What you should know before buying a home in Chicago

If you’re a first-time home buyer in Chicago (or anywhere really), it probably feels like you have far more questions than answers about the process. After ten years working with countless home buyers who feel exactly like this, I've learned a ton about what every home buyer should know before they make the jump.

Here’s a list of things we wish every potential home buyer in Chicago knew:

Buyers don’t pay their real estate agent.

The question about how your real estate agent gets paid is a common one, but it shouldn’t concern you if you’re a buyer—because it isn’t you! You could spend hours and hours working with a real estate agent, and if at the end of the process you don’t end up buying something, you do not pay your agent a penny. This is, however, unique to Chicago. For example, if you lived in New York City and you wanted to buy a property, you would pay for your real estate broker.

When it comes to the price of a home, $10,000 is not worth losing a property over.

The second thing I wish my buyers knew before they decide to purchase real estate is that $10,000 in purchase price is not a lot of money. If you walk into a $400,000 property and it's the home of your dreams, but there are three or four offers on it, I personally don't think you should lose the property over $10,000. I think it's important to understand that $10,000 in this context isn't really a $10,000 lump sum. That ten grand is $2,000 today and $50 a month for the life of the loan. If you’re willing to spend $50 a month on all your television subscriptions, but not on your home, you might not be ready to buy.

Getting out of your lease is easier than it seems.

Getting out of your lease is much easier than it sounds. I can't tell you how many times a buyer wants to modify their entire timeline because of their lease, but there are many ways you can get out of it.

The easiest way to start the process is to have a simple conversation with your landlord or property management company and explain to them directly that you’re thinking about buying a place. That's the cleanest way, and I would say that works about 80% of the time, but let's say it doesn’t.

Your landlord is legally obligated to allow you to sublet. The second option is a buyout. Usually, a landlord has it noted in the lease that you can pay a few months’ rent and get out of the lease, scott-free. The third option is the legal option. A lease rarely is 100% buttoned up and perfect, so your lawyer, who you'll have during the real estate transaction, can usually find a loophole and get you out of the lease.

There isn’t only one perfect house for you.

There are likely a dozen properties in Chicago where you will live a happy life inside. It's important that you find three, four or five criteria that you must have. However, you will most likely see several properties that you’ll end up loving, even if they don’t check off every single box on your list. Setting perfection aside and focusing on the big picture is super important. You will be the one to make the home perfect for you as you live in it.

A little wear and tear is normal (especially in older homes).

The last thing that I wish buyers knew when they were buying real estate is that Chicago is an old and historic city. When you’re walking through a property, it's not unusual for there to be a little slant in the floor or some creaks and cracks here or there. It's very easy to get hung up on things looking and feeling old. However, many of those things can be addressed. If you do find something that can’t be fixed (settling, cracking, creaking), it’s still normal and common to find.

This is where your agent comes in. It's important to have some people on your side that understand the difference between a superficial issue and one that can make or break a deal. Let's say you found the property of your dreams, and you're under contract on it and moving toward closing. You have so many opportunities from the time that you write a contract until the time that you're sitting at a closing table to, quite frankly, change your mind. And if you do, there are many, many places in the contract spelled out where you can walk away. A lot of people are afraid that they're going to make a wrong decision or they're going to get stuck with a property that they don't want, but there's time built in to make sure that A) you want the property, B) that it's in physically good condition, and C) that you're not getting legally bound to something that's going to be a problem for you in the future.

All of these reasons are why having a team of experts is key to making your home purchase smooth and successful. We’re here to show you what to worry about and what not to stress over and make sure you end up in the home of your dreams. Feel better? I hope so.

Ben Lalez is a certified Real Estate Negotiation Expert and authority on all things Chicago real estate. He uses his background in construction and over 10 years of market experience to help people with all sorts of real estate needs. Follow Ben on Instagram for more Chicago real estate insights or email him questions here.

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