Are you thinking about buying residential property in Illinois? It’s an exciting journey, but it can also feel overwhelming with all the details to consider. If this is your first time buying a home or you are choosing to relocate within the state, it is essential to know how the Illinois property law will influence your purchase in 2024. This guide covers essential facets to equip you with the knowledge for a successful home purchase!
The Illinois real estate market is diverse and ever-changing. That’s why it’s important to be well informed on what to expect when it comes to purchasing your dream home. 23 Legal is here to walk you through everything, from understanding local market trends to the importance of getting pre-approved for a mortgage. Plus, we will discuss property taxes, the advantages and disadvantages of buying properties in the city or in the suburbs, and other important aspects that are relevant during seasonal fluctuations.
Find out why it’s crucial to have a qualified lawyer (like attorney Ben Weaver) to review your purchase agreement, help with negotiations, and make your transaction a seamless one! Being proactive with a professional is the best way to prevent mistakes. Read on to make your home-buying journey in Illinois as smooth as possible…
A Snapshot of the Illinois Residential Real Estate Market in 2024
In 2024, the Illinois residential real estate market is showing signs of steady growth .However, the economic conditions may fluctuate from time to time, and thus make Illinois an attractive place to buy homes given the availability of different cities and job opportunities as well as good schools. The strategic location of the state and the availability of transport infrastructure also play an attractive factor to local and other states buyers.
Here are some key statistics about homeownership in Illinois for 2024:
- Median Home Price: According to Illinois Realtors, the median price of homes in Illinois, estimated to be $272,800 by December of 2024, has been projected to grow by 8.4%. In the Chicago Primary Metropolitan Statistical Area (PMSA), the median home price is forecasted to touch $324,200, reflecting a 12.0% increase.
- Homeownership Rate: Housing Action Illinois reports that approximately 67.5% of Illinois households are homeowners, which is barely above the national rate.
- Market Trends: Another report says, there has been a 0.6% increase in home sales compared to the previous year, indicating healthy demand. In May 2024, there were 13,529 homes sold, up from 13,447 in May 2023.
- Days on Market: The average time on the market in Illinois is approximately 45 days, which may indicate that the selling rate is quite active.
- Interest Rates: According to Bankrate, as of June 16, 2024, interest rates in Illinois are 7.13% for a 30-year fixed mortgage and 6.38% for a 15-year fixed mortgage.
With these stats in mind, let’s explore some important factors that you should consider when buying a home in Illinois.
Important Factors to Consider When Buying a Home in Illinois
- Location, Location, Location: There are different options of living in Illinois. Are you more inclined towards the lively ambience of the city or the quiet and calm environment of the outskirts? This means that the big cities such as Chicago are always active with nice culture and lots of jobs, the suburbs such as Schaumburg or Oak park are nice places with good schools and parks.
- Property Taxes: Property taxes in Illinois are generally considered to be higher than other states. The cost can be very different depending on the location, so this is the main thing to consider concerning your budget when choosing where to make the purchase.
- Seasonal Market Trends: Real estate business is one industry that can be greatly influenced by the seasons. Winter seems to be the best season for listings since it has the least number of houses for rent and relatively low competition. If you think you are likely to come across even better deals, probably it is wise for you to exercise your search during the off season, which is during the fall or when the winter season is on.
- School Districts: If you have kids or intend to in the future, the educational facilities in the area will play a significant role. Not only does a good school district offer the guarantee of a better education, but it also has the potential to uplift property prices.
- Commute and Transportation: Another important consideration is your daily commute. Accessibility to well connected roads such as the highways and the public means of transport as well as your place of work is an essential aspect that defines how satisfied you will be in the new home you are moving into.
- Local Amenities: Are you interested in proximity to shopping places or malls, restaurants, parks or other recreational amenities? It is wise to also take the neighborhood test in order to confirm whether it suits your lifestyle requirements.
- Resale Value: One of the basic money factors we assume in our lives is that one day, we will sell the house to someone else, so even if we are going to live in the new home for as long as we live, it is financially prudent to think about what its market value may be like. Places that have the potential for good growth in the future, good school systems and minimal crime rates usually make for better future appreciation.
Top Tips for Potential Homebuyers in Illinois
- Get Pre-Approved for a Mortgage: When you are ready to buy a home, it’s wise to first seek pre-approval for a mortgage. This not only clarifies your budget but also makes you a better buyer than the other buyers to the sellers.
- Work with a Local Real Estate Agent: A local agent will be important since they will be aware of the market tendencies and will guide you to the most appropriate properties. They can also assist you with the negotiation and close processes.
- Attend Open Houses and Inspections: Homes are best viewed when directly observed. Go to the open houses, and set appointments for actual inspection to understand the condition of the property.
- Be Ready to Negotiate: You need to know that the market in this state is competitive, so be prepared to negotiate. Whether it’s the price, contingencies, or closing costs, having a flexible but strategic approach can be helpful.
- Understand Closing Costs: Housing costs in Illinois may involve origination charges on the loan, title fees, appraisal costs and so on. These are other additional expenses you are most likely to incur and you should budget for them so that you do not have to struggle to find the cash when you need it.
- Check Local Zoning Laws: If you are planning for a renovation or expansion, make sure that the plans meet the requirements of the zoning regulations in your area.
Partner with an Expert Attorney! What Can 23 Legal Help You With?
Real estate transactions include a lot of things that are legal in nature, and to have a lawyer who is well experienced in the field will be quite helpful. At 23 Legal, Ben Weaver and our team are always ready to assist you throughout the process. Here’s how 23 Legal can help with buying your new home…
Expert Guidance: Ben Weaver advises on the kind of deed that you need for the transaction having in mind the interests of the parties involved.
Thorough Title Search: The team also performs a title search to identify any defects or other factors that may affect the title to your property.
Document Preparation: We draft all the legal documents to ensure every document meets the established legal requirements.
Dispute Resolution: In event of any legal issues including issues to do with the title deed of the property, 23 Legal will stand for your interests and ensure a resolution is found.
Peace of Mind: Law plays a significant role and having this in the hands of professionals can provide you with peace of mind and confidence.
Local Laws and Regulations in Illinois
Knowledge of Illinois laws and regulations is essential, especially when purchasing a home. Illinois law strongly encourages a knowledgeable attorney to go over your purchase agreement. This step is important to help one avoid legal issues that may arise from the contract and to ensure that the contract developed meets your self-interest.
Attorney Review Period: In Illinois, there is usually a 5-day attorney review period whereby your attorney takes a look at the provisions in the contract and possibly negotiates for a more favorable clause. This period is important in the sense that if there is something that one wants to change concerning the contract, that time is the best time to do so.
Disclosure Requirements: Before any property is sold, sellers are required under Illinois law to reveal any defects in the property if they are aware of them. Your attorney can assist in confirming that you have been provided with all necessary disclosures and that they are comprehensive and accurate.
Title Insurance: The use of title insurance in Illinois real estate transactions is required. It also ensures that you are shielded from title complications which may occur after the purchase. Your attorney can help in the process of obtaining a suitable title insurance policy to protect your investment.
Closing Process: The closing process in Illinois is a complex process and it entails several steps which are the final walk through, closing documents and transfer of funds. It is always recommended to consult an attorney who will help you navigate the whole process and make a closing successful.
Recent Changes and Updates in Illinois Real Estate Laws
However, it is also necessary to track the recent changes and updates in Illinois real estate legislation. For instance, starting from January 1, 2024, Illinois adopted the following changes into the laws governing purchasing of residential properties. These laws include:
- No Electronic Transfer Requirements: It is now prohibited for landlords to demand tenants to pay rent by electronic funds transfers, if not agreed by the tenant.
- Radon Disclosures for Tenants: Some of the laws are on the disclosure of radon and allowing testing to be conducted on the rental units by the tenants.
- New Security Deposit Requirements: Changes to the Illinois Security Deposit Return Act expand its scope to include all parties leasing residential property, not just owners of larger buildings.
- Heating and Cooling Requirements: Housing with a central air system must maintain these when the weather is appropriate depending on extreme temperatures outside the homes.
- Electric Vehicle Charging Act: A new regulation in Illinois mandates all new residential parking spaces in the state to be EV capable, contributing towards the adoption and deployment of electric vehicles.
Trust 23 Legal with Your New Home Transaction
Purchasing a house in the state of Illinois lies in one of the most critical and challenging undertakings. By understanding the local market trends and considering those key factors can be your compass in this journey. Think about what matters most to you—it’s an investment in your future and a place where memories will be made.
Now, about those legal ins and outs—hiring someone like attorney Ben Weaver from 23 Legal means that your interests are protected throughout the transaction. Best of luck on your adventure! Read 5-star reviews on Google to find out why our clients love working with us.
Embarking on a real estate transaction this season? We’d love to help!
Accomplish your real estate goals with 23 Legal: (847) 447-6004
Why Choose 23 Legal
23 Legal offers Real Estate and Estate Planning legal services to individuals, families, community associations and small business owners throughout Chicagoland. We know how intimidating “the law” can be. In fact, when most people think of law offices, they think of stuffy leather chairs, huge wooden desks and pompous lawyers who charge outrageous fees. That’s not us! We believe in 1-to-1; the same lawyer should work with you all the way through. Whether you have an estate planning issue, family trust concern, or you have a legal problem in regard to a new home, business, real estate or remodel, you need a lawyer who cares. That’s where Ben comes in! We are great listeners; more than that, we are lawyers who believe that our clients always come first.
