Many property owners are opting to forgo traditional listing and negotiated sales for luxury real estate auctions. However, as it’s a newer concept for many sellers, it is likely one will have questions. While it can feel as though the process is daunting, with many unknowns, the fact is that when sellers partner with elite firms who auction luxury homes they benefit exponentially. Auctioning your luxury property can mitigate the amount of time spent on the market, can increase the advertising for your listing, and allow sellers to keep their privacy and control over the sale, all while ensuring that the estate sells quickly and at a fair market price. Platinum Luxury Auctions® not only leads the industry in luxury auctions but also founded the concept. As we focus exclusively on non-distressed auction sales of multimillion-dollar real estate, making us acutely able to explain the many advantages of auctioning your luxury property.
Marketing Makes All The Difference
One of the most enticing aspects of a mansion auction is marketing. When working with a luxury auction firm, such as Platinum Luxury Auctions, you get access to world-class marketing and advertising experts. Firms create marketing programs that are specifically directed at qualified potential buyers that are spread out across the world. These efforts result in buyers who have come to bid and are fully prepared to buy, all of which increase the sale price.
Luxury Auctions Get Properties Sold Fast
At Platinum Luxury Auctions, we’re able to provide fast sales for multi-million dollar properties, with most being sold within 60 days of our advertising efforts, only 30 days post auction. This is highly attractive for sellers who want to make certain their estate sells on a schedule that’s predetermined. Owners work to define a sale date that allows firms enough time to attract highly qualified buyers through dedicated marketing, avoiding too much time spent on the market. This is because as estates sit on the market unbought, they become less appealing to buyers, and which drives the price down. Additionally, auctions save sellers the long-term carrying costs for their property from taxes to estate maintenance, staff, etc. Luxury real estate auctions keep the sale through to completion as the buyers have all the necessary property information and go into the auction with full transparency and no contingencies.
Whereas traditional real estate sales can last for months, with innumerable showings from often with unmotivated buyers, auctions guarantee when a property will sell. Luxury real estate auctions also value the sellers’ privacy in the highest regard, which is particularly beneficial for high-profile luxury real estate owners or those selling a unique or historic property. These sellers tend to attract the intrusively curious, as opposed to the serious buyers.
Complete Control Over The Sale
The auction process is determined by the seller, under the advice of a luxury auction company. Sellers can choose which type of auction they feel suits them, their property, and their goals best. While a minimum bid auction or publish bid auction ensures that the property sells for a minimum set price, and the seller keeps the property if that sales price isn’t met. Both buyers and sellers tend to prefer this type of auction as it gives full transparency which avoids either party wasting time or resources. Absolute auctions have no minimum and the sale goes to the highest bid regardless of the number. Although this is riskier for sellers, absolute auctions tend to attract far more bidders, which can result in a bidding war. A reserve auction is where the seller has set a minimum bid but has no obligation to disclose that price to the bidders, this form of a luxury auction gives sellers the most control, although it is important to be realistic in the minimum bid that is set.
A major benefit of auctioning a luxury property is the state-of-the-art resources that are available, and the top-tier service provided by the auction firm. As previously mentioned, the advertising campaigns and strategies are aggressively designed to intrigue potential parties from around the globe, but the service extends far beyond marketing materials. Auction companies use data to decipher which strategies we’ll lead to solid bidders who are prepared to buy. Platinum Luxury Auctions offer ultra-responsive service as well as full transparency with sellers so that together they can find the most qualified buyer and get the highest sale price possible for the estate.
Auctions Ensure A Fair Price But Commonly Lead To The Best Price
As luxury real estate properties generally do not have many comparables, they can be cumbersome to appraise, particularly if they have unique design elements or aspects. This means that luxury property owners who’re looking to sell have historically had difficulty determining what both fair and realistic asking price should be. Auctioning luxury property allows buyers to duke it out on an even playing ground, which ends in the best sale price possible in relation to the estate’s value. Every buyer is given all due diligence information and materials prior to the day of the auction because luxury auctions are inherently transparent. All buyers go into the process knowing the specifics resulting in fair market price.
There is another aspect of auctions that moves beyond straight economics and plays on the psychology of the buyer. The more bidders compete to win the property, the more its value is increased by the community, as they can see what the other potential buyers are bidding. Mansion auctions offer sellers the opportunity to benefit from a “bidding war”, whereas, with negotiated sales, sellers have no alternative option, which can put them at a disadvantage. All of these aspects lead to auctioned luxury properties often selling for a better price than a negotiation sale.
Platinum Luxury Auctions®
If you are ready to explore the benefits of auctioning your luxury property, you needn’t look further than Platinum Luxury Auctions. We cultivate the power of advertising, marketing, and public relationship added to a luxury real estate brokerage with extensive experience in auctions, saving sellers on costs while maximizing their benefits.