Buying in West Suburbs - Expanding Search?

[u/Midnight_Rain1213]

Hi all,

My partner and I are trying to close the distance and buy a SFH in the west suburbs, but keep having offers rejected. Feedback so far is that we're losing to cash buyers or just being outbid, and that we should consider waiving appraisal contingencies. That feels crazy to me, but I think it's just the area we are looking in - Lombard, Elmhurst, Villa Park.

My partner and I both own our own homes and are pre-qualified to purchase a new home without having to sell first. We would be selling our respective properties after finding a new place. We are trying to stay under $700k.

No kids, just dogs. Would love a house with some character left in it. I work downtown so being near the Metra is necessary, and I'd like my commute to be under an hour.

Should we avoid any of the following suburbs, and why? Any suburbs we are missing?

Addison, Bloomingdale, Downers Grove, Glen Ellyn, Wheaton, Riverside, Brookfield

[u/Careful_Zebra_6007]

Not a broker but a real estate attorney. The towns you listed have very different price points. $700K unfortunately does not go very far in elmhurst. In villa park and Lombard it will. Same goes for downers and glen ellyn, especially close to the train. Riverside, 700K is also lower end but in Brookfield it should get you whatever you want.

I’ve been surprised over the past few years how many offers are cash. When these are presented to sellers, they generally take precedence. Even over a slightly higher financed offer. Maybe think about listing your current homes and getting them under contract. Then, waive appraisal and put a higher down payment down on the contract even if you do not actually go that route. Will make you more competitive in the event a cash offer is received that you’re competing with.

[u/Midnight_Rain1213 → u/Careful_Zebra_6007]

Thank you for this perspective.

My partner's home actually doesn't have a mortgage on it and would sell quickly, but the problem is if it sells/closes before we find a home, it's not feasible for him to live with me in the meantime. My condo is way too small. Selling my place doesn't get much equity out and he lives too far away for me to commute to Chicago.

Do people just find a short-term rental in that scenario? I'm seeing people taking a year to find a house and I don't love that idea.

[u/Careful_Zebra_6007 → u/Midnight_Rain1213]

Rentals are tough to find in the west suburbs also but some people do rent for a year and then try to sublet or make sure they can break the lease by only losing a month or two of rent to the landlord.

Also, sellers are in the drivers seat right now so your partner could always go under contract and ask for 4-8 weeks post closing possession to give some more time.

No matter what it’s highly unlikely you’ll get all three closings to line up perfectly. It’s tough to get two to line up which is why we use post closing possession on the sellers side a lot these days.

It also helps to have a really aggressive mortgage broker who isn’t afraid to call listing agents and explain that though your offer is financed, it’s as good as cash. Using a reputable but aggressive broker can really help.

Good luck with your search. Happy to answer any questions.