Previously, estate or property auctions were thought of as a way to avoid foreclosure or as a final attempt to rid a seller of a home. However, now there are auctions for a wide variety of properties, with luxury real estate auctions becoming increasingly popular. These auctions are an entirely different process, and they are quickly becoming the go-to way to buy luxury estates. This is not only because they get buyers a great price, but they leave room for chance and can be quite a thrilling process for buyers. Companies that auction luxury homes offer a fun and exciting method of finding your next investment property, vacation home, or full-time residence. However, if you are considering bidding at a mansion auction, there are some things you should know first.
Know What You’re Looking For To Find The Right Home
Before you begin learning the process of bidding on a luxury estate, you must decide what you’re looking for in a property. Are you interested in a certain type of estate, minimum square footage, specific location, or market? This is the single most important aspect of the process because buyers should avoid bidding on any property that doesn’t benefit their life or bring them value. Once you’ve decided what is important to you, you can narrow your search. Reputable luxury auction companies will have an array of properties, and when they know what they’re looking for, can offer assistance in locating the perfect listing.
Why It’s Important To Work With The Right Luxury Real Estate Auction Company
While luxury home auctions are filled with excitement, many potential bidders feel intimidated by the process. As buyers of a luxury estate often pay top dollar, real estate auction companies should be offering the full white-glove experience, giving guidance on how the process works and what will be expected of bidders. Platinum Luxury Auctions sells luxury real estate properties through auctions ensuring that buyers get a fair-market price, and are a leader in the industry. Potential buyers should schedule a consultation with an agent of the auction company to talk through the process and get additional clarity. These professionals have seen more than their fair share of auctions and can advise on best practices within the bidding process.
Learning About Luxury Estate Auctions
Buyers who are planning to bid should do their due diligence on comparable listings in the area, as well as learn the different forms of luxury estate auctions. The process of luxury estate auctions moves fast, with most settlements for properties reached in 60 calendar days from the marketing efforts, only 30 days after the auction day. Due to the fast pace nature of the auction process, it’s important that before you bid you are fully educated on what type of auction you’re in, and what each means for buyers. There are three types of luxury real estate auctions, all with their own benefits.
A minimum bid auction also referred to as a published bid auction is where the seller and auction firm will set a minimum price, and while the bidding may start lower, the estate won’t sell unless the minimum is met. A benefit for buyers is that minimum bid auctions offer full transparency, as they know what will most likely come from the auction.
A reserve auction means that the seller has set a minimum bid but does not have to disclose that to buyers. While reserve auctions can be beneficial for buyers, they also leave a lot unknown as the sellers retain almost complete control. Some buyers avoid reserve auctions because they don’t want to waste time, money, or energy preparing to bid only to be met with a seller who has unrealistic expectations for their selling price.
Absolute auctions refer to auctions where the highest bidder gets to purchase the estate, regardless of if the seller’s ideal price is met. While absolute auctions are risky for sellers, they also attract more serious and qualified bidders making them mutually beneficial to buyers and sellers. Absolute auctions also tend to be the most exciting, as anything can happen and buyers are in a unique position to possibly purchase a luxury estate at a lower than market price.
Take A Tour
Once you’ve narrowed your search, done your due diligence on the type of auction you want to bid in, began working with an auction company, and found a property you love, you’ll need to take a tour. Touring the property allows you to ensure that you’re prepared to bid the correct amount for the space. Spending time at the estate will show you what price to bid on auction day, and it’s important to take your time and try to envision your life in the space. Aside from touring the property, it’s a smart idea to walk or drive the neighborhood and get a sense of not only how it looks now, but see where it’s headed. The schools in the area along with new buildings and businesses can impact a property’s resale value, so take stock of what’s surrounding the estate.
The Day Of The Auction
As you’re now ready to bid, you may want to prepare for the actual day of the auction. There are live auctions, online auctions, and auctions by proxy if you can’t attend. If you’re attending a live event, you’ll need your photo ID and you may need a cashier’s check for a portion of your maximum bid. As potential buyers raise their paddles the bids will increase by increments, until the final bid is accepted by the auctioneer, giving one final chance to increase the bid.
You’re now ready to make a bid on a luxury estate auction on one of the many quality properties that Platinum Luxury Auctions has. Buyers can rest assured that when they bid on a property, they will avoid all the traditional contingencies and broken contracts that slow down the real estate purchase process. Best of all, you have a professional to guide you throughout the process helping you reach a deal seamlessly, at a fair market price, on a property you love.