A Reserve Auction
What is a reserve auction? A reserve auction gives the seller the ability to sell if the price is to his or her liking. The seller can accept or reject the highest bid in the auction. Let's say the seller puts a condo up for auction at a price of $1,000,000 or basically, this is what the condo was priced originally. The seller and the auction house will decide on a suggested opening bid. Let's say that amount is $200,000. The bidding begins and immediately we'll see if there is interest.
After several bids going back and forth the final two people are left going at it. At the end, the last bid ends up at $650,000. The person is whisked away to the back of the room to fill out the contract and turn over his earnest money. The people all clap and everything looks like the guy bought the condo. But did he? This is a reserve auction, which means the seller has the right to reject or accept this bid. If the seller says that it's just not enough of money, the buyer will not be able to go through with it.
There are consequences to the seller is some reserve auctions if they do not go through with the highest bid. Just imagine the amount of effort to put an auction on, have people staff open houses, rent a banquet style room at a hotel, pay for all the people to run it and find out the seller will not accept the highest bid! There are auction houses that will have in their contracts with the seller that if the seller does not go through with the highest offer, they will have to pay a certain percentage to the buyer and the auction house, typically 3% of the deal. With this clause in effect, it stops people putting in their properties into an auction just to see what price the property might bring without consequences. It's almost as if the seller was able to get a free appraisal on the property.
Most auction have to have a reserve as part of the auction because sellers really never know how much the bid actually is going to come in at and they may have a mortgage attached to the property. If this is the case, they have to make sure the bid is higher than their mortgage amount.
Chicago Real Estate Auctions
There will be a Chicago real estate auction held on August 22, 2009 in Burr Ridge at the Chicago Marriot Southwest in Burr Ridge, Illinois. The start time for the auction is 1PM. If you would like more information on this auction you can go to the website windycityhouseauction.com for more details. There is also a seminar for buyers to learn how to bid at an auction today, Sunday at 6PM at the Marriott in Burr Ridge and Saturday morning, the day of the auction at 10:30AM.
Chicago real estate auctions can be found by going to a local real estate agency or by going online. To bid at a real estate auction normally requires you to bring in a cashier's check for approx. two percent of the purchase price. When you check in at a real estate auction, the people will ask you for identification along with reviewing your cashier's check. If all works out, they will give you your paddle, your instrument used to bid on real estate properties.
When the Chicago real estate auction begins, the first condo property will be up the "active" board. The auctioneer will start calling out the opening bid and the auctions officially starts. As the people begin to bid on the condominiums there are spotters in the crowd confirming the bids. These spotters roam the crowd and stay close to the people actually doing the bidding to help increase the price. They cajole, razz, push and do whatever it takes to get you to move up a little on your price. These spotters work for the sellers. Their job is to get you to bid more than where you were at a minute or two ago.
Chicago real estate auctions allow you to pick up some nice deals and it allows sellers of properties to get out at a time that they need to move when the market is not brining in the buyer conventionally. The real estate market is down right now. Sellers might not realize exactly what the fair market value for their property is. A real estate auction really helps that. It brings a lot of people to the arena and when the bidding is done, the price is what people are willing to pay for it at that given time. The sellers or buyers might not like the price, but it's one of the fairest of ways to determine value.
Real Estate Auctions
How about a real estate auction to sell your property? Can it really sell it after you've had your condo on the market for the last twenty four months with no action? You darn right it can.
Real estate auctions bring a ton of spectators and buyers to the table. Investors come, end-users come, real estate agents, friends, families and the neighbors. Real estate auctions bring excitement to the selling of real estate. Buyers are looking for a great deal and sellers are hoping that they can get a great price for the property. In the end, the value will be set by the market. When a condo sells in a real estate auction, regardless of the price, as long as it has been marketed correctly, is really the true value of the condo. It is what people were willing to pay at that particular time for that condominium.
When you put a condominium up for sale in an auction, what do you price it at? And what happens when it sells less than what you wanted? There are three different types of auction. Let's talk about the "absolute auction" first. An absolute auction is when you place your property in a real estate auction and let the buyers determine what your price is going to be. This is the most exciting of all auctions because the property has to sell regardless of price. If there are no bidders other than someone that's offered $100, you have to sell the condo for $100. This is not realistic though. Most "absolute" condos that are auctioned off actually sell for more because people are excited to bid on an absolute because they know that if they bid the most, they will win the condo. This type of auction attracts the most attention. The buyers of condos want to know that they will be able to take home their prize if they put all their emotion into winning the auction.
The second style is the "minimum bid" auction. This is where the seller states a price that he or she would be willing to sell if the price was achieved. For instance, let's say a condo was selling for $200,000 and the seller said, if I put the condo up for sale in the auction and I put it under minimum bid, I would want no less than $150,000 or I will not sell it. It would then be advertised at $150,000 minimum bid or it would not be sold. Tomorrow we'll talk about the "reserve auction".
The Absolute Auction
The absolute auction is the hottest auction of them all with tons of buyers flocking to get the deal of a lifetime. An absolute auction is where the buyers get to bid on the real estate property and win it based on the highest bid regardless of what the seller might want for the property.
The way it works is the seller decides that he or she want to go the "absolute auction" route. They list their property with an auction house putting the property for sale with them regardless of what the price of the property will sell for. The great thing about this for the buyer is they know that if there's not a lot of bidding on the property, they may get a deal of a lifetime. On the seller's side, the absolute auction is the most popular and it will definitely attract buyers.
So what happens if no one comes to the auction and the property sells for one dollar? That's the risk, but not a realistic one. As long as you list the property with an experienced auction firm, there will be lots and lots of advertising. The property should have had a number of open house chances to view and go through everything. When everything is all said and done, absolute auctions normally bring the appraised value on the real estate property. If enough of people are bidding on the property, the property will not only sell at fair market value, but the price may even be driven beyond market value. But isn't that market value? What people are willing to pay for it?
The absolute auction has incredible excitement to it. There are lots of intense moments and chances for both buyers and sellers to really have a great financial gain from the absolute auction. The crowd stirs and waits to see who will win. Just being a spectator at these events is entertainment enough. And then the gavel goes down and the lucky winner gets escorted off to finalize the paperwork.
So what auction do you put your condo in? The absolute auction carries the most amount of attraction. People like to know that at the end of the day they will be buying the property that they're emotionally bidding on. The absolute auction means that they will buy it that day if they surface as the highest bidder. The absolute auction is one of a kind!
Real Estate Auction Companies
OwnACondo.com officially has become a real estate auction company. After careful deliberations, the company decided to expand into the auction market creating another avenue for its clients to help them sell condominiums. The owner of the firm, Brian Kuzdas, made a statement recently about the importance of having several options for sellers to turn to during this crazy volatile real estate market. Said Mr. Kuzdas, "We've helped our seller clients in 2008 and 2009 by focusing on "rent-to-own" condo programs allowing our sellers to capture rents while the buyers were allowed time to be able to afford ownership. Many of our sellers were able to sell through these programs. By us opening a division to auction condominiums, the sellers will reap the benefits of getting their condominium product sold in a very quick time frame."
OwnACondo.com will hold its first real estate auction on November 8, 2009 in the Oak Brook area. They are expecting to auction off roughly fifty properties that day, mainly condominiums and townhouses.
OwnACondo.com was established in the year 2000 as a domain simply to represent the owner's condo conversion efforts. As time passed, too many clients approached Mr. Kuzdas to sell their individual condos and condo complexes. Mr. Kuzdas seized the opportunity of becoming one of the first "condo only brokerages" and started marketing the company as a real estate agency in 2005. Since then, OwnACondo.com went from ten real estate agents to almost one hundred today. They moved from a tiny office in southwest Chicago to a modern and attractive corporate facility in Oak Brook, Illinois.
As a real estate auction company, OwnACondo.com expects to hold monthly auctions as well as online auctions. This will simply be a division of the company. Said Mr. Kuzdas, "Real estate brokerage is our main thrust. It is the engine that runs everything. We are continuing to expand our brokerage efforts throughout Chicago and soon nationally. Becoming a real estate auction company is simply another way for us to help the client sell his or her condominium."
OwnACondo.com will be holding an auction November 8, 2009. If you would like more information, please contact Tim at 866.696.2266 for more info. There will be approx fifty properties auctioned off. Each property will be handpicked for the auction and will have four open houses before the real estate auction in November. The venue in the Oak Brook area will be determined later this month.
River North Condos
The Chicago River area of Chicago is the next up and coming area for condos. River North condos are being built as we speak and the prices are outstanding. There are several areas along the river to choose from - north or south branch, that are offering some of the best deals in town!
One area that is already well known is the River North area located just north of the Chicago River and just blocks from the loop and Michigan Avenue. River North is the city's most spectacular neighborhood to shop, dine, play, stay, and live. The area is just steps away from the Magnificent Mile and the State Street shopping corridor-River North Condos is where it all begins in Chicago! It boasts world-class restaurants and trend setting nightclubs. The neighborhood, home of the River North Gallery District, has the largest concentration of art galleries in the United States outside of Manhattan. If its new and unique it is what people will be reading about in the newspapers tomorrow.
River North is a work in progress. An ongoing renaissance is transforming the old downtown neighborhood into an exciting new district for residents and visitors alike. River North has had many faces over the years. In the 1890's, after railroad tracks were laid along the Chicago River's north bank, industry moved in. Soon the area became known as "Smokey Hollow". After World War II, manufacturing declined and factories closed or were converted into warehouses. By the mid-1970's it was an urban wasteland with many neglected or abandoned buildings. Then the revival dawned. Low real estate prices and large spaces attracted the artistic set and creative entrepreneurs. They moved in and began the reclamation. Great old buildings were rehabbed into great new galleries, studios, offices, restaurants, shops, and condos. Unusual boutiques are now the hallmark of River North offering antiques, custom housewares, home furnishings and much more. Lofts from the 1890's to 1920's attracted lawyers, architects, advertising agencies, and others as well as the real estate investors who rehabbed River North condos in Chicago. River North has quickly become the fastest growing residential neighborhood in Chicago with prices remaining steady through the last few years of challenging real estate markets throughout the mid west.
Another area that is well known regarding the Chicago River is River City and Printers Row. These unique Condos give a robust view of Downtown Chicago and the Chicago River. The ever changing scenery is enough to make any Chicago condo buyer take more than a second look. Architecturally, this area has many unique and special housing choices. The area features condos and lofts made from former warehouses , printing plants, other historic buildings as well as the distinctive River City condos which features their own marina.
Condo Auctions
With the ever changing Chicago real estate market a centuries old process of buying and selling has resurfaced. Condo auctions are becoming one of the most attractive ways to buy or sell real estate no matter if it is your primary residence, vacation home, or investment property. To many people in Chicago a real estate auction is foreign to their way of thinking regarding the purchase or sale of their condo or home, but auctions have long been the primary means of buying and selling real estate in other parts of the country, particularly the south. Auctions are the relatively simple process of buying and selling goods or services by offering them up for bid, taking bids, and then selling the item to the winning bidder. The definition above is the basic auction form but there are several variations, including time limits, minimum or maximum limits on bid prices, and special rules for determining the winning bidder or sale price. Many times the participants may or may not know the identities or actions of the other bidders and they can participate in a variety of ways, such as by telephone, or internet. No matter how the auction is conducted the seller usually pays a commission based on a percentage of the final sales price.
Real estate auctions are exponentially growing due to all the talk we continually hear about the economy and real estate. There are foreclosures, loss of equity and homeowners in trouble and it can make it difficult to sell properties not matter where they are located. The media is helping condo auctions and smart buyers and sellers are using it to their advantage. Real estate auctions attract buyers and they can get the highest and best offer in the shortest amount of time. The media helps with this by talking about how real estate is cheap and now is a great time to buy. Free advertising is being provided so when potential buyers see auction signs they believe a deal is waiting to be made. Additionally, real estate auctions are moving to online sites that cater to our more technologically advanced buying public which many motivated sellers are seeing as an advantage since mass advertising at very little cost can expose their property to the maximum number of buyers possible. More and more real estate agents are discovering that marketing is much less expensive and online condo auctions give them the most bang for their marketing buck. Auctions are a trend that with today's economy will continue to grow.
Condos on Chicago’s Gold Coast
If you are looking for a low-maintenance lifestyle, maybe in a popular location there is no better place to look than condos on Chicago's Gold Coast. Living in a condo in downtown Chicago can offer many benefits that you will not find in a home in the suburbs. They can offer more plentiful amenities, helpful maintenance with snow removal and lawn care, and an active close-knit community. All of these offer a different lifestyle that many find appealing but there are a few things you might want to consider.
- 1. Condos usually have an association that has guidelines, some may be casual but others can be strictly enforced. Get a copy of the rules and guidelines and make sure they will fit in with your lifestyle. Being at odds with the association and possibly your neighbors can make home a much less appealing place to live.
- 2. Condos on Chicago's Gold Coast come with a variety of benefits but also a cost. Most associations have fees that cover many of the amenities which convinced you to entertain the idea of condo living. Some associations charge a small maintenance fee to cover the basics but depending on the extravagance of what are offered in your complex they can run much higher. Associations are anxious to provide you with their list of fees, what they cover and what is expected of you as an owner. One last thing to consider is to find out if the association is planning on any improvements or upgrades that can raise costs.
- 3. Before you jump at condos on Chicago's Gold Coast find out about the community in which you are buying into. Does it fit the lifestyle you want? What is the financial status of the condo association? How many units are vacant? How many units are rented? If possible, talk to some of the owners and find out if they are happy living there, how well the complex is being run, or if they have had past problems and how those problems were resolved. You are buying into an entire community and it is important that you know all you can before making a decision.
There are many Chicago Gold Coast condos for sale in a variety of building styles. Chicago is known for its ethnic groups and communities and condos are being built or re-furbished in almost all areas. If you are looking for a different lifestyle in a vibrant community atmosphere there is no better place to look than Chicago!
Owning a Chicago Condo
Home ownership on any level is wonderful. Nothing gives you a sense of pride like owning your own place and if you live in the Midwest there is nothing quite like owning a Chicago condo in which to live. Condo ownership has some very distinct advantages versus a single family home. Let's say you really hate to mow the lawn, trim and pull weeds, then condo living is where you want to be. Maybe you travel a lot for your job or have hobbies that you want to pursue then, condo real estate is what you need. You love to sit around the pool but can't afford one. You have few friends and you want to meet new people. You would really like a large home in a gated community with rules and regulations but can't afford it. Last but not least, there are some great deals in today's market interest rates are lower than they have been in years. All of these things and more are an excellent reason to buy a condo.
Chicago condo properties have become more and more like their own communities. Owning a Chicago condo today involves a tight knit group of friends due to the condo living lifestyle. A close group of friends creates a sense of security knowing you will always have good friends around to help no matter the situation. This sense of community offers frequent social events to take place at the pool or clubhouse which offers many different types of social activities with the total cost spread around rather than paid by a single homeowner.
Condos are king in Chicago when it comes to residential real estate. When it comes time to owning a Chicago condo, there are many areas in which to choose. Chicago is certainly known for its downtown skyscrapers but there are numerous other areas that have their own flavor which offers some of the best values in residential real estate. One definite advantage in the Chicago real estate market when buying a condo is that prices are holding steady and there are numerous developments currently underway or proposed for this year. Construction crews are putting up new buildings and older places are being refurbishing to create condos and lofts. It is estimated that over 4000 units will be built in Chicago in 2009 which puts buyers in a great position to get what they want for a good deal.
Chicago Condo Auctions
Are you ready for the best Chicago condo auction ever? OwnACondo.com will be hosting a condo real estate auction November 8th in the Oak Brook area, venue to be determined. It will have bank directed condos along with condos that are ready to sell from distressed developers in the Chicago area. There will be lots of great opportunities to pick up one of the best valued condos around.
The Chicago real estate auction business is booming right now with hundreds of properties selling to end users and investors all over the Chicago area. Sellers, though not happy losing money on properties they purchased a few years ago, are happy to have sold the condo that's been sitting there for over two years. In the end, all parties are happy. If you fill enough people in a room, the value of the property is fair because it's what people are willing to pay for it. The seller might not be happy but it's what people are willing to pay for it at that particular time. It's hard to dispute.
How do you bid on condos at a real estate auction? You have to register and bring in a cashier's check with your name on it. When you sign in on the day of the auction, the host will ask you to see your photo ID along with the check. Once confirmed they'll give you a paddle, the instrument you'll use to bid. Each paddle will have a specific number identifying the bidders in the room. You'll be escorted into the auction room and you'll wait until the beginning of the event. Once the event starts, you'll have to wait to see when your property gets auctioned off. It may take a few hours depending on how many properties are auctioned off that day.
Now the moment of truth. Your condo is up for auction. They start the bidding at $50,000. You're shy and you wait to see how things go. After you see a few people starting to move on the property, you start getting in the bidding process. You're now up to $80,000 and the adrenalin is pumping like never before. The bidding slows down to just a few interested parties and you're one of them. As the number hits $130,000 you decide that this is your cut off point. You wait and it appears like you're the winner. You're getting slightly anxious not knowing when someone calls out $135,000. Then $140,000. Maybe next time, but boy was it exciting.
