Ultimate Guide to Buying Luxury Real Estate in Chicago
There are several factors to consider when purchasing a home in Chicago. However, the process gets even more complicated when looking for luxury real estate. The prices are higher, and there is more to evaluate. This post provides a brief guide to buying luxury real estate in Chicago.
Chicago Real Estate Market Watch
As of this writing, the median home sale price is 9% higher than it was this time last year. However, Chicago real estate trends are always changing. Contact the MG Group for assistance buying or selling homes anywhere in Chicago.
Buying Luxury Real Estate in Chicago
Buying a Home or Investment Property
A crucial factor that will influence the process is whether you’re buying the property as a home or investment. If it’s a home, you’ll focus on how it fits your lifestyle, preferences, and future plans. For investors, the focus shifts to market factors and your investment strategy. Understanding your goals can significantly shape your strategy and search.
Setting Your Priorities for Luxury Property
Luxury means different things to different buyers, and it isn’t just about the price. For a homebuyer, you’re looking for the luxury features that will shape your lifestyle. You may also want to explore iconic Chicago architectural styles. For investors, your priorities will depend on your strategy. If the plan is to renovate and sell, consider looking for a historic property with potential. For rental investments, consider your ideal tenants and what they expect from a luxury property.
Budgeting and Loan Pre-Approval
It’s a good idea to assess your budget and seek financing before entering the market. Whether you’re a resident or investor, consider how much you’ve saved for a down payment. Consider monthly mortgage payments, taxes, insurance, and more. Luxury homes often exceed conventional loan limits, so you may need a jumbo mortgage or other specialized lending products. Buyers should also seek loan pre-approval. That can help you understand your budget and put you in a better position during negotiations.
Luxury Neighborhoods in Chicago
Chicago offers a diverse array of luxury neighborhoods. Each has a distinct character that may appeal to different buyers. For example, the Gold Coast offers historic mansions and lakefront views. West Loop could be a popular option for buyers interested in the city’s bustling downtown area. Forest Glen is a good choice for upscale suburban homes away from the busier parts of Chicago. However, the city has several other luxury neighborhoods that may appeal to different buyers.
Touring Luxury Homes in Chicago
Whether you are an investor or a homebuyer, you need to take the time to see and assess the property. Inspect the quality of materials, layout, craftsmanship, and overall condition closely. Buyers might also look for high-end finishes or the latest technology features. If you’re an investor, you might have several other points to consider. Consider your ideal tenant and what they might look for in a home. If the plan is to renovate and flip the property, consider the necessary repairs and updates.
Complete Due Diligence
Once you have found a home and the seller accepts your offer, you’ll need to conduct thorough due diligence. Inspections and appraisals will likely be conditions of loan approval. Beyond that, you’ll need a title examination to check for liens or any ownership issues. If the property passes due diligence, you’ll move on to closing on the sale. Before closing, complete a final walkthrough to confirm the home’s condition. At closing, you’ll sign the loan documents, transfer funds, receive legal ownership, and take possession of the property.
Luxury property buyers should work with a local real estate agent in Chicago. They can guide you to the right properties that align with your goals and preferences. A good agent may even be aware of luxury properties that are not publicly listed. They can also help buyers navigate the market and negotiate better deals.
Are you looking to buy luxury real estate in Chicago? The MG Group is ready to help. We have in-depth knowledge of Chicago’s neighborhoods and can guide you to the right homes. Reach out now to learn more.
