US Luxury Home Auctions are on the Increase

Auctions are rarely the first selling method for sellers of luxury homes, but all indications are that this is about to change…… It’s certainly an option that many homeowners are starting to consider as conventional methods are not delivering within their expectations and they find themselves in a real estate market segment that is seeing increasing inventory. Residential auctions have long been associated with foreclosures in the US, but look to the European real estate market and it’s a very different story – here they are considered on par with fine art auctions.  It seems that the ultra-wealthy in the US are beginning to appreciate this potential opportunity for their own luxury property, especially after surveying a landscape where many a home has sat on the market with little or no action for numerous months, if not years! Perhaps one of the most common misconceptions for Homeowners is that they will have to forgo the long time, trusted relationship of their Real Estate Advisor - quite the opposite, in North America the home remains listed with the Agent who then works very closely with the Auction House.  Best described by the Owner of a Sotheby's International Realty Franchise - Jim Lyon - in his testimonial about Supreme Auctions, the preferred vendor of The Institute for Luxury Home Marketing:

“I am extremely impressed with Supreme Auctions® 30+ years of experience selling luxury properties Nationally and Internationally through their Accelerated Marketing Program. This is a huge benefit to my agents, an opportunity to work with a company of integrity, receive their full commission, retain their listing and remain involved through the entire marketing process is a win, win for the agent, and the seller."

Luxury Real Estate Auctioneers pride themselves on having the same database as fine art, super cars, luxury plane and yacht auction houses – which, of course, are the very people who can afford these million-dollar estates.  By connecting with a luxury real estate auction house, realtors open their door to having this powerful network of connectivity, greater marketing and increased resources – so potential buyers do not remain untapped and unsolicited. As Trish Thompson of Harry Norman, Realtors Forsyth County/Lake Lanier (an exclusive affiliate of Christie's Intl Real Estate) states:

“I would highly recommend Supreme Auctions® to other luxury real estate professionals. They brought a quantity of qualified buyers through my clients’ property utilizing their Accelerated Marketing Program, a program that I could not achieve through our traditional methods, resulting in a record breaking successful sale for my client."

An auction should provide an unambiguous, transparent process so that both Real Estate Professionals and their clients can feel confident that they will be paying fair market value for the property they select to bid on.....indeed there should always be the provision of full disclosure about the property, as well as the opportunity for additional research, scheduling of viewing and a full inspection before the auction takes place. The key difference when selling a home through a luxury auction is probably "the time factor" - auctions create a sense of urgency, not just during the event, but in the lead up - a specified event date and an accelerated marketing drive all promote the need for a potential buyer to stop considering and move into action, if they are to be a serious contender.  The competitive element is further enhanced during the actual auction when the bidding process starts. In a recent article by The Financial Times about luxury auctions, it was noted that there is a definite culture shift happening in buyer and seller attitudes, who are equally looking to expedite the sales process. As with all important decisions it is still incumbent on the Homeowner and their Agent to do their due diligence on the choice of Auction House, the gathering of clear, concise information that is above all, transparent and bound by an commitment to integrity are some of the key measurements that should be researched....not to mention the 'true' success rate. Here are 6 topics that should be reviewed when interviewing an auction house:

1. Consultation: ensure that there is a comprehensive understanding on the process, commitment and expectations by all parties.
2. Market Analysis: understanding the exact current market conditions and the influencing factors is critical to determining the viability of achieving the goal
3. Marketing Plan: expect to receive a formal written commitment of the marketing of your property including placement, reach and expected results
4. Implementation Process:  marketing will create the activity of interest, understand what other aspects are involved including: private viewings, open houses, house preparations.
5. The Selling/Buying Process: full disclosure on all aspects of pre-auction sales, reserve and no-reserve auction practices are critical
6. The Closing: understand the completion and documentation requirements

The Institute for Luxury Home Marketing is dedicated to actively seeking out the latest information in marketing strategies, staying on top of changing market conditions, and providing appropriate services and products that assist their Member's abilities to work with elite clientele and their exceptional properties. For more information: www.luxuryhomemarketing.com