Hey there, future Chicago condo owner!
If your family dinners have recently turned to discussions about buying a condo somewhere in the city, you’ll want to keep reading!
We all know that Chicago offers some of the best condo living, and you’ll find a wide variety of options from simple low-rise buildings to expansive luxury towers. Condo communities come in all shapes and sizes. However, regardless of where your next purchase ends up, there are some crucial things you’ll need to understand about buying a condo in Chicago.
But first, who are we?
We’re the Ben Lalez Team, and we have years of experience and countless deals under our belt. Having navigated every corner of this beautiful city, from the downtown core to the charming 77 neighborhoods we call home, we have a deep understanding about what makes each area unique and which ones would best fit your needs.
Along the way, our team has been blessed to be ranked in the top 1% in all of Illinois. After helping over a thousand families find their forever homes, we’re excited to share our insights and stories with you.
So before you go hunting for the condo of your dreams, let’s first talk about 9 things you’ll need to know about buying a condo in Chicago.
1. HOA (Homeowners Association)
This is the most important factor to consider first, because this affects both your monthly payment as well as the type of condo lifestyle you’ll enjoy. Your HOA fees will typically cover maintenance of the condo, the amenities that you’ll have access to, and sometimes certain utilities. These fees can vary widely depending on the condo building, and things like the age, size, and scope of the building can determine how much you’ll be paying.
2. Reserves & Capital Expenditures
When buying a condo, you’ll want to examine the reserve fund. If it’s adequately funded, it’s an indication that the property’s finances are well managed and the overall health of the building is good. It’s also important to inquire about any upcoming capital expenditures. In older buildings, it’s common to see things like major roof replacements, building upgrades, or parking garage repairs. If there are expensive repairs in the near future, the reserve fund may not be adequate to cover these costs and could indicate a potential special assessment for the unit owners.
3. Maintenance Issues
Condo buildings go through a lot of wear and tear, and with the harsh Chicago winters, exterior maintenance is an ongoing expense for every building. For example, in older buildings, the age of the roof is important as well as tuckpointing requirements. If you’re considering a duplex down or a garden, you’ll want to inquire about waterproofing measures so your space stays dry year-round. All of this affects the enjoyment of your unit and the value of your investment.
4. Parking
In Chicago, we all know that parking is a big deal. When you’re purchasing a condo, you’ll need to verify if your parking spot is assigned or owned. When it’s assigned, it means that you have exclusive use of the spot but you don’t actually own it. Some buyers purchase units without parking spots due to lifestyle choices. However, for other buyers, having a parking spot is non-negotiable. So even if you don’t need one now, just think about how your resale value will be affected when you sell it in the future.
5. Soundproofing & Building Type
Soundproofing in condo buildings is really important, because you’re living in a confined space with many families and you’ll want to have peace and quiet in your home. Before you buy any unit, ask about the materials that are used in the walls and between the floors. You’ll also want to understand the building type and how it was constructed, because different exterior building materials and windows can impact energy efficiency and noise levels.
6. Rentals & Short-Term Rentals
If you’re purchasing a condo with the intention of renting it out, you’ll need to ask about any rental policies that may be in effect, as well as rental caps. Some buildings have strict rental caps, so that will limit your options on where to buy. Bear in mind that if you’re purchasing in a condo building that has a lot of renters, that will affect the value of your property. If you’re considering short term rentals (like Airbnb), you’ll want to be extra sure that they are permitted in the building since there are many buildings that prohibit short term rentals.
7. The Building Lifestyle
When you buy a condo unit, you’re not just getting a property – you’re also buying into a lifestyle. You’ll have access to amenities that can add a lot of enjoyment to your life, so it’s important to check out what the building has to offer. Does it have a gym, swimming pool, party room, BBQ area, or other recreational offerings? Another important consideration is how much storage space you’ll have access to. Does the unit come with a locker or other storage areas? Storage space is a big premium when it comes to condo living.
8. Financial Health Of The HOA
We touched on the reserve fund a little earlier in this article, but there are other financial indicators that will tell you whether or not you’re buying into a healthy building. What are the HOA fees this year, and have they increased significantly over the last 5 years? Are they projected to increase again next year, and if so, why? You’ll want to find indications of a stable and well-managed financial fund, otherwise you may be on the hook for higher payments in the future.
9. Condo Rules & Bylaws
You’ll want to read the condo rules and bylaws carefully to see how they may affect your lifestyle. Some buildings prohibit all types of pets completely, while other buildings may allow pets with restrictions (for example, small pets are allowed but larger dogs may not be permitted). If you’re a pet owner, this will be important for you. Also, if you want to renovate your condo at any point, there may also be restrictions in place as well, so know the rules!
And there you have it, folks.
If you’re looking to buy a condo for the first time, know that it’s a different experience than buying a home. The Ben Lalez Team is ready to guide you through the intricacies of the Chicago condo market. Give us a shout today and we’ll make sure you’re equipped with the knowledge and confidence to make a smart buying decision!
