When I work with buyers, I go to great lengths to ascertain their ideal parameters: price, location, size, amenities, parking, etc. I explain that it’s ok if those parameters change during the search because I can easily pivot on a dime.
But, when a client starts telling me that they’re concerned because a certain property we’ve toured is a bit “over budget” or “under budget” or even “on budget,” I know that the client has been watching too many episodes of “House Hunters.”
That’s because in real life a “budget” is not based solely on price. The outlay for any property should be based on a number of quantifiable factors: price, taxes, assessments (in the case of a condo), maintenance costs, and mortgage payments (if any). In addition, every purchase should also be based on an analysis of the risks and potential rewards - as would be the case with any investment.
If you don’t have anything better to do on a beautiful Chicago day, compare the following purchases: 1) a $1 million house with $30,000 in annual property taxes; 2) a $1 million condo in a walk-up building with $300/month assessments and $15,000 in annual property taxes; 3) a $1 million condo in a full-amenity building with $4,000/month assessments and $25,000 in annual taxes; and 4) well, you get the idea.
All of these purchases may be the same price, but they require different outlays. Similarly, if we see a $1,050,000 property which may technically be “out of budget,” it would be a mistake to not buy it for that reason: $50k amortized over 30 years is relatively nominal - especially when the other monthly and annual outlays are considered.
So, let’s let reality guide us, not reality TV.
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Glitter up at Lollapalooza!
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Lollapalooza is back in action at full capacity this summer, welcoming 100,000 attendees to Grant Park for a four-day music festival that's packed with some of the biggest names in pop, rock and hip-hop. Post Malone, the Foo Fighters, Miley Cyrus and Tyler, the Creator headline the fest this year, joined by acts like Meghan Thee Stallion, Journey, Brockhampton, Steve Aoki and—inexplicably—Limp Bizkit. Like many other large-scale events this summer, you'll need proof of vaccination (or a negative COVID-19 test completed within 24 hours of entry) to gain access to Lolla.
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Sip with the Seals at the
Lincoln Park Zoo Wine Fest
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Get ready to stroll, sip, and savor at Lincoln Park Zoo's annual Summer Wine Fest!
This 21+ event will feature more than 50 different varieties of wine from 20 wineries, all of which you'll enjoy while strolling through the zoo's lush gardens and animal habitats featuring more than 200 animal species from around the world.
Tickets are limited so grab yours today to enjoy an evening filled with delicious wine and live music at Lincoln Park Zoo.
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6 Bed | 4.1 Bath Lakeview
Offered at $2,495,000
Click on the image above to watch a cool virtual tour video!
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500 W. Superior St, #2405
3 Bed | 3.1 Bath River North
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3 Bed | 2.1 Bath Bucktown
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4 Bed | 3.1 Bath Old Town
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4 Bed | 3.1 Bath Logan Square
Offered at $995,000
Open House Saturday, 12:00 - 2:00
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1 Bed | 1 Bath Streeterville
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1 Bed | 1 Bath Lincoln Park
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4 Bed | 3.1 Bath Gold Coast
Beautifully renovated greystone on fabled tree-lined street.
To be offered at $2,585,000
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4 Bed | 3.1 Bath Lincoln Park
Ultra-cool modern sensation behind vintage façade.
To be offered at $2,350,000
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Modern. Vintage. Architectural. Cool.
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And everything in between.
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© Compass 2021 ¦ All Rights Reserved by Compass ¦ Made in NYC
Compass Real Estate is a Licensed Real Estate Broker with a principal office in New York, NY and abides by all applicable equal housing opportunity laws. All material presented herein is intended for informational purposes only, is compiled from sources deemed reliable but is subject to errors, omissions, and changes without notice. All measurements and square footages are approximate. This is not intended to solicit property already listed. Nothing herein shall be construed as legal, accounting or other professional advice outside the realm of real estate brokerage.
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