From wonderful to wrecked, Chicago condos can come in all shapes, sizes, and conditions. And like everything, it’s important to do a little digging before you make a commitment. This is especially true for properties just out of foreclosure. In Chicago, foreclosure condos have risen dramatically since the real estate market imploded nearly two years ago.
While this has created some great deals for some, buyer beware: the foreclosed properties out on the market today have also created an equal amount of pitfalls for those looking to buy in Chicago. Foreclosure condos carry more baggage than the average property, which can make this niche in the real estate market especially hard to navigate. Vandalism and neglect aren’t uncommon among Chicago foreclosure condos and it’s important to prepare yourself both economically and emotionally before investing into a property.
Before you invest, you need to know which Chicago foreclosure condos are worth buying and which ones aren’t; these tips should help make your decision a little easier.What you need to know before you invest in Chicago Foreclosure Condos:
Your Budget: This should be a no brainer. Like any investment, always stick with a strict budget. Condos that have gone through foreclosure tend to require more work than the average home because they are often neglected for some time before they hit the market, and you should set aside money for home renovation. Most foreclosed properties will require may significant repairs, like replacing pipes in the basement so make sure you’re up to the task before you invest.Know The History of Your Condo: Don’t forget to give each property go through an exhaustive background check. This is absolutely essential if you’re new to Chicago. Foreclosure condos often have storied histories, and that’s not always a good thing. Track down a list of all of the recent repairs and make sure all the inspections are up to date. You should ask how long the property has been empty. Often times these condos have been uninhabited for months, and this neglect may have caused the plumbing to seal up and sewer gas to creep into the property. Failing to properly inspect a condo could cost you a lot of money in the long run. Also, and this should go without saying, but you should visit each property yourself. If you are relocating, don’t just take the word of a third party. Give each home you’re interested an up close inspection. Don’t be afraid to ask your realtor to help you know what to look for.
Look at the Other Properties in the Neighborhood: When you’ve found a handful of properties you like then it’s time to inspect each neighborhood. Experience the neighborhood at all hours of the day to get a good handle on the safety of the place. In Chicago, the safety can vary dramatically from street to street. Of course, you need to make sure the neighborhood satisfies your personal needs–good schools, a strong sense of community, etc.–but you should also be aware of the number of foreclosed properties in the area. This can have a major impact on the value of your condo. If you’re surrounded by other foreclosed homes, the value of your condo may become depressed, and you may not be able to recoup the money you invested on repairs.
In many ways, the real estate bust has created a paradise for investors. But while you look over the number of Chicago condos on the market, try to stay savvy. If a deal looks too good to be true, that’s probably because it is. Our industry can be a difficult one to get a good handle on, but you don’t have to do it alone. If you’re looking into buying a home or condo in Chicago, or if you’re just looking for some advice from a professional, contact us today.
