Should we buy a home in Chicago/ burbs now or wait and see what happens with the market? (Highland Park: appointed, new home)

[HOWELL_STREET]

Hello Mendleman:

I suppose my point is that we should all be careful in spending our money - - to save more by stop buying expensive 'electronic toys' (my adult sons do that) - - to stop buying off shore 'foreighn' products - - to buy a nice used car (eBay) rather than spending $38K for a new one - - and to save one's money for the future. But these choices are your own since it is your money. As a point to consider, what happens to a new $38K car if gasoline prices are out of sight?

Best Regards,

Carter Glass

[HOWELL_STREET]

Since Caligirl2 is a personal friend, I send some of my comments via direct message. My suggestions drift from what is the best house for her and her family ... to the current economic situation / housing market.

With that in mind, I would like to quote one opening sentence in the current issue of the "Bottom Line" Periodical Bottom Line Secrets... from Bottom Line Publications.

The front page article written by Ric Edleman - - "THE TRUTH ABOUT MONEY" - - reads as a quote. "Financial adviser Ric Edleman believes that the world of investment advice is filled with lies that place your financial security in jeopardy". End of quote.

Now, due to copyright laws, I do not want to continue with more that he has to say. Perhaps the enitre article is on their web sight? Check it out if you are interested. My daughter subscribes to this super great periodical.

Carter Glass

[Paige65]

Though our market is down, we didn't have the astronomical increases during the early/mid 90's like some other parts of the country. Housing appreciated rapidly here, for sure, but not like CA and some other metro areas. As a result, I don't think our slump has been quite as bad either.

I would probably look at homes now and see if there are any that are appealing. If you don't know the area, then I'd consider renting, especially if you plan to live in the Chicago area for several years. As someone else suggested, make sure you are working with a realtor who works with similarly situated buyers and sellers as you. There are plenty of realtors who work in that niche market, especially on the north shore.

Good luck in your search.

[HockeyFan]

It actually seems to me, looking at prices in some areas, that there isn't nearly the difference between SoCal and Chicago that there was five years ago.

On the North Shore... it seems you're starting at $1 million for a single family home -- am I missing some cheaper homes? In SoCal, that's your starting range near the ocean, which would be the most comparable.

In the NW suburbs... I still see little under $500K in new construction, which isn't far off inland prices in SoCal.

Perhaps I'm missing something... but the prices in Chicago don't seem as low as I'd expected... and even though I'm at least a 0 short of the OP's price range... I'm kind of nervous about Chicago prices dropping soon as well. Is this unfounded?

[CaliGirl2]

Thank you all for your comments. Yes, we are working with a good realtor provided by the relocation company that serves the company that is transfering us to Chicago. We'll be in town next week looking at homes so I'll let you know how that goes. We've been evaluating homes in Glencoe, Winnetka and Kenilworth since that area is the most convenient for us in terms of commuting. What I've found so far is that prices are surprisingly comparable, if not somewhat higher in Chicago compared to So Cal. We're looking at new construction or under 5 years, minimum of 5 bedrooms and 3 garages (4 or more would be ideal), and some land for our 5 dogs. What we've found in the area that foots the bill are homes between $4-5.5M, and most of those with half an acre of land or less (!?) and not "mcmansions" either. Comparable homes in Malibu overlooking the ocean can be quite nice and the weather here is priceless so all things considered, I think the better deal is here. I'm actually quite surprised that new homes below $4M in the northern suburbs can come with only a 2-car garage, for example. Here, not so much!

Finally, please note that market value is a concern for everybody because we all work hard for our money and only fools or the uninformed make unwise investments. We strive to be neither. Remember that wealth is relative; you can be sure that for each one of you too, there is someone else out there who is in a lower income bracket than you looking at you and making the same judgments about you that some of you may be making about us! .

PS - Thanks to all for your advice and recommendations!

[HockeyFan]

CaliGirl... I'm noticing the same thing. Although I'm looking at a different price bracket, I also find I'd be spending as much -- or more -- in Chicago than I would be in SoCal for new housing. The median price in Chicago is a lot lower, but there's a lot more older, smaller housing. To compare new housing -- in my case, what I'm looking for because of allergy issues -- I don't believe it's any cheaper in Chicago for the same square footage. The lots are bigger in Chicago, but that's not something I'm really interested in. I'm surprised that Chicago seems a lot pricer than, say, New England -- definitely has reversed from 5-10 years ago!

[badman70]

This does not sound like a question that someone would ask with 5 million to spend on a house. wierd

[HockeyFan]

Well... I have to agree with CaliGirl... if you have $5 mil to spend on a house, that's a major investment. The reality is, a lot of people look at a house as not only a place to live, but as an investment -- which makes some sense. What's a better investment than something you can enjoy while it appreciates?

[Windy City John]

You can save $300,000 to $500,000 from a year ago. Buy now, buy smart!

[cmoscinski]

We cannot compare the price of a house worth $5M to one in Chicago for $5M, it's a completely different market, and house!

Prices are NOT going to hit "dirt-cheap" if that is what you're waiting for. I would look for something in an area and lifestyle that you would like to live in. View several many homes in that area, compare these homes, styles, prices, etc. Ask your Realtor to find out the story behind the sale and let her negotiate a great deal for you.

True if she has her "own" listing for $5M, she will push it because she will get the sale of the home commission and the buyer side commission working as a dual agent (which she must disclose to you btw).

I would recommend going with an agent that only represents you and your interests, a Buyers Agent. It costs you nothing and they get their commission form the Seller of the home, you pay nothing for their services they earn it by negotiating the best terms for you.

It's a Buyer's market, you should have no problems. And I agree, don't put all your eggs in one basket. Buy the great home for $1.5M and put the rest away...