Home Buying in Chicago>Question Details

Jocelyn, Other/Just Looking in Chicago, IL

If I wait until my lease is up in August in Chicago, will I still be able to get a good deal on a condo?

Asked by Jocelyn, Chicago, IL Thu Jan 17, 2008

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Yes. New condos are hitting the market every day. Dependant on the price point You can get the same good deal in Feb as you can get in August. No worries.
Web Reference: http://www.KaleRealty.com
0 votes Thank Flag Link Mon Feb 4, 2008
I agree with Christopher accept for one thing- most lenders do not allow you to lock a rate more than 60 days out without a significant penalty. Even when you lock between 45-60 days you will pay a premium on your rate, maybe .125% higher than the best rates you hear on TV/radio (most of those are 30 day lock periods). So if you buy now but cannot close until more than 60 days, your file can be underwritten but you will be subject to the ups and downs of the market until you are within the lock window (again 60 days).
0 votes Thank Flag Link Sat Feb 2, 2008

When I purchased a few years ago, I began my search with about the same amount of time left on my lease as you. I'm glad I started searching well before my lease was up. I ended up buying in June with a few extra months left on my lease. I was able to sublet within a week using craigslist at nearly full rent, too. Your landlord likely can't stop you from subletting, but check with them first about possibly getting out of the lease. With fewer people buying homes, the rental market is stronger than it was when I was renting.

Also, remember that you the buyer, not the seller, specify the close date in your contract. Most lenders will let you push close out to up to 90 days without penalty. A seller might be open to giving you a credit should they need to close early, especially given the market.

I'm working with a buyer now who is in a similiar situation. I'd hate for her to miss out on the bulk
0 votes Thank Flag Link Sat Feb 2, 2008
I have been an exclusive buyer agent for 7 years, and have rarely has a buyer's lease prevent them from buying. Usually they will let you out in May especially if they think they can raise rents. There may be a fee but in this market the seller can pay that. You can also have the seller pay your rent for a few months if you wanted to be creative. I agree with the others though, the market will still be great in August.
Web Reference: http://www.1sthomegroup.com
0 votes Thank Flag Link Tue Jan 29, 2008
Again, no crystal ball, but the fact is that it's a great time to buy in Chicago. Rates are great and there is a lot of product. I don't think a lease should hold you back if you are prepared to buy, especially with the uncertainty of an election year. A sublease is a great option if you end up closing on a purchase property before your lease term is up.
0 votes Thank Flag Link Sun Jan 20, 2008
No crystal ball here, but, yes. There will still be lots of inventory. It's unlikely that interest rates will skyrocket. Certainly start looking, get a feel for the market and the trends. But the real estate climate we're in isn't going to change much in the next 7 months. And besides, if your lease is up in August, you can start making offers in May and June for an August closing. and May is only 4 months off.
0 votes Thank Flag Link Thu Jan 17, 2008
Don Tepper, Real Estate Pro in Burke, VA
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