Despite 3 Years on Market and 5 Registered Bidders
A 3.7-acre equestrian estate in Wellington, Florida that was scheduled for sale today at a live, luxury auction® will instead seek offers from interested buyers through direct negotiations. According to Platinum Luxury Auctions, the Miami-based luxury real estate auction firm that specializes in selling multimillion-dollar properties for wealthy sellers, the owners elected against proceeding with a live auction despite the fact that five bidders had qualified and registered for the auction, which was to be held on the property site at 4pm ET. Before today, Platinum enjoyed a flawless sales record in the posh equestrian town in western Palm Beach County, selling 7-of-7 properties it offered for auction there.
Originally entering the market asking $6.15 million in November 2015, the property experienced several price cuts throughout a total of 36 months on the market, before landing at an asking price of $4.5m. It was taken off the market in October 2018. The owners then contracted with Platinum in December for the planned luxury auction sale in 2019, during Wellington’s Winter Equestrian Festival (WEF).
The auction was originally scheduled for February 15. That sale was subject to a reserve price of $2 million, meaning the property would be sold if the highest bid met or exceeded the $2 million figure. While four bidders registered for that auction, the seller and Platinum elected to briefly extend the sale to March 1 in order to accommodate a number of other potential bidders who expressed late-stage interest in bidding.
As part of the brief extension, the terms of the luxury auction were made more appealing, with the property now being offered without reserve, meaning it would sell to the highest bidder regardless of the price. Bidders were also given the opportunity to put forth a bid in advance of the extended home auction date, and could earn a discount on their purchase fees in exchange for doing so.
A total of five bidders registered for the March 1 auction: three bidders returned from the initial group of registrants, and two new bidders were added as a result of the extension. In addition, all five of the bidders put forth written bids in advance of the auction, ranging in price from $1 million to $2 million (meaning the highest of these bids actually met the $2 million reserve price for the initially planned auction)
According to Platinum, these advanced bids are merely starting points that are typically increased during the live auction, often well in excess of their initial amount. “It’s like a business negotiation: no one opens with their highest and best offer,” stated David Enriquez, Platinum’s vice president. “The bidders want to see highest and best pricing developed in the actual auction room.”
“It’s certainly frustrating, especially for our bidding audience,” Enriquez added. “We’ve worked for many years to cultivate a great relationship with our global database of equestrian, ranch and farm purchasers, and our goal is to continue to present them with the best purchase opportunities we can provide.”
Platinum marketed the property internationally for a total of seven weeks (including the two-week extension). While the firm did not yet compile its data through the extended period, the first five weeks of the marketing campaign produced 54,460 international pageviews from 23,422 unique visitors to the property’s dedicated auction webpage, resulting in a total of 85 formal purchase inquiries and 49 property showings.
The property offers a 12-stall barn, 8 paddocks and a mirrored, 20m-x-60m outdoor riding arena presently suited for dressage. A larger ring for hunter-jumper enthusiasts can also be developed. Equestrian amenities are complimented by an impressive residence with a total of 4 bedrooms and 4.5 baths throughout more than 4,800 square feet.
Additional property information can be found online at WellingtonLuxuryAuction.com, or by contacting Platinum’s project manager Aaron Carmody at 800.683.3789.
Platinum managed the transaction in cooperation with listing agent Matt Johnson of the Engel & Völkers brokerage in Delray Beach.