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home buyer

Lofty Real Estate

Chicago’s Real Estate Market in 2020

By | Agents, brokers, home buyer, home buying, real estate, Uncategorized

Lofty Real Estate

If you’re planning to sell a home in the area, you might need to pack your patience. Recent data shows that Chicago is one of the “slowest” housing markets among the major metros when based on median “days on market.”

Despite losing residents at a high rate, Chicago is still America’s third largest city and the economic driver of the Midwest. Although there is not a negative impact of buying a house in 2019 versus 2020, it is strongly advised by experts to purchase a house next year. In 2020, the largest group of Millennials will turn 30, which will be good news for an industry that may need it.

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The National Association of Realtors’ annual home-buyer profile has recorded an average home-buying age of 30 that has stood for decades.

While young people have flocked Downtown, bringing with them corporations seeking skilled workers, Millennials will likely turn back to the suburbs when it comes time to buy. But because so many jobs have moved from the suburbs to Downtown, Millennials will likely look for housing in inner-collar suburbs that have urban amenities like public transportation and walkability.

 

The year 2020: where inflation and financing qualification could hurt prospective buyers. According to Zillow, rising mortgage rates are encouraging homeowners to stay put and discouraging would-be buyers.

Higher interest rates should eventually slow the intense pace of home value appreciation that we have seen over the past few years, a welcome relief for hopeful buyers. Overall, home prices aren’t expected to grow much, and market crashes are highly unlikely. That should make it a safer purchase for buyers and more difficult for sellers to get the best price possible.

 

 

 

 

Lofty is a full service real estate brokerage

What To Expect Throughout The Buying Process

By | Agents, closing on a home, home buyer, home buying

Whether it’s your client’s first home, or they’ve been through this process before, every experience is different. However, top real estate agents know the core elements of what to expect during a buying process.

Determine housing needs

In order to deliver the best service to your clients and make the home buying process as enjoyable as possible, it’s important that you get to know them very well. Ask the right questions to find out their motives for buying, what they’re looking for, and what they truly need to be happy in their new home. This will not only help you find them homes to show, but it will also help you tailor your efforts to their needs and wants and create a trusting relationship.

Set a clear budget

It’s important for your clients to know their numbers. As an agent, you never want to put your client in a position of buying a home that they can’t afford and vice versa. You want to be able to show them all the options for homes that they can afford. Show them how to determine the cost of homes they can look at by accessing their financial situation and taking into consideration their current debt and bills etc. If they haven’t already, make sure they are pre-approved for a mortgage.

Begin the home search

Once all the prep work is done and you have a clear understanding of your client’s needs and expectations, let the home search begin! While seeing homes, take note of what they love and what they hate. This will help you narrow down the homes you show in hopes of finding the right home, faster.  Top real estate agents say that their client will know within the first 30 seconds of entering a property if they’re interested or not. Pay attention to your clients during those critical moments. If clients are interested in a certain property, make the extra effort to do repeat tours at different times of the day so they know what the neighborhood is like at night, and they can see the lighting at peak daytime. For pre-construction homes, check the floor plans and get to know the reputation of the developer.

buying a home in Chicago

The offer

Use your expertise as a real estate agent to guide your clients in negotiating a fair offer that they’re happy with and is comparable to homes in the same neighborhood.

Escrow

The hardest parts are over! The offer was accepted and your clients are ready to start getting excited. The home is now in escrow, the period of time it takes to complete all remaining steps in the home buying process.

Home inspection

It’s common for offers to be contingent on a home inspection of the property to ensure there are no signs of structural damage or to take note of things that may need fixing. As a real estate agent, you should have developed trusted contacts who you can refer to your clients to conduct the home inspection. Work with them to schedule the inspection within a few days of the offer being accepted by the seller. Keep them well informed during this process and review the inspection in person with them if possible. Explain to them the power behind the contingency and how it protects them by giving them a chance to renegotiate or withdraw their offer without penalty if the inspection finds any substantial damage. Also, review with them if there’s anything that they want to ask the seller to fix before closing. Once everything is agreed upon, you will do a walk-through with your clients as one last chance to confirm any repairs that were requested. Make sure the seller / previous owner has vacated. If you or your client does find an issue, you’ll need to bring it up to the sellers as soon as possible.

Closing

To avoid any delays, it’s extremely important to properly prepare your clients on what to bring and what to expect during closing. Remind your clients that they must bring proof of homeowners insurance, a copy of the contract, home inspection reports, government-issued photo ID

and the down payment. Make sure that you explain that a personal check will not work and it has to be a wire transfer or a cashier’s check. It’s also common for most lenders to require a title search of public property records to make sure there aren’t issues with transferring the property to your client’s name. There will be lots going on that day and lots of signatures. Set the correct expectations for your client, but also let them know that it’s not uncommon for things to go wrong like a missing document or a misspelled name. As a real estate agent, take all precautionary measures to make sure everyone is prepared and the day goes by as painless as possible.

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