The market for West Loop real estate is highly competitive right now. Most properties are receiving multiple offers and selling for a price above listing. If you want to have the best chance at securing a deal for a property that you love, you’ll want to take some time to prepare yourself for the road ahead before you begin looking at specific homes or thinking about making an offer. This article will give you the insight that you’re looking for.
Take care of your finances
It’s never too early to reach out to a lender to begin discussing what type and amount of loan you can qualify for. Your lender will be able to provide you with a pre-approval letter once they fully assess your current financial position. They will probably want to see recent pay stubs or tax returns, and they may also have questions about your debt-to-income ratio. Once you receive a pre-approval letter, you’ll be able to shop for homes within a specific price range. Since different lenders will offer different loan amounts and interest rates, it’s always a good idea to speak with multiple banks or groups to see where you can find the best offer.
Keep in mind that you can’t purchase a home entirely with outside funding. You’ll need to be ready to put down some of your own money as well. The exact amount that you’ll be required to put down will vary depending on what type of loan you’re using. Most loans require you to put down at least three percent of the total cost of the home. You’ll also need some cash to cover your share of the closing costs, which usually range between two and five percent of the total value of the home.
Keep in mind that you can’t purchase a home entirely with outside funding. You’ll need to be ready to put down some of your own money as well. The exact amount that you’ll be required to put down will vary depending on what type of loan you’re using. Most loans require you to put down at least three percent of the total cost of the home. You’ll also need some cash to cover your share of the closing costs, which usually range between two and five percent of the total value of the home.
Find a realtor to work with
Choosing an experienced and skilled local realtor is a crucial component of the home buying process. Your realtor will help you shop for homes by attending in-person showings with you and pointing out different factors that catch their eye. They will also help you negotiate the deal with the seller, and they will read through the entire contract ahead of time so that they can help you understand what you’re signing up for at closing. Before you choose a realtor to partner with, take time to read reviews online from past clients. Don’t be immediately turned off if you find that a realtor has a few negative reviews. This is normal for someone who has been working in the industry for a long time. You only need to be worried if you notice that an agent has an alarming number of negative reviews, or if all of the negative reviews mention a similar issue or problem.
See homes in person
Don’t make an offer on a home before you have the chance to see the property in person. Many homes will show differently when you’re physically there. Sometimes a home appears much better in its pictures than it does when you come to visit. Professional pictures can often hide aspects of a home that may point to underlying concerns or damage. It’s possible that chipped paint on the walls or small cracks in the siding are only cosmetic issues. They could also be a sign of underlying foundation problems. Your realtor knows how to spot these types of issues and will point them out as they look at the home with you.
Make a competitive offer
Given the current state of the West Loop housing market, you probably won’t have much success if you make an initial offer below the seller’s asking price. Since many homes are selling for a final price above listing, you’ll have to be prepared to make a competitive offer, especially if you’re looking at a home that has only been on the market for a few days or weeks. Your realtor will help you determine how to make a competitive initial offer that will satisfy the seller’s demands and give you the greatest chance at securing the property.
Avoid the temptation to waive certain contingencies, such as the inspection contingency. While sellers may prefer these types of offers, it creates a tremendous amount of risk for you if the home has serious structural or mechanical issues that the inspection reveals. A better way to make an offer more competitive is to offer to pay a percentage of the seller’s closing costs. This is one way you can make an offer stand out without offering to buy the home at a high price that it may not appraise for.
Avoid the temptation to waive certain contingencies, such as the inspection contingency. While sellers may prefer these types of offers, it creates a tremendous amount of risk for you if the home has serious structural or mechanical issues that the inspection reveals. A better way to make an offer more competitive is to offer to pay a percentage of the seller’s closing costs. This is one way you can make an offer stand out without offering to buy the home at a high price that it may not appraise for.
Prepare for closing
The section above briefly mentioned two concepts that you may not be familiar with yet. Once you agree to a deal to purchase a home, you’ll want to order an inspection on the property. Some condo owners choose not to get an inspection because they assume that their HOA will cover any issues, but it’s usually a wise investment. You’ll also work with an appraiser to confirm that your home is selling for a fair market price. If your home doesn’t appraise, you may run into issues with your lender when you’re trying to secure the funding that you need to complete the home purchase. If the home doesn’t appraise for the agreed-upon sales price, you may need to renegotiate the contract or put down more money in your down payment so that you aren’t borrowing as much from your lender.
Hello Chicago Homes would love to help you shop for West Loop real estate. Jordan was born and raised in the Chicago area. He has spent several years learning about the West Loop housing market. He brings a wealth of past experience into each transaction and works hard to educate each of his clients on how to make the wisest decisions when shopping for a home in the area. Reach out to Jordan when you’re ready to begin searching for a new home in the West Loop.
Hello Chicago Homes would love to help you shop for West Loop real estate. Jordan was born and raised in the Chicago area. He has spent several years learning about the West Loop housing market. He brings a wealth of past experience into each transaction and works hard to educate each of his clients on how to make the wisest decisions when shopping for a home in the area. Reach out to Jordan when you’re ready to begin searching for a new home in the West Loop.
