Consider benefits and problems particular to your condo When shopping
for a new home in Chicago, prospective home buyers should realize
that the “great condo hunt of 2003” will involve much more
than touring a Web site. The first step
is to weigh the pros and cons of each type of available condominium
– new construction, a new or recent conversion or a resale unit,
real estate experts say. When shoppers compare new-construction condominium
choices near downtown Chicago, developer Donald J. Gianone, principal
of Oculus Development LLC, urged buyers to “shop and compare
quality construction and design standards.” “Quality
features such as double-stud wall construction, solid-core doors,
finished concrete ceilings, recessed balconies, high-tech wiring and
central satellite dish should be standard in a well-built new-construction
condominium,” noted Gianone, developer of the Metro condominiums,
in the West Loop. “To reduce
sound transmission into each residence from corridor hallways and
through party walls a double-stud wall system with an extra layer
of sound-attenuation insulation in the wall cavity is highly recommended,”
Gianone said. Savvy new-construction
condo shoppers also should expect such standards as hardwood flooring,
fireplaces with marble or granite surrounds and kitchens equipped
with granite countertops, custom wood cabinetry and a full appliance
package, he said. Condominium conversions
are a growing alternative to new construction in the current Chicago
market and come with their own set of advantages and liabilities.
“In the entire
mix of condominium choices, large conversion developments are typically
priced lower than new-construction residences and have nicer furnishings
than resale units,” said appraiser Gail Lissner, vice president
of Appraisal
Research Counselors Ltd. This puts conversions
comparatively in the middle of the condominium mix – not as expensive
as new construction but higher priced on average, than resale units.
Conversions, where units and common areas typically undergo some sort
of renovation, also tend to have nicer features and better furnishings
than resale units. New-construction
units feature the latest design innovations, but delivery can take
anywhere from18 months to two years, experts say. “Conversion
developments generally have remodeled kitchens and baths, whereas
sellers of a resale condominium moving to another home are less inclined
to renovate these rooms,” Lissner said. Many large conversions
offer buyers “as is” units without kitchen and bath renovations.
This can be a more affordable alternative and an incentive for apartment
tenants to buy their unit when it is converted to condominium ownership. Prospective buyers
also need to research how old the building being converted is and
if it is structurally sound. This will help avoid potential deferred
maintenance costs, experts say. Such costs can be incurred from problems
with common areas such as the roof, hallways and lobby as well as
with mechanical components that were not properly maintained or renovated.
This burden will then fall on the condominium association and cause
monthly assessments to rise. “When you
buy a resale or newly converted condominium you are purchasing not
only your own unit but a percentage of the entire building, and that
could mean a percentage of all the problems that go with it,”
said veteran home inspector Stephen A. James, of Chicago-based American
Building Inspection Service. Depending on the
condominium’s cash reserves, paying for a major common-area repair
could mean a hefty special assessment for all of the owners. “Having a
well respected developer and knowing who will be managing the building
after it is sold out can help put buyers at ease,” Lissner said. While the rental-to-condo
conversions are attempting to satisfy the demand for housing, the
number of quality buildings now available for conversion has dwindled,
Lissner said. |