Summer Brings Realtors® to BankREOs.com
By Patty Boysen
So summer is here and the sun is shining. People are out and about going for walks, bike rides or playing on the beach. BankREOs.com is not only looking out the windows at the people walking by our beautiful new offices, we are watching them walk in! We are perfectly located, nestled right along the Chicago lakefront at 540 N. Lake Shore Drive and Realtors® are catching on to this quickly. They see opportunity in a place that is in the biggest hotspot in Streeterville. We get foot traffic and drive-by traffic and the location is convenient for people to stop by and see what we are all about.
Any agent who is looking to get into real estate or even veterans looking for a new change, should definitely swing on by and take a look. There is plenty of space for Realtors® to sit down, set up and start making calls. There are also multiple conference rooms and meeting rooms for you and your clients to meet in. This is the place where deals happen. There is an energy here that is untouched!
BankREOs.com is current with the market and sees opportunity in bank owned properties. People want to sell them and buyers want to buy them. There are multiple ways to buy and sell real estate and auctions is one way. The Realtors® here at BankREOs.com can assist you with the real estate auction process so that you are informed as to exactly what you need to know to sell or purchase real estate through an auction.
Selling at Auction
When most people think of auctions they think of buying but in order to buy someone must be willing to sell. Selling at auction for real estate is definitely not for everyone. In the best of situations your property should be in the same price range as all the other properties in the auction. The last thing you want to see is that the majority of the properties in the auction are derelict homes in a low value area when you are trying to auction off your four bedroom, 3 bath, updated kitchen and family room home. You are most likely to not have much luck selling your home at market value since everyone at the auction is comparing prices on the other available properties.
Selling at auction requires a legal agreement and most auctioneers will wish to enter into a sole agency agreement. This means they will advertise your property in brochures and catalogues on your behalf with the understanding you will be liable for the costs of that advertising, as well as a portion of the room fee, regardless of whether someone buys your property or not. This may not seem fair but in reality you will have a hard time finding an auction company who will sell your property without such a legal, binding agreement. And these may not be the only fees involved so find out about the charges before you sign any documents. Once you have satisfied yourself with the agreements you should discuss pricing. Find out the likely market value of your property and seek advice at what price to advertise as the reserve bid.
Now that you have everything in place there is nothing left but attend the auction. As the seller you must attend the auction due to a variety of reasons, one of which is you may want to take a lower offer than the advertised reserve bid to get your property sold. When the gavel goes down that last time it signifies the agreement of a binding contract between buyer and seller and you have sold your home at true market value. The buyer must now pay 10% of the total sale price before leaving the auction house and in most cases must pay off the remaining balance in 30-45 days. Your responsibility as the seller is to guarantee your ability to legally convey the property to the new buyer. Selling at auction has its advantages for buyer and seller and can be the way to go depending on your motivation and comfort level.
Auctions
With the ever changing real estate market a centuries old process of buying and selling has resurfaced. Buying at Auctions are becoming one of the most attractive ways to buy 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 of their condo or home, but auctions have long been the primary means of buying 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.
Buying at auctions can be confusing unless you are familiar with the three different types of real estate auctions available to the general public. First, is the absolute auction which is what most of the public recognizes. This type of auction usually guarantees a lot of buyer excitement and participation due to the property sells to the highest bidder, regardless of price. Many sellers have begun to use this method since an absolute auction offers the best performance results of all. The second type of auction is the minimum bid. Auctioneers will only accept bids at or above the published minimum price. This format reduces the risk for the seller if the seller wants a set price and will not sell otherwise. The down side of this type of auction is a greater risk of setting an anticipated value. The last form of auction is the reserve auction which many people have some difficulty understanding. To make the definition as simple as possible the high bid becomes the offer, not the sale. Reserve auctions do not publish a minimum price and the seller reserves the right to accept or reject the highest bid, usually within a specified time. Sellers in this type of auction predetermine the sale price and are not obligated to sell other than at a price entirely acceptable to them.
Buying at Auctions has been around a long time because they are an effective and efficient way to sell real estate and meet the needs of the public. Auctions are entertaining and most people who have been come back again and again, so if you haven’t yet attended an auction try it. I guarantee it will not be your last.
Auctions
Auctions are a great way to buy a home no matter if it is your first, second or investment property. There are so many advantages that I only have time to name a few but keep checking out our website for more information on when our next auction will be held and what properties will be available.
There are three basic types of auctions any of which can be done at our auctions. The most popular type of auctions with customers is the absolute. This means the home will absolutely sell that day, no matter the price, highest bid wins. The sellers brought the home to auction to sell and are ready to do so no matter the price. You may think this is a distressed sale but many times an absolute bid is higher than the seller ever thought possible. The reason for this is the excitement the auction generates with bidders getting caught up in the process hoping to buy at a great price. Buyers and sellers benefit from this type of auction. Buyers know they are going to pay only what they want for the property and the sellers know their property will be sold by the end of the day. The second kind of auction is minimum bid. In a minimum bid auction the prices is set below the list price, rock bottom of what the seller is willing to take. The minimum bid is published in the auction catalog, on the website and announced by the auctioneer at the start of the bidding for this particular property. As long as someone bids that price the property will sell that day. If no minimum bid is offered the property is not sold and may be help over to the next auction. The last type of auction is the reserve auction. The seller has set a price he is willing to take but it is unpublished. Bidding will start with an opening bid and progress normally. A couple of things can happen at this point which is what makes many auctions exciting. Once a particular price is reached the seller can notify the auctioneer that the property is now an absolute bid property. In other words, when the final bid is called out and the gavel goes down the property is sold.
Auctions can be a great way to buy property. In today’s real estate market auctions are becoming more and more an attractive way to buy and sell properties.
Auction
You are ready to buy a home! How exciting is that! An auction may be a great way to get your price and reduce the time and red tape of a traditional home purchase. Can you imagine moving into your new home in as little as 30 days. It can happen and we are going to give you a road map on how to do it.
I know your first question. How does an auction work? You have seen auctions on TV or may have even participated in an Ebay auction for smaller items but auctions all work basically the same way. The properties we make available to you are obtained from private sellers, banks or developers and most importantly to you are free and clear to close the day of the auction. That’s how you can close in so little time!
Picture this! You are in a room filled with people and the excitement is like an electric charge throughout the room. The auctioneer calls up the first property to be sold. Everyone is on the edge of their seats waiting to see what is about to happen. It is an absolute bid property which means no matter the final price the property is sold when the gavel goes down. Everyone is in anticipation of what the property will sell for and who walks away as the winning bidder. Only registered bidders with paddles can bid so don’t worry about scratching you ear or blinking – that only happens in the movies. If you want to bid, raise your paddle and the bid assistants in the room will help you through the process, making certain you know the current bid and that the auctioneer has acknowledged your price. But the auction is not over by any means because the auctioneer has not declared the item sold until the gavel goes down and bidding is closed. The auctioneer calls for the final bid, there is a silence in the room, finally the gavel goes down and applause and congratulations fill the room. You are now the proud owner of your new home!!!
Auctions are thrilling! There is anticipation, excitement and reward for the winner bidders. They got a great deal on the home they want and best of all you will know in just a few minutes the home is yours and you will be moving in less than a month.
How exciting is that!!!
Auctions
With the ever changing Chicago real estate market a centuries old process of buying and selling has resurfaced. 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.
Auctions have many benefits for everyone involved. Obviously the seller knows that his property will sell at an auction depending on which method he chooses to convey his property and he knows that buyers who attend auctions are ready, willing and able to purchase that day. Sellers also can be assured that the property will sell at market value although the attitude by many unfamiliar with auctions think properties sell at a discount. At an auction the market value is guaranteed due to the property sells at what a buyer is willing to pay and from the competition created among potential buyers. Buyers also enjoy many benefits, some quite similar to what the seller realizes. Buyers know they will purchase property at fair market value and the seller is committed to sell. Buyers at auctions also know they determine the final purchase price eliminating long negotiations competing fairly with other buyers under the same terms. Buyers realize that purchasing through an auction reduces the time to purchase and closing dates are known when the gavel comes down for the final sale. As I said before everyone benefits from auctions, even realtors. Realtors have recently embraced this type of selling real estate for all the advantages the buyer and seller realize. The realtor can offer their clients and customers new options for selling and purchasing property generating a list of ready and qualified buyers and sellers. In confidence the realtor can assure sellers and buyers that the property will sell at market value and be confident that a closing will take place and when.
Condos in the Chicago area
Condos in the Chicago area
Being a prospective home buyer looking for condos in the Chicago area can be both fun and intimidating at times, due to the number of options available. Of course, location and price are always the most important considerations, but seeing so many attractive luxury condos in prime locations can be tempting, even if they are a bit out of your price range.
It can be fun perusing the upscale developments in prime locations near downtown, the Magnificent Mile and the lakefront, or even in easily accessible suburbs. Many of the luxury condo high-rises offer attractive amenities such as pools, state-of-the-art fitness centers, and concierge service. Being so close to all the nightlife, shopping and cultural activities that Chicago has to offer is an added value, and the views of the city and Lake Michigan from the balconies and rooftop gardens can be breathtaking.
But when it comes to financing a condo, there is no need for a prospective buyer toget discouraged if the most expensive condos in the Chicago area are a little out of his or her desirable price range. Prices can vary a great deal, even within neighborhoods. So it is possible to find an affordable place in nearly the same location, still close to everything but having perhaps a few less amenities, but a more manageable price tag. Bargains can be found, especially if people are willing to expand their searches beyond the trendiest of neighborhoods. Many attractive condos and lofts in distinctive buildings, both newly built and renovated, are available in such up and coming, or gentrifying neighborhoods like the South Loop, Bronzeville and others.
Furthermore, there is no time like the present for buying condos in the Chicago area. Besides the fact that interest rates remain low, and a wealth of available properties makes it a buyer's market, now would be a good time to take advantage of the $8,000 tax credit for first-time homebuyers has been extended through April, as long as the deals are closed by June. The tax credit program has even been extended to include existing homeowners, who now may obtain a $6,500 tax credit.
Both programs require applicants to meet certain income limitations. The income limitations for first-time home buyers are $75,000 for single taxpayers and $150,000 for married couples filing jointly. To get the full $6,500 credit, current homeowners may earn up to $125,000 annually as single filers, or $225,000 for joint filers. Those who make ore than that can get reduced tax breaks.
Real estate auctions are another great way to get great deals on condos in the Chicago area, because they bring motivated sllers and buyers together.
OwnACondo.com’s first Real Estate Auction
November 8th was a big turning point for OwnACondo.com. This was the day that our First Real Estate Auction took place. We booked the event at the Chicago Marriott hotel in Oakbrook, with the expectation for between 150-180 people. The room was packed with just about 200 people. The overall event that took much preparation, paid off big in the end. We auctioned off 9 properties that were reserve and three of those nine became absolute during the middle of the bidding process! The sellers and bidders were happy in the end! We also interviewed the spectators that attending the event and they were very impressed as well.
We planned on auctioning off anything from vacant land, to condos, to single family homes. We ended up auctioning off single family homes and condos. It is not the type of the property we are concerned with however, it is the value of the property and how it is auctioned off. We certainly want more absolute properties in this next Real estate auction as we can be more choosy with the properties the second time around. Most of the properties in the first auction were reserve bidding, so there was never any guarantee that the seller would accept the offer. With absolute bidding, it is safe to assume the property will sell.
Many people participated in the real estate auction and were glad they did. Those that did not participate but came to watch were blown away and because the event was put together so well, new investors and banks are looking to put their properties in the next auction. We have already started to plan for our upcoming auction that is set to take place on January 30th with a location that is yet to be determined. Properties however, are pouring in and the buyers who are all on- board, have that date already blocked out.
Although this real estate auction went very well, we are always looking to improve on the experience and look to see how we can do things better. We also felt that it is important to build on the things that we feel went well and make sure that they are just as great for the next auction. The second time around we are looking to perfect the process, get our systems in place, and be one of the best Real Estate companies to partake in real estate auctions. Please visit our website at http://www.ownacondo.com/ for more information on our upcoming auctions and list of available properties.
