The buying process varies greatly from client to client but I've developed a
Roadmap of a Transaction to give clients a better idea of the timeline for each step.
Always the first step as far as getting started in your home buying process is finding a broker. As a personal tip from me, you want to pick someone that you trust and that is experienced with your wants and needs.
“It takes 45-75 or more days to buy a property”
-Real Estate Agent Tom Campone
More specifically, the first step in the home buying process is working with a lender to get a pre-approval. To get pre-approved you will provide all your financial statements to a lender. Once reviewed they will give you a pre-approval letter with the amount of the loan you qualify for. The pre-approval process is important because we will need to include this letter with the offer.
This is the fun part of the process. We get to start shopping! Before we go shopping we will use an online search as a first showing. You will probably review 100-200 properties depending on how well you've defined your criteria. Out of that group of properties our goal is to narrow that down to 6-10 properties. Once we have the list narrowed down to 6-10 we will schedule a day to go out and see all of the units. If we see all the units back to back it will give you a great comparison of the inventory available throughout your budget. Inevitably there is 1 or 2 units that stand out from this group.
Once we've found the property for you it's time to write an offer. Before we write the offer I will put together a detailed analysis of the property and I will give you my opinion of the price. The analysis will also include the market information of how much inventory is on the market and absorption rate. This will give us a wholistic view of the market and we can start to strategize on how to get you the best price for the unit.
This is where the rubber hits the road. If we've done our job analyzing the property we can feel confident in our offer and our negotiating position. I negotiate like it's my money so if I can get you another $500 or $1,000 in the transaction I will tell you and we will go after it for you.
Once we have agreed on the terms of the transaction we will hire an inspector. The inspectors job is to find problems so don't be surprised when they do. Once the inspection is complete they will send you a detailed report with their findings. It's important that you attend the inspection as the inspection items can seem a little scary unless you are there to ask questions and talk with the inspector. I recently had an inspection where there were some electrical issues. If the client was not there to hear that it is an hour fix with an electrician it could have become a larger issue.
After the inspection has been completed we will regroup with your attorney to discuss closing cost credits or repairs for anything that was found during the inspection. For anything of substance (electrical items, etc) I suggest getting a credit and having the repairs completed yourself. For minor items, you can request that the owner complete the repairs.
Once we pass attorney review you will post the remainder of earnest money and wrap up the last items for the lender. At this point you are committed to the purchase of this property.
About a week prior to closing you will receive the clear to close from your lender. This means your loan has been officially approved. Remember not to open any new credit lines or make any large purchases until 3 days after closing as this could affect your debt to income ratio and could cause to you no longer be approved. Mortgage companies check all of these ratios the day before a closing to make sure everything is the same as underwriting.
Wondering if you should conduct upgrades to your home prior to listing it? Debating on what upgrades should be made?
If you ask someone selling a car what they do before they sell it most will tell you they have it detailed. This is no different when trying to sell a house.
BUT where do you spend your money to maximize your investment?
Jack Kalinski from Kali Group shares a few minutes with me discussing how to prepare your home to sell for top dollar.
Preparing your property for sale will help you get the best price for your home. It will also help you decrease the time it takes to sell your home! Therefore, preparing your home prior to selling…
Saves you time
Money
And comes with less stress!
Offering incredible skyline views in two directions and a premium location (a short walk to Mariano's and to many parks and restaurants) in a doorman building, this spacious home offers plenty of room and is right where you want to be.
The wide-open living and dining spaces are full of natural light and beautiful wood flooring throughout with an effortless flow directly into the kitchen.
A private den with an enormous walk-in closet makes this ideal for working from home and provides copious storage space in the unit.
PLUS, two separate balconies bring even more opportunities for friends and family to gather.
Two Parking Spaces available for an additional $25k per space.
Late-night leisure
Networking opportunities
Trendy eats
Very walkable
With easy access to Lake Shore Drive, I-55, and I-90/94, this is ideally located for commuters as well. This home is sure to go quickly – schedule your private showing today!
1529 South State Street Unit 12EG
Chicago,IL 60605
Don’t miss this gorgeous vintage property in the highly-desirable Hyde Park neighborhood. Offering the perfect location, this condo is just where you want to be, close to bus stations, Metra stops and all the shops and restaurants of 53rd St. Spacious and full of character, this bright space offers fresh paint, hardwood floors, a cozy fireplace and new windows. A roomy eat-in kitchen with brand-new dishwasher and plenty of counter space is perfect for the home cook. A rare-find in Hyde Park, this condo also offers its own separate laundry room. Bursting with charm and in an unbeatable location, this home is sure to go quickly – schedule your private showing today!
Located in the heart of the Prairie District in the South Loop, this bright and open apartment is right where you want to be. Offering a 24-hour doorman, fully-equipped gym and available party room, every amenity you could want is close by. The totally open-concept entertainment space is flooded with spectacular southern views and natural light that highlights the gorgeous hardwood floors. A roomy kitchen with bonus breakfast bar seating overlooks the cozy entertainment space and charming balcony through sliding doors. A comfy bedroom, walk-in closet and large bathroom with separate walk-in shower and soaker tub give plenty of space to spread out and relax. In this location, this home won’t last long – schedule your showing today!
Most buyers think you need to put 20% in order to buy a home. That used to be the case because PMI was so expensive that it didn’t make sense to buy a home without 20%. Watch this quick except from my latest home buyer seminar where Michael Bencks debunks the myth and explains the cost of PMI and how you can make it work in your favor.
You don't want to miss this updated 2-bedroom in the heart of Roscoe Village. With just two other units in the building, you'll enjoy peaceful quiet in this gorgeous home. An open concept entertainment space brings together the kitchen, dining area, and family room - perfect for hosting family and friends. The refreshed kitchen boasts Sub Zero and Viking appliances (including a wine fridge!), and the spacious master bedroom is full of sunshine with a sliding door leading to a considerably sized deck. A totally renovated master bath is the perfect place to relax with jacuzzi tub and a luxurious stand-up shower with body sprays and steam shower. This must-see home is sure to go quickly - schedule your private showing today!
Selling your home can be a stressful process but it doesn't need to be. Check out the video above to find out what you can expect while you are selling your home.
Located in tree-lined Lincoln Park, this quiet top floor corner unit is in the perfect location near theatres, museums, night life and more. With beautiful finishes and plenty of character, you are sure to love the hardwood floors, natural light and gorgeous trim. New paint, refreshed bathrooms, a beautiful fireplace and large French doors offer plenty of charm and make you feel right at home. The completely updated kitchen brings plenty of cabinet space, modern high-end appliances as well as bonus breakfast bar seating. Relax the day away and enjoy a cup of coffee on your spacious private balcony. You don’t want to let this one pass you by – schedule your private showing today!
The home buying process varies for each family. However, each step of the process normally falls within a pretty tight range. Watch the video above to find out more about the home buying process and how long you can expect it to take for you!
Every home has a unique story and the TC Group would be honored to tell yours. We understand luxury real estate in Chicago. Our primary objective is to partner with you and achieve the highest net proceeds as quickly as possible. We pride ourselves on personal service and attention to our clients’ every need—our goal, for every transaction, is to create ecstatic customers. Selling a home in today’s market can be challenging and the TC Group understands this. In spite of a shifting market, hundreds of homes are sold each month in Chicago. What’s the difference between selling your home or failing to do so? The Details. We believe one of the best ways to capture prospective luxury homebuyers is to create cutting-edge content for engagement. Our videos focus on the endless premium amenities that the properties have to offer and an exclusive inside look at the homes – leaving prospective homebuyers craving more. https://www.tomcampone.com
To schedule a private showing of one of our properties call 702-528-2267.
Connection Matters, Get Social With Us:
Facebook: http://bit.ly/2ZhfROB
Instagram: http://bit.ly/2UnEdT1
Zillow: http://bit.ly/2vA2Rnl
This luxury building in Lincoln Park is full of amenities with a 24-hour door staff, gym, party room and spacious rooftop pool. An open-concept floor plan offers plenty of room to entertain with easy sightlines and gorgeous skyline views. The large kitchen boasts plenty of cabinet space, high-end appliances including a built-in wine cooler and a spacious breakfast bar for bonus seating. Beautiful hardwood floors and plenty of natural light tie the whole space together. Two large bedrooms, each with their own bathroom, are the perfect place to relax after a long day. With modern finishes and a premium location, don’t miss your chance at this must-see home!
xxxxxxx
Look at those views
2nd bedroom
You don’t want to miss this investor’s special just waiting for your custom touch. With four bedrooms and two bathrooms, this Riverdale charmer is just bursting with potential. A thoughtful floorplan with easy flow minimizes necessary labor, and gorgeous hardwood floors and rich wood details add plenty of character. Natural light pours in through plenty of windows, ready to highlight your chosen finishes. Spacious bedrooms and plenty of square footage maximize earning potential. The sky’s the limit with this space – all this home needs is you! Don’t miss out on this income potential – schedule your private showing before it’s gone!
With the spring market in full effect, below is my outlook for the 2020 Chicago real estate market. Let me know if you have any other questions about the value of your home or the outlook for 2020!
Most economists agree that the real estate market will see slow but steady growth through 2020, driven by low inventory and low interest rates. However, the expectation is that the growth rate this year will be between 1-3%.
Expect to see a decline in inventory in the city. A big factor for this is that development is not keeping up with demand. Many buyers currently looking for homes are looking in the low to mid-price point, where inventory constraints are more exaggerated.
There continues to be a growing demand for low to mid-range housing in Chicago, with very little inventory to show in that segment of the market. Although demographics are driving housing, Chicago’s inventory is not meeting the demand of the younger generations. Inventory is also tight in move-up segments of the market, which is further restricting entry-level housing.
Demographics are driving the housing market, which bodes well for US homeowners where 60% of the population is under the age of 60. Millennials have the highest share of primary home mortgages.
Housing construction throughout the city will see a decline for the second year in a row, although not in all neighborhoods. Areas with a population that is predominantly young and highly educated, such as Fulton Market are still seeing heavy action.
Amazing 2bed/1ba with great views. Cable & internet included! 16th flr condo of 16 flr elevator bldg that is close to Lake Shore Drive. Fully remodeled in '05. Granite counters, glass top stove, dishwasher, in-unit European washer & dryer. Extra storage, tons of closet space, night door person, shared rooftop patio w/bbq grills, public laundry & more. All utilities included except electric. Superb neighborhood that is close to the Lake, golf course, tennis courts, running/bike path, driving range & more. Easy to walk to everything and lots of public transportation options. Parking $150 extra per month. See Link for virtual tour.
This charming home offers three bedrooms, two baths and beautiful living spaces both inside and out. Enjoy an attractive, neutral color scheme accented by lovely natural light and gorgeous hardwood and vinyl flooring throughout. The fantastic kitchen boasts brand new granite countertops and stainless-steel appliances that are only three years old. Gather with friends and family for a delicious meal in the wonderful formal dining room conveniently located off the kitchen, then relax in the inviting living room with large windows and magnificent natural wood floors—newly done only five years ago. The finished basement boasts a wonderful living area with vinyl plank flooring and a full bath. Sit and take in the best of three seasons in the screened in sun porch which is fully insulated and includes a heater for the cooler months. Enjoy a peaceful night’s sleep in any of the comfortably sized bedrooms. Also find a spacious attached two car garage and attic with plenty of additional storage. The fully fenced, private yard is perfect for children to play and pets to roam. A new roof, new electrical panel, newer furnace and fresh paint sweeten the deal. Even more alluring in person. Come and see for yourself!
Every time I meet with a seller one of the main topics we discuss is how to price their real estate to maximize the sale price while minimizing the time on the market. Most people have the belief that pricing real estate a little higher than the market value will give them flexibility to negotiate when the right buyer comes along.
This is the conventional approach that most sellers take but I can show you with hard data that this approach leaves a lot of money on the table for the seller. Below I will show you how to price your real estate to put you and your family in a position of power throughout the selling process.
While this is the most common approach to selling real estate, in almost every case the sales data proves that you will get more money if you start at or slightly below the market value. Buyers are more educated than ever so they can spot an overpriced piece of real estate as they’ve probably been searching for weeks or even months online.
What happens when you start above the market value is you get some traffic but the savvy buyers don’t come to see the unit as online viewings have taken the place of first showings. For all my listings I shoot 3D walkthroughs and listing videos so buyers can get a feel for the home before they come to see it.
What happens around day 25 is the traffic to your home decreases dramatically. Why is this? Put yourself in the shoes of a buyer. They’ve been looking for months and a new property hits the market that looks like it might be the one. They rush over to see it in case it’s their new home. This is the same phenomenon with listings (just the reverse) so it’s not too surprising that about 80% of your traffic will come within the first 25 days of being on the market.
As the traffic dies down and we exhaust all our marketing channels (mailers, online advertising, reverse prospecting for buyers in the MLS, social media posts, email marketing, etc) it is time to take a price reduction to increase the traffic to the listing.
The challenge with reducing the price to the market value after it’s been on the market for a few weeks is that buyers no longer feel compelled to write a full price offer in fear of losing the property. Therefore they normally offer 5-7% below the new list price. At this point we’ve missed the opportunity to get the full market value for the property and lost most of our negotiating power. Inevitably, we will end up selling the property 1.5-3% below what we could have got if we had priced the unit at the market value from the start.
Below is the data from the past 12 months of condo sales for 1 bedroom and 2 bedroom condos in the South Loop. In the case of the 2 bedroom condos, units that took a price reduction sold for a median price of $516,250 vs units that did not take a price reduction which sold for $537,000. That is a massive difference to your bottom line.
I also ran this for 1 bedroom units to confirm the data. The median price for the units that took a price reduction was $315,000 vs $335,000 for units with no price reduction. That’s why it is important to get the pricing right from the start.
All this sales data doesn’t take into account the added expense of increased time on market. One bedroom units that had to take a reduction sat on the market on average for 75 days vs 39 days for units that didn’t take a price reduction. This additional 36 days cost the owners in taxes, assessments, insurance and mortgage interest. Not including the stress of their unit not selling and the inconvenience of having to show their unit more and keep their house in showing condition. The story is similar for the 2 bedroom condos which sat for an additional 74 days on average.
Pricing your home is an art and a science. It’s not easy to always hit the market on the head but by using multiple data sources (comps, price per square foot, active inventory, absorption rate, etc) we can triangulate a price range that should be acceptable to the market and should put the most money in your pocket.
I know that selling your home is stressful and my job is to get you the most money in the least amount of time. Valuing real estate is one of my strong suits since I have a quantitive background. If you have any questions about this article or pricing your home, reach out to me and we’ll set up a time to talk.
You may have heard people talking about refinancing their home lately. This is because interest rates just decreased again and are expected to stay low for the remainder of the year. A refinance of a loan is simply replacing your current mortgage with a new mortgage with different terms. The terms of a mortgage are usually interest rate, term of loan (number of years) and PMI (private mortgage insurance).
When rates drop you will hear a lot of talk about refinancing because it is a great way to reduce your monthly payment on your mortgage. The biggest cost on your mortgage is your interest charge. Reducing your interest rate can have a drastic impact on your monthly cost. Depending on your situation, you could also eliminate the need for PMI which is a large cost to borrowers that put down less than 20% of the purchase price. If you’ve added additional principle to your loan over time this will further increase your potential savings.
The Federal Reserves uses monetary policy to indirectly change interest rates. The Fed can tighten or loosen the amount of money in the system through buying (loosening) or selling (tightening) bonds. This is an over simplified explanation but one of the most common tools the Federal Reserve uses. As the Fed makes these changes there is either more money in the system or less. If there is more money in the system rates typically go down.
There are many reasons that that fed may tighten or loosen rates. Below are a few reasons they change policy:
Economic data
Factors that Drive Rates UP
Non Farm Payrolls are higher than expected
Unemployment rate goes down
Better than expected economic data in general
Factors that Drive Rates Down
Jobs data stagnates or is in decline
Manufacturing is stagnant or slowing
Housing is weaker than expected
Inflationary Pressure
Factors that Drive Rates Up
Higher consumer price index
Higher wholesale prices
Hourly earnings increase
Factors that Drive Rates Down
Lower consumer prices
Lower wholesale prices
Hourly earnings decrease
There are a lot of reasons to consider refinancing now. There are however some reasons to consider not refinancing. Talk with your lender to see if a refinance makes sense for you.
Rates are currently near an all time low. If you are going to be in your home for a long time now is a great time to lock in a great long term rate.
Refinancing can save you anywhere from a few dollars to a few hundred dollars per month depending on how much princinple you’ve paid off and your current rate on your loan.
Refinancing can eliminate PMI depending on how much principle you’ve paid off and how much your home has increased in value. This can have a enormous impact on your monthly mortgage payment.
Refinancing will put you back at the beginning of the interest curve. If you are making the base mortgage payment it takes about 7 years to start paying down the debt on your loan (this does not account for equity built through appreciation). If you refinance you are starting the 30 year mortgage from scratch and therefore the interest curve.
Refinancing extends the term of your loan (unless you choose a shorter term). Therefore, if you had planned on matching your loan term to your retirement or another life event it will extend this time.
Most lenders can refinance without closing costs but there may be costs associated with refinancing. You need to make sure that the math works in your favor depending on how long you plan on staying in your home.
This charming unit offers two bedrooms, 2.5 baths and wonderfully inviting spaces. New owners will enjoy quality fixtures and attractive finished throughout. The elegant formal dining room is perfect for entertaining, showcasing a gorgeous chandelier and large window. Every chef will love the thoughtfully planned kitchen featuring stainless steel appliances, plenty of cabinet storage, large pantry and a great gas range. Conveniently located just off the kitchen, the utility room with washer and dryer keeps laundry out of sight. A wonderful spot to relax, the living room is bright and inviting. Gather for a casual mean in the delightful dining area just off the kitchen with sliding doors which lead out to a charming patio. Venture out to sip your morning coffee in the open air. Upstairs, find a spacious loft ideal as a den, additional living, playroom or hobby space. Enjoy a peaceful night’s sleep in the beautiful master bedroom with vaulted ceiling, walk-in closet and great en-suite bath with jetted tub and dual vanities. Also enjoy a two car garage, Central A/C. Convenient location in a great community!
