Did you know that over 40 percent of Americans say they regret their current home or the process they went through to obtain it? Buyer’s remorse is an unfortunate possibility in any transaction – even the largest one you’ll make in a lifetime. However, home buyers can protect their peace of mind and curb the odds of real estate regret with ample due diligence.
Before making an offer, ensure the home is an ideal match by checking off the following real estate must-dos:
Check your expenses
You may be able to afford that $500,000 home now and came prepared with your mortgage pre-approval letter as proof – but how will that impact your financial decisions a few years from now? Parents with teenagers gearing up for college or entrepreneurs thinking about launching a new company should move modestly on their current home purchase. You’re better off playing it safe and upgrading down the road than to risk financial distress by defaulting on your mortgage. Plus, when you’re buying a home in the city where the rental market is strong, you could always rent out your starter home when you eventually outgrow the space, earning passive income for years to come.
Explore the neighborhood
Does anyone truly know Chicago like the back of their hand? There are 77 distinct Chicago communities for prospective home buyers in the city to explore. You may have a general idea of where you want to live based on its proximity to your favorite restaurants, school district ratings or recent trend in rising home values, but that doesn’t mean the location won’t have drawbacks that impact you personally. Spend as much time in the area as possible during the day and at night for an extensive assessment of your future locale. Many home buyers experience real estate regret for shortcomings like loud nightlife venues or pedestrian congestion during off hours. Some may even consider these positive qualities, but your preferences could vary substantially from the next person’s ideals, so it’s important to make your own evaluation. Be sure to check out nearby parks, retail, eateries, nightlife, and CTA stops that you plan to frequent. If you have pets, don’t forget to bring your furry friends along for a second opinion on the outdoor scenery and walking trails!
Read the HOA bylaws
Your big plans to renovate or Airbnb that downtown condo may not pan out to your liking. Homeowners Associations (HOA) could have strict regulations regarding things like construction and short-term rentals. If you have specific plans in mind that involve serious demolition (i.e. tearing down walls), check with your Chicago condo HOA board for approval first. Make sure you fully understand the HOA rules when it comes to leasing, too. Also, keep in mind what costs are covered in your monthly assessments. There’s no use paying $1,000 per month in HOA dues for conveniences and amenities you have no plan on using that could hypothetically limit the number of prospective buyers at resale.
Calculate your commute
Sure, you can usually get more square footage for your dollar when you search for homes farther from the urban core, but is it worth the hassle of getting to and from work Monday through Friday? Traffic varies depending on the time of day and location, so test out your commute from your potential new address. Drive to and from the new house in the AM and PM to calculate how many minutes you totaled in travel time for the day. You can also use this handy commute time calculator from SmartAsset. If you prefer public transportation, Chicago has one of the best commuter systems in the country. Map out nearby train and bus stops to see if walking is possible and always consider the odds of inclement weather, including heavy snowfall.
Consider future buyers
Your Chicago home is an investment. If resale value isn’t important to you, save yourself the trouble and continue renting instead. However, if you are like most Americans who want to funnel your monthly housing payments into an asset that pays you back in seven years or more, make your real estate decisions with the future market in mind. We can’t predict exactly which neighborhoods are going to last the test of time, but we can attest to fixed property features that traditionally deter most home buyers. Homes that back up to busy roads or units with disproportionate layouts (unequal bedroom-bathroom ratio, for instance) are less likely to fetch a premium now and in the future. In the same regard, don’t get distracted by easy fixes like bright paint or dated finishes. After all, you’ll probably spend less on a home that needs a little cosmetic work and can outfit it exactly to your liking when the budget allows.
Now that you know what it takes to make a smart home purchase in Chicago with little room for remorse, it’s time to start your search. Call Z Chicago today and we’ll set you up with a buyer’s agent to meet in person to review the transaction process in full before sending tailored listings that match your must-haves.
