflects steady buyer demand. Well-priced homes in desirable condition are continuing to sell at a reasonable pace.

Negotiation Trends

One of the most notable shifts in the market is the reduction in homes selling above list price. Recent data shows no transactions closing above asking price. This signals a return to more traditional negotiation dynamics where buyers have more opportunity to negotiate price, credits, or terms.

For sellers, this means pricing strategy and property presentation are more important than ever. For buyers, this can create opportunities that were harder to find in recent years.

Property Type Activity

Avondale continues to attract a diverse buyer pool. Attached homes such as condos and townhomes are seeing the highest transaction volume, followed by single-family homes and multi-unit properties. Continued activity in the multi-unit segment also highlights ongoing investor interest in the neighborhood.

Overall Market Outlook

The Avondale housing market entering 2026 can best be described as stable and balanced. Demand remains present, pricing is holding steady, and homes are still moving — just at a more normalized pace. This type of environment often creates better long-term conditions for both buyers and sellers.

What This Means for Buyers and Sellers

For Sellers:
Accurate pricing, strong marketing, and proper property preparation are key to achieving the best results in today’s market.

For Buyers:
You may find more room to negotiate and slightly less competition compared to recent years, while still investing in a neighborhood with strong long-term fundamentals.

If you are thinking about buying, selling, or investing in Avondale in 2026, understanding these market trends can help you make confident and informed decisions.

Whats Ahead for 2026 in Chicago Real Estate

2026 is bringing a much more balanced and confident feel to the Chicago real estate market 🏙️🏡 After a few years of volatility, we’re seeing welcome stability — especially with mortgage rates showing signs of improvement, which is already helping affordability and buyer confidence. Home values across Chicago and the suburbs are expected to continue rising, but at a more sustainable, healthy pace. As affordability improves and inventory slowly increases, sales activity is picking up and creating better opportunities for both buyers and sellers. Here’s how the market is shaping up this year 👇

• Entry-level & affordable homes remain competitive, with strong demand from first-time and move-up buyers. Well-priced, move-in-ready homes are still moving quickly.

• Mid-range homes are settling into a more balanced market, where buyers have more choice and sellers who price realistically are seeing success.

• Chicago’s luxury market is active but deliberate — buyers are selective, negotiating thoughtfully, and focusing on standout properties with strong value, views, and finishes.

We’re also seeing strong activity in North Side and Near-North neighborhoods, the West Loop and river-adjacent areas, and suburbs with easy Metra access — all driven by lifestyle, convenience, and long-term value. Overall, 2026 is shaping up to be a year of smarter, more predictable movement across most price points. If you’re thinking about buying, selling, or just want a deeper look at your neighborhood or price range, I’d love to connect. Here’s to a great year in Chicago real estate ✨

Chicago Real Estate Market FAQs (2026)

Is now a good time to buy a home in Chicago?

This is probably the number one question right now — and the honest answer is, it depends on your situation. The Chicago market has become more balanced compared to a few years ago. Buyers are seeing fewer bidding wars and a little more room to negotiate in some markets. If you’re planning to stay in your home long-term, it’s more important to buy when you’re financially ready rather than trying to perfectly time the market.

Are Chicago home prices going to drop?

Right now, prices in most Chicago neighborhoods are more stable than anything. Some areas are still seeing price increases, while others are leveling off. Inventory is still relatively tight, which helps support home values.

Do buyers have more negotiating power now?

In some cases, yes. The market isn’t as aggressive as it was during the peak frenzy years. Well-priced homes still sell, but in some markets buyers have more ability to negotiate price or closing credits compared to a few years ago.

How long are homes taking to sell right now?

This depends on price point and neighborhood, but many homes are selling within about 30–60 days if they’re priced right and show well. Homes that sit longer are usually either overpriced or need updates. If you'd like specific information regarding your situation I'd be happy to talk in more detail.

Are city neighborhoods like Avondale still good places to buy or invest?

Yes — neighborhoods like Avondale continue to be strong long-term plays. They have good location, access to transit, and a mix of housing types, which keeps demand steady from both homeowners and investors.

Should I wait for mortgage rates to drop before buying?

This is a very common question. Rates definitely affect affordability, but waiting can be tricky. If rates drop, more buyers usually jump into the market, which can push prices up and increase competition. Many buyers choose to buy when they’re ready and refinance later if rates improve.

Is it still a good time to sell in Chicago?

For many sellers, yes. Inventory is still relatively low in a lot of neighborhoods, which means serious buyers are out there. The key today is pricing correctly and presenting the home well.

What Buyer Closing Costs are typical when purchasing a $500,000 Home in Chicago?

When purchasing a home in Chicago, buyers should plan for closing costs in addition to their down payment. Closing costs are the fees and prepaid expenses required to finalize the purchase and typically range between 2% and 5% of the purchase price. On a $500,000 home, that usually means $15,000 to $20,000, though totals can vary depending on the loan type, property taxes, and timing of the closing.

What’s Included in Buyer Closing Costs?

Lender Fees
These are costs charged by your mortgage lender to process and approve your loan. They typically include loan origination, underwriting, and processing fees, along with the appraisal and credit report. Buyers can expect lender-related costs to total approximately $3,000 to $6,000.

Title and Legal Fees
Title costs cover the work required to confirm the property has clear ownership and no legal issues. In Illinois, buyers generally pay for the lender’s title insurance policy, as well as settlement, escrow, or attorney fees. These costs usually fall between $2,000 and $3,500.

Transfer Taxes and Recording Fees
Chicago buyers should also budget for state, county, and city transfer taxes, along with recording fees charged by Cook County. These government fees often total $2,500 to $3,500 or more, making them one of the larger closing cost line items in the city.

Prepaid Items and Escrows
In addition to fees, buyers are required to prepay certain expenses at closing. These may include one year of homeowners insurance, several months of property taxes placed into escrow, and prepaid mortgage interest depending on the closing date. These costs can range widely, often $3,000 to $7,000, and are not technically fees but are still due at closing.

What Buyers Should Expect Overall

For a $500,000 home purchase in Chicago:

Lower range: Approximately $12,000–$14,000
Typical range: Approximately $15,000–$20,000
Higher range: $22,000–$25,000 or more

Every transaction is different, so buyers should review their Loan Estimate carefully and work with their lender and real estate professional to understand their exact cash-to-close amount early in the process.

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Market Updates

How to Choose the Right Mortgage Lender When Buying a Home in Chicago

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1. Don't Choose a Lender Based on the Interest Rate Alone

2. Talk to More Than One Lender

3. Ask About Different Loan Options

4. Get Fully Pre-Approved Before You Start Seriously Shopping

5. Make Sure Your Lender Understands Your Local Market

6. Availability Matters More Than Buyers Sometimes Realize

7. Ask Your Realtor About Their Experience With Local Lenders

8. Consider How the Lender Could Affect Your Offer

9. Ask About the Lender's Closing Process

10. Pay Attention to How You're Treated Before You're a Client

The Bottom Line

New Condo Underwriting Rules: What Chicago Condo Buyers and Sellers Need to Know

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Why Are the Rules Changing?

How Different Sized Condo Buildings Are Affected

Two- to Four-Unit Associations

Five- to Twenty-Unit Buildings

Mid-Size and Large Condominium Associations

What Buyers Should Know

More Buildings Will Receive a Full Financial Review

Reserve Funds Are More Important Than Ever

Reserve Studies Matter

Insurance Requirements Continue to Tighten

What Sellers Should Know

The Financial Health of Your Building Matters

Prepare Association Documents Before Listing

Why This Matters in Chicago

Bottom Line

Buying in a 2- to 4-Unit Chicago Condo Building?

Read This First

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Ask These Questions Before You Buy

Good News for Buyers

A Realtor's Tip

The Second Half of The Chicago Real Estate Market Explained

July–August: The market starts to normalize

September: One last active push

October: Buyers gain leverage

November–December: The market slows, but doesn't stop

What this means for sellers

What this means for buyers

For Chicago specifically

Chicago Rental Laws: How Mayor Brandon Johnson's Proposed Changes Could Affect Landlords, Investors, and Renters

Chicago Rental Laws: How Mayor Brandon Johnson's Proposed Changes Could Affect Landlords, Investors, and Renters

How Chicago Rental Laws Could Change

Limits on Security Deposits and Move-In Fees

Stronger Tenant Protections

Longer Notice Requirements

Additional Compliance Requirements

How New Chicago Rental Laws Could Affect Landlords

What Investors Should Know

What Renters Could Experience

The Bottom Line

Why The Housing Market (Especially Rentals) Is So Competitive Right Now

If you’ve been searching for a home or apartment in Chicago lately, you’ve probably noticed one thing right away—it’s competitive.

1. Higher Mortgage Rates Are Changing Buyer Behavior

2. Homeowners Are Staying Put

3. Low Inventory Across the Board

4. Rental Demand Is Surging

5. The Return to City Living

6. More Household Formation

What This Means for You

Final Thoughts

Should You Try to Time the Market When Buying or Selling a Home in Chicago?

The Truth About Timing the Market

Why Chicago Is Different

A Smarter Strategy: Time Your Life

Buy Now, Refinance Later?

Final Thoughts

Why Are Some Homes Getting 10 Offers While Others Sit?

What Should My Realtor Do During a Home Showing?

What Should Your Chicago Realtor Do During a Home Showing?

What Your Chicago Realtor Should Be Doing

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Point Out Important Features

Help You Evaluate the Neighborhood

Explain Current Market Conditions

This is one of the most common questions Chicago homeowners ask before listing their home. It’s also one of the most important decisions you’ll make when selling.