5 Questions You Need To Ask before You Submit An Offer To Buy A Chicago Condo!!!

1. Finances - How much are there in reserves?  Are there any current or proposed Special Assessments?  Don’t be fooled because it's been built in the last 5 years or looks like a million dollars.  Condo buildings can be riddled with defects or just plain old age can set in.  Replacing elevators, windows, boilers or facade work can be extremely costly.  A good rule of thumb is at least $2,000 per unit per year.

2. Minutes of the Board Meetings for the past 6-12 Months.  The proof is in the puddling! And the minutes are a great place to see what board members and residents are talking about.  Everything from changes in pet policies to lawsuits to possible special assessments can be found there.  Be a good detective and read through them carefully.

3. Condo Declaration, condo rules, regulations, and bylaws.  The State of Illinois requires every developer to submit a copy to the state.  These documents will provide you with important information such as who is responsible for what i.e. Windows, HVAC units, your percentage of ownership, rights and obligations, restrictions on the use of the property, etc. 

4. Condo Association Fee (HOA) what does it include?  Things like heat, air, internet, cable boxes, Insurance, and electricity may be covered, or partially covered or you could be on the hook for it all.  Some buildings provide heat, but not air conditioning.  Some provide cable, but not the cost of the cable box. Investigate, and know your numbers.  

5. Spend some time in the lobby and talk to your potential neighbors, they will be glad to give you the scoop on how the building is run, the good, bad, and the ugly. 

In addition to these questions, I encourage you to use a qualified real estate agent and attorney to assist you in the condo-buying process to make sure you have all the necessary information and legal protection before submitting an offer.

Have any other questions - Feel free to contact us at 312.280.9600