The luxury set is moving away from traditional real estate sales in favor of luxury real estate auctions. Mansion auctions move faster, are more discreet, and offer far superior sale terms. When getting involved with the auction of a luxury home buyers should be crystal clear on what they want. Some buyers are set on finding a uniquely gorgeous investment property but are flexible on location while others only look in certain countries or cities but feel open to a variety of architectural designs and features. Regardless of what one may be after, luxury real estate auction firms have enough options where a buyer never has to compromise.
This list allows bidders to assign a personal value to the unforgettable properties they decide to bid on. Those interested in luxury property auctions are likely well accustomed to winning, so here we are sharing the secrets to securing the winning bid.
No Action Without Research
Doing your due diligence may be the worst-kept secret to winning a luxury estate auction, but it is still worth mentioning. Research is the backbone of any acquisition, and it is the determining factor in estate purchasing success. After all, winning a luxury property auction is one thing, but getting a one-of-a-kind estate for a fair market price is another. As much as possible, research property data and reports on properties that are comparable to the estate you are interested in.
Determining value for properties of this caliber is difficult, as comparables are few and far between, and sales data for luxury estates are often kept private. The majority of these estates are set in the most desirable locations in the world, fit with state-of-the-art technology and elite design by the most esteemed architects. Finding equivalent properties becomes even more cumbersome when the estate has rare historical components. Working with a firm such as Platinum Luxury Auctions can help sellers gain insight into other spectacular estates that are soon to be listed at auction. The more research you and the estate auction firm can do, the better position you will be in to win.
Bid With A Winning Attitude
During the bidding process, interested parties call out offers that exceed previous bids, and the entire auction takes only a matter of minutes. Mansion auctions are known to be highly exciting and entertaining, so it is easy for first-time bidders to get wrapped up in the emotions of the day as any estate of this caliber is sure to be exceptional. The secret to winning a luxury property auction is to go in with a clear mindset, knowing your ideal ending bid and the maximum bid you are willing to make. These numbers come from your research and due diligence–which is why it was the first secret to winning.
Once bidding begins, some strategies can help one secure a luxury property at auction. If it is a no-reserve auction, hopeful buyers should resist the urge to make a low starting bid. As everyone in attendance will most likely have a check in hand for a portion of their maximum bid, and already passed a financial background check, your starting bid must be aggressive. Even though it may seem counterintuitive, making a strong bid at the beginning eliminates at least a portion of those in attendance. By diminishing the competition early, buyers ensure their own success of winning without overpaying.
Another strategy is to send a proxy in your place. They know your finances, have discussed your ideal offer, and will take on the bidding process aggressively and without emotion. Professional bidders are well-versed in reading body language. For example, proxy bidders can spot a bidder approaching their maximum offer. When that happens, the proxy will reduce the increments of the bids but increase the speed at which they counter. While you can learn the ins and outs of bidding, some find they do not have the time to take on another task and outsource to those with years of experience.
Finding The Right Seller
In general, buyers and sellers who choose luxury real estate auctions value their time as much as their money, as all parties involved are in the upper echelon. However, the secret to winning a luxury property auction is finding a seller who does not have an emotional attachment to their estate. An emotional seller is someone with unrealistic expectations for the sale price, as it reflects their feelings about the property rather than the market. Often those sellers will choose a reserve auction, which means they retain the right to accept or reject any offer by any buyer, regardless of the price.
The “right” seller is someone who trusts the process and knows the value of what they have. These sellers will generally choose an absolute auction, meaning there is no minimum bid. While the starting bid may be lower than the seller would ever accept, the auction process inherently creates a fair market value, as the interested parties try to secure the winning offer. Sellers who choose to auction luxury homes this way believe their estate will attract interest and intrigue, which generally means these are among the most rare and beautiful properties.
Minimum bid auctions are not inherently better or worse than absolute auctions. They simply mean the seller is covering their bases, ensuring they get back what they put in. Minimum bid auctions can also be useful as they give an idea of the ending price, although a luxury estate auction firm can provide insight before auction day.
Only Work With The Best
The secret to winning a luxury property auction is finding it and securing it without contingencies and broken contracts. To achieve this, buyers must work with the best in luxury real estate. Platinum Luxury Auctions offers exclusive estate auctions to the luxury set, and they sell the world’s most beautiful properties. While traditional real estate transactions stall the purchasing process, wasting time on closing contracts, the mansions sold by Platinum Luxury Auctions close within 30 days.
With a signature level of service, Platinum Luxury Auctions ensures all parties have a seamless experience, so you leave the winner of your dream property, whether it is a villa in Italy or an ocean-side estate in Hawaii.