Tuesday, December 02, 2008

Multiple Offers on Chicago Short Sales, Foreclosures

First snow brings falling interest rates...

It's been several days since my last post... but a lot has been going on besides the Thanksgiving Holiday. Historically low interest rates on mortgages and attractive short-sale and foreclosure homes have sparked first-time buyers and investors. However, the best of these homes are seeing multiple offers.

For example; this week, I have two purchase negotiations going in Ravenswood Manor and North Park. One is a short sale that lowered to a very attractive price in a good location. There are several offers in and the listing agent now must weigh the offers with his client and determine the best for lender approval. The other deal is in Ravenswood Manor on an actual foreclosure... the unit dropped to a low price for the area and the contracts came flying.

Many short sale and foreclosure units, in my opinion, would not make the greatest primary home for most of my clients. Bad locations, bad buildings etc... but this week shows that good opportunities present themselves. Nice unit+nice building+nice location+low interest rates... one must be ready as multiple offer negotiations are occurring.

I have seen deep discounts on the higher end high-rise buildings, $400,000-$1,000,000 units that once sold for $50K-$100K plus more... and the lower end units selling in the $200s that once sold for over $300K.
I have not seen any significant discounts for desirable condos in smaller buildings for Lakeview, Lincoln Park, Old Town, Lincoln Square and Ravenswood. You may find condos to purchase at close to what the owners paid two to three years ago, but very few opportunities to buy at drastic discounts.
It's pretty intense out there if you want a deal on certain types of homes in top tier neighborhoods.

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