Moving to Chicago: What Out-of-State Buyers Should Know

Most people relocating here assume buying a home works the way it did back home. In most ways, it does. The differences are where the surprises come from, and every one of them is easy to plan for once you know it's coming.

Choose the Neighborhood Before the Property

Chicago is made up of 77 community areas, and the character of a neighborhood can change within a few blocks. A great property in the wrong location for your commute, routine, or budget is still the wrong property. Start with how you want to live day to day, then narrow the search from there. Weekly neighborhood data shows where each market is heading, so you can compare areas on more than reputation.

Property Taxes Are Paid a Year Behind

Cook County property taxes are billed in two installments, a year after they accrue. That's why the seller credits the buyer at closing for taxes owed but not yet billed. Two things to know before you buy:

• Budget from the actual bill. The tax figure on a listing reflects the current owner's exemptions, which may not carry over to you. Budget from the real tax bill for that property, not an estimate.
• Apply for your exemption. The Homeowner Exemption lowers your bill, but new owners need to apply for it through the Cook County Assessor's Office. It isn't automatic after a sale.

An Attorney Is Part of Every Purchase

In the Chicago area, buyers and sellers each hire a real estate attorney. Under the standard contract, attorney review and the home inspection period run at the same time, typically five business days from acceptance. This is when contract terms can be modified and inspection issues negotiated, so having your attorney lined up before you make an offer keeps that window from being rushed.

Chicago Charges Buyers a Transfer Tax

Within city limits, buyers pay a transfer tax of $3.75 for every $500 of the purchase price, or 0.75%. On an $800,000 purchase, that's $6,000 at closing. It's a cost many out-of-state buyers haven't seen before, and it should be part of your budget from the start. Suburbs set their own rules. The City of Chicago Department of Finance has the details.

With a Condo, You're Buying Into the Building

When you buy a condo, you also take on a share of the association's finances. After your offer is accepted, the association provides a disclosure package covering its budget, reserves, insurance, pending litigation, and any planned special assessments. Low reserves in an older building raise the chance of a special assessment after you move in, and they can also limit financing options. This review deserves as much attention as the unit itself.

Buying from Out of State

Most of the search can happen before you arrive. With RealScout, you can see the complete market, including off-market listings that never appear on Zillow or Redfin. Once your search is active, Zenlist keeps properties, notes, showing requests, and feedback in one place, so your time on the ground goes to the homes that deserve it. Closing dates can be structured around a lease ending or a home sale elsewhere, and your attorney will confirm which steps can be handled remotely.

It's the same process, strategy, and tools every Pareto client uses, applied to a move.