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  • For AvalonBay, Long Island Filled With Risk, Reward July 29, 2010
    The region near New York City is one of the nation's toughest markets to development properties. AvalonBay is undeterred. […]
  • Miami Tower Built for Storms July 28, 2010
    A Miami-based developer is seeking to capitalize on predictions of a rougher hurricane season, which may be a marketing opportunity for him and his new tower at 1450 Brickell Ave. […]
  • Office Developers Revive Plans July 28, 2010
    With Europe's financial sector showing signs of stabilizing, developers have begun to dust off plans. A development boom, however, isn't likely anytime soon. […]
  • It's a Low Point for High Point July 28, 2010
    Vornado Realty Trust is opting to forfeit a 2 million-square-foot furniture mart in High Point, N.C., to holders of its $191 million securitized mortgage. […]

Archive for February, 2010

Multi-seller auctions

Monday, February 8, 2010 @ 04:02 PM Author: Dermot

Multi-seller auctions
Each event held by RealEstateAuctions.com is typically a “multi-seller auction,” meaning that properties owned by many sellers, are offered through a common promotional campaign, and auctioned in a single event.

This type of real estate auction is somewhat different to the type of auction events familiar to most people, in which one piece of property, such as a farm, or multiple items from one estate, are sold.

But multi-seller auctions are becoming an increasingly common way to sell condos, single-family homes,  and just about  any kind of real estate, mainly because the sale process is so much more fast-paced than the traditional method of selling real estate. For instance, there are many properties  going up for sale at our next auction, including individual condos, and single-family homes as well as multi-unit apartment and condo complexes. Numerous developers, banks, and individuals are entering properties in the auction, because they see the benefits of maximizing the selling price while completing the sales in a timely fashion. The total amount of property going up for could be worth tens of millions of dollars. To sell each of those properties individually would take many months or years, especially in the current real estate market, but by marketing them all at the same time, most, if not all may be sold on the very same day.

Furthermore, sellers pay for the marketing, which the brokerage firm running the auction handles. Several open houses are held prior to the auction, giving prospective buyers plenty of time to inspect the properties on which they are considering putting bids. Prospective bidders are responsible for doing their due diligence prior to the  auction, and show proof that they are qualified buyers before offering a bid.

Following all these steps ensures that no one’s efforts are not wasted and winning bidders can close their deals as soon as possible after the auction. In fact, the rules of the auctions usually mandate that to avoid a penalty, the sales must close no more than 30 to 45 days after a bid is accepted at auction.  This system minimizes the frustrations for both buyer and seller that often occur when trying to close a traditional sale.

Multi-seller auctions benefit people buying real estate too, because as long as they are qualified, they can get some great deals since sellers can afford to accept a lower price at auction due to the  minimal overhead costs.

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Auctions

Thursday, February 4, 2010 @ 12:02 PM Author: Tim

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 all the information you will need to be an expert no matter if you are a buyer, seller or Real Estate agent.

First of all what is a real estate auction?  To be successful in real estate you must be innovative and be ahead of the curve.  Auctions can be that innovative way for a real estate company, buyers or sellers to effectively sell or purchase properties.  To put it simply, auctions are an intense, accelerated real estate marketing process that involves selling any type of property including non-distressed properties.

What are some of the benefits for an auction?  As a seller you know buyers have come to buy and by the end of the day you can rest assured your property is sold.  Potential buyers must pre-qualify for financing prior to the auction and with a quick sale it greatly reduces your long term carrying costs, including taxes and maintenance.  When the property is sold you know that you received true market value by creating competition among buyers who were truly interested in buying your property. 

As a buyer there are also many benefits to buying at an auction.  Buyers know the seller is committed to selling eliminating long negotiating periods and know they are competing fairly and on the same terms as all other interested buyers.  You know when buying at an auction you are buying at fair market value through the competitive bidding process.  One of the most valuable benefits to buying property at an auction is you know then and there when you will be closing and taking possession of the property, many times in as little as 30 days.

Many people don’t think about the benefits for real estate agent in auctions.  For agents it offers their clients and customers alternative options to sell or buy property.  It also guarantees the property will be sold at market value and in a relatively short period of time.

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.

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Auctions

Wednesday, February 3, 2010 @ 11:02 AM Author: Tim

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.

Essentially there are three types of auctions. An absolute auction, or an auction without a reserve where the subject property is sold to the highest bidder regardless of the amount of the winning bid.  Since the sale is guaranteed regardless of price buyer excitement and participation is heightened.  This type of auction generates maximum response from the market, thereby ensuring attaining true market value.

Minimum bid auction where an auctioneer accepts bids at or over a published price is the next type of auction.  For sellers it reduces the risk of the subject property being sold less than what the seller is willing to take or the property does not sell.  For buyers they know at what price the property will ultimately sell, minimum bid or possibly higher.  The key here is for the seller to set the minimum bid low enough to attract the interest of buyers but not too low to sell below market value.

The last type of auction is the reserve auction.  In simple terms with a reserve auction the high bid is reduced to an offer not a sale.  The seller reserves the right to accept or reject the highest bid within a specified period of time, usually 48 to 72 hours.  The down side of this type of auction is many times prospective buyers will not invest their time and energy since there is no certainty they will be able to buy the property even if they are the highest bidder.

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