This Spring, buying a house or condo can be challenging due to a s lack of housing supply in many parts of the country, especially for first time buyers.
In some markets, as well as in certain Chicago neighborhoods, tight inventories have pushed up prices, resulting in bidding wars for some properties in a certain price bracket.
Areas like Andersonville, Edgewater and Uptown have seen an increased demand for properties priced between $300,000 and $600,000 and multiple offers on condo units in good condition are occurring frequently.
The reason for the tight inventory vary. In some areas, homeowners are still underwater – meaning they owe more on the property than what it’s worth – so they are unable or unwilling to sell for the current market value.
In other areas, the lack of homes is forcing owners to stay in their current homes because they can’t find a new house to move up to.
Here are some questions and answers about buying a new home this Spring:
- What should I do to be prepared to buy a home in a tight market?
o Get approved for a mortgage and obtain a pre-approval letter. This tells the seller that you are serious about buying. A pre-approval letter is much stronger than merely getting “pre-qualified”, which is just an estimate based on the information the buyer supplies.
- What techniques besides price can I use to make an offer attractive?
o Offer a large cash deposit as the initial earnest money. This shows the seller you are serious. It also helps to agree to the seller’s requests, such as closing date and certain contingencies.
Are you interested in buying a home in the areas described above? Please see all current listings in Andersonville and Edgewater! Contact me via phone or text at (312) 893-3560 and I'd be happy to discuss the market and some options with you.
Posted by Andreas Holder on