Real Estate Auctions

Commercial Real Estate Auctions

2010-10-05 16:31:57

Commercial real estate auctions are held daily around the United States, and bidders from around the world can participate in person and via the Internet, buying everything from small free-standing retail buildings up to shopping centers and vacant land.

One of the biggest pieces of commercial property in the country was sold at auction on August, 2009, when the building known as the Old Chicago Main Post Office was sold at auction to English real estate developer Bill Davies. The opening bid for the nine-story building spanning the Congress Parkway was $300,000, and the winning bid was $40 million, quite an improvement. Davies missed a deadline for completing the sale at that price, but later agreed to pay about $17 million for the property at 433 W. Van Buren St. and the sale was completed. Dating back to 1921, the landmark structure encompasses more than 60 acres of floor space (2.5 million square feet). It had been vacant since 1997, and several attempts to sell it failed, until the 2009 auction.

While most of the properties for sale are not that big, almost anything can be found at auctions. Several websites advertise where all the auctions are being held on a daily basis. Commercial real estate investors and brokers participate, as well as private individuals just interested in obtaining a small piece of property in which they can open a restaurant franchise or other small business.

Commercial real estate auctions are popular among buyers and sellers for the same reason that residential property auctions are—the sales are quick and easy, and the winning bids can often end up being higher than the seller expected, but still less than buyer expected to pay. Only serious bidders who have demonstrated financial backing can participate, so sellers are confident that the sale will be completed in a timely fashion. The sale price is usually less than the property’s most recent appraisal value.

While commercial real estate auctions are commonly held in cities such as New York, Chicago, Los Angeles and Miami, at least weekly, as well as in smaller towns around the country, modern technology makes the location almost a moot point for buyers and sellers. All the properties being sold at commercial real estate auctions are advertised on auction company websites for weeks before the event, and many of the property details are available online too. In most cases, Internet bidding is allowed too, so buyers from around the world can participate. As long as they have Internet access, prospective buyers can literally be in Timbuktu while placing bids on property located in Times Square.

Announcing Purchase of RealEstateAuctions.com

2010-10-05 14:01:58

Capitalizing on the growing popularity of auctions as a preferred method of real estate sales, OwnACondo.com has purchased the domain RealEstateAuctions.com.

The purchase was made Jan. 6, 2010 and will enable OwnACondo.com to immeasurably expand the real estate auction services it offers, according to Brian Kuzdas, the company founder and owner.

“There is simply not a better name to have for real estate auctions,” Mr. Kuzdas explains. “I equate it with having Doctors.com or Lawyers.com if you’re in that field. It’s absolutely huge for us and for our customers—locally, regionally and soon nationally.”

The domain name of RealEstateAuctions.com was found “parked” with no content, a situation Mr. Kuzdas and his staff have already changed since the purchase.

“We’ve now got a website up with more content and functionality being added daily,” he says. “We’ve scheduled our first auction under the new name for Saturday, March 27, 2010 in Oak Brook, Illinois.”

RealEstateAuctions.com will auction all types of real estate, including single family homes, condos, townhomes, apartment buildings, commercial properties, vacant land and more.

Real estate auctions are growing in popularity as buyers and sellers alike seek an accelerated way to conduct business.

Almost $59 billion in real estate sold via auction nationally in 2008, according to statistics from the National Auctioneers Association, with an even greater amount anticipated for 2009 once year-end totals are in. Auctions are expected to account for 30-35 percent of all real estate sales nationally in coming years.

“Buyers love auctions because of the potential for great deals, and sellers love auctions because it’s a fast and fair way to sell their property quickly to buyers who are already qualified. By no means are auctions just for distressed real estate anymore,” explains Mr. Kuzdas.

The domain name of RealEstateAuctions.com was purchased after six weeks of negotiations, with the aid of a broker who helped locate the owner.

“The name had been reserved and basically sat unused for more than 15 years,” Mr. Kuzdas says, “and now we’re the proud owners of the best domain in the industry!”

RealEstateAuctions.com will house its offices side by side with OwnACondo.com as both entities expand nationally.

Upscale Real Estate Auctions

2010-10-05 13:55:43

Upscale real estate auctions have become all the rage in recent years. Auctions in general are now one of the most popular ways to sell first-rate real estate. Everything from modest single-family homes up to brand-new luxury condos and mansions are sold at auction, putting to rest the myth that auction properties are somehow inferior or low-grade.

In fact, the National Auctioneers Association maintains that auctions are now the primary sales method used to sell multi-million-dollar homes as well as other valuable assets such as vintage vehicles and artwork. According to the NAA, $58.6 billion in commercial and residential real estate was sold at auction in 2009. That is the most ever recorded, and by 2013, the NAA predicts that one-third of all real estate in the United States will be sold at auction.

Developers of new condo developments often start by selling the new units the old-fashioned way, but then turn to auctions to speed the process along and sell all the remaining units. A developer can sell literally hundreds of condos in one day at auction, instead of taking months to sell them individually using the traditional method.

Of course, dilapidated properties are still sold at auction too, but there are many more upscale real estate auctions at which houses and condos in perfect condition are being sold this way around the United States. People just like to sell their properties at auction now because it is the most efficient way of doing so. The real estate company handling the sale takes responsibility for aggressively markets the properties being sold, and holding open houses so prospective buyers can see them beforehand.

An added benefit for sellers is that only qualified buyers bid on the properties, and they must have their financing in place so the sales are practically guaranteed. Sellers can also set a minimum price so they will not lose money. And both buyers and seller like the fact that closings must be completed within 30 to 45 days, so there are no delays.

While banks sell many foreclosed condos and other REO properties at auction, many are in walk-in condition, rather than being dilapidated, as many prospective buyers might fear. Many foreclosed condos are actually in excellent condition. Economic circumstances have just led many people to foreclose on upscale properties, many with the latest upgrades, which can be purchased at a discounted price at auction. The banks that take possession of them are interested in selling the properties as quickly as possible, while they still retain their value.

Upscale real estate auctions are great for buyers and sellers alike. Buyers can often find great deals on dream houses, in move-in condition, as well as investment property too. While sellers, if they designate a minimum bid, can get their asking price, and often more than they expected, because the competitive bidding drives the price up.

Real Estate Auctions on the Rise

2010-10-05 09:59:07

The popularity of real estate auctions has increased significantly in recent years, and for the most part, it has been under the radar in terms of public knowledge.

The National Association of Auctioneers (NAA) has understandably got its finger on the pulse of real estate auctions. According to the NAA, almost $59 billion in real estate sold via auction in 2008, with an even higher amount expected for 2009 once the year-end totals are in. Those are impressive numbers.

In fact, the NAA estimates that 30 to 35 percent of all real estate will be sold via auction within the next five years. By anyone's reckoning, that's an awful lot of real estate.

Why are real estate auctions increasing in popularity? Several reasons:

Online merchandise auction sites, such as e-bay, have introduced huge segments of the public to the auction concept.
Auctions are no longer thought of only as a vehicle for distressed products
A difficult economy has sellers looking for alternative ways to market their properties and attract buyers when traditional real estate methods are taking too long
Buyers and sellers are realizing auctions are a method that's typically faster and easier to transact business
Buyers and sellers understand that auctions are really the best way to determine exactly what any real estate is worth, right now. Not last month, not last year, but in a head-to-head, open-outcry forum.

RealEstateAuctions.com recognizes the value of auctions to buyers and sellers and is committed to bring the very best properties to the table for these exciting events.

There are three types of auctions that are typically part of any event held by RealEstateAuctions.com: Absolutete, Minimum Bid and Reserve. Here's how they work:

Absolute Auction: This is the textbook type of auction, the kind most people think of. The highest bidder wins the property. Properties that are sold "absolute" invariably get the most attention from the buyers. As they bidding notches up, bit by bit, each bidder knows that if he or she just goes a little higher, the property could be theirs. But of course, every other bidder in the room is thinking the same! Absolute auctions auctions are typically the most exciting, the most well-attended and have the most competition.

Minimum Bid Auction: The seller sets a minimum price at which bidding must start. This offers the seller protection that the property won't be sold beneath what he or she can live with, but this strategy also runs the risk of having little or even no participation if bidders feel the minimum bid is set too high.

Reserve Auction: The seller may accept, reject or counter the highest bid for any reason, and usually has within three days to do so. Like the Minimum Bid Auction, the Reserve Auction offers the seller a lot of protection, but also tends to draw less interest from bidders.

Auctions and Chicago Real Estate Market

2010-10-05 09:34:15

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.

Condo Auctions Getting More Popular

2010-04-19 11:56:48

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 help 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.