Looking back on a few posts from earlier this month on buying Chicago new construction, I took a closer look at what is required from a buyer and a realtor when purchasing a spec home—a spec home is a type of new construction property, meaning the plans for the home have already been developed, but buyers can make minor modifications like the finish of hardwood floors and paint colors.
Last week, Crain’s Chicago reported that spec homes are popping up in some of the city’s most coveted neighborhoods—Bucktown, Lincoln Park and Lakeview being a few of them. The article reported that developers are “getting back into the game” of building spec homes, which had slowed down in the last couple of years. And these developers are coming back with a bang, building large, $1 million+ homes on wide lots in the best neighborhoods in Chicago. In other words, they’re building great opportunities for buyers looking to purchase Chicago new construction.
A Chicago new construction property in any of these neighborhoods is a real estate gem. Brand-new Chicago homes are harder to come by without the building boom we were experiencing a few years ago, but areas like Bucktown, Lincoln Park and Lakeview are without a doubt ideal neighborhoods for any buyer. Each is an established area, with reputable schools, near shopping, dining and entertainment and very close to downtown Chicago. If you’re considering a buying a spec home, these are definitely some of the best places in Chicago real estate.
Purchasing a Spec House in the Chicago Real Estate Market
Considering we’re still in a difficult and volatile Chicago real estate market, it’s crucial for buyers to work with an experienced realtor when making a home purchase. But I want to emphasize the importance of this when purchasing a spec home in particular.
A realtor experienced in Chicago new construction can also help walk you through the ins and outs of financing, which can pose a challenge in a market like this one. When it comes to financing a spec home, cash is still king—a significant down payment will certainly make it easier, as will an excellent credit score and additional assets.
The realtor’s experience also comes into play on modifying the home. He or she should be able to consult with you on what modifications are doable and what will affect a home’s future resale value. The customizations you make can greatly benefit you when you re-sell the home, and a realtor should be able to give you an objective view on what alterations are possible and most valuable.
If you’re interested in a Chicago new construction home in a great neighborhood but without the time and expense of building from scratch, let’s see what’s available from current developers. Give me a call at 312-264-5853 or email me at [email protected]