Mike Yun, Broker
Jameson Real Estate
The bulk of previous answers have been accurate and provided good advice. One thing to consider is that in your building now there is one short sale one bed under contract (it was listed at $185k) and two other one beds actively listed for $193k and $220k. I mention this because it is important to be sensitive to your competition. You are cognizant that if you sell now you will take a loss. I perceive the crux of your question to be whether you will offset this loss with any gains you achieve in a purchase.
Without hesitation I suggest that your gains by purchasing now, whether in Lincoln Park or Lakeview, will more than offset your losses. Since 2008 I have had a number of clients in the situation you describe yourself to be in who sold the homes they had purchased just a few years earlier in order to "buy up." The purchase levels ranged from the mid 500s to more than treble that and in each instance my clients were more than satisfied that the equation came out in their favor.
Of course your circumstances are your own. To engage in the next purchase you will need a downpayment. In speaking with a lender to determine the amount you will need you may determine if you have the wherewithal to qualify for a loan, in what amount and at what rate. As several earlier commenters have made reference, rates today are preposterously low. This, along with buyer-oriented pricing, makes today's buy market extremely attractive and may tip your scales in favor of making a switch.
One other thing - your building tends to have multiple units available at any given time. I don't think 444 will experience any significant notching up with the passing of one or three years. The building likely will stay flat, disallowing any capricious gain on your part.
Any questions, don't hesitate to reach out to me. My contact information is available via my profile.
Expertise in Negotiation, Luxury Home Marketing and Buyers' Representation
The Real Estate Lounge Chicago with @properties
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1. Don't be waiting for prices to go up as a trigger for your sale. Most of us think that will be a very long wait.
2. Make a decision based on what is best for you financially and in terms of what you want/need for housing.
3. There are great values in all markets and price points. Look at your home as more than an investment. It is a vehicle that will change in value and use over time, and you should stay focused on what it can bring to you in the next move, not just what the profit/loss will be at the point of sale.
You know you are not alone, many homeowners who have bought within the last 4 years or so, bought at the
top of the market, and we are currently in a buyers market, i.e. there are many more properties on the market than there are ready and willing, and approved buyers, therefore prices come down and your condo will only be worth what a ready and willing buyer wants to pay for it, but more so the buyers can cherry pick from all that is out there.
You should of course sit together with a Realtor/lender and look at your finances and consider all your options
But if you intend to sell because you want or need a larger place, this is the right time to sell.....
as you will make up any loss on your current property by buying a larger more expensive property, if on the other hand you are just looking to buy a similar property in Lincoln Park again, and just want to save on the assessments, then may be not...
But I am not familiar enough with your plans, your family, your home needs and you finances, so a bit hard
to make good solid recommendations... The only thing that I can say is that waiting for prices to go up will take a while, my feeling is that the market will stay flat for a while, and the economy and jobs need to change before pricing will go up... plus we still have foreclosures and short sales!!!! so in your case you need to ask yourself what your plans are for the next 5 years
It may take a while before you can get more for your condo, and the fact that it appraised at 210 K may not bring you that from a buyer!!!!
I hope this helps you a bit, if you want to have more input, let us know what your general plans are and where you would move to, single fam. home in the subs? highrise low rise mid rise, townhome???
Good Luck to you!
Your Chicago and Northshore Expert
Depending on how your finances stand, it may be financially better for you to sell now and purchase (as you say) a new, larger home at a lower price due to the market.
If, based on your recent appraisal, the value of your current home is 16% less than it was when you purchased it at the height/near the height of the market (not considering upgrades - as the cost of upgrades is often not recoverable), it only follows (broadly but logically) that you will be saving more on a larger, more expensive home than you will be losing on your current one. Definitely something to consider.
Can you afford to come to the closing table with cash to cover your loan, if necessary?
If you have to do so, will you have sufficient cash for a downpayment on a new home after doing so?
There are also more personal considerations - like whether your family has outgrown the current home, how much stress a sell/buy will put on you all, how secure you feel in your employment, and whether you like your current home and enjoy living there. And on and on . . . .
The best bet for you is to find an excellent, experienced real estate expert to assist you in carefully and closely evaluating the value of your current home and to help you formulate an ideal plan for selling your condo and buying a new home (he or she will also work with you to adjust your ideal plan for the realities of the current market as needed). A good, professional, ethical agent will not push you to sell and buy - but will help you to get all of the information you need to make a good decision for yourselves.
I have come across people doing both.....taking the loss to move on and others waiting for the market to change. 444 Fullerton has always had a higher assessment than many of the other buildings in that area. In order to go from 210K to 255K you need an average price appreciation of 5% for each of the next 4 years. The odds of that happening from the way the market looks now is slim to none. You might need to be there 5+ years to get to 250K...........but who really knows..............
As to what you should do. Well it depends on how much time you have. Prices are still in a free fall. Whats under priced today is overpriced tomorrow. Sales are definitley up, but prices are down. If anyone tells you that prices are on the upswing, they are lying to you, or they dont know what they are talking about. You probably wont see a rise in prices for at least 5 years. So if you sell now, yes you will take a loss. But think of the place you will be able to buy that you couldnt maybe of afforded before.
If you have any other questions, feel free to ask me.
Americorp Real Estate
Brokers Associate, e-PRO
Home prices have started to stabilize, and now with lowest prices and rates, it is the best time to buy!
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