How to buy a teardown in Chicago

Land is scarce in Chicago and teardown opportunities can seem few and far between. Here are 5 things to know when looking for land:

1. Scope out potential projects – Getting set up on an MLS search with a realtor is a good first step, but if you see a dilapidated home not on the market, write a letter to the owners and ask if they would be willing to sell. It’s best to not mention that you have plans of tearing it down, some people can become very sentimental no matter what condition the home is in.

2. Check with builders – Often builders sit on potential projects until they have a client willing to build with them. Reach out to see if they have what you’re looking for.

3. Ask around – walk around in your desired neighborhood and talk to neighbors to see if they know of any neighbors looking to sell. An agent can also help you do this but sometimes it is more meaningful from an owner. I used to walk with my 2 year old (who is a great icebreaker) and talk to neighbors. While we were unsuccessful in finding a home, it was a great way to meet people and get a sense for the neighborhood.

(who wouldn't want to chat up this little cutie?!)

1. Don’t write off the homes that are pending sale – I had noticed that one home had fallen through once and was pending for a couple months. I asked our agent to keep an eye on it because I had a feeling it was going to fall through. The agent dropped the ball and never did….sure enough it fell through. Luckily, we were able to get an offer in and accepted. We lucked out, but putting a backup offer in in advance would have been a smarter move!

2. When you find a place, go see it in person – I thought I had found “the one” once, but after taking a few steps in and realizing it backed up to a funeral home parking lot, I knew it wasn’t going to work for us. In another instance, on the property we ended up purchasing our realtor asked us why would we need to go see a place if we were just going to tear it down? So we didn’t see it because we didn’t want to waste his time….it turned out going to see it would have made us realize there was a large tree on the property line in the back yard (it cost us $6K to remove), as well as another major issue that deemed the house “inhabitable” by the bank…..not great situation to be in when you have a renter living there we definitely would have factored into our offer had we known.

the dreaded tree on the property line

All and all, it took about a year and a half of seriously looking and having a couple of our offers rejected. Finding the right spot takes time so be sure you’re willing to be patient for the right spot. It will be worth it in the end, I promise! Feel free to reach out to me if you're in the market....I'm always scoping out opportunities : )