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How to Buy a High-End Home in Chicago

Luxury brokers offer tips on finding a single-family home in the increasingly popular property market

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A six bedroom, five-and-a-half bathroom home in Chicago's Lakeview neighborhood on the market for $2.949 million.

JAMESON SOTHEBY'S INTERNATIONAL REALTY
A six bedroom, five-and-a-half bathroom home in Chicago's Lakeview neighborhood on the market for $2.949 million.
JAMESON SOTHEBY'S INTERNATIONAL REALTY

While the Chicago-area property market may be considered “undervalued”, it certainly isn’t low on interest, particularly when it comes to high-end single-family homes. According to the U.S. Census Bureau, 2,000-plus construction permits for single-family homes in Chicago were issued in the first four months of 2015, a 54% increase over the same period in 2013 and a reflection of the growing popularity of the market. So how does one snag this hot commodity home-type? “Michigan Avenue” magazine offers an illuminating interview with Chicago-area luxury brokers Danny Glick and Stephen J. Bognar about what buyers need to know when looking to purchase luxury properties in the Windy City.

A Lincoln Park address for a single-family home has always been the gold standard for a luxury property. Is that changing? Danny Glick: You can’t drive around the city and not marvel at all the new construction in every neighborhood. The market is expanding geographically in a big way. First it was Bucktown and Wicker Park, but now Lakeview and North Center are real hotbeds for luxury single-family new construction. Stephen Bognar: There are so many areas undergoing renaissances that there’s a multitude of options. Demand is so high that the West Loop and West Village are catching on, too.

What are new-construction prices like now? DG: Luxury single-families range from $1.5 million to $4.5 million right now, depending on location. The closer in, the higher the price. For instance, in Lincoln Park, $2.7 million to $3.5 million gets you a 5,200-square-foot house. In other areas, where the house size is more in the 4,200 square foot range, houses sell for $1.5 million to $2 million. SB: I prefer new houses that are one to five years old. In new construction there are often kinks and hidden costs, from a system that doesn’t work perfectly to all the extras you have to finish that aren’t included in the final price, such as landscaping, window treatments, and more. The first owners iron all that out, so you can move in without much work.

The brokers also recommend that buyers considering Chicago should know what they want from a home and be prepared to act fast. Read the full interview at “Michigan Avenue” for more insider tips on entering the Chicago luxury market. View full listing (pictured top)