Buying Foreclosures
There are a lot of great deals in the real estate market today but not all are as easy as it seems. Buying foreclosures can be a tricky business unless you know exactly what you are doing and know who can help. Right now foreclosures are dominating the market like no other time in history with well over a million homes in foreclosure and more are expected in the near term. These properties can offer great opportunities but are also rife with problems for so-called bargain hunters. Many people wrongly think that low prices means you should jump out there and start buying foreclosed properties but nothing is further from the truth.
Buying foreclosures can be a great way to purchase property but that doesn’t mean you should lose your head. Banks put foreclosed homes on the market at cut rate prices for a reason. They want quick sales to avoid the expense of upkeep and the related expenses with any home such as property taxes, utilities and insurance but due to the cut rate pricing everybody and their brother is trying to buy those homes. You ask why this would be a problem. The answer is the people trying to buy these homes keep bidding until the price is no longer a bargain. Good for the bank but not so good for the buyer because they get caught up in the bidding war and did not carefully calculate what the final costs may be with repairs that may be needed.
Don’t let some of these things keep you out of the foreclosure market. Buying foreclosures can still be a good deal if you take the proper steps and don’t get caught up in the excitement. Smart buyers establish a relationship with their local bank’s asset manager which can sometimes get them inside information and maybe the first offer of properties coming available. While you are talking with your lender about the properties that are available you want to get pre-approved by that same lender. Nothing warms a banker’s heart more than someone qualified for a loan and within their own bank. Next and perhaps most important is to hire a trusted real estate attorney, not your neighbor down the street who is a corporate lawyer for the mega corporation but the local attorney who handles a significant portion of the properties being transferred in your area. He can offer the expertise to handle any problems and the legal aspect of purchasing a home. Buying foreclosures can be challenging but the rewards can be quite significant.
Online Real Estate Auctions Present Possibilities
A great way to find deals on perspective property would be online real estate auctions . But this is real estate we are talking about, so it's probably best to be at the auction in person to finalize the sale.
The online community is a great place to find out about auctions, but it's not like you are going to purchase a condo on Ebay and be confidant with the sale.
Still, you can find a lot of opportunities for deals online. Real estate auctions can be enticing for sellers as well as buyers, mostly because they simplify the process and make it easier to get a deal. If you are a buyer, you have the option of setting your price, so you can be sure to stay in your price range.
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.
Real Estate Auctions Can be a Fun Way to Spend an Afternoon
You can feel the buzz of excitement in your bloodstream. The auctioneer starts naming prices, rolling through each bid in a rollicky voice that almost seems musical enough to dance to.
Hands get waved, and bids go up, until that climatic "sold" goes through the auction house and another sale is landed. Real estate auctions are special places, not only for their sheer novelty, but their incredible powers to move real estate quickly, presenting advantages to buyers and sellers alike.
At real estate auctions, everyone present is on the same page and given the same considerations. Buyers are excited about the potential to buy real estate at a discounted price.
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.
Condo Auctions Make Quicken the Buying Process
Buying a condo can sometimes feel like you are stuck in traffic. There always seems to be yet another lengthy piece of paperwork to process.
You can spend months batting it back and forth in negotiations with a seller, only to see the ball get dropped at the last minute. Tracking down each condo from one day to the next can also eat up a lot of time, further stretching out the process.
If you are tired of the courting process that buying real estate can often involve, you might want to consider condo auctions. It's a much easier process that gets the ball rolling. Auctions simplify the transaction down to a few simple steps, getting it over and done with a completed sale by the end of the day.
Condo auctions bring buyers and sellers under the same roof through an accelerated process that can be of interest to both parties. Buyers have already been qualified, and properties have already been inspected to insure that they are immediately ready for use.
A Real Estate Auction Company Benefits Buyers as Well as Sellers
Whether you are a buyer or a seller, there are numerous reasons why you would choose to deal with a real estate auction company.
The biggest reason is simplicity. The process is quicker and smoother to buy or sell a home, regardless of which side of the transaction you are on.
This makes it an ample choice for buyers who need a home to close very quickly in order to meet the demands of a career, but it's also great for buyers who don't want to hold onto costly property any longer than they have to.
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.
Auctions Offer Enticing Advantages to Buyers
Presenting unique opportunities for perspective home buyers, condo auctions are increasingly popular following the recent collapse of the real estate market.
According to the National Auctioneers Association, over $288 billion in sales were auction driven. It's become one of the fastest growing sectors of real estate.
People who face financial trouble due to the difficulties in the housing market and the economy often choose auctions for their good market value as well as quick selling time.
