3 Things You Should Know Before Buying a Property in Chicago

Buying a property in Chicago doesn’t have to be a confusing process. The operative word here is “process.” There’s a certain course of action you follow starting with hiring a real estate agent, doing your walk-through, making an offer, hiring an inspector, and meeting the closing requirements. Of course, this is under the assumption that your mortgage loan has been approved in the first place.  All of that being said, Chicago offers a fantastic selection of real estate opportunities making it a great place to look.

If you are beginning your home search in the Chicago area, check out this list of available homes here.  There are 3 things that are important to know when going into this house hunt:

1.You don’t need to hire a real property lawyer

The state of Illinois doesn’t require property buyers to hire a lawyer to oversee the transaction. However, for peace of mind, buyers typically still get legal services to review documents and protect their interests. Maybe you can dispense with the attorney if buying from a friend where all of the details and issues can be worked out on your own. You do need legal advice on purchases with co-owners or during escrow. In line with this, you also don’t have to hire a real estate agent. No law exists in the state of Illinois that requires oversight from an agent before buying a property.

FYI: A lawyer with run you between $400 and $700 if you are planning on buying a property in Chicago.

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2.You can demand a seller’s disclosure

Be cautious about sellers who are not willing to give you the full disclosure regarding the property. Actually, the Residential Real Property Disclosure Act requires a seller to disclose anything that may be wrong with the house—such as the HVAC, electrical, or structural issues—so the buyer can make an informed decision. The form should read like this.

It’s important to note an exception with this; You can’t demand a disclosure for newly built homes on the assumption that they wouldn’t have received a clearance if all processes are not aboveboard.

For your own protection, you should hire an independent contractor to inspect the house from basement to roof. The inspector can vet the disclosure by the seller. Any damage found could be used as leverage to slash some dollars from the home’s list price.

3.You can search for the title before buying a property in Chicago

You don’t really need a lawyer to pull out a title in the state of Illinois. The Cook County Recorder of Deeds should have the information you need. Why look at the title at all? This is to ensure the property has no encumbrances, road right-of-way issues, or liens that could be a problem down the road. Make sure the seller resolves any problems before you make an offer.

But as they say, the devil is in the details. You can simplify your life by hiring a real estate agent to handle all the specifics for you. Just be prepared to pay for the commission. On average, you will pay about 5-6% for the realtor commission. The good news is every asking price is negotiable as there’s no standard rate so that means you can still save some money.