Q: WHY SHOULD I CHOOSE AUCTIONING OVER THE TRADITIONAL WAY OF SELLING?
A: Auctioning is not a replacement for the traditional way of selling real estate, rather it is an alternative to it. Auctioning is not affected by the limitations of a traditional brokerage model and overall, it has fewer limitations. Also, it elevates the property to be auctioned above all of the other inventory on the market while creating a sense of urgency and competition amongst buyers.
Q: WHY DO LUXURY REAL ESTATE SELLERS, BUYERS, AND AGENTS PREFER TO AUCTION?
A: Most wealthy individuals are familiar with trading luxury assets such as jewelry, art, classic cars, and so on, through auctions. So, why not apply this same method to selling expensive real estate? Auctioning allows the agent and the seller to fix the timing and terms of the sale. Our far-reaching public relations, targeted marketing, and sales campaign attracts global qualified buyers who traditionally close within 30 days of the auction. Brokers still receive their commission. For buyers, we present first-rate inventory of the world’s best properties from sellers that are ready to sell, while assuring that they are not overpaying.
Q: HOW DO I ASCERTAIN IF AN AUCTION IS THE RIGHT PROCESS FOR MY CLIENT OR ME?
A: Auctions are suitable for selling exclusive and distinct properties in desirable areas. Every market has a threshold above which properties are harder to sell, and at this stage often used measures such as prolonged advertising, price reductions, and PR exposure can usually do more harm than good. For instance, in the luxury market of $6 million and higher, price has no effect on interest level, and price reduction is fruitless.
Q: HOW DO I GAIN FROM AN AUCTION?
A: Auctioning affords the seller the ability to take control of the selling process – timing, contract terms, and competition ending price reductions and chasing the market. The transaction is non-contingent – payment is by cash – as is eliminating appraisal and inspection concerns. Payment is within 30 days from the auction – unless the seller requests otherwise. A seller then knows exactly when their income will become available for other business ventures.
Q: IS IT A MISCONCEPTION THAT AUCTIONS ARE ONLY FOR DISTRESSED PROPERTIES?
A: Yes. Elite Auctions only accepts non-distressed luxury properties whose sellers are ready to move on and have decided to sell their properties within a particular time frame. Typically, our properties are in the range of $1.5 million and above.
Q: ARE AGENTS COMMISSIONS PROTECTED?
A: Yes. We work side by side with the listing agents, and a commission is given to the buyer’s agent. We welcome input from the listing agent and we believe that teamwork and a partnership creates the best outcome.
Q: HOW MUCH DOES IT COST?
A: Our sellers pay an engagement fee. And our buyers pay a buyer’s premium over their bid. For more details see the individual Terms and Conditions of each auction.
Q: WHAT ARE THE DIFFERENT TYPES OF AUCTION FORMAT?
A: Without Reserve or Absolute. We sell out the property to the highest bidder on the day of the auction. There is no minimum bid, which must be exceeded before the property is sold.
With Reserve. The assets will be sold at or above a minimum bid that has been predetermined on the auction day. Once the bidding reaches the reserve then it becomes Absolute or No Reserve above the minimum.
Q: HOW DOES AUCTIONING WORK?
A: Commonly, our properties are marketed for four weeks before the auction day. Our expert team works with the listing agent to enlighten potential buyers about the auction process and oversees registration through scheduled previews, private showings, broker opens and open house hours. Within this period, due diligence is urged, as all sales are as is and without contingencies.
Q: WHERE DOES THE AUCTION OCCUR?
A: On-site. The auction will occur at the property or a nearby venue. Bidders can make bids in person, by phone, and via proxy (see terms & conditions of sale for each auction property)
Q: DO YOU ACCEPT OFFER BEFORE THE AUCTION DAY?
A: Yes. All offers received before the auction day are put forward to the seller for consideration.
Q: I’M READY TO MAKE A BID. WHAT NOW?
Q: I AM READY TO AUCTION MY PROPERTY. WHAT NOW?
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