I had a call last week from a gentleman considering selling his condo in the South Loop. If you’re not familiar with the South Loop it’s a neighborhood bordered on the east and west by Lake Michigan and the Chicago River and on the north by Congress Parkway. The south border is considered Roosevelt Road by some and 18th Street by others.
I have no experience in the South Loop so I referred him to a very good Realtor who does. They met last weekend and after evaluating the competition decided that the gentleman would be better off renting out his condo for a couple of years. If he put his condo on the market now, he would be competing with his developer who hasn’t finished selling the remaining units in the development. Based on what the gentleman paid for his condo a couple of years ago and what the new units are selling for, it makes sense not to sell if he doesn’t have to. Prices have not been appreciating enough.
Developers are tough to compete with for a couple of other reasons. Everything else being equal, buyers typically prefer to buy new and will pay a premium for a new home. Larger developers often can provide very atrractive financing options.
So if you’re thinking about buying in a new development, consider the chances that you might need to sell before the development is sold out. If they’re good, you might want to consider buying elsewhere.
ABOUT THE AUTHOR
Fran Bailey shows, previews and tracks downtown Chicago homes for sale giving her the insights needed to help her clients negotiate the best price and terms. Fran has been quoted in numerous Chicago and national publications. To schedule showings of listings regardless of broker or to contact Fran email her at fran.bailey@bairdwarner.com or call 773.793.4516. Learn More
Fran Bailey, Realtor
