David and Francis are split between move-in ready and retro rehab. REALTOR® Olin finds the perfect compromise with a spacious, as is condo. But when a lender snafu pops up last minute, can Olin keep this as is deal from becoming a never-was?
Olin (00:06):
On this episode, we're scouting out first time homes in the second city, Chicago.
David (00:11):
Wow. Super
Olin (00:12):
Cool. This is a Chicago Loft. I'm Realtor Olin Al, a member of the National Association of Realtors. Look at this building. I'm working to transform David and Francis from renters into homeowners. Remember we talked about 80, 10, 10. This might be in the 10% that you could either live with for now or change over time, but when an 11th hour email from the lender threatens to undo a done deal and we're
David (00:35):
Stressed out of our minds, I go
Olin (00:36):
Into overdrive to make sure my clients come out on top, have a deal. I would love to try to get you in because this one is going to move fast. It is priced very well. My name is Olin Gel. I've lived in Chicago for almost 19 years and have been selling real estate for 13 of those years. I'm a realtor, a member of the National Association of Realtors, and what I like most is the level of professionalism that you were held to as well as the code of ethics.
Francis (01:08):
The view from the roof deck was awesome.
Olin (01:10):
I bet you weren't expecting that. In this neighborhood, Chicago is a massive city that is made up of 77 different neighborhoods, and in each of those neighborhoods are unique little pockets of many neighborhoods, and it's really beautiful to be able to explore each of them. I met my first time buyers, David and Francis a number of years ago. We just instantly became friends. David and I ended up playing together on the same softball team.
Francis (01:38):
I am Francis. I am a speech language pathologist,
David (01:40):
And I'm David and I'm a strategic account director for a tech company and we're first time buyers. We're looking to buy a place now because we've been recently married. I lived in a basement apartment for quite a while, saving every penny I could while he was in grad
Francis (01:51):
School. And then we ended up moving into a smaller apartment and sacrificing this square footage there. We would take 10% of both of our paychecks and put into a joint account.
L3: FRANCIS & DAVID’S CURRENT RENTAL (700 SQ FT)
Olin (01:59):
They really truly listened to my suggestions to make sacrifices in order to save money because they have now saved over a hundred thousand dollars to use for down payment or closing costs. They're actually in a very good position to purchase.
L3: THE AVERAGE FIRST-TIME BUYER PAYS ABOUT 6% OF THE HOME PRICE FOR THEIR DOWN PAYMENT, WHILE REPEAT BUYERS PUT DOWN 17%
Francis (02:11):
Olin recommended a few different lenders. We ended up getting pre-approved for 700,000
David (02:15):
Budget-wise, we're looking around 6 40, 6 50.
Olin (02:19):
I know that David is willing to look for a fixer upper, whereas Francis really wants it to be more move-in ready. So one of the tactics that I use when speaking with first time buyers is if you're looking for a property today and it fits 80% of what you're looking for, 10% is something you can change over time and 10% you can live with, then that is a 100% perfect property.
L3: 80% OF WHAT YOU’RE LOOKING FOR
L3: 10% IS SOMETHING YOU CAN CHANGE OVER TIME
L3: 10% YOU CAN LIVE WITH
L3: OLIN SAYS KEEP IT 100
David (02:45):
This is Wrigleyville. It's a nice building, but I mean it's right next to the field
Francis (02:49):
Know, but we never really considered this area.
Olin (02:51):
Their current rental is in Lincoln Park, but I did want to educate them on being a bit more north so they could get more bang for their buck, and I just found out about a new listing in Wrigleyville that just came on the market and we're going to be the first ones in.
FRANCIS AND DAVID’S CURRENT NEIGHBORHOOD
David (03:05):
Hey guys. Hey
Francis (03:05):
Owen. How good morning. How are y?
Olin (03:07):
All? Good morning. How are you? Good. We're in the heart of Wrigley and I know that this isn't immediately what you were looking for, but it is part of Lakeview. Tons of things to walk to within the neighborhood, bars and restaurants all over. I'm so excited to show you this place. Look at this building. This is a three bedroom, three bath, duplex, and it's under your budget at 6 35 built in 1896. Oh
L3: WRIGLEYVILLE IS LOCATED IN THE LAKEVIEW NEIGHBORHOOD OF CHICAGO
L3: 3 BEDROOMS, 3 BATHROOMS, DUPLEX
L3: $635,000
David (03:29):
Wow. 1896. There's going to be a lot of projects to do
Olin (03:31):
That. It's got a little bit of the old that David is interested in, but also the modernizations that Francis is looking for.
David (03:37):
We haven't seen any pictures yet.
Olin (03:39):
I know that's because it just came on the market today, but I've seen a unit in the building and I know that it's going to be right up your alley. Okay, you ready to see it? Let's go. Come on in. Being the first person to see a property in this market is huge. If we like it, we're able to jump faster and ultimately be successful. Alright guys, come on in. It's
Francis (03:56):
Huge. Yeah, the space is gigantic. Wow.
Olin (04:02):
Hardwood floors are all throughout. It's really
David (04:03):
Nice. Look at the fireplace too. That's
Olin (04:06):
Beautiful. So imagine having some gatherings and parties here with the dining room and the living room
David (04:10):
Together. It doesn't feel like an apartment at all. It's so quiet based on how loud it was out in the street. So much
Olin (04:14):
Quieter. One second. See, you can't hear anything. Yeah. Want to keep going? Yeah, sure. Okay. Right this way. Here is one of the bedrooms, tons of
David (04:22):
Closet
Olin (04:23):
Space, and it's actually the third bedroom, so you could use it as office or workout space. I need a space for that now with each bedroom comes a bathroom, so come on with me. Wonderful.
David (04:33):
The tile?
Francis (04:35):
Yes,
Olin (04:36):
The tile is a bit dated, however, that is one of the projects that you guys can work through on. Remember, this is way, way under our budget. Okay, moving on. Yeah, let's do
David (04:43):
It. All right.
L3: THE AVERAGE COST TO RETILE A BATHROOM IS $2,400 TO $8,500
Olin (04:45):
Welcome to the kitchen. Come on in. This is
Francis (04:47):
Huge. This is gigantic.
David (04:49):
Although the nineties called and they want their kitchen back.
Olin (04:51):
So true. Another one of those projects that you guys can take on. Remember we talked about 80 10, 10, right? This might be in the 10% that you could either live with for now or change over time. Want to head downstairs? Let's do it. Yeah. Okay. Look at this expansive space here in the basement.
L3: THE AVERAGE U.S. HOMEOWNER SPENDS AROUND $27,000 ON A KITCHEN REMODEL
David (05:07):
This as big as our entire apartment.
Olin (05:09):
I think this actual square footage is your apartment closed? Let's head down the hallway.
David (05:13):
Okay, perfect.
Francis (05:15):
This just keeps going.
Olin (05:16):
Yeah, this is your primary bathroom. Wow.
Francis (05:20):
Look at this tub. Oh my gosh.
Olin (05:21):
I know.
David (05:22):
Look, I think I might actually fit in a tub
Francis (05:23):
For one in both. Then
Olin (05:25):
You might not need to be in there because Francis, take a look right over here.
Francis (05:29):
Is this a sauna?
Olin (05:31):
It's a sauna.
Francis (05:32):
Who do we think we are? You can fit six people in here. This is so big.
David (05:36):
I think we could fit the whole softball team in here.
Francis (05:39):
That'd be nice. Yeah, for sure.
Olin (05:41):
Alright, let me show you the primary bedroom. Oh wow.
David (05:44):
This is a big primary.
Francis (05:45):
Yeah, but
David (05:47):
I don't want to live in a basement again, especially if this is where the primary is.
Olin (05:50):
I hear you. I have an idea for that as well. Imagine if you took this wall out and opened it up so that there's the bathroom and the closet and it makes it more of an oasis down here for the two of you. It
David (06:02):
Would be a big project, but I think it would be worth it.
Olin (06:04):
I have one more thing to show you. The outdoor space. Alright, here's the deck. There's
David (06:10):
The deck, there's the train.
Francis (06:12):
Okay. Yeah, yeah. So is this our own private deck or
Olin (06:16):
I wish I could say yes, but this is shared for the whole building and it looks like everybody's kind of adopted a little area to sit and there's a number of grills to share, so it's more communal. Sure, yes. The train just went by, but you'll only hear it when you're outside because as we noted inside, you really didn't hear a lot of it at all. Okay, so that concludes the tour. What do you think about this space?
Francis (06:35):
Very much like city life.
Olin (06:37):
Very very city. It can be really
Francis (06:39):
Fun. It
David (06:39):
Could be fun. Could also be annoying. I really like it. I think it fits the 80 10, 10 rule. It's a basement. I'm not really sold on that part.
Francis (06:48):
I mean, there's a lot of work to be done on it, but the three bedroom, three full
David (06:51):
Baths. It's true. It's a lot.
Francis (06:53):
Yeah, it's great for entertaining, but I'm not just sold yet. The train is once again still right there.
David (06:59):
You had two in the last 30 seconds.
Olin (07:00):
I completely hear you. I just want to note that in this market, time is of the essence. If you're interested, we don't want to wait too long, but I do have one more place that I'll show you. Oh, the search continues. Okay. When I first moved to Chicago, the very first neighborhood I lived in was Boystown, so it always has a very special place in my heart. It's just so diverse and such a vibrant piece of Chicago's neighborhood community. Alright guys, so here we are back in Boystown, which I think you're very familiar with. Boystown in Chicago is the L-G-B-T-Q Center. The parade goes right down Halstead, so you're kind of right here on top of all
L3: BOYSTOWN, OR NORTH HALSTEAD, IS HOME TO ONE OF THE LARGEST LGBTQ+ COMMUNITIES IN THE MIDWEST
L3: THE NEXT MORNING
Francis (07:38):
Of it. It's somewhere that's really familiar to us, close to all of our favorite restaurants and bars.
David (07:43):
Olin nailed it on the head.
Olin (07:44):
I'm super excited to show you this building. Originally, it was a warehouse back in 1903, and now it's been turned into lofts. Okay. And this is a two bedroom, two bath, three story loft, and it's listed at six 70.
L3: 2 BEDROOMS, 2 BATHROOMS, 3 STORIES
David (08:00):
Oh, that's more than one we just saw The price
L3: $670,000
Francis (08:02):
Point is a little steep for us. It's on the higher end of our budget,
David (08:06):
Especially for only two bed, two bath, where the Wrigleyville condo was cheaper for an extra bed, extra
Olin (08:10):
Bath. But you're also paying for location and you have three stories. You have attached parking, there's a rooftop deck. Okay, cool. So there are a lot of really, really good pieces to it that I'm excited for you to see. Yeah, sure. All right, let's go. Great. Come on in. Oh
Francis (08:23):
Wow. Okay.
David (08:24):
Next timber, but it goes up instead of out.
Olin (08:27):
So this is the first floor of the three. Remember this town? Yeah. This is a little bit unconventional, but just go to the bathroom first. Okay.
Speaker 4 (08:36):
Okay.
David (08:36):
Oh wow. Double vanity. All right. There's already a win.
Olin (08:39):
You even get the exposed timber and you can see how the building has been constructed. Isn't that cool? Yeah, sure. I had a little surprise for you behind this door. A sauna. Not a sauna. You would think it'd be a closet, but it's not. This is actually just that leads to the primary bedroom. Cool.
Francis (08:57):
Okay, so it's connected.
Olin (08:59):
So you still get the beautiful timber in here, and then the exposed brick, the exposed ductwork, the glass blocks. It is very, very loft feeling. And industrial upstairs is entertaining. Come on in.
Francis (09:10):
Wow. Wow. Cool.
Olin (09:13):
Yeah. This is a Chicago loft, right?
David (09:16):
Yeah.
Francis (09:16):
Wow. There's tons of character here. I love those windows. So
Olin (09:19):
Look how the design was with the four transom windows above that bring light in, but then this is actually a little bit more muted so that you're not staring at your neighbors.
Francis (09:28):
Right? For sure. And the kitchen's right there too. That's completely finished. It's gorgeous.
David (09:33):
The kitchen is beautiful.
Francis (09:35):
Wow. These countertops so updated, not like the other one.
Olin (09:39):
The quartz countertops, the Italian cabinetry, all stainless steel appliances. They've completely redone this kitchen. I feel
David (09:45):
Like the other one had a little more storage in it, but it's not as new as this
Francis (09:49):
Is everything I wanted in the kitchen.
David (09:51):
It's very move-in ready. So I don't really have a project that can work on, but for this price point, that might not be a bad thing.
Olin (09:55):
Want to take a look upstairs? I'd love to. Okay, fantastic. So it functions as a top floor. It could be a den, it could be a bedroom.
Francis (10:04):
Big windows, lots of light. Now they're on the top floor here.
David (10:07):
Put around the space here. Yeah,
Olin (10:08):
Yeah, for sure. Save the best for last. Let's take a look out on the deck.
Francis (10:12):
Wow. Yeah,
David (10:14):
Great deck. Private deck too. That's an upgrade over the ray label
Olin (10:16):
Condo. This is the space for this condo. You get the
Francis (10:18):
View to
Olin (10:20):
View. We are fourth floor, so you get a great view. It's
David (10:22):
Private. There's great views. Best of all, there's no train. Okay.
Olin (10:26):
We've seen the whole house. What do you guys think? Are you leaning one way or the other? This
Francis (10:30):
One is really great. The new kitchen. Kind of fully updated, moving ready. The big open space for entertaining and the neighborhood. This one doesn't have the train. There is
David (10:39):
No train,
Olin (10:40):
But you get this view. Yeah, a
David (10:42):
Nice view. Yeah. With the Rigley condo, it's a little more space. We get an extra bedroom and an extra bathroom. And could you remind me though, what the price difference is between the two?
L3: WRIGLEYVILLE CONDO
Olin (10:51):
So this one's listed at six 70 and the Wrigleyville condo is listed at 6 35. So there is a bit of a price difference, but it's also based on location.
L3: BOYSTOWN WRIGLEYVILLE
$670,000 $635,000
Francis (10:59):
The other one's what? Three bed? Three bath.
David (11:02):
Three bed. Three bath. But
Francis (11:04):
The style of this one's just more modern.
David (11:06):
I know there's just pros and cons for both. Yeah.
Olin (11:08):
I do feel like one of them is leaning towards this property and one is leaning towards the Wrigleyville condo, so it's a toss up. I don't want you to feel rushed, but time is of the essence. If we want to make an offer, if we don't want to get into a bidding war, they're really going to have to make a decision today. We
David (11:24):
Get a little more for less there. Yeah.
Francis (11:27):
Do you think we do?
David (11:30):
I mean, I'm pretty confident with what I want.
Francis (11:32):
I think I know what I want to based off what it costs and the space that we can get. We're ready for an offer. Yeah,
David (11:38):
Let's put an offer on the regular condo. Great.
Olin (11:41):
I cannot tell you how happy I am for you both. Awesome. All right. Let's talk price. If
David (11:44):
We come in at 6 29, is that too low? Yeah.
Olin (11:47):
I don't necessarily think it's too low, but maybe we can sweeten the deal with maybe pumping up the earnest money to a bit more.
L3: ASKING PRICE: $635,000
David (11:53):
Only things we should make our offer more attractive to the seller. So he's advised increasing the amount of earnest money we're putting in at the start,
Francis (11:59):
It makes us serious buyers. I think we go for it. Yeah, let's
Olin (12:02):
Do it. Alright, so 6 29 on the Wrigleyville condo. Six nine
L3: EARNEST MONEY IS A DEPOSIT MADE TO A SELLER THAT REPRESENTS A BUYER’S GOOD FAITH TO PURCHASE A HOME
David (12:05):
Rig. All right. I'm so
Olin (12:05):
Excited for you guys
David (12:06):
Too.
Olin (12:06):
It's awesome. All let's do it. The boys are coming in with an offer of 629,000 with 2% initial earnest money and a total of 15% down payment, and I think this is a very strong offer.
Francis (12:17):
We had a really narrow idea of where we wanted to be in the city, but Olin really opened our eyes into the different possibilities
David (12:23):
And we can really see ourselves planting roots in Wrigleyville now. We have a good pitcher, probably put him at second. So Olin, who plays short next week?
L3: LATER THAT DAY…
Olin (12:36):
Well, I said that I would, unless Matt wants to jump in. Do you think he'd be good at short?
David (12:40):
Yeah, we could, but it should probably pitch for us.
Olin (12:43):
Hello, this is Olin. Oh, hi. Yeah, absolutely. Yeah, I'll talk to the clients and get back with you asap. I appreciate the call. Thanks. Bye. Good
David (12:56):
News. Okay.
Olin (12:57):
They've countered at 6 32. Okay. But they want us to buy it as is.
David (13:01):
What does that mean?
Olin (13:01):
Yeah. Okay. So as is basically means that the seller doesn't want to make any repairs after inspection.
David (13:06):
I'm a little nervous. I'm not going to lie. If something big happens and we don't know how to fix it,
Olin (13:10):
If any big ticket items come back like plumbing or electrical or windows, we can still ask the seller to take care of some of those as is really just digs down to the idea of not wanting to be nickel and dimmed throughout the inspection process. We still definitely want to have an inspection to ensure that everything is clean on the property. But I do always suggest whenever we make as is exceptions that we ask for a home warranty. So that's something we can do as well.
David (13:33):
Okay. What's the home warranty though?
Olin (13:35):
If the fridge dies, you can use the home warranty instead of having to buy a new refrigerator. Okay. It's just extra protection basically. Yeah.
L3: A HOME WARRANTY COVERS REPAIRS AND REPLACEMENTS ON SYSTEMS AND APPLIANCES IN YOUR HOME, USUALLY FOR A PERIOD OF ONE YEAR
Francis (13:40):
That would give us a little bit of better peace of mind. So you think we should go for it?
Olin (13:44):
Well, they came down from the list price and I think it's very solid, but it's up to you guys. It
Francis (13:48):
Might be the best move.
David (13:49):
Okay. Yeah, I said let's do it. I'm going to call
Olin (13:51):
Back. Awesome. Okay. Give me just a
David (13:52):
Second. Yeah, yeah. Homeowner's warranty for the first year makes me feel a lot better about this as is offer.
Olin (13:57):
Thank you so much. All right.
(14:00):
And
(14:01):
We have a deal. Oh
David (14:02):
Yeah, we got it.
Olin (14:04):
We got it.
Francis (14:05):
Super exciting.
Olin (14:06):
Are we going to continue playing or are you going to celebrate? Let's
Francis (14:08):
Celebrate. Let's,
Olin (14:09):
Let's celebrate. When we get the inspection report back, it was in good condition and so the boys are just waiting to get the good news of closing being scheduled.
Francis (14:24):
What's wrong?
David (14:25):
You're not going to believe the email we just got. What do you mean? We owe thousands more a month. We had to put a 20% down payment down. I really don't understand. It's from the lender. Yeah, from the lender. We had to call Oman. We got to call Oman. I just don't get it. Go for it.
L3: ONE WEEK BEFORE CLOSING
Olin (14:38):
Hey David. What's up? How are
David (14:40):
You? Hey. I wish I was better. We just got a really confusing email and we're stressed out of our minds. Something
Francis (14:45):
About we haven't been working at our jobs for long enough and I thought that was approved already.
Olin (14:51):
Yeah, that doesn't sound right. We're in
Francis (14:53):
The middle of packing. We're supposed to be out in a week and this could be a horrible mess.
Olin (14:57):
Don't freak out. I've seen things like this before that happen in the 11th hour. The email they received from the lender states that now they're actually going to have to put down 5% more plus an additional fee to satisfy some of the conditions of the loan, and they immediately start freaking out.
Francis (15:16):
I do
David (15:17):
Have no idea.
Olin (15:18):
The reason the lender was saying that they needed to put down 5% more was because of a discrepancy in how long Francis was actually at his job. He's been there for over three years, but it was just the name of the company that had changed, so it's actually a simple solution.
L3: YOUR JOB HISTORY IS JUST ONE OF MANY CRITERIA UNDERWRITERS WILL CHECK WHEN BUYING A HOME
Francis (15:33):
HR got me a confirmation letter. Everything was solved. We did it.
David (15:43):
I can't believe we own this
Francis (15:44):
House. Welcome to our patio,
Olin (15:46):
And I bet you've been enjoying it. Yeah.
L3: JUST MOVED IN!
David (15:48):
We had to have you back as the first guest. Just say, thank you for putting in the effort to show us all these places, and we really trusted you with this, and it paid off.
Olin (15:54):
This has been a really amazing journey to walk with the boys through this entire process. It
Francis (15:59):
Really was the right move for us. In the end,
Olin (16:01):
Working with clients is always so special, but when it's your friends and you get to see them buy a beautiful property and enjoy it like this, I'm just so happy for you. So can I get a goatee?
David (16:11):
How about maybe just a cheers in this fact.
Olin (16:13):
Okay. Cheers. Congrats guys. You're welcome.
