The right timing is a lesser-discussed aspect of the home purchase process, but that doesn’t mean it’s any less important than saving for a down payment or preparing a must-have list. In order to ensure your first Chicago condo purchase meets (or, better yet, exceeds) expectations, planning a strategic course of action is key.

Remember, the best time to buy when looking for a good deal is typically the winter, but a smaller pool of homes for sale around the holiday season limits homebuying options significantly. Many homebuyers prioritize access to a bigger market, which is why spring and summer are the most popular. Overall, you may pay a few thousand dollars more than you would in the winter, but the odds of finding the right home that checks off your must-haves is higher.

If you plan to buy a Chicago condo in 2018, consider the current market stats on Chicago housing inventory, the typical home purchase itinerary, and steps for getting started.

House hunting in Chicago – the current market

The entire home search process, which starts when you first meet with your Realtor to when you plan to close, can take anywhere from three to six months.

The initial steps of your house hunting journey usually take the longest, especially when you consider the current real estate market. Right now, Chicago condo inventory is low while mortgage interest rates remain favorable, helping sellers gain an edge as first-time buyers compete to find the perfect place. The lopsided market might extend your house hunting timeline anywhere from a few weeks to a few months.

For instance, per our last Chicago real estate market update, the number of homes for sale in Chicago fell 8.5 percent between November 2016 and November 2017. The latest report from Illinois Realtors demonstrates a 10.5 percent year-over-year drop in inventory in December.

Meanwhile, the most recent data (per the MLS), reveals a 3.1 percent drop in residential inventory since January of last year. Condo inventory alone is down 2.1 percent since one year ago.

Based on the narrowing trends over the last few months, it appears as though there will be fewer Chicago homes for sale in 2018 than there were in 2017. This means you’ll probably have fewer options and should not expect any rapid outcomes while house hunting in Chicago.

The Chicago home purchase timeline

Once you’ve found a property that you love, the rest of the process is more predictable. Keep in mind, this assumes both parties commit to the contract, mortgage contingencies are met and no glaring structural issues are revealed during the all-too-important home inspection. This also assumes both buyers and sellers hire real estate professionals committed to the transaction. Because of the paperwork and legalities involved, the entire process may take longer if either party lacks qualified real estate agents, attorneys, inspectors and lenders to oversee every detail with the utmost care. For buyers, hiring an agent is a no-brainer, especially because it won’t cost you a penny. Fortunately, the seller handles the commission fees.

If you plan to finance your home purchase (i.e. a mortgage), the average closing period in Chicago hovers around 45 days. Over three-quarters of all U.S. homebuyers obtain financing to afford their home purchase, according to the latest Zillow Group Consumer Housing Trends Report. For brevity, let’s look at the closing process through the eyes of a mortgage borrower.

During the closing period, also known as attorney review, the buyer submits an offer that includes a purchase price, possible home inspection and mortgage contingencies, earnest money amounts and a proposed closing date. Once the terms are accepted by the seller, the buyer will deposit their earnest money and officially go “under contract.” Once the inspection is over, loan applications are submitted and hopefully, approved. Just before the closing, the buyer and seller will attend a final walk-through to assess the home’s condition and analyze any requested repairs. At the closing, both parties will sign loan documents, complete the title transfer and the buyer – or new homeowner – receives the keys.

All-cash buyers benefit from a more flexible schedule. Without a lender who demands certain criteria be met for the deal to finalize, the closing timeline mostly boils down to personal preference by both parties. This is why all-cash offers are often preferred by sellers – they can close quickly and all contingencies are negotiable rather than required by a third party.

When to call a Realtor

As mentioned, the busy real estate season falls between spring and summer. Anecdotally speaking, the week after the Super Bowl is when the market begins to pick up, dusting off the last few months of winter sluggishness. If you’re serious about buying a home while inventory is at its peak, now is the time to speak with a Realtor who can guide you through the very simple pre-approval process and begin sending tailored listings for you to consider. Mortgage pre-approval is essentially a guarantee that a financial institution or bank will lend you a certain amount of money. Not only will you get a better idea of exactly how much home you can afford – and avoid wasted time viewing properties that are over-budget – your financial reputation, as it looks through the eye of a home seller, will be better than that of other buyers who haven’t taken the steps to prove their sincerity.

Fortunately, the active market typically continues through summer, so don’t worry about falling behind just yet. Still, time is of the essence. On average, homebuyers see 10 homes in person before they decide to put an offer in on the right one. Even then, there’s no guarantee that you’ll close on the first home you fall in love with. Patience and preparedness are a virtue in the Chicago real estate market. To put yourself in the best position to buy this year, contact Z Chicago to schedule your first-time homebuyer consultation.