U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
Old 02-28-2011, 09:48 AM
Location: Dublin, CA
5 posts, read 10,558 times
Reputation: 15


Hello all,

My wife and I are relatively new to the Chicago area, we are currently renting in the suburbs and are looking to buy in the Lakeview area.

I was just curious if there are any recent stories any of you might have regarding the negotiation process for Condo's in Chicago.

It seems that news isn't very positive about the market these days and there are fewer and fewer buyers out there.

Seems to me like the perfect storm in favor of a potential buyer.

So I am wondering if anyone has any insight to what is happening out there right now, how it compares to the past, and what type of results have they been seeing in terms of concessions from sellers.

We have found several places we like, one is an REO, one is owned by its current occupants. Is there really a difference in how you can negotiate with them?

Thanks in advance, I'll hang up and listen
Rate this post positively Reply With Quote Quick reply to this message

Old 03-01-2011, 08:42 AM
28,461 posts, read 78,270,332 times
Reputation: 18590
Yes, there is are a large numbers of condos on the market. Further, many of them are in buildings where financing will be a challenge. Buyers are understanably skittish.

That said i think your description of a "perfect storm" fails to recognize the fact that individual owners and even REOs / lenders have a huge pile of RISK to manage when trying to sell and they are not eager to get "beaten up" by any buyer...

Suppose you go to a new car dealer during a snow storm in late February. He has rows and rows of sports cars and convertibles. You make some ridiculous offer and he rejects becuase he KNOWS he will lose money on that deal. If he can wait to sell those cars in May or June he will make a profit.

So to the lenders would rather sell when the market improves.

Of course if you approach a seller who is thisclose to getting out with just enough "loss" that it won't bankrupt then MAYBE you can get a price that is pretty low, but you can also be sure that OTHERS that see your deal will use it to drive and EVEN HARDER bargain -- in such situations, with the ease of "substititution value" that both buyers and sellers see in condos, it is all but impossible to predict WHEN SPRING WILL COME for condos...
Rate this post positively Reply With Quote Quick reply to this message
Old 03-02-2011, 05:54 AM
80 posts, read 248,975 times
Reputation: 52
There are several differences in dealing with REO sellers based on my experience buying three condos in Chicago over the last two years.

Many of these loans are securitized and the people who are handling the sales for the trust are often both incompetent and uncaring. They are not very flexible when they first list a property but after a couple deals fall through they seem more reasonable as to price.

They require the use of contract riders which are the most one sided contracts I've ever seen. When, during the attorney approval period, they are faced with your modification requests they sometimes simply ignore them as if you don't exist. They pay very little attention to deadlines. Their closing methods are unorthodox to put it mildly. The people who they hire to close their deals want you to pay many expenses which are pure crap.

The solution, in my humble opinion, is to low ball the hell out of them to make up the difference and let them have it their way. If they reject my price and ask for a better one without providing a counter my response is to tell them that 1) I do not negotiate against myself, and 2) perhaps they would be better off accepting one of the many cash offers that must be jamming their inboxes.

This is the great market to be a buyer. If you miss a couple deals another will come down the pike soon.
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.

Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply

Loading data...
Based on 2000-2020 data
Loading data...

Hide US histogram

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > U.S. Forums > Illinois > Chicago
View detailed profiles of:

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top