Real estate auction November 8, 2009 at Oak Brook Marriott
The buzz is out! There's a real estate auction November 8, 2009 in Oak Brook. OwnACondo.com is hosting a real estate auction at the Oak Brook Marriott Sunday at 11AM at the Oak Brook Marriott. There will be twenty-two properties auctioned off including condos, homes, land and townhouses. The total dollar volume will exceed more than seven million in Chicago metro real estate value.
All properties at the Chicago metro real estate auction are of the "reserve" nature. That means if that once the highest bid is achieved, the sellers will have at least three business days to accept the offer. There are two other types of real estate auctions that are popular, the minimum bid auction and the absolute auction. In each of these cases, the properties normally sell the day of the auction. The reserve auction gives the seller 100% protection of not selling the property for what they're looking for. If the highest bid comes in lower than what they're looking for, they can simply reject the offer.
The November real estate auction in Oak Brook will feature two luxury homes in Oak Brook Terrace. Both were built by the same builder and are getting lots of audience. Open houses are scheduled for November 1st and November 4th. There is always the possibility of viewing a property in the auction by doing a showing "by appointment" with the real estate agent that's representing the property.
If the buyer does win the bid, there is a 5% buyer's premium that is attached to the sales contract. If the bid is $500,000, the sales contract would go for $525,000. The day of the event, the buyer is expected to bring in a cashier's check of $2,500, along with a personal check to bring the total of earnest money to 5% of the purchase price of the winning bid.
Condo auctions in Chicago along with all real estate auctions in general have become very popular since the downturn in real estate. The auction process gives sellers a chance to market their properties to a huge audience in a short time creating a competition for the property the day of the auction.
The real estate auction on November 8th is expected to bring a minimum of 200 people, all bidding for twenty-two real estate parcels. It will definitely be an entertaining event to watch. To get more info on the November 8th auction in Chicago go to OwnACondo.com or call 866.696.2266.
Real Estate Auction November 8, 2009 at Oak Brook Marriott
There will be a real estate auction on November 8, 2009 at the Oak Brook Marriot sponsored by OwnACondo.com. It will have properties that will be sold absolute and minimum bid. There will be approx thirty to fifty properties placed up for sale on that day including condos, single family home, two to four units and vacant land. The areas of Chicago include Glen Ellyn, Wheeling, Crystal Lake, Des Plaines, Oak Brook Terrace, Palos Park, Elmhurst and all parts of Chicago.
If you' like more information on this real estate auction being held November 8, 2009 please go directly to the OwnACondo.com website and click on real estate auctions. If you're a buyer and want to find out more on properties in the auction, the list of properties is on the website. Feel free to browse the listings and click on the appropriate listing. If you'd like additional information on a property, a bid package will be provided for twenty dollars. All bid packages have the information that will pertain to just about any question you have on a particular property and is suggested to purchase of you're serious about being a bidder in the the real estate auction. All buyers are asked to bring a personal cashier's check of two thousand, five hundred dollars made out in their name to the auction. Upon arriving, they will be asked to check in with their personal cashier's check, a copy of their driver's license and a personal check to write out the difference of what five percent of the purchase price will be.
For an example , on November 8, 2009 you have the winning bid of $500,000 on a property in the real estate auction in Oak Brook at the Marriot. You will need to sign over you cashier's check in the amount of $2,500. That's the first thing. Next you will sign a contract for $500,000 plus the five percent buyers premium of $25,000. So the contract will read $525,000. You will need five percent down the day of the event. So in this example you would need to write a check of $26,250, less the $2,500 cashier's check from your personal account. You would sign the contract and you basically are off and running to owning the property.
Real estate auctions have grown in popularity and are reaching new heights with more than just the cult followers of the past. We're finding many renters and first time buyers getting in the game as well. Happy bidding!
Selling a condo at a real estate auction
Selling a condo at a real estate auction can be very nerve racking if you've never done it before. Most people think that an auction means that regardless of what people bid for it, in the end, the price that is the highest is what you're going to have to sell it for. It really does not work that way.
There are three ways to sell a condo at a real estate auction. Many choose the process of selling the condo by "reserve auction". This means that when the process of bidding ends and a winner is determined, the buyer signs a contract and then the seller normally has three business days to make a decision if they want to accept the contract. This is 100% full protection for the seller of the condo. There is a slight problem with this. What if the seller does not want to accept the real estate contract? What happens to the buyer? Think about all the effort it took for the buyer to eventually be accepted as a high bidder in this reserve auction.
Let's think through the entire buyer process. The reserve auction buyer visits the open house after viewing the information on the real estate website. They get attached enough to a property that they decide to go to the bank and get a cashier's check to bid the day of the auction. During the open house they bring their construction guy to check the place out and get an expert opinion. They then check on financing the condo because they know that the contract will be an as-is contract not subject to them getting financed. They better be prepared that if the bid gets accepted that they can get the additional 95% financed. They will have to put 5% down the day of the event. They do not want to lose this money. So, they go to a bank and get prequalified giving them the assurance that they can bid on the property and win it.
Now it's the day of the event. The crowd is huge and their excited about bidding on a condo in the real estate auction. The property comes up for bidding and they start the process off. As time goes on two or three people are in the hunt to buy the property as well. After a minute or two the bidding slows down and the buyer wins the condo. But does he really? The seller still has to decide if they'll accept the bid or not.
The reserve auction is great for a seller but not so great for a buyer. The seller of a condo at a reserve auction must take this into consideration when listing their property in the auction. Will the reserve auction get the attention from buyers because its reserve?
Rick Levin Real Estate Auction
I was at Rick Levin's real estate auction on Tuesday, September 15, 2009 at the Chicago Crown Plaza Hotel to witness the selling of two penthouse condominiums that were going to be auctioned off that night.
I arrived at the hotel at approximately six o'clock to check in and see the excitement of the event. Rick Levin was off to the side with his wife talking to customers and people were in the process of registering. The real estate auction started at 6:30PM with the announcer talking about all the rules and conditions of the event. That lasted about fifteen boring minutes and then the show began.
Rick Levin's auctions always seem to have a lot of excitement to them basically because of the great bid callers he hires and their assistants. Every auction I've gone to of his has had the same team and all of the players seem to really know what they're doing. They started with a practice round selling Wrigley Field in a mock auction to get the crowd buzzing and jumping, which worked well. And then it was time for the auction.
As I scanned the crowd, it appeared as if there were about fifty people prepared to bid Tuesday evening. The Rick Levin real estate auction was not only auctioning off penthouse condominiums in the Metropolis Property in Downtown Chicago, but parking spaces as well. The parking spaces were auctioned off first. The first parking space was sold at $24,000. The remaining spots went between seven thousand and ten thousand dollars.
Now it was time for the exciting part of the real estate auction; the auctioning off of the penthouses. We were told that they originally were priced at $1.5 million, but for the day of the event, there would be a possibility of taking them for a minimum bid price of $360,000 for penthouse A and $180,000 for penthouse B. As the bidding began, it was clear that only two couples were in the running. After is was all said and done, a lovely couple ended up getting both A&B for a total of $500,000.
The crowd dispersed soon after the penthouse sales and the Rick Levin real estate auction came to a close. I'm sure the couple who won the penthouses celebrated that evening. What an excellent buy on a great night in Chicago. As far as the sellers, they probably walked away not happy, but then again, they sold a condo product that was sitting on the market for a long time.
Real Estate Auction November 8, 2009
OwnACondo.com will be holding a real estate auction in the Chicago area November 8, 2009. The venue will be determined over the next few weeks. There will be many properties auctioned, a majority of them will be condos, but there will be many properties in the auction that day.
The real estate auction on November 8, 2009 will have condos from all areas of Chicago and will feature absolute, reserve and minimum bid auctions. There will be banked owned properties as well as developers and individuals selling their condos that day.
If you're interested in selling a property in November's auction, you can call OwnACondo.com and ask for the auction department. The main line is 866.696.2266. OwnACondo.com serves the Chicago condo community but will be opening in Miami, Los Angeles and New York soon. OwnACondo.com is a real estate company that specializes in the sale of condominiums. It started in the year 2000 with helping developers convert their apartment buildings to condominiums. Today OwnACondo.com represent developers, banks and individuals to help them either sell or buy a condo.
The condo auction being held in November may be a great opportunity for buyers to capture an extraordinary deal on some of the new construction development condominiums out there. There are developers that need to sell a certain percentage of their portfolio so that they can extend their current loan with their financial institution. If they do not sell a certain percentage of units, they may have to face the possibility of either getting a new loan on the project or face foreclosure, both situations not very good for the developer. That means deals for buyers.
The real estate auction held on November 8, 2009 will be here before you know it. If you're looking to buy a condominium, call our office so we can let you know what product will be in the November auction. There's a good chance that you'll have at least a few condos represented in the area that you're looking for. There will be condos in the Loop, River North, Gold Coast, Lakeview, South Loop, as well as many of the suburbs of Chicago including Orland Park, Elmhurst, Lombard and Oak Brook to name a few.
You can register on line for the event or call our main auction line at 866.696.2266 for more real estate auction info. Remember the auction date: November 8, 2009 here in the Chicago area.
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".
Selling Your Property at a Real Estate Auction
Selling a property at a real estate auction can be a lot of fun and profitable as long as you follow a few simple rules. So you have a condominium and it's been sitting on the market forever and you have to get rid of it. You paid too much a few years ago, but that doesn't matter now, you just want to get rid of it. Your real estate agent keeps telling you that you need to lower your price. You really don't know what to believe and you're at your wits end.
Selling your property at a real estate auction might be the solution. The one thing that auctions are known for is bringing a fair price to the table. As long as the auction house does its job with the marketing for the real estate auction, you should have plenty of bidders ready to move forward on your real estate. If you do not have a lot of bidders and the real estate auction was marketed well, maybe your piece of real estate is just not that popular. But for the sake of this example, let's say that your condominium is quite sought after and you're ready to attempt selling the property in a real estate auction.
You have to choose one of three types of real estate auction: absolute, minimum bid and reserve. Each one of these has an impact on the bidding process and what you might end up getting in return.
The absolute auction is an auction that will get the most amounts of traffic and excitement. It's an auction that the piece of real estate will sell regardless of the amount of the purchase price. The seller does not set the price for bidding; the price is set by the buyers. This type of auction is loved by the buyers. They know that regardless o the price the seller has to sell.
The second type of real estate auction is the minimum bid type. This is an auction where the seller states a price that the auction has to minimally hit in order for the real estate to sell. In the example of selling a condo for $500,000, the seller might say, I would like no less than $150,000. Once the bid hits at least $150,000, the seller has to sell the condo.
The last type is the reserve. The reserve means the seller can accept or reject the highest bid.
