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.
Auctions have many benefits for everyone involved. Obviously the seller knows that his property will sell at an auction depending on which method he chooses to convey his property and he knows that buyers who attend auctions are ready, willing and able to purchase that day. Sellers also can be assured that the property will sell at market value although the attitude by many unfamiliar with auctions think properties sell at a discount. At an auction the market value is guaranteed due to the property sells at what a buyer is willing to pay and from the competition created among potential buyers. Buyers also enjoy many benefits, some quite similar to what the seller realizes. Buyers know they will purchase property at fair market value and the seller is committed to sell. Buyers at auctions also know they determine the final purchase price eliminating long negotiations competing fairly with other buyers under the same terms. Buyers realize that purchasing through an auction reduces the time to purchase and closing dates are known when the gavel comes down for the final sale. As I said before everyone benefits from auctions, even realtors. Realtors have recently embraced this type of selling real estate for all the advantages the buyer and seller realize. The realtor can offer their clients and customers new options for selling and purchasing property generating a list of ready and qualified buyers and sellers. In confidence the realtor can assure sellers and buyers that the property will sell at market value and be confident that a closing will take place and when.
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