Buying a Home in Wrigleyville

For many, buying a home is one of the most important purchases you'll make in life. Like any big decision, it requires a lot of thought. Weighing the pros and cons and then learning the ins and outs is a must for any first time buyer.

It's great to be eager and excited about purchasing a home, but taking the time to understand the buying process and to research what properties are out there will pay off in the end. So, it's time to break out your notebook and fill it with some home-buying food for thought.

Balance Your Budget

First things first, let's figure out the budget. How much can you realistically afford to spend on a home? Have you factored in all of the expenses? If you're a longtime renter, it's time to sit down and consider all of the new expenses you're about to have.

The big ones here are property taxes, home owner's insurance and maintenance. You won't be able to call the landlord when something goes wrong and the fixing costs come straight from your own pocket. The upside is working on your own schedule, incorporating new finishes and features, and getting it done right the first time around! There's also the satisfaction of doing it all yourself.

Generally, condo and townhome owners pay additional fees, called association fees or assessments, which cover communal building repairs and maintenance. Be sure to inquire about these extra costs before making your decision. The fees are usually charged monthly and special assessments are sometimes required to pay for larger repair jobs and unforeseen issues.

Now it's time to look at your credit history. What's your score? Will it be easy for you to get a mortgage? There are plenty of credit counseling services that can help you get your credit score up to snuff and help you secure the best interest rate possible

It's also important to know what initial costs you'll need to cover at the time of the purchase. For example, how much is required for a downpayment? How much are closing costs? Which include title insurance, transfer taxes, attorney fees, home inspection fees, appraisal, etc.

Pick Your Neighborhood

Before you even begin to think about the architecture, amenities and square footage, let's take a look at location. The location you choose to nest in is a big part of what makes your home the ideal home for you. What neighborhood do you want to live in? Which community do you find the most appealing? Make a list (yes, another list) of all of the things you'd like to have in walking distance of your new home. Will you have a long commute to work? Is the public school system important to you? Is public transportation easily accessible? These are just a few questions to ask yourself before beginning your search.

Property values vary greatly from neighborhood to neighborhood, and from property to property. Wrigleyville is a very established community with fairly reasonable taxes, but other areas of Chicago, such as the Gold Coast and Lincoln Park, have high taxes that can really add to the annual homeownership expenditures. Some people are willing to dole out a lot of extra cash for a more prestigious zip code, but is it the right decision for you?

Sit down and figure out which location has the most to offer you, based on your needs, wants and budget.

Let the Hunt Begin

One helpful suggestion here is to start getting organized. If you're interested in several locations, arrange the properties you want to look at according to each separate area. Visit different neighborhoods on different days - you don't want to be running all over the city. In fact, you might even try conquering a new neighborhood each week. House hunting can be exhausting and it's easy to get burnt out if you clump your visits too close together.

As a general rule of thumb to avoid house hunters' fatigue, try not to schedule more than ten visits in a day. And if you are going to see that many, be sure to take breaks in between. Look at two or three homes and then grab a cup of coffee. While you're rejuvenating with your java, do a quick recap of everything you just saw. Pull out your notebook and write down all of the things you liked/didn't like and start evaluating the different properties. Were there any glaring problems or things that needed to be fixed? Make a separate list of future repairs and maintenance. This will help you determine how much extra cash you'll need after moving in and can be negotiated into the purchase agreement.

Squeezing ten viewings into a day may be pushing it for some home buyers. Sticking with the single digits might be the best tactic then. This way you can take your time browsing and you'll be able to recall specific details about each place. When you take on more than that, the homes' features all start to blur together and before you know it, you can't remember whether it was the condo in Wrigleyville or the flat in Roscoe Village that had those nice stainless steel appliances you wanted. It's important to remember those details, especially if they are high on your list of home buying priorities

In this technological day and age, many home buyers bring digital cameras to showings to take pictures of the properties. This helps keep mental images fresh in the mind and you can also document any problems or elements that need repair. Just make sure to label the photos with their addresses so as not to get the pictures confused.

Hire an Inspector

Once you've got your sights set on a particular home, it's time to give it an in-depth look. You've seen photos, you've taken the tour, you've asked all the appropriate questions, but there are many aspects to a home that just aren't immediately noticeable. This is where the home inspector comes in. These guys have a fine eye when it comes to catching all the nitty-gritty details of your soon-to-be nest. A home inspector lays it out in black and white with a helpful report - everything from physical structure and condition to repairs and equipment.

The home inspector can also give you an estimated market value and ensures that the home meets certain health and safety regulations. Home inspection fees vary and you can ask your Realtor to recommend several qualified options to see who you feel most comfortable with and who best fits your budget.

Make 'em an Offer They Can't Refuse

After finding the home of your dreams, it's time to make an offer. The purchase offer is the hefty document that will legally bind you to the property. It's not yours until you sign those papers stating a pre-determined price. Be clear of the terms and conditions before giving your John Hancock. Make sure you read all of the details and fine print. Take note that everything you had verbally discussed is now in writing, leave no room for confusion.

Remember all those lists you compiled when you were first looking at the home? It's time to break those out and put 'em to good use. Take a look at the notes you made about the home's problems and repair areas and incorporate the results of your home inspector's review. Get a calculator and gauge the costs for each detail. (Don't worry if this seems nitpicky, your real estate agent can help you decide on an appropriate expenditure number.) Once you've reached an estimated expense, you can include this in your negotiation. Find out if the seller is willing to knock off the amount of those expenses or compensate you in some way for the property's shortcomings

Now take a look at the home's amenities. Was there anything missing that you would have liked to see? Are there certain features that your dream home should have? See if you can work these extras into the overall price

It's important not to get discouraged when the odds don't work out in your favor. Where "hot markets" are concerned, it is not uncommon to get outbid. When you're searching in a sought-after area, just remember you're not alone. If someone outbids you, don't feel pressured to bid higher, unless you can afford it and it's what you truly want. Keep in mind that there are plenty of homes out there, you don't have to snatch up the first one that strikes your fancy.

Whew, that's a lot of information to take in at once. Just to be clear, let's take a quick look at what we should and shouldn't do before buying.

Do:

Don't:

[back to top]