Way OT: Real estate question

I'm looking to make the move from burbs to downtown Chicago, preferably Near North area. The timeframe is roughly a year from now but I have started to browse thru the real estate section. Given the demographics of this board, can someone give me their take on where the real estate market is going? My best hunch is that it is at the same level it was last year, at least in Chicago. If different sectors of the real estate market move at different paces, than I want to point out that I'm specifically interested in condos downtown that are between 450 - 500K. At this level, what's usually the fluff room built into the advertise price? How do I research this deal like I would research a p-car before buying? Any advice would be appreciated!

bump! anyone?

From my experience as a real estate investor and real estate attorney (went to NU law), I'd say that price is all a matter of negotiation; there's no real "fluff factor". It's up to you to make an offer at whatever price that you want to pay for the property, and the seller will either accept your offer, or reject your offer (with or without a counter-offer). If the Seller counter-offers, that's when the negotiation starts. Keep in mind that a seller's motivations for selling the property has a major impact on the asking price and your ability to negotiate down from the asking price. The more/faster the seller needs to sell the property, the better your negotiating position. The first thing that I recommend for you to do is to contact a/your title company (like Chicago Title), and ask them for a sales comps report for all condo sales of similar size within the last 6 months within a 1-2 mile radius. This will give you a good heads up on recent pricing. I strongly recommend that you hire a broker to help you in your search. It won't cost you anything, as the seller typically pays for it. Get referrals from friends, co-workers, etc. Don't let the broker try to sell you on his/her own listings. You may want to get pre-qualified for a mortgage, but that's something to talk to your broker about. Be sure to check out the Weiner Circle on Clark and Fullerton, home of the best Chicago Dogs, served with some funny attitude. I wish we had a WC in LA... I miss it! Good luck and happy hunting!

In general, realtors are taking advantage of the low interest rates to jack up the sale price, better to find a private sale. Realtors are sleeze just like car dealers, they want to satisfy your monthy payment requirements/target and get you to forget about the "total" price.

You may want to take a look at the amount of time that the listing has been for sale. Longer listings usually mean that the price is either too high for the market or that the house has some issues that may need to be taken care of. Cydog's information is right on the money - hire a reputable broker that will do the negotiating for you. WWest, your blanket statement, for the most part, is true. However I do find that there are still some very reputable brokers out there that look after their clients' interest and not their own.

Thanks guys. Cydog, that's a good tip regarding contacting my title company. I also found that for *some* of the residences around Chicago, you can search for their last sold price. Now, onto the search of finding (& trusting) a broker...

Your realtor will have the last sold price information. I'm not sure if you can search by that, but it's available when you're looking into valuing the house. Definitely get the comps of the surrounding condos.

One thing that you should keep in mind is that the Chicago commercial real estate market sucks overall (corporate and manufacturing cutbacks=higher office vacancy=soft commercial re market), this has created interesting market conditions for downtown Chicago. You can use this info to your advantage. In addition, the housing market is beginning to lose some of its steam. Pretty soon, it will be a buyer's market if it isn't already. Cydog, if you are a real estate investor/attorney, we should definitely talk, since you are also in Bwood.

My suggestion is forget about the sellers motivation, asking price, broker advice, time on market etc... Instead do as some have suggested (your broker can get you the info) and get sales comps for the last 2 years. This way you cut through fluff and BS and get right down to real selling prices. That's where you can see what prospective condos are really worth. Now you know what each condo is really worth. Your next step is determined by wether you are looking for a deal or the absolute ideal condo for you. If looking for a deal: For the next year put down several offers a month on condos you like. All of the offers should be about 10-20% below MARKET VALUE (as determined by your research, not broker advice or asking price). You will get a good deal this way but maybe not your dream condo. If an ideal condo is what you want: Over the next year check out condos and only put offers on the ones you really, really like. But place those offers about 5-10% below MARKET VALUE and be willing to quickly move up to market value (in this market I would warn against paying over what the comparable sales suggest even if your broker is telling you that over the last month prices have tripled and shows you asking prices as proof)

Caneaddict, You should never "forget" a Seller's motivations, as those motivations can help you get a better deal than market prices. For instance, in cases where the Seller has divorce issues, credit crunch, or other reasons that necessitate a quick closing, a buyer who can close escrow quickly (eg. if the buyer is pre-qualified for a mortgage or an all cash buyer) can get a better deal than with other sellers in the market who may not have any compulsion to close the deal at the below-market price the buyer may put forth. To illustrate my point... I got a $98k sticker 2002 Cab with 7500 miles on it from a Porsche dealer for $70k this past February, when the market for similar cars was in the high $70s. The dealer had to move the car because of the incoming 2003s and the fact that dealership paid had below market for the trade in (the guy who traded it in got a Ferrari from the same dealership). Was I lucky? Maybe, but I'd say I was a better buyer than other buyers in the market because I had good timing, was able to close the deal quickly, and I knew the underlying facts and motivations of the seller/dealership. All of these factors allowed me to get the car for the price I wanted, instead of the seller's original asking price which was the market price. If you want to get the best deal you can get on buying anything, you should always understand the seller's motivations; sometimes they tell you and sometimes they dont't. Just my $.02 <img border="0" alt="[cheers]" title="" src="graemlins/beerchug.gif" />