As a luxury property owner, it’s natural to have questions about putting your real estate up for auction. At Elite Auctions, we believe in keeping our sellers as informed as possible. Please feel free to browse these most commonly asked real estate questions for luxury auctions.
1. Does Auctioned Luxury Real Estate Sell at Reduced Prices?
Luxury real estate that’s put up for auction rarely—if ever sells at reduced prices. In fact, just the opposite is true. The luxury real estate auction serves to drive selling prices higher. First, there’s the marketing aspect. When a luxury property is put up for auction, it gets a lot more exposure than it would have otherwise. Auctions tend to highlight properties so that more potential buyers see the luxury property in all its glory, which creates more bidders. Second, auctions inherently add interest and competition. As the luxury auction drives up demand, the prices naturally follow.
2. Should Auctions Be Considered a Last Resort to Selling?
Not at all! Many luxury homeowners turn to auction as a first resort. Auctions have many benefits over traditional listing services. With luxury real estate auctions, the property is not subject to a parade of “lookers” who are curious about the inside of such property. Unfortunately, traditional real estate agents can’t always prevent casual viewings by people who are not even interested in buying a new property. But with auctions, that kind of traffic is stopped in its tracks. In addition, auctions should be the first resort for luxury property owners because there is a better chance of them getting even more than what the original asking price was.
3. Are People Less Likely to Buy Properties at Auction?
For the average buyer, online listing sites like Trulia and Zillow are the go-to sources. But for luxury homebuyers, those sites don’t provide the necessary value. Luxury homebuyers are much more discriminating, and they demand personal service and a property search resource that goes beyond what a traditional listing site can offer. The average person buying a home for $200,000 isn’t going to even think about looking for a home at auction. And that’s okay because the demographic of homeowners looking for luxury properties is going to be somewhat different. The homebuyers that companies like us at Elite Auctions cater to understand that the best luxury real estate can only be found through luxury auction sites.
4. What Services Do You Provide?
There are numerous benefits to the home seller when a luxury property is put up for auction with Elite Auctions. First, a plan is put into place that works with the owners’ needs. This plan includes things like setting an auction date, visiting the property in person, meeting with the owner, conducting an analysis of the market, scheduling the marketing strategy, doing research on the property itself, and more. Next, the plan goes into the production phase. This consists of photographing the property, creating marketing videos, designing the website layout, creating copy, and writing and publishing the press release. Finally, there’s a flurry of promotion that takes place around the property. This entails the website launch, broker visits, email campaigns, private showings, social media campaigns, and much, much more.
5. How is the Value Determined on a Unique Luxury Property?
Many luxury property owners worry that the auction house won’t adequately value their customized luxury property. However, luxury properties are more commonly unique than others, and many are custom homes from the ground up. Others have benefited from the discerning eyes of tasteful owners, master craftsmen, and award-winning designers. The experienced luxury property auction house fully understands the value of fine finishes, additions, renovations, and upgrades. When you work with Elite Auctions, you can be confident that your luxury property will be carefully assessed and valued for the unique property that it is. In addition to assessing comparable properties, your luxury auction house considers the location of the property, the grounds, and, as mentioned, will carefully evaluate every detail and every facet of your luxury home before placing any value on the property. Finally, the value of your property will be discussed with you before any proceedings. You are always an important part of the valuation process.
6. How Long Will It Take to Sell My Luxury Property at Auction?
Every luxury property is unique, just as every market is unique. The answer to how long it will take to sell your property at auction depends on the current market, the buyer pool, and of course, the dynamics of the auction itself. Be assured, however, that you can be involved at all stages, so you will always know what to expect when selling your luxury property at auction. In addition, your representative will always be on hand to update you on the status of the auction process.
If you’ve been thinking about putting your luxury real estate up for auction, hopefully, these answers to our frequently asked questions will help you to better understand what to expect. For further information, please don’t hesitate to contact Elite Auctions.