By Betsy Green
Managing Broker
Lincoln Park Homes
Land and property values rise amidst an environment of competitive mortgage rates. If you are in the market to buy or sell and you see a lot of real estate in the process, you've probably run into properties with short cuts or layouts that could have been better with a little foresight.
Until recently, Chicago's masonry code had not been updated for several decades. Variations of construction have appeared throughout the city over the years, some better than others. Some builders felt little accountability to buyers who would suffer through inadequacies resulting from inferior, low-cost construction.
The city, with the help of several aldermen, is now developing resources to safeguard consumers from unscrupulous builders. One solution was the new masonry code, which can be found at www.cityofchicago.org/buildings/buildingcode/splitblock.
Fortunately, many of Chicago's neighborhoods are attractive to homeowners. Home buyers are able to decide on location because of proximity to some other necessity. Different types of architecture are available in several price ranges to suit varying lifestyles. A map of Chicago's different neighborhoods by name is available at www.car-realtor.com.
Chicago can be a great real estate market. The rate of home ownership is about 49 percent, which is high for major metropolitan areas. Home ownership is usually associated with an increase of pride and commitment to community.
Also, since property is expensive compared to other less congested areas, people entering into this market must first start with smaller spaces. This means that buyers will probably outgrow their first purchase in a comparatively short time and need a larger place. For this reason, buyers who plan to remain in Chicago a long time are smart to stretch their budget for a larger space. Since transaction costs can range between two and 10 percent of the purchase price to buy and then sell, it inevitably takes time to make up transaction costs.
To buy wisely, a consumer should select a property which meets most or all of his needs. Also, a wise buyer will carefully assess the market value on a property to determine an offer. When buyers pay more than market value, it is difficult to recoup transaction costs if selling becomes necessary before timing is ideal. In addition, smart investors will consider resale. With resale in mind, below are lists of what is "Hot" or "Not Hot."
What's Hot
Quality construction
Natural stone finishes
Concrete counter tops
Solid wood cabinet/doors
Exotic floors-bamboo, walnut, cork
Large, open living spaces
Dramatic lighting
Master bathrooms
What's Not
Incomplete rehabs
White or beige ceramic tile
Under-insulated walls
Small rooms, confined hallways
Laminated anything
Closed off, small kitchens
Short cuts, dysfunctional rooms
Homes with only one bathroom
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