icon on Timelines: Construction schedules frequently shift, particularly in the Chicago area where weather, supply‑chain issues, and inspection requirements often cause delays. Delivery dates rarely follow the original plan, and some projects run months beyond expectations.
Create a backup housing plan so you never scramble for temporary housing when construction drags.
Expenses: If the developer allows you to select finishes, layouts, or upgrades, expect your total cost to climb quickly. Every choice, from hardware changes and kitchen sink upgrades to hardwood swaps, lighting packages, and paint enhancements, carries an upcharge that may even require 100% payment up front.
Track these modifications closely and notify your lender immediately so the loan‑to‑value ratio stays aligned with your financing structure.
Finally, any change or upgrade should be in writing. Nothing should be a surprise and handshake deals are not a substitute for understandings memorialized by the developer and the buyer.
Lender Concerns: New construction triggers additional lending requirements in Chicagoland:
- Appraisals: Your lender orders two appraisals. After completion, the second appraisal confirms that the final product meets the projected value and condition.
- Tax Projections: Lenders routinely underestimate property taxes for brand‑new homes. Early escrow estimates often fall between $50 and $200 per month. Once Cook County assesses your improved property, your escrow amount jumps significantly. Prepare for higher tax obligations and a substantial monthly increase.
- First Tax Bill Timing (Cook County): Buyers in newly subdivided properties, condos, townhomes, and single‑family homes in new subdivisions, face a long delay before receiving a unit‑specific tax bill. Cook County typically issues the first individual bill one full year after recording the declaration or subdivision documents.
For example, if you close in June 2026 and the developer recorded the declaration the same month, your first individual bill arrives around July 2028. Make sure your lender understands the billing structure so it avoids paying incorrect tax bills, and confirm that the developer’s contract outlines how these taxes get covered.
Pre‑Closing Punch‑List Issues: New construction regularly feels unfinished, and developers typically manage this by conducting a pre‑closing walkthrough. During this walkthrough, you prepare a punch list of items the developer must complete after closing. When defects feel significant, disputes sometimes arise regarding whether the home qualifies as substantially complete. Those disagreements create delays and friction. Many developers also react slowly when addressing punch‑list items. Review your punch‑list concerns with your attorney before closing so you enter the transaction with a clear strategy.
Warranty: Most developers offer a one‑year warranty with new construction. That warranty appears to protect buyers, yet it primarily protects the seller. Illinois construction law grants buyers a ten‑year implied warranty of habitability, but developers frequently require a waiver of that protection in exchange for a narrower one‑year warranty. The written warranty usually contains numerous exclusions, so read every provision carefully. Understand which items fall under limited coverage and which issues the developer refuses to address after the warranty period ends.