In Chicago's infill new construction market, buyers may assume the developer's sales agent can guide them through the entire purchase. However, that agent represents the builder's interests. Buyers without their own agent may have to assess pricing, incentives, and contract terms without dedicated professional guidance. Builders also typically establish the contract terms and available upgrades for their developments.
Buying new construction in Chicago involves more than choosing a property and selecting finishes. Purchase agreements, construction timelines, upgrade costs, and closing requirements can all affect the transaction. An independent buyer's agent can help evaluate these details, identify questions for the builder, and coordinate with the buyer's attorney. Understanding each professional's role helps buyers make informed decisions throughout the purchase.
How Chicago's Infill Market Differs from Suburban Developments
Illinois residential purchases commonly involve both real estate agents and attorneys. These professionals serve different roles during the purchase process.
Chicago's infill projects often include three-flats, six-flats, spec homes, and smaller condominium buildings developed by local builders. Large suburban developments may follow a more standardized model, with a dedicated sales office, model home, and established contracts. Smaller infill projects can involve individual agreements and property-specific decisions.
With 24+ years in Chicago real estate and an active law license, Mario Greco brings firsthand knowledge of the city's infill market.
"In Chicago, in infill, three-flat, six-flat condo buildings, new construction homes that are spec, nine and a half out of ten times, if they have an agent, they will have an agent who has no relation to the builder. I think at least a Chicago buyer expects to have an agent who represents their interests. And I think that might come from the fact that in Illinois, you have an attorney that goes to closing."
— Mario Greco, Founder, The MG Group
The Developer's Agent Works for the Builder
A developer's sales agent generally represents the seller, not the buyer. The agent's role includes protecting the developer's interests in pricing, timelines, customization costs, contract terms, and the overall transaction.
Illinois licensees have legal duties that depend on their role and agency relationship. Buyers should understand that a seller's agent is not responsible for advocating solely for their interests.
Mario explains the risks of relying on the developer's agent for guidance:
"In Chicago, I'm not sure that would ever fly. All they have to do is not lie, but they don't have to volunteer information. If you're going into a new home build without independent representation, you don't know what to look for. Their agent's not going to tell you, because they state very clearly in their documentation that they represent the seller."
— Mario Greco, Founder, The MG Group
Although a seller's agent has applicable disclosure obligations, buyers should have their own professional evaluate the purchase from their perspective.
New construction contracts can contain project-specific provisions that affect a buyer's obligations. Key terms may cover the anticipated closing date, breach deadlines, customization costs, and final purchase price.
An independent buyer's agent can flag important provisions, help buyers prepare questions for their attorney, and negotiate terms where the developer allows flexibility. The buyer's attorney can advise on the contract's legal implications before signing.
Will Skipping a Buyer's Agent Actually Save You Money?
In Chicago new construction transactions, developers may offer compensation to the buyer's brokerage. Buyers should confirm the arrangement and review their buyer agency agreement to understand any compensation they may owe.
Skipping independent representation does not automatically reduce the purchase price. Buyers should clarify these terms before touring projects or signing a developer agreement.
These discussions should happen before touring projects or signing a developer agreement.
Construction Delays Can Put Your Mortgage Rate at Risk
New construction timelines can affect financing, especially when buyers lock a mortgage rate before construction is complete. Permit delays, material shortages, inspections, or construction changes can push closing beyond the original target date.
If a rate lock expires before closing, buyers may need to extend it or explore other options with their lender. Available choices and costs depend on the lender's terms and the loan agreement. Buyers should understand these conditions before committing to a construction timeline.
Concerned about how construction delays could affect your financing? Talk to the MG Group team before signing a developer contract.
Check Condo Financing Before You Commit
Condo financing deserves attention before buyers commit to a project. Fannie Mae retired its Limited Review process for loan applications dated August 3, 2026, or later. Eligible transactions may still qualify for another approved review path or waiver.
For loans requiring a Full Review, lenders evaluate the condominium project's eligibility, including applicable insurance, financial reserves, legal documents, and completion requirements. These checks can affect financing approval and closing timelines.
Buyers should discuss project eligibility with their lender early in the process. Their agent and attorney can help identify outstanding questions and coordinate with the lender and developer.
New Construction Condos Have Different Disclosure Rules
Section 22.1 of the Illinois Condominium Property Act primarily addresses condominium resales by owners other than developers. Required information can include reserve funds, anticipated capital expenditures, pending litigation, and insurance coverage. These details help buyers assess the condominium association's finances and potential obligations.
Initial condominium sales have separate disclosure requirements under Section 22. Buyers should review the applicable disclosures and governing documents with their attorney. These documents can explain association rules, financial responsibilities, insurance provisions, and other obligations that may affect ownership.
Your Property Tax Bill Could Rise After Construction
Property taxes are an important consideration for Chicago new construction buyers. A property's initial assessment may reflect the land value before the completed home is fully assessed, potentially increasing its taxable value once construction is complete.
Buyers should ask how the property is currently assessed and estimate future taxes based on the completed home's expected assessed value. Relying only on an initial tax bill could leave them unprepared for higher costs. For more details, read Chicago New Construction Property Taxes Catch Most Buyers Off Guard.
FAQs About Buying New Construction in Chicago
Does independent buyer representation cost extra in Chicago new construction?
The cost depends on the developer's compensation offer and the terms of the buyer's written brokerage agreement. Some developers offer compensation to the buyer's brokerage, but arrangements vary by project. Buyers should confirm the terms before touring properties or signing a contract. Going without an agent does not automatically mean the developer will lower the purchase price.
Can buyers negotiate a developer's contract in Chicago?
Developer contracts may be negotiable, but the available options depend on the project and the builder's willingness to make changes. Buyers may be able to discuss closing dates, breach provisions, customization costs, credits, and upgrade pricing. An experienced buyer's agent can help identify potential negotiation points before the buyer's attorney reviews the contract language.
What is a drop-dead date in a new construction contract?
A drop-dead date is a deadline that can trigger specific rights or consequences under a purchase agreement. In new construction, it may apply when construction or closing extends beyond a specified date. The consequences depend on the contract, including whether either party can terminate the agreement or seek other remedies. Buyers should have their attorney explain the deadline and its implications before signing.
What happens when a rate lock expires before a Chicago new construction building is finished?
Mortgage rate locks typically cover a set period, such as 30, 60, or 90 days. If construction delays push closing beyond that period, buyers may need to extend the lock or secure a new one. Costs and available options depend on the lender, loan program, market rates, and extension terms. Buyers should discuss potential delays and extension costs with their lender early in the process.
What is the Section 22.1 disclosure, and why does it matter for new construction condo buyers?
Section 22.1 of the Illinois Condominium Property Act primarily covers disclosures for condominium resales by owners other than the developer. The required information can include unpaid assessments, reserve funds, anticipated capital expenses, pending litigation, and association insurance. Initial condominium sales have separate disclosure requirements under Section 22. Buyers should have their attorney review the applicable disclosures and governing documents before committing to a purchase.
How do I evaluate whether a new construction condo building will qualify for conventional financing?
Lenders evaluate condo eligibility based on factors such as construction completion, insurance, financial reserves, and association documents. Fannie Mae retired its Limited Review process for loan applications dated August 3, 2026, or later. Some projects and transactions may still qualify for a waiver of project review or another applicable review path. Buyers should ask their lender to assess the project's eligibility early in the purchase process. For more details, read New Fannie Mae and Freddie Mac Rules Change Chicago Condo Buying.
Does the Illinois attorney review period apply to developer contracts?
The attorney review terms depend on the specific contract. Buyers should not assume a developer's agreement includes the same review period or cancellation rights as a standard Chicago resale contract. Some agreements may use different deadlines or limit the scope of attorney review. Buyers should ask their attorney to explain the review provisions and identify any deadlines before signing.
What should I ask an agent before hiring them for a new construction purchase?
Ask about the agent's recent experience with Chicago new construction, particularly smaller infill projects and condominium developments. Discuss their familiarity with developer contracts, construction delays, condo financing, property tax reassessments, and customization costs. Also clarify how the agent will coordinate with your lender and attorney throughout the purchase. These questions can help you assess whether the agent's experience fits your needs.
Protect Your Interests Before You Sign
Chicago's new construction market rewards buyers who understand who represents each party and what to review before committing. Real estate agents and attorneys provide different forms of guidance throughout the transaction.
Smaller infill projects can involve complex contracts, construction delays, financing questions, and property tax changes. An independent buyer's agent can help buyers evaluate these issues and identify questions for the builder, lender, and attorney.
If you're considering new construction, contact the MG Group team before committing to a project. An early conversation can help you understand the decisions ahead and prepare the right questions before signing.
