Chicago real estate market, thinking to buy... (Golf: renting, condo)

[NYrules]

Originally Posted by hamh

Do home seller in Chicago still think they are in the old days that they can sell houses with higher price than last year?

I was negotiating for price on a house, and every time the counter offer from the seller is like 2k to 3k reduction. Considering I'm looking at a 400K to 500K home, isn't the seller ridiculous?

It's probably because the seller is already at their bottom price before it will COST THEM money to get out of their home. For instance, if they bought in 2004 for $390,000 and lived there until now and have it listed now for $400,000 (which is pretty common now as homes have retreated back to prices prior to 2004... at least out by me they have!) they will still lose money or barely break even at best with all the realtor fees and moving costs, and I think in the city; inspections have to be done before homeowners are allowed to sell but I could be wrong. I know in certain burbs they do that. Anyhow, people are already bent over a barrel with their homes, I'm one of them, and selling is going to be tough because the seller will actually lose money on their investment so most people aren't going to be willing to budge too much I don't think.

[hamiltonra25]

Originally Posted by NYrules

It's probably because the seller is already at their bottom price before it will COST THEM money to get out of their home. For instance, if they bought in 2004 for $390,000 and lived there until now and have it listed now for $400,000 (which is pretty common now as homes have retreated back to prices prior to 2004... at least out by me they have!) they will still lose money or barely break even at best with all the realtor fees and moving costs, and I think in the city; inspections have to be done before homeowners are allowed to sell but I could be wrong. I know in certain burbs they do that. Anyhow, people are already bent over a barrel with their homes, I'm one of them, and selling is going to be tough because the seller will actually lose money on their investment so most people aren't going to be willing to budge too much I don't think.

Inspections are typically done during the closing stage of the process. Usually one thing that can bail out a buyer if there is mold or something...

[grapico]

Thoughts on this?

Might be interested in buying a depressed condo. Started looking at rent vs. what I could get with a mortgage and looks to be interesting... 44% down on prices right now according to trulia.

[inthecut]

Depends what you need....if you are asking if prices hit bottom, I would say they are near there right now....how long they may stay there is another question...

[zeppman]

I was thinking the same thing for the past month, but soon realized that the only places that I could see my self buying were still way overpriced. I'm not saying all condos were like that, only the ones that interested me. From what I saw, condos in "up and coming" neighborhoods had finally hit reasonable prices, but areas like lincoln park, bucktown, etc the prices were still too high in my opinion. I also found it interesting that of the 120 or so properties that my realtor sent me via email (that mls program), none of them had sold in the past month....

[chet everett]

Are you saying that a month ago you got a list with 120 properties for sale and currenly ALL OF THEM are still without a contract?

If so, then I think you have your answer ...

[soulful]

Market time is very long on most listings. Price drops depend a lot on neighborhood. As an example, I have a friend who bought a condo in Uptown for 384K in 7/2005 and sold it in 7/2009 for 323K (was on the market 6 mos.).

However, I have friends in Lakeview in similar situations who have sold their condos without taking a price drop (however, their market time was 4 months).

Seems as if desirable, established yuppie neighborhoods such as Lakeview and Lincoln Park are pretty much "flat" in terms of price for low to mid range, however, the market times are still exceptionally long in some cases.

I can't even fathom how hard hit people are in the South Loop and new buildings on the "east side" (all those new highrises just west of LSD within a few blocks of E Wacker Dr). An "east side" condo developer is even offering "rent to own" deals on their condos.

I don't think we've hit a bottom overall. Just in certain neighborhoods.

[WhaThe]

I found a good deal and bought. I was looking for a long time, since last year. There are some deals out there to be had. Keep your eyes open and move fast. Like any good deal in Chicago, you will not be the only one who see it.

Be ready. Have your mortgage preapproved. Have your 20%-25% down payment ready.

If you have poor/medium credit and too little cash saved up for a down payment others may beat you to it or the banks will not give you the money.

Still, can't hurt to try.

[grapico]

Originally Posted by soulful

Market time is very long on most listings. Price drops depend a lot on neighborhood. As an example, I have a friend who bought a condo in Uptown for 384K in 7/2005 and sold it in 7/2009 for 323K (was on the market 6 mos.).

However, I have friends in Lakeview in similar situations who have sold their condos without taking a price drop (however, their market time was 4 months).

Seems as if desirable, established yuppie neighborhoods such as Lakeview and Lincoln Park are pretty much "flat" in terms of price for low to mid range, however, the market times are still exceptionally long in some cases.

I can't even fathom how hard hit people are in the South Loop and new buildings on the "east side" (all those new highrises just west of LSD within a few blocks of E Wacker Dr). An "east side" condo developer is even offering "rent to own" deals on their condos.

I don't think we've hit a bottom overall. Just in certain neighborhoods.

Yeah I am actually looking in the south loop.

[knitgirl]

Originally Posted by grapico

Thoughts on this?

Might be interested in buying a depressed condo. Started looking at rent vs. what I could get with a mortgage and looks to be interesting... 44% down on prices right now according to trulia.

I would be very careful about condos, make sure the association is in really good shape, that there are no big special assessments pending, that there are no big repairs that will need to be done in the next several years. Associations are having trouble collecting assessments - you're tied to everyone else's financial woes to some extent.

pm me if you need a mortgage broker, I work for a great one!