New Construction condos and single family homes are still in high demand throughout Chicago but some developers are coming to the rescue with smaller projects throughout the city. The biggest problem, however, is that many home buyers are unaware of new projects until they’re mostly sold out. The question is, why?
Many real estate brokers and developers are marketing their new construction to their own clients first and only later listing the property for sale in the public market. While many may scream this is unethical, it actually makes perfect sense. It allows developers to gauge interest from the market and set proper pricing for future units and it allows agents to do right by their buyer clients by bringing them something exclusive.
Many small new projects are popping up around the city but many are not in the staple neighborhoods that you might think such as Lakeview and Lincoln Park. Instead, Ukrainian Village, Logan Square, Bucktown, Wicker Park and even Uptown / Andersonville are seeing new developments from condos to townhomes.
What sort of budget should you have?
If you are looking for a new construction 2 Bed / 2 Bath condo your budget should be up to $500,000 to be able to choose from an array of options in the above mentioned neighborhoods. If you’re looking for a new construction town home, you may find a few under $500,000 but $600,000 to $700,000 would definitely be a better bet.
If you’re looking downtown, well you are pretty much out of luck. There is very limited new construction in areas such as River North, Gold Coast, etc. 4 E. Elm is a new project marketed by our company and the units are starting at $2.1 Million.
Be able to buy off of plans
Many new buildings, even smaller ones are starting to sell primarily based on floor plans or during construction when framing may be the only thing you can check out. Be prepared to make decisions based on floor plans, artistic renditions, etc.
If the developer is established in Chicago they may have models of other projects they’ve completed that you can tour in order to get a feel for their craftsmanship and an idea of the types of finishes they plan to use.
Paul Blackburn is an Illinois licensed broker and Realtor with @properties in Chicago. He can be reached via e-mail at Paul@PKBlackburn.com