What to Know About New Construction Homes in Chicago
Shiny skyscrapers, miles of walking trails along the glistening blue waters of Lake Michigan, a thriving food scene, a legendary musical tradition… Chicago has it all! If you are looking for a new place to live that combines bustling city life with charming neighborhoods, the Windy City is the place for you.
As the third-largest metropolitan area in the United States, Chicago offers all the amenities of a large metropolis for a fraction of the costs you may encounter in other urban centers on either coast. If you are considering buying new home construction in Chicago, you will likely be pleasantly surprised by how much you can afford compared to cities like New York, Los Angeles, or San Francisco.
So, what can you expect when living in Chicago? Is the Chicago climate as bad as they say? Read on to get the answers to all your questions.
Chicago Cost of Living
The Midwest has a well-earned reputation for being significantly more affordable than coastal cities. If you are used to the prices of other major urban centers like Boston, Seattle, and so on, living in Chicago will be a welcome relief for your wallet. However, compared to the rest of the Midwest, the cost of living in Chicago can come with a sticker shock.
Obviously, your lifestyle and the neighborhood you live in will play a significant role in determining how much you need to live in the City by the Lake comfortably. Overall, Chicago's cost of living is slightly higher than the national average.
However, a big downside is the cost of housing. The median sale price for Chicago houses is just under $300,000: a bargain compared to many large cities in the United States. However, you will also need to take into consideration Chicago property taxes. Illinois has the second-highest property taxes in the nation, which leads some potential homeowners to think twice before purchasing a house in the Windy City.
Chicago climate is often a significant contention point for those who are considering moving to the city. The continental climate leads to wide ranges of temperatures throughout the year, from sweltering humid heat in the summer to snowy winters with temperatures well below freezing. On average, you can expect temperatures to reach on average between 16 and 30F in the winter to 64F to 84F in the summer. Besides, Chicago did not earn its nickname of the Windy City for nothing. Ferocious wind gusts coming from Lake Michigan can even heighten the feeling of cold.
The good news is that Chicago's new home constructions take into account the temperamental Chicago climate to offer the best quality of life no matter the weather. They are built to keep your home warm in winter, no matter how low the temperatures drop. Besides, features such as Smart Home remotely controlled thermostats guarantees the perfect temperature inside at all times.
Chicago offers plenty of entertainment, no matter the weather. You will soon embrace the Chicago lifestyle and take a dip in the refreshing waters on Lake Michigan to fight off the summer heat. Meanwhile, the city offers countless museums to explore, live music to enjoy, and sports team to cheer on, to repel the winter blues.
Chicago Closing Costs
Closing costs are a necessary expense of purchasing a new home. In Chicago, your settlement agent or Title Company will finalize the closing costs, and an attorney will usually review the numbers with you to ensure their accuracy.
Your closing costs for your Chicago new home construction will vary depending on the purchase price. On the positive side, the closing costs with new home builders can sometimes offset the expenses. As the buyer, you should expect to pay the following fees at closing - the amount included with each fee is indicative only:
- Inspection fees as required by your lender ($350)
- Appraisal ($250 to $500)
- Lender underwriting fee ($750 to $1000)
- Title insurance and search fees ($250 to $1000)
- Recording fees ($75 to $250)
- City of Chicago Transfer Tax (0.75% of purchase price)
- Attorney fees (starting at $500)
You will also need to pay some fees upfront at closing that are not part of closing fees per se. These payments include your earnest money and down payment, homeowner insurance, prorated taxes, prepaid interest, etc.
Are you ready to make the Windy City your new home? Check out Pulte new construction homes in Chicago!
Contributed to Your Home blog by Alix Barnaud
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