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 The seller has set a price he is willing to take but it is unpublished.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.
Condos in Chicago
If you plan to search for condos in Chicago keep in mind the condo market is expected to be positively impacted by a shift in the values of the American homebuyer. The generation of home buyers for the next few years is more inclined to low maintenance and high technology buildings than their predecessors. These prospective purchasers, the twenty-something’s and thirty-something’s have needs and preferences quite similar to the baby boomers but they want modern, high-quality condos convenient to amenities without a lot of upkeep. Just like the baby boomers who are retiring these condo buyers are looking to be near exciting locales such as Chicago.
There are a few things to consider when you search for a condo in Chicago. Many people make the mistake of shopping for a condo the same way they would for a house. It is a similar investment but there are several things you need to consider. Many people want to buy real estate to be free of the hazards of apartment dwelling. When buying a condo you are buying a piece of a larger property, basically an apartment. Next, there will be regulations. Condo associations have regulations and bylaws that you must abide by. With the associations you will need to know where your money is going. What does the association fee take care of and what is the breakdown. Next is to thoroughly review emergency maintenance plans. Since you are buying a larger piece of real estate, other people’s problems can also affect you. Be sure you know the emergency numbers for your association and what problems they cover. Lastly, you should have an inspection before you buy. You not only want the unit evaluated but the entire building and grounds. If you make a wise decision, you will be rewarded with many conveniences and a great home.
Condos are king in Chicago when it comes to residential real estate. When it comes time to search for a condo in Chicago, 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.
Homebuyer Tax Credit
Congress has extended and expanded the homebuyer tax credit. Certainly good news for buyers, sellers, lenders and real estate agents since the credit is designed to give the real estate and mortgage industry a much needed shot in the arm. As with most of what our government does there are always some questions about who is eligible and exactly what one can expect.
The homebuyer tax credit now runs until April 30, 2010, a six month extension from the original program which is hoped to add another approximately 350,000 purchasers to take advantage of the program. The program has been extended to include current homeowners which should expand the number of people taking advantage of the program to over 500,000. There are some key areas and questions that need to be clarified for those thinking now may be the time to make a move as a first time buyer or current homeowner looking to find another home.
Existing homeowners must have used the home sold or being sold as a principal residence consecutively for five of the previous eight years. It does not matter if your new house costs more or less as long as you meet the above requirement. Your credit as a current homeowner will be $6500 or $3250 if married and filing separately. Income limits have also been increased to include more people eligible from $75,000 for single and $150,000 married to $125,000 single and $225,000 for married. In the original plan there was no limitation on cost of the purchased home but that has now changed to a $800,000 purchase price which is well above the median price of homes. The original plan called for the home to close no later than December 1, 2009 but the new plan has been expanded to include any home that has a binding contract to purchase in effect on April 30, 2010. The purchaser has until July 1, 2010 to close to be eligible to receive the tax credit.
The homebuyer tax credit is an effort to jump start the housing market and hopefully more than the half million expected homebuyers will take advantage of the program. With the volatile stock market and unemployment rising any advantage is a welcome addition to helping us get back on our feet. As many economists have said, the strength of the housing market is an indicator of economic activity and the economic strength of this country.
Chicago Condos
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 Chicago condos 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.
One area that you need to investigate before you buy a Chicago condo is the prices of similar properties that have sold in the complex or complexes in the immediate area. Condo sales in the area can tell you if the price you are offering is too high or too low. A comparative analysis will also tell you how long units in that complex have been on the market, if prices have been reduced, how many units are for sale, and the prices in which they sold. With the ever changing real estate market it is important to be aware of all of these things to get the best value for your money.
There are so many areas in which to buy Chicago condos that it is sometimes difficult to choose. With over 77 acknowledged neighborhoods almost any style of living is available and at almost any price. Chicago has everything from lakeshore upscale condos and townhouses to lofts in the south loop. If your tastes run more to suburban areas, Chicago offers a variety sizes and styles near the main transportation arteries whether it is the expressways to bus routes to train stations. Everything is in reach in a city with the diversity of cultures like no other city in the country. So remember when looking to find your first home or looking to downsize there is no place like Chicago.
REO Properties
The challenges facing the real estate market in the last few years have brought to the forefront a term that many have never heard of, REO properties. REO stands for Real Estate Owned and most times is property taken back by a bank or mortgage company when they could not sell it at the foreclosure auction. Most foreclosure auctions do not result in any sort of bid because if there was enough equity in the property the owner would have probably sold the property and paid off the bank or mortgage company. Most foreclosure sales begin with a minimum bid that will include the loan balance, accrued interest, attorney's fees and any other costs associated with the foreclosure process. Since what is owed the bank or mortgage company almost always exceeds what the property is worth, foreclosure auctions normally do not result in a successful sale which means the property reverts back to the bank or mortgage company which then becomes an REO, real estate owned property.
A bank REO property may or may not be a good deal. Many people think that by buying these properties they are getting a great deal and making a killing in the market. That sometimes is true but most often not. These are things to think about before an offer is made. You should always ask, are there any inspection reports, what work has the bank agreed to, how long will it take for the bank to accept the offer and are there any special forms that will be needed to complete the sale. Bank owned properties are almost always sold "as is" meaning there may be repairs needed or other liens on the property which will need to be satisfied before clean title will be conveyed. It may sound like the bank is just dumping these properties but they may be of assistance with handling an eviction, do some repairs, pay off homeowner's association fees and negotiate with the IRS to remove any tax liens.
It is a lot of work but there are advantages to purchasing REO properties over foreclosed properties. Once a property becomes an REO property most times but not always the liens are removed and taxes are paid in full. REOs are normally listed with real estate agents and inspections are allowed prior to contract which means the property is typically restored to a salable condition. An additional benefit with REO properties is that the bank or mortgage company will many times offer better financing than they might offer for traditional properties. Lenders and mortgage companies do not want to hold on to these properties very long because of the cost to maintain so if you do your homework and are willing to take a risk it just might be your entry into the homeowner market.
Buying at 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 have 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.
Should I buy now?
All we hear right now is about unemployment, health care reform and bailouts. That doesn't mean there has not been talk of the real estate market and what is happening in that part of the economy. What I am hearing a lot about is should I buy now or wait for the market to bottom out? Depending on who you listen to the market may or may not be at its bottom and who in all reality can forecast it. Many of those so-called forecasters were the ones that missed all aspects of the economy as it was tumbling downward. And down is not always a bad place to be since the only other way is up. Whether we are at the bottom, close to the bottom or on our way up it is a good time to buy your home or condo.
Should I buy now? Absolutely, and let me tell you several factors that are in your favor by acting now and not trying to guess at a target that may always keep moving.
We have a tax credit! Let me say that again since you probably did not get the full impact of what that statement means in today's economic climate. A tax credit means you do not have to pay it back. That's right, it is free money and when is the last time you received free money. It is not as perfect as it could be because there are several requirements but all in all they are not that difficult. First, you must be a first time home buyer or not owned your principle residence in the last three years. Second, if you are single your income cannot exceed $75,000 per year and married couple's income cannot exceed $150,000 per year. The last part might be a little trickier since the tax credit is only if you close your home or condo on or before November 30, 2009. That is less than 45 days away and if you don't get moving now you are not going to make the deadline.
Another reason to ask yourself if I should buy now is interest rates are lower than they have been in years. Do you realize that you can get a 30 fixed rate for less than 6% from many lenders. That means you can afford more home or if you want you can buy a more reasonably priced home and keep the payments low, maybe even less than you are paying in rent. Would you have imagined several years ago that you could get free money and a great interest rate on buying a home? If you are like most of us you would have laughed us out of the place, but it is happening now. We would never have guessed it just like we are never going to guess the bottom of the housing market. So just do it!
Condo Rentals in Illinois
Condo rentals are a means to many different types of ends. Condo rentals in Illinois can help you to find the perfect place for you no matter what your motivation might be, from a place to call home until you can purchase or possibly for that much needed vacation residence.
Condo rentals in Chicago for your vacation are open to everyone, no matter your age, background, or lifestyle. The jazz clubs in which Chicago is well known for will delight music lovers. If the national pastime is more to your liking, Chicago offers two major league teams each in a different part of the city. Everyone in the family will enjoy the many architectural and historical landmarks that Chicago is known for from the Sears Tower to Soldier Field. Other sights to see are the many museums that are home to Chicago such as, Shedd Aquarium, Field Museum, Museum of Science and Industry and the Kohl's Children's Museum known for its hands-on learning laboratory. But that's not all for the kids! The attraction-filled Navy Pier and Lincoln Park zoo will make your vacation one that the kids will remember for a long time. A relatively new addition to Chicago will excite the kids beyond belief with a trip to Millenium Park and "the bean" where reflections of the city makes incredible photos to take home to their friends. Last but not least is Lake Michigan which is always fun when it is sunny and warm out. If this doesn't sound appealing to you yet then perhaps you are wondering about how affordable condo rentals in Illinois can be. Don't worry, you can definitely find cheap accommodations whether it is a weekly rental or one night accommodations.
What if you are not looking for a vacation rental? Condo rentals in Illinois are also an excellent source to find a place to live. You may just need a place to rent until you decide to buy or possibly enter into a rent to own agreement which is becoming more and more popular in today's real estate market. Either way finding a condo in Chicago is just a click away but there are several things you show know.
- All rental agreements are not alike - a lease us for a definite period of time, generally one year. A month to month rental agreement is not for a set period and continues until you decide to move or the owner asks you to leave.
- Rental agreements do not have to be in writing, they can oral. However, a lease for more than a year generally must in writing.
- You have rights! The law says that your apartment must be livable. You must have hot and cold running water, heat, and electrical lighting in good working order.
Finding a condo to rent or buy can be a daunting task but doing your homework and finding the right real estate agent to help will pay off many times over.
Bucktown Condos
Chicago has over 77 different communities and over 210 neighborhoods within its boundaries many of which are of ethnic origin. Bucktown is one of these communities which were established mainly by Polish immigrants early in the 1800's seeking refuge from their war-torn country. It is believed the name originated from the large number of goats the early settlers raised in their backyards, (male goats are known as bucks). Today you will not see any goats but the neighborhood is full of Bucktown condos and lofts.
The neighborhood bounded by North and Fullerton Avenues is a slightly less expensive alternative to many other areas in Chicago, although prices are rising for Bucktown condos. In the mid 1980's a growing group of artists emerged creating an artist colony which identifies the neighborhood today. Bucktown's past is seen through its one-hundred year old buildings, cobblestone paths, and historic churches, remnants of the early Polish immigrants. The neighborhood's past is evident but so is its future. Contemporary architecture is found next door to vintage buildings in this neighborhood. Because of its status as a hot spot to live real estate developers moved in and started converting older buildings into loft spaces and constructing new low-rise condominiums and Bucktown condos were off and running. The new construction and refurbishing of buildings in the area lead to widespread gentrification and an increasing number of young working professionals. Most of these buildings offer home and condo buyers updated features like granite kitchen counter tops, new stainless steel appliances, hardwood flooring and remodeled bathrooms, not to mention private balconies and rooftop patios. With this renewed interest in residential property business was soon to follow. Businesses such as upscale stylish stores, trendy restaurants, and bars dot the area and are considered one of the most fashionable places in Chicago to live.
Primarily a residential neighborhood, Bucktown is a mix of single-family homes, converted lofts and Bucktown condos. The average price for a one bedroom condo runs in the mid $200's and a two bedroom can run up to $300,000. A three bedroom single family detached home runs about mid $650's. Bigger places that have been completely rehabbed with upgraded amenities can run as high as $800-$900,000. Private residences with more than three bedrooms in Bucktown can push upwards of a million dollars. Today young adult professionals are flocking to Bucktown in droves. Its status as a hot spot to live has made this Chicago neighborhood one of the most sought after residential areas in which to live.
Condo Real Estate Companies
Due to the popularity of condos over the past several years condo real estate companies are a dime a dozen or so you might think. Nothing could be further from the truth. Admittedly there are hundreds of companies out there that say they specialize in condos but not all are up to the level you might want when you are searching for that home of your dreams or selling to move on to a larger place or downsizing for convenience.
Condo real estate companies come in all shapes and sizes from local to international but there are several things you need to consider before you hire one to sell your condo or help you find a place of your own. It may seem obvious but does the company cover the area that you want to sell or buy a condo. Many companies today say they cover very large areas but have no agents or expertise in some of their publicized locations. This could mean they do not know the market very well or if showing you condos may not know much about the community. No matter if you are buying or selling knowing this basic information could mean the difference in what your condo sells for or what you feel comfortable paying.
An area to consider when looking for condo real estate companies is their exposure to the local market as well as nationally. Most companies today have websites which can drive a great deal of traffic to their offices. How is the information handled when potential buyers and sellers make inquiries about properties in the market area? Are they handed over to the new agents because they do not yet have many customers or are they given to the experienced, professional agents? This may not seem that important but we all like to work with the most experienced, professional person no matter if it is having our car fixed or seeing a dentist for a yearly check up.
One last area to consider when looking for a condo company is the volume of business they transact each year. What is there mix of single family homes, condos and rentals? The volume of each of these property types and the locations is important to know when searching for an agent to sell or find you a condo to buy. Based on what you find out will tell you if the company you have chosen to do business with is truly a Condo Specialist.
