The Chicago real estate market can be difficult to navigate. With so many options available, it can be challenging to determine which type of property is suited to your needs. Do you prefer a quiet home in the city’s suburb communities, or a luxury loft in the middle of the action? You and your realtor can determine which category you fit in to find the properties best suited to your needs.
So which type of buyer are you? Read on to find out.
Chicago Homebuyer Types
In a busy city like Chicago, you can find any type of buyer for any property. Familiarize yourselves with some that are available.
Life Staged Based Buyers
Life stage-based buyers are the most common types of buyers. They will buy properties based on their current stage of life. They include:
- First-Time Buyers (Age Range 25-35): This group is primarily comprised of millennials and gen-Z-ers moving into their first home. They may require guidance to better understand the market and financing options. They want an affordable home that allows them to trade up as they progress in their real estate journey.
- Growing Family Buyers (Age Range 30-45): These buyers are typically looking for their second home to accommodate family additions. They will consider features like multi-bedrooms and home size. They will favor homes in safe neighborhoods with good school districts.
- Senior Buyers (Age Range 55+): Senior buyers are often looking to downsize. They want properties that are easy to maintain and offer accessibility features. They prefer locations near healthcare facilities.
- Empty Nesters: (Age Range 50+): Empty nesters are parents of adult children who have recently moved out. They want to invest in smaller properties with proximity to adult-oriented recreational activities.
Investment Focused Buyers
Investment-focused buyers aim to profit from their real estate. They may rent or flip to earn revenue. They can be broken down into the following categories:
- Rental Properties: Investors may purchase properties and rent them to tenants to turn a profit. They can be further categorized by their preferred rental type. They may invest in short-term rentals, such as Air BnBs and vacation rentals, or long-term rentals like apartment buildings.
- Home Flippers: Home flippers will fix up homes and sell them at a profit. They typically seek out properties that are priced below market value and require some TLC.
- Raw Land: A raw land investor will buy land lots to develop. They tend to target land in hot real estate markets like Chicago. They will have large amounts of capital to invest and a good handle on zoning laws and regulations.
Lifestyle Buyers
A lifestyle buyer will put lifestyle before all other factors. They will look for locations that are close to the entertainment they prefer or offer the amenities they prioritize. Examples include:
- Luxury Homebuyers: Luxury homebuyers seek properties in high-end neighborhoods that feature ample square footage, top-notch amenities, and quality aesthetics. They may choose to live in gated communities, or they may prefer waterfront properties.
- Eco-Conscious Buyers: Eco-conscious buyers make eco-friendliness a priority. They choose real estate that features energy-efficient appliances, environmental building materials, and smart technology.
- Tech-Savvy Buyers: A tech-savvy buyer will purchase homes that feature the latest technology. Existing appliances and fixtures may feature voice-activated controls and high-tech security systems. They will also choose homes with the capabilities to accommodate tech such as powerful electrical systems and access to high-speed internet connections.
Niche Buyers
Niche homebuyers know what they are looking for, and they will be very excited when they find it. Popular niches include:
- Foreign Investors: These investors come from other countries to gain a foothold in the thriving Chicago market. They may require guidance on exchange rates, legalities, and the best practices for remote property management.
- Student Housing Buyers: These buyers are interested in housing for their college-aged children. They are looking for properties near universities and destinations that support college life.
- Historic Property Enthusiasts: These buyers are interested in historic properties they can restore and preserve. They may require advice on permitting and the renovation process.
Find Your Perfect Fit
History buffs will love Pullman or Old Town. Student housing buyers should consider Rogers Park or University Village. Washington Park is ideal for artists.
Unlock Your Chicago Dream Home Journey
I have extensive experience with all Chicago homebuyer types. I will consult with you to learn about your needs and help you find the ideal property. I will provide in-depth resources and neighborhood guides in future blogs with valuable advice and resources. Visit the website to get ready for your Chicago real estate journey.