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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. […]
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    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. […]

Posts Tagged ‘Real Estate Auctions’

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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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Selling at Auction

Monday, January 25, 2010 @ 03:01 PM Author: Tim

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.

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Condo Auctions

Monday, January 18, 2010 @ 11:01 AM Author: Tim

With the ever changing Chicago real estate market a centuries old process of buying and selling has resurfaced.  Condo 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.

Real estate auctions are exponentially growing due to all the talk we continually hear about the economy and real estate.  There are foreclosures, loss of equity and homeowners in trouble and it can make it difficult to sell properties not matter where they are located.  The media is helping condo auctions and smart buyers and sellers are using it to their advantage.  Real estate auctions attract buyers and they can get the highest and best offer in the shortest amount of time.  The media helps with this by talking about how real estate is cheap and now is a great time to buy.  Free advertising is being provided so when potential buyers see auction signs they believe a deal is waiting to be made.  Additionally, real estate auctions are moving to online sites that cater to our more technologically advanced buying public which many motivated sellers are seeing as an advantage since mass advertising at very little cost can expose their property to the maximum number of buyers possible.  More and more real estate agents are discovering that marketing is much less expensive and online condo auctions give them the most bang for their marketing buck.  Auctions are a trend that with today’s economy will continue to grow.

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REO Properties

Thursday, January 14, 2010 @ 04:01 PM Author: Tim

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 all 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.

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What Happens on Auction Day

Thursday, January 14, 2010 @ 02:01 PM Author: Anthony

Consumers are naturally curious about what happens on auction day.

It’s a busy and fun-filled time, to be sure. The staff of RealEstateAuctions.com has prepared for weeks to make this event worthwhile and beneficial for buyers and sellers.

Participants are required to arrive at least 30 minutes prior to the start of the event to register and pick up all necessary materials. A full hour in advance is really the best bet, as most people typically cut things very close time-wise. That’s human nature, it seems!

Upon arrival, buyers will produce (but not surrender) the certified check they have brought for each property theay are interested in bidding on. Registration staff will also ask for a government-issued photo ID, such as driver’s license, passport, etc., as proof of identity.  Buyers  receive a copy of the auction Terms & Conditions along with a numbered card, or paddle, that they will hold aloft when making a bid at auction.  Buyers will also receive a printed brochure or pamphlet with basic information about each property for sale that day, including photos, adresses and prices.

Sellers also check in with staff at the entrance to the auction room.  Sellers will be shown to a designated area in the auction room where they can be positioned to be in contact with the  and a RealEstateAuctions.com facilitator as they event progresses.

Spectators  are welcome to attend to experience what happens on auction day. We require spectators to  check in and register with staff outside the auction room. Spectators can take a printed brochure or pamphlet to follow along with the action, too. Attending a real estate auction as a spectator is a great way to learn about the process and see if it’s something you’d like to take part in. 

An event facilitator welcomes the crowd and reviews the basic ground rules of the day. The event kicks off in earnest when pictures of the first property appear on the screen and the auctioneer takes off into his signature chant.

Auction properties will vary in their popularity. Some properties receive a high amount of bidding, some less. Bidders raise their paddles to indicate their bid as the action skips back qand forth across the room, always under the watchful eye of the auctioneer at the podium and his bid assistants stationed in the crowd.

Absolute auctions are the most exciting. Properties sold “absolute” means the highest bid wins. Sellers are sometimes reluctant to offer their properties in the absolute category, fearing the bidding might not be high enough. Often, the opposite happens because bidders in an absolute auction know that if they go just go a little higher in price, the property could be theirs.

Once a winner is declared,  a friendly associate with RealEstateAuctions.com shows the way to the contract administration area where paperwork begins for the purchase of the property, concluding what happens on auction day.

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