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Archive for August, 2009
Monday, August 31st, 2009
Choosing the right Chicago Realtor can make all the difference in the world. Chicago contains some of the most culturally rich communities in the United States. Each neighborhood maintains a strong identity due to what immigrant population first settled the area and with the gentrification of many of these neighborhoods that original culture remains alongside many other diverse ethnic groups. Chicago is partitioned into four main sections, Downtown, the North Side, the South Side, and the West Side with over 77 different neighborhoods each offering a certain style of living. Knowing where to look could be overwhelming. Most agents only know a few of these neighborhoods so you might have to talk with several companies to get a good feel for what area in which you might want to buy.
Each of the neighborhoods in Chicago offers new construction as well as conversions of older brown and graystones and converted apartment buildings. The amenities in any of these can be quite diverse. Older buildings do not always mean older wiring or plumbing. Chicago Realtors and developers are ahead of most others using premier products and state of the art technology. Walking into some of the older conversions can seem like a walk in the past but underneath is an infrastructure of the highest quality and workmanship. Condos in Chicago today are known throughout the country for their design and quality.
With so much to look at and know what does a Chicago Realtor do for you? Most people don’t know and are sometimes reluctant to find out because they think working with a realtor is going to cost them money. In some instances this is absolutely correct but with most people looking to buy a home or condo there is no cost.
So let’s take a look at some of what a realtor can do for you.
- Send you detailed listings of areas and property types of your choice
- Make appointments and accompany you to see your selected properties
- Update and inform you on all important information in the real estate market
- Aggressively negotiate on your behalf
- Assist you with resources regarding financing matters
- Give you all my experience and guide you through the entire buying process
A good realtor does all these things and more to make sure the decision you make is one you are comfortable with and feel is the right thing to do, especially in today’s volatile market.
Tags: Chicago Condos, Chicago condos for sale, Chicago Real Estate, condos for sale in Chicago, condos in Chicago, real estate
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Friday, August 28th, 2009
We arrived for the Rick Levin real estate auction at about 1PM in the afternoon. It was August 26th a Wednesday afternoon looking to witness history. Rick Levin’s auction company was about to hold an absolute auction for the old Chicago Post Office building in downtown Chicago. The opening bid was $300,000 and the property would sell regardless of how much the property went for.
The Rick Levin real estate auction was held at a hotel in Rosemont, Illinois, a suburban community just on the outskirts of Chicago near O’hare airport. When we arrived at the hotel, the camera crews were out from just about every network television station. There were news reporters and many spectators as well as the bidders themselves.
As the 1:00PM bell sounded the Rick Levin real estate auction was off and running. They started the ceremonies by reading off all the legal and laws of the auction. That followed with a mock auction selling off Wrigley Field. Then it was for real.
The bidding started at $300,000 and slowly climbed. Before you knew it, the bidding was at the five million mark. As the bidding reached ten million everybody dropped out with the exception of two bidders. For the next half hour two people literally went back and forth, normally by bidding one hundred thousand on top of the last highest bid. When it reached nineteen million, twenty two million and thirty two million there were breaks of time that appeared like one party was going to drop out. A few minutes would go by and then the auctioneer would say, “going once, going twice”, and then, sure enough, the other buyer would go up one hundred thousand and back on track it was.
After one half hour of that, it finally came to a bid of forty million. At that point the second bidder quickly got up with his entourage, the housed clapped and showed him appreciation for an awesome auction of bidding, and the Rick Levin auction resumed. The gavel went up at forty million. Going once, going twice and then, sold to the gentleman up front.
How exciting. A post office in Chicago sells for forty million at the Rick Levin real estate auction, August 26th, 2009.
Tags: Condo Auctions, condos, real estate auctions, rick levin auctions
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Thursday, August 27th, 2009
With the ever changing Chicago real estate market a centuries old process of buying and selling has resurfaced. 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.
There are three different types of real estate auctions available to the general public. First, is the absolute auction which is what most of the public recognizes. This type of auction usually guarantees a lot of buyer excitement and participation due to the property sells to the highest bidder, regardless of price. Many sellers have begun to use this method since an absolute auction offers the best performance results of all. The second type of auction is the minimum bid. Auctioneers will only accept bids at or above the published minimum price. This format reduces the risk for the seller if the seller wants a set price and will not sell otherwise. The down side of this type of auction is a greater risk of setting an anticipated value. The last form of auction is the reserve auction which many people have some difficulty understanding. To make the definition as simple as possible the high bid becomes the offer, not the sale. Reserve auctions do not publish a minimum price and the seller reserves the right to accept or reject the highest bid, usually within a specified time. Sellers in this type of auction predetermine the sale price and are not obligated to sell other than at a price entirely acceptable to them.
Tags: Chicago Condos, Chicago condos for sale, Chicago Real Estate, condos for sale in Chicago, condos in Chicago, sell a condo
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Wednesday, August 26th, 2009
Interested in selling your condo in a real estate auction? There are many ways a real estate auction can benefit a seller. The number one way is the ability to possibly get more money from the traditional marketing methods of conventional real estate marketing. Real Estate auctions can actually make the seller of a condo more money. How is this possible?
When you’re selling your condo at a real estate auction, you’ll have hundreds of people at the auction looking at your property. The process of the real estate auction is a three month time frame. The first month of the three, your property is put on the list of real estate properties that will be in the auction. The auction house will have the product on the website. The first and second months, the auction house is advertising this auction to entire local area, letting everyone know that the auction will take place on a specific date and at what location. The last month is the inspection of your condo through a number of open houses leading up to the auction itself.
During the last month leading up to the auction, there is an immense amount of inspections from buyers. This is the buyer’s time to go through the condominium and evaluate if they want to buy it or not. The buyer will normally have an inspector with him or her to evaluate the condo. It’s important for the buyer to do this homework because they will be buying the condo at the auction as-is. They will have had their opportunity to evaluate things through the open house. Once the auction starts, the buyer will be buying the property as-is, a great thing for the seller.
If enough of people are marketed to, the auction will bring at least a few hundred people making offers on all these properties. It’s an extremely exciting event that brings people of all ages to watch. Once your property is part of the auction and people begin bidding on it, there’s even more of an adrenaline rush because it’s your condominium. What normally takes place is a room of people will start participating in the bidding. Then it will narrow down to two people that really want the condominium. This is where the condo price can get pushed up. Pride enters in and the other party does not want to be beat out. In the end, the two battle it out and eventually the gavel goes down to declare a winner.
Selling your condo at a real estate auction is not only exciting, but has the potential for making you some money along the way.
Tags: Chicago auction, real estate, real estate auctions, Selling Your Condo
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Wednesday, August 26th, 2009
Condo financing can be difficult at times but not impossible. Most conventional financing programs will require the condo to be less than four floors and have more than 50% of the condo units be occupied by their owners. The loan limits must also be under the conforming limit currently at $417,000. With these restrictions you might think that all is lost if you are buying a condo but nothing is further from the truth.
More and more developers are looking to non-warrantable condo financing as a tool to grow their business. Developers are seeking qualified buyers and with today’s uncertainty in the economy are finding it difficult to obtain financing for their projects. Traditional lenders today require a condo questionnaire as well as the condo association docs for each unit they are looking to sell but with non-warrantable condo financing all is needed is a one-time approval and then all subsequent loans can go through underwriting quickly. When you are looking to purchase that condo in the development that seems a little outside the box, don’t despair, financing is available if you know where to look.
As with all condo financing there are documentation requirements which may seem daunting but is not as difficult as you may think. Which mortgage you select will determine the exact documentation requirements and listed below are the most common.
- Last two years W-2 forms
- Last two paystubs (enough to cover 1 month)
- Last two years signed 1040’s and all schedules
- Last two months bank statements, all pages
- Current statement for 401K or IRA accounts
- Complete list of your current debts (usually taken from your credit report)
- Copy of the sales contract
- Copy of your driver’s license, picture ID or passport prior to closing
- Gift letters signed by the donor and proof of receipt and ability to gift funds
- Copy of the earnest money check, both front and back
- Your insurance agent’s contact information
This may look like a lot to ask but lenders who are providing condo financing need this information to make a reasonable decision which protects everyone involved, especially the buyer.
Once you have found the condo you wish to purchase and have contacted a lender there is another consideration, closing costs. It is wise to speak with several lenders to shop rates and closing costs. It can be as varied as there are lenders available. Listed below are some common examples of closing costs on most loans.
- Origination fee
- Discount points (sometimes used to get a lower rate)
- Application fees
- Lock in fees
- Underwriting or doc prep
- Flood certification (verifies the property is not in a flood plain)
- Tax service fees
- Appraisal
- Credit report fee
- Title search
- Title insurance
- Recordation fees (fee to record the new deed)
- State and county transfer taxes as required.
This all seems like a lot of information to ask for and a lot of cost, but look at it this way. For most people you are buying the single most important financial investment you will ever make in your lifetime. When all is said and done and you move into your new condo, you will be glad you did.
Tags: Buying a condo, Chicago Condos, Chicago condos for rent, Chicago condos for sale, Chicago Real Estate, Finance A Condo
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Tuesday, August 25th, 2009
So you are thinking about buying a condo but you are not sure where to start. There are many aspects to buying condos such as what areas, how big and what condo association questions should I be asking. Condo associations were originally created as a legal entity for the purpose of developing, managing and selling the development. It allows the developer to exit the financial and legal responsibilities typically by transferring ownership to the condo owners after selling off a pre-determined number of units. Once this is done the important thing for any condo buyer to know regarding the association that will be overseeing their common property is what are the responsibilities of all involved? You are spending your hard earned money and the last thing you want to do is get stuck with a lemon or live someplace that is not what you expected.
There are a lot of condo association questions to ask before you buy but we will only cover a few.
- 1. Ask to see the condo association board meetings minutes. What have the owners been talking about, what are their concerns and issues, are there a common thread for some of the complaints, etc.
- 2. What is the renter to owner percentage? If the renter population is very high are there rental policies in place either in the bylaws or by an amendment. Always remember the association can change its bylaws so make sure you are well informed of any changes.
- 3. Ask for a copy of the certificate of insurance from the association which is a summary of the association’s policy. Are the replacements costs enough to cover rebuilding if need be? Another important area to question regarding the association insurance policy is if it has a building ordinance clause. This clause insures that the building will be up to the current code if rebuilding is required.
- 4. How much is the repair fund? This will tell you if the association has the funds available for maintenance. If the fund is not high enough then the complex may not be as well kept as it should be or be living beyond its means.
- 5. Ask to see the delinquency rates of the current owners. When people do not pay their association dues on time it may be a sign of discontent and you will need to find out why.
Asking the right condo association questions is as important as finding the right real estate agent or the right financing. We all want to make sound financial decisions and the only way to accomplish this is with the right questions.
Tags: Chicago Condos, Chicago condos for sale, Chicago Real Estate, Condo Associations, condos in Chicago
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Monday, August 24th, 2009
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 the location. The media is helping 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 auctions give them the most bang for their marketing buck. Real estate auctions are a trend that with today’s economy will continue to grow.
Real estate auctions are a win-win situation for everyone involved and there are definite advantages. The benefits for the sellers are they get their property exposed to more pre-qualified prospects, requires potential buyers to have financing in place, creates competition between buyers and most important is the seller knows when his property will be sold. Buyers also are benefitted from auctions and not just from what many think is the most obvious reason, lower price. Buyers do determine the final price at an auction but that does not always translate into the lowest price. Most often the property will sell at market value which is what both buyer and seller are most interested. Most buyers like auctions because they know the seller is committed to sell and eliminates the back and forth of negotiations which can be stressful on everyone involved. Let’s not forget the advantages the real estate agent also enjoys such as, they work only with qualified buyers and have a seller who is eager to sell their property in a limited time frame.
Auctions are becoming more and more popular due to the challenges the current real estate market is facing. Buyers, sellers and real estate agents see the many advantages and are embracing this alternative to more traditional types of property transfer.
Tags: Chicago condo company, Chicago Condos, Chicago condos for sale, Chicago Real Estate, condos for sale in Chicago, sell a condo
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Sunday, August 23rd, 2009
If you’re looking to sell a condo but do not know how to go about it, this article may be of interest to you. Selling a condo starts with choosing the real estate firm you would like to represent you. There are all types of real estate agencies out there today. National brands dominate, but there are also the mid-size local firms and the small mom and pop type shops as well. Where do you start, who do you choose?
My first suggestion is to start with finding a condo real estate brokerage first. There are all types of real estate firms, but if you’re selling a condo, why not choose a real estate agency that specializes in selling condos. Think if you own a Cadillac and you’d like to have someone buy it off of you. Or better yet, let’s say you want to buy a Cadillac. You wouldn’t go to a Lexus dealership for a Cadillac. A buyer of a condo is going to end more often in front of a real estate agent that represents condominiums. By going to a real estate company that specializes in the sale of condominiums, you’re more likely to have an agent that will have a database of buyers that can potentially buy your condo immediately saving you time and money.
Think of the common sense. All day long buyers are going to a “condo only” brand because they want to buy condominiums. They’re not looking to buy vacant land. They have one purpose and that is to find the condo of their dreams. So to start off, find a real estate brokerage that specializes in the sale of condominiums. Once you’ve done this, you’ll have to decide what real estate agent you’d like to represent you. There are dozens of Realtors that work in an office and all are different. You have to be very choosy on this. My best recommendation would be to ask the managing broker to have three different people in the firm for you to do a face to face or phone interview with. Remember, this will be a person that you’ll be doing business with for possible the next six to twelve months. You’re going to want to get to know this person and their assets.
This is your start. Selling a condo starts with the company and individual within the company that will handle your transaction. Choose them wisely.
Tags: condo real estate company, condo selling, Condominium, condos, selling a condo
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Saturday, August 22nd, 2009
OwnACondo.com will be holding a real estate auction in the Chicago area November 8, 2009. The venue will be determined over the next few weeks. There will be many properties auctioned, a majority of them will be condos, but there will be many properties in the auction that day.
The real estate auction on November 8, 2009 will have condos from all areas of Chicago and will feature absolute, reserve and minimum bid auctions. There will be banked owned properties as well as developers and individuals selling their condos that day.
If you’re interested in selling a property in November’s auction, you can call OwnACondo.com and ask for the auction department. The main line is 866.696.2266. OwnACondo.com serves the Chicago condo community but will be opening in Miami, Los Angeles and New York soon. OwnACondo.com is a real estate company that specializes in the sale of condominiums. It started in the year 2000 with helping developers convert their apartment buildings to condominiums. Today OwnACondo.com represent developers, banks and individuals to help them either sell or buy a condo.
The condo auction being held in November may be a great opportunity for buyers to capture an extraordinary deal on some of the new construction development condominiums out there. There are developers that need to sell a certain percentage of their portfolio so that they can extend their current loan with their financial institution. If they do not sell a certain percentage of units, they may have to face the possibility of either getting a new loan on the project or face foreclosure, both situations not very good for the developer. That means deals for buyers.
The real estate auction held on November 8, 2009 will be here before you know it. If you’re looking to buy a condominium, call our office so we can let you know what product will be in the November auction. There’s a good chance that you’ll have at least a few condos represented in the area that you’re looking for. There will be condos in the Loop, River North, Gold Coast, Lakeview, South Loop, as well as many of the suburbs of Chicago including Orland Park, Elmhurst, Lombard and Oak Brook to name a few.
You can register on line for the event or call our main auction line at 866.696.2266 for more real estate auction info. Remember the auction date: November 8, 2009 here in the Chicago area.
Tags: auction in Chicago November 2009, auctions, condo auction, real estate auction, real estate auction November
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Saturday, August 22nd, 2009
Condo auctions, condo auctions. Is this how you want me to sell my condo? Condo auctions can get you a price for your condo higher and faster than just about any method of selling real estate. The auction brings buyers in droves to look at your property. The day of the event may have more than five hundred people bidding, but thousands came to look at the list of what is going to be auctioned. Your property is hyper magnified because so many people are looking at it in a short amount of time, roughly thousands in a three month time frame.
The condo auction will definitely sell your condo. The key question is at what price. Typically it is what people are willing to pay for it. And in the appraisal game, value for a real estate parcel is what people are willing to pay for it. So, if the condo sells at the auction, the price you got for it is fair market value. It’s what people were willing to pay for it at a given moment in time. For those of you that do not trust this method of selling your real estate and fear that you’ll sell it for less than what you think you can get selling it traditionally, start going to auctions to buy property. Become an avid auctioneer and stake out every auction running in Chicago. You’ll see something that you probably didn’t know and that is that most properties that are put in the auction sell. And I think you’d be surprised how much they actually sell for. I think it’s a myth that you can get extraordinary deals at auctions. I find that the public can actually push the price for a condo the other way creating more money for the seller.
Condo auctions are usually held once a month. You can check with your local real tor or Google “condo auctions in Chicago”. Start the process by going to these auctions as a spectator. It will only take a few minutes and you’ll get swept up in the momentum and energy auctions carry with them. Hopefully you’ll find yourself either buyer or selling in them. That’s when the excitement is taken up to a whole new level.
Condo auctions will sell your condo, guaranteed, but at what price? Higher, lower or actually at market value? Usually it’s the latter.
Tags: auctions in Chicago, chicago condo auctions, condo, Condo Auctions, condos
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