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.

Real estate columnist and media consultant Don DeBat has written about Chicago-area housing and mortgage markets since 1968. He is president of Don DeBat and Associates, www.dondebat.net.

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