If you think auctions are only for distressed luxury properties, then it’s time to reconsider. Auctions are no longer a last resort for luxury home sellers. In fact, auctions are becoming more and more popular for a wide variety of reasons. Have you hesitated to buy or sell a luxury property at auction? Then let us explain why this process can be a real advantage to both buyers and sellers when it comes to luxury real estate.
Auctions are a unique solution for unique homes
Luxury real estate has always posed its own set of challenges to sellers. High-end and upscale homes are often one-of-a-kind, and as a result, can be tough to price. How can you find comps for a home for which there are no comps? Instead, auctions can start at a lower price to attract more potential bidders. When there are more bidders, there’s more competition. This can mean the seller walks away with a higher selling price than what may have been determined for a traditional listing.
Auctions are simpler and faster
Anyone who has ever bought or sold a home knows that the closing process can be complicated and take months — especially with a luxury property. But with an auction, the process is greatly simplified. There are no contingencies to deal with and the transactions can be completed in just a few days.
Auctions create a level playing field for buyers
As a buyer of a luxury home, it can be frustrating to not know how your offer stacks up to other offers. With an auction, all bids are visible, which creates a level playing field. You can see what the demand is for the property in which you are interested and base your decisions on that information.
Auctions open up the property to more potential buyers
Since luxury homes are only suitable to a smaller pool of buyers than an average-priced home, they can languish on the market before finding a buyer. Some luxury properties may not even be listed in the MLS and instead be marketed through a pocket or whisper listing to just a handful of people. With an auction, there is more marketing and more publicly available information about the home, which greatly increases the number of buyers who can bid. In fact, buyers from all over the world can easily participate in the bidding process from the comfort of their own homes.
Auctions provide more certainty
When selling a luxury home through a traditional listing, you have no idea how long the property will be on the market. Will it sell in one week or one month? Or will it take a year or more to find the right buyer? With an auction, sellers have far more certainty. The auction is scheduled for a certain date and if there is no seller reserve it sells on that day. Sellers don’t have to worry about a long, drawn-out marketing process or fret that their home will be on the market too long.
Contact Agent Auction today
If you’re considering buying or selling a luxury home at auction, then contact Agent Auction at 949-791-8160 or [email protected]. Our experts are standing by to answer all your questions about the auction process.