- Miami Tower Built for Storms July 28, 2010A 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, 2010With 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, 2010Vornado 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. […]
- Boston Properties' Profit Falls, but Beats Its View July 28, 2010Boston Properties' second-quarter earnings fell, as did a key measure of profitability for the office-property owner, but both beat the company's guidance. […]
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.
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.