Luxury real estate property is recognized as the most exclusive, elusive, and beautiful in the world. These estates are categorized as luxury only if they have an expert design, are filled with premier amenities, are in a valuable location, with impressive size and an impressive price tag to match. Yet, the traditional transaction of buying and selling luxury real estate poses frustrations for all involved. As these estates are one of a kind, they need one-of-a-kind buyers, and many property owners are not interested in having open houses where just anyone could walk in, and the buyers are leaders in their field without the time or energy to waste time on anything less than extraordinary.
While the old ways of traditional listings may work for the run-of-the-mill, million-dollar homes, for the ultra-luxury market, mansion auctions are defiantly and definitively the future. Platinum Luxury Auctions, a premium real estate auction company, is demonstrating why auctions are the next frontier for buyers and sellers alike.
Luxury Real Estate Auctions Save Time
Traditional real estate listing of luxury properties can be held back by a slow transaction process, while mansion auctions ensure a fast process with a set amount of time on the market. Traditional listings force sellers to wait for qualified buyers to discover their property, as they cover the sky-high maintenance costs of the estate. By reducing the sale time, sellers increase their net present value as no upkeep costs weigh them down. Traditional real estate transactions can be unpredictable, leaving the listing on the market and becoming less attractive to buyers, even when the property is exquisite.
With mansion auctions, the entire process, from beginning to end, lasts 60 days or less. The first month is spent with a masterful marketing push, locating qualified buyers from around the globe, and organizing the auction day. The following 30 days, or less, are when all agreements are finalized and the deal is closed. The majority of luxury real estate auctions end with a highly-satisfied seller. However, the process ensures the property remains untainted, even without a sale. Sellers can list again at a later date without the diminished market value that is attached to a long-lived listing.
In traditional real estate translations, contractual contingencies can slow the process down. Inspections, mortgage approval, review appraisals, and more all require ample time, which benefits neither party. By opting for a luxury real estate auction all contractual contingencies are completed beforehand, and all parties get what they want without time wasted on endless negotiations or privacy lost.
Mansion Auctions Forgo Uncertainty
Currently, buyers are stuck in uncertainty surrounding fair market prices, leading many luxury estates to sit idle. In traditional real estate transactions, the temperament of the market can make buyers and sellers feel hesitant, unsure if they are getting a fair price. When they auction luxury homes, they are guaranteed to see every qualified potential buyer in one place, either in person, virtually, or represented by a proxy. The very nature of an auction of luxury real estate creates a fair market price.
Many luxury real estate sellers worry that auctions are unpredictable and may lead to a less-than-ideal price. This is untrue, as there are different kinds of auctions, all of which protect their interests in one way or another. For the hesitant seller, a minimum bid auction gives them assurances, as they set their price and retain the right to keep their property rather than sell it for less than they had hoped. A minimum bid auction also avoids uncertainty for buyers, as they know the bottom line bid before they arrive that day. The reserve auction is ideal for sellers who have a minimum price in mind but want to test the waters in the market, as they have a set bid they will not sell for less than, but are not required to notify bidders.
The absolute auction is where the luxury real estate property sells, regardless of the minimum bid. At first, this may seem like too great a risk for the seller, but this type of mansion auction attracts seriously motivated buyers and agents. If the property is attractive, the auctions can become highly competitive with the sellers benefiting from all the interested buyers.
Luxury Property Auctions Means Luxury Marketing Efforts
The expert marketing push that luxury real estate companies provide benefits buyers and sellers. For the seller, these marketing tactics can create an air of exclusivity, showcasing the elegance of the estate, and differentiating it from the competition.
As each luxury real estate listing is distinct, it requires a more dedicated effort. At Platinum Luxury Auctions, a professional marketing division spends weeks cultivating a strategy that secures results. It lies far beyond traditional property advertising, as the team designs a one-of-a-kind online marketing strategy that reaches the farthest corner of the globe, including email marketing tactics, innovative print advertisements, and personal connections with established real estate figures. In essence, a luxury real estate auction team markets the property to the right buyers while presenting it as utterly irresistible.
Luxury marketing efforts do not only serve the seller but the buyers as well. Many qualified buyers are never fully in or out of the luxury property market, they are simply waiting for that once-in-a-lifetime listing. Through mansion auctions, they get to view the residence privately, learn the auction listing type, and decide whether or not they have to have it.
The Future Of Buying & Selling Luxury Properties
With luxury real estate auctions, buyers can bid from anywhere in the world virtually or via proxy. This eliminates the chance of the right buyer finding the exact right estate. Every luxury real estate property offers something extraordinary, such as a historical element or innovative design feature, and mansion auctions give buyers and sellers the highest chance of finding their perfect counterparts.
If you are interested in the future method of buying and selling luxury properties, visit Platinum Luxury Auctions or contact their exceptional real estate team.