Archive for January, 2011

Capitalizing on Condos They’re Bringing in the Cash and Clientele at Real Estate Auctions

January 31st, 2011 by PA - Bloger

With the auction method of sale continuing to be of great benefit to both buyers and sellers in the real estate market, condominiums are among the hot properties being sold at auction. Whether it’s a first-time home buyer, a retiree who wants to downsize, or someone looking for a luxury getaway, condo auctions are once again riding the wave of popularity.

Auction.com reports, “…it seems that condo auctions are making a positive impact on popularity and availability of condos and the results have been astounding. After weathering last year’s very bearish market, the condo market has picked up with new projects in the works and are being planned nationwide… Recent auction sales have quadrupled sales numbers of traditional figures. This success shows the viability of this type of sale for consumers and buyers.”

Many condo owners are taking advantage of selling via auction. To avoid paying further maintenance costs and taxes, condo property auctions are proving to be a quick and profitable way for sellers to not only vend their property but also gain a favorable return.

No matter what the climate of the real estate market, the benefits of condo ownership remain. With most complexes offering extensive maintenance plans that include landscaping, snow removal and minor repairs, as well as lavish amenities like swimming pools and gym facilities, condos are still a solid sell.

For those looking to go upscale, there’s no wonder why Florida and California condo auctions in particular are keeping quite busy with condo auctions – beach states are prime locations for luxury properties. What better way to acquire a vacation condo than through a real estate auction? You can end up with the vacation home of your dreams for light years less than you’d pay on the traditional selling market. The savings can be astronomical.

One thing is certain – real estate auctions are gaining more exposure and recognition as a lucrative option, whether you’re buying or selling. According to Condo.com, “Auctions on Condo.com and elsewhere are continuing to gain popularity. The real estate auction market has picked up momentum in recent years proving to be a viable solution for sellers to liquidate inventory quickly… According to the National Auctioneers Association (NAA), home auctions have increased 10% each year since the early 2000s. In the first quarter of 2010, auction sales had already grown by 17%.” Looking ahead in 2011, real estate auctions will surely continue to make their mark in the industry.

Foreclosures vs. Private Sellers: Who’s Got the Edge?

January 24th, 2011 by PA - Bloger

As the real estate market remains unpredictable, private sellers are finding they have more competition than usual. The amount of foreclosures currently on the real estate market is causing concern nationwide for property owners simply looking to make a sale.

Why are bank-owned properties such stiff competition for private sellers?  BankingMyWay.com sums it up simply as “There has never been a better time to buy a bank-owned home. They’re available, they’re cheap, and banks are more likely to assist with financing.” The bottom line is that the real estate market today is flooded with foreclosures – meaning, banks have hundreds of properties that they want sold ASAP. A bank is highly motivated to get their property sold since there is no profit to be made, only monetary loss to be stopped. Also, a bank doesn’t have any emotional attachment to their property like a private seller does – it’s purely a business transaction, and a bank is looking to close the deal.

Bank-owned properties can present lucrative opportunities, though buyers still have to practice their due diligence and cover all their bases prior to purchase just as they would from a private seller.  Foreclosure properties are sold in ‘As Is’ condition, and there’s little chance for negotiation. Some buyers find there is more wiggle room when dealing with private sellers on issues such as repairs, closing costs and dates, etc. Also, with the steady competition of foreclosed properties, private sellers are becoming much more flexible on price.

Still, the abundance of foreclosures is viewed as a profitable windfall for real estate investors, where a buyer can capitalize on acquiring properties they never would have been able to afford a decade ago. This new facet of the real estate market is giving private sellers of real estate at auction a run for their money and pushing them to develop new marketing strategies to get an edge in the competition.

Defining the Terms: The 3 Main Types of Real Estate Auctions

January 11th, 2011 by PA - Bloger

With the popularity of real estate auctions continually rising, everyone from real estate investors to first-time home buyers are hitting the auction circuit. For those who are new to the auction process, some can be apprehensive about the terms and guidelines that are unfamiliar. This shouldn’t keep anyone from pursuing an auction – some simple research online can equip potential buyers and sellers with all the vital information needed to be a part of the auction action.

When dealing with real estate auctions, it is imperative to know the difference between the 3 main types of auctions, which are Minimum Bid, Published Reserve and Absolute:

A Minimum Bid is the lowest bid (decided by the seller prior to auction) the auctioneer will accept for a property. Once that bid is reached, the property will sell to the highest bidder.

A Published Reserve is the lowest amount that the seller must sell a property at auction, but the bidding can start wherever the bidders choose. If the Published Reserve bid is not reached, then the seller can accept, reject or counter the highest bid.

An Absolute Auction is where the highest bidder acquires the property, regardless of the amount. There is no reserve price below where it will not be sold. Absolute Real Estate Auctions tend to attract the highest amount of interest.

Determining these types of auctions is imperative in terms of bidding. According to Realty Marketing/Northwest,”The Minimum Bid and the Published Reserve are extremely important, because these are the figures at which the seller is committed to sell the property at the auction…The seller’s obligation to honor a Minimum Bid or Published Reserve applies only to the auction. Before or after the auction, sellers are under no such obligation.”

Finding the definitions of auction terms such as these are right at your keyboard, which is good news since the auction method of sale has become a driving force in the real estate industry. “Sellers include all those who sell properties through conventional brokerage firms…” Realty Marketing/Northwest reports, “builders, developers, trusts, institutions, non-profit organizations, governmental entities, lending institutions, investors… and the list goes on and on.” Potential buyers and sellers can easily educate themselves on the ins and outs of auctions to so they can capitalize on the financial opportunities that auctions have to offer.

And the opportunities are plentiful. Take LFC’s online Minimum Bid auction of a 2278+SF Warehouse/Office/Logistics Facility in Williamstown, West Virginia (minimum bid: $395,000; bid deadline: February 3, 2011); or Nicholls Auction Marketing Group’s residential property in Chesterfield County, Virginia, scheduled for Absolute Real Estate Auction in Virginia on January 15, 2011. From commercial to residential to open land, all types of properties are rapidly being bought and sold via auction.

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