Buying a Home in the Gold Coast
If you're thinking of buying a home in Chicago's Gold Coast, chances are you love elegance, sophistication, and architecturally and historically important neighborhoods. Plus, it's hard to resist the magnificent lakefront property right in the middle of Chicago's urban excitement. It's true, in this neighborhood, you have it all -- but you also have to have money to buy here. It is one of Chicago's most expensive communities with average home sale prices hovering around $3.2 million for 2007/2008 and the average cost of a condo lingering at $575,000.
Buying a home anywhere is a complicated process. It involves a lot of research, hard work, patience, and discernment. But searching for and purchasing a home in the Gold Coast is very rewarding because the neighborhood consists of luxury condos, upscale row homes and single-family mansions that provide some on Chicago's most exclusive residences.
When considering a property purchase in the Gold Coast it helps to first outline what you want in a home. Are you looking to be lakeside or closer to the city? Do you want a single family residence, a condo or a townhome? How much outdoor space do you need? Prioritize your list. In other words, which things are non-negotiable and which items are you willing to compromise on to meet other requirements? One of the best ways to determine what you're looking for in the Gold Coast is to take a walk. It's a gorgeous neighborhood and you'll enjoy looking around the area before deciding what you like. The architecture is eclectic, the neighborhood is quiet, and you might even run across some famous neighbors.
Home Buying Steps
Make a list of requirements you want your new home to have and other property or community factors that would influence your decision to buy. Have this list clearly defined so you don't waste your time or the realtor's by looking at homes you wouldn't be interested in. Also, you should prioritize the list so you know where you can compromise and where you can't.
Get pre-qualified for a loan. Your loan officer will determine how much your income and credit rating will allow you to borrow for a new home. However, just because the loan officer offers you a certain amount doesn't mean you should buy a house for that amount. Instead, study your budget and determine what monthly payments you can afford.
Hunt for that house! One of the best ways to find a house in the Gold Coast area is through real estate agents. Ask around for an agent that specializes in the neighborhood -- or at least luxury real estate -- in order to find someone with the experience and knowledge you'll need.
Put down an offer. Once you find that dream house or condo, it's time to make an offer to the seller. Again, you will definitely need your real estate agent's knowledge of comparable market values and her skills in negotiating. She'll also draft a copy of the contract for you. Oftentimes, the owner will come back with a counteroffer. Some things you might be able to negotiate are: move-in dates, closing costs, financing, repairs, landscaping and painting.
Get a home inspection. You should find a home inspector before you make an offer since the contingency clause in the contract usually allows only a certain amount of time for you to bring attention to the things that need to be fixed. The home inspector does not appraise the house, but tells you the exact condition of the house and makes suggestions for what repairs need to be done.
Close. The seller needs to complete any repairs outlined in the purchase agreement and the finished work should be inspected by a professional. You should finalize your financing and should be in touch with your agent as she is your liaison for all vendors. Your lender will send you a closing statement with closing costs that your agent will examine. Closing usually happens at the title company's or lawyer's office. The closing officer will arrange the documents you need to sign and the distribution of funds. Congratulations -- you're a new homeowner!
Home Buying Tips
The home-buying process is complicated and any advice you receive must be tailored to your own needs. But here are the essentials.
- Find out how much you can afford. Your credit score, income, debt, and current monthly expenses all figure into the overall perceived health of your finances. Before buying a house, you should have a down payment amount saved (the percentage can vary) and be pre-qualified for a loan. This will allow you to know just exactly how much you have to spend.
- Shop for a realtor. Start with recommendations from family, friends, and coworkers. Next you'll want to find websites of local agencies and look at the agents' profiles to find the specific person most fitted to your needs. The average home buyer looks at 15 homes before buying, so make sure your relationship with the agent is based on good communication and clear expectations.
- Compile a dream house list. Decide what is most important to you and your family. What are the characteristics of the home that you would be willing to compromise and which ones can you not live without? In the Gold Coast, think about proximity to the lake, shops and nightlife.
- Research, research, research. Once you find a home you'd like to make an offer on, do some more homework. Visit the home at a different time than your first visit to see what the street is like at different times of day. Look up recent home sales nearby and make sure the asking price is reasonable for that area of the neighborhood.
- Get a home inspection. The contract you sign should contain a contingency clause that allows you to renegotiate the price of the home or to ask the seller to make repairs before closing. To find a good inspector, start with recommendations. Then look at websites for the National Association of Home Inspectors, the American Society of Home Inspectors, the National Academy of Building Inspection Engineers and the National Society of Professional Engineers to find which association's members will best fit your needs. Go on the home inspection and get a detailed written report. The report could take a few days to generate, but don't settle for a hand-written check-list.
Once you're satisfied, it's time to close, move in, and think about home insurance. Each of these steps are time-consuming, but the end result is worth it!
Home Buying Dos and Don'ts
DON'T make an immediate decision. The Gold Coast offers the best real estate in Chicago, and it would be very easy to find something you love and make a quick decision. However, because there remain so many factors to buying a house the decision should never be quick. You'll need to find out if your budget can afford the house, if any major repairs are needed, and if it's in the right location for your needs.
DO love the home you choose. If you don't love it, keep looking. Most home buyers look at 15 homes before deciding on one. This is a major commitment and investment, so don't feel pressure to decide right away or to stop looking. Just because a house makes sense, doesn't mean you like it. Besides, Chicago's Gold Coast will always have what you're looking for!
DON'T do it on your own. A real estate agent should always be enlisted to assist you. As professionals in the market, your agent is well-versed in Gold Coast real estate, neighborhood amenities, and services that make the home-buying process smoother and less daunting.
DO study your budget and get pre-qualified. These steps will help you make a practical choice for a home you can afford. Knowing how much you can borrow and what monthly payments you can afford will place needed limits on what you look at.
DON'T change jobs or make major purchases after pre-qualification. Your income and your debt determine the amount you're qualified to borrow. If these factors change, your loan amount will change as well. Wait until after you have closed and then see if those changes can be made with your new monthly expenses.
DO get a home inspection. Even if it's a new construction. The inspection might reveal major repairs that the home seller should be responsible for or major flaws in a quickly refurbished home. The Gold Coast has many vintage homes, and you'll want to make sure that the remodeling was done well.