The Move with Maggie Team is working with many buyers. They are finding great values in Chicago hi-rise condos located on the lakefront, from Edgewater to Lakeview, Lincoln Park, the Gold Coast and downtown. We are often asked, how much is that condo worth, and what should we offer?
Those are challenging questions. In the past, determining value was based on 1) size of unit, 2) condition of kitchen and baths, and 3) floor level, view and amenities. As realtors we arrived at an opinion of value based on that data, and it was a relatively smooth process.
Now, with increasingly tight lending guidelines, and a market that includes distressed/non traditional sales, we are seeing prices that are all over the board within any given condo building. In addition, prices are increasingly influenced by a condo building’s physical and financial condition, as those factors affect a condo unit’s mortgageability.
As professional realtors, we explain to buyers why it’s important to look beyond views, and the fancy finishes and features that you see on the televised house hunter programs, including quartz or granite counters in kitchen and bath and high end appliances.
We dig deep to obtain the information that is very important in determining the soundness of a condo building, and the financial stability of a condo association. We do this diligence early on, before a buyer makes an offer, so that we do not tie them up in a transaction that may not qualify for financing, especially if too many rentals in a condo building can make it difficult to obtain a mortgage.
As realtors, we contact listing agents, condo property managers, and condo officers, to obtain the numbers, such as the percentage of units that are rented and how much is in reserves. . We also inquire as to any capital projects that may be on the horizon, and how they will be financed. Sometimes the information is readily available, other times it takes days to obtain. That is how we, as professionals, serve our clients, and strive to become their real estate consultants for life. So once you find that great condo, give us a few days to do the appropriate research for you.