Property auctions provide all parties with a streamlined purchasing process. They are filled with excitement and generally end with a property selling at a fair market price. However, while traditional property auctions are attractive, luxury real estate auctions are in a league of their own. As luxury property auctions deal with estates of an exceptional caliber, the process of a mansion auction is significantly different than that of a traditional property auction. These differences reflect the value and scale of the estate and the requirements of high-status sellers and highly qualified buyers.
Platinum Luxury Auctions is a renowned property auction firm representing the sale of villas, penthouses, oceanfront estates, island escapes, and luxury ranches. In this article, Platinum Luxury Auctions explores the key differences in traditional versus luxury property auctions, from the property to market, the bidding process, and the service provided.
Contrasts In Caliber | Differences In The Properties
The most notable difference is the scale, design, and grandeur of the properties sold through each type of auction. Traditional property auctions are used to sell homes in good condition, but they are used to list homes in serious need of updates and improvements. Many sellers of traditional properties utilize the process of auctions to increase the probability of a sale, particularly if the property is run down, lacks design features, or requires modernization.
This is vastly different from luxury property auctions. Luxury real estate auctions represent truly one-of-a-kind properties. The properties sold through luxury real estate auctions are listed north of 10 million dollars or more. These mansions offer state-of-the-art technology, boast famous designers, and are set against exceptional backdrops in exotic locations. Many bidders buy through luxury real estate auctions because they know their sky-high standards of architecture, artisanship, and design will be met.
Meticulous Marketing Efforts For Affluent Buyers
In traditional property auctions, sellers use the process to avoid having to market their homes themselves. While these auction firms provide a transparent marketplace for their clients and connect interested parties with the listing, it is a far simpler process than luxury real estate auctions. As the home is being offered at a lower price point than if it were listed on the market, many potential buyers can afford to bid. The auction firms specializing in these traditional property auctions provide some marketing, but nothing compared to the luxury market. The meticulous planning and execution of advertising efforts included with a luxury real estate auction firm are unmatched.
In luxury property auctions, the pool of qualified buyers is more specific, coming from all over the world. Platinum Luxury Auctions provides sellers with a team of marketing specialists who create a fast-paced and effective plan for marketing. These experts know how to market historic, unique, and special properties. They showcase these estates to their international pool of affluent potential buyers through professional photographers, videographers, email marketing, and social media campaigns.
The marketing efforts produce results, catching the eye of interested buyers looking to invest. The team at Platinum Luxury Auctions knows how to increase engagements and direct promotion efforts in an exclusive market. Along with the strategies they provide, the team takes care of the entire process, fielding inquiries and interests, addressing the property and market, and delivering insight to the seller on what may benefit the sale.
The Auction Process & Interest Of Bidders
Traditional property auctions use what is referred to as a minimum bid auction. This is when the sellers set the lowest price they are willing to take, and bidders come in at that number or above. A minimum bid auction serves both types of property auctions. However, it is most widely used for traditional property auctions as some homeowners are trying to ensure a sale with no loss incurred. This aspect is noticeably dissimilar from the luxury estate owners, who know their property is exceptional.
In luxury property auctions, the group of motivated bidders has been secured, and the seller, with the assistance of their firm, chooses the type of auction that serves them best. They decide between the aforementioned minimum bid, absolute auction, or reserve auction. An absolute auction signals to bidders that the estate owner is highly motivated to sell and that the property is going to attract a lot of intrigues. During this bidding process, a number of qualified buyers attend a bidding war occurs, leading to a fair market price where all parties are left satisfied. With the reserve auction, the seller retains the right to accept or reject any offer by any bidder, regardless of if the ideal sale price is met or even exceeded.
Disparities In Time Spent
In traditional property auctions, the most important aspects of the process are a low starting price for the listing and the relationship shared between the brokers. Often less than enthusiastic buyers spend time discussing valuations, contingencies, and conducting due diligence all of which delays the process.
Luxury property auctions are designed to run smoothly and provide a date-certain sale. All bidders have proven their financial status to purchase beforehand, and the winner pays a non-refundable deposit on auction day. Luxury auction firms know the cost of maintaining an estate in this market and understand the need to protect the listing if a sale does not occur. The entire time it takes for a luxury mansion to sell through auction is 60 days or less, with the auction set as little as one month from the first meeting.
A Level Of Luxury
In the end, the level of luxury seller’s or buyer’s experience is the main difference between traditional property auctions and high-end estate auctions, not only in terms of the properties. As luxury properties are uniquely magnificent, a specific type of buyer is required. Luxury property auctions connect sellers with smaller subsects of affluent buyers for a seamless process, start to finish.
Working with a luxury property auction firm such as Platinum Luxury Auctions provides elite parties to collect a fair market price for their one-of-a-kind estate. If you are interested in selling or purchasing a luxury home, contact us to auction luxury homes with Platinum Luxury Auctions.