In the US, there has historically been a stigma associated with selling real estate at auction. For years, this approach has been thought of as “the sale of last resort” — a process you turn to when there simply aren’t buyers for a particular property.
But in Europe and other parts of the world, luxury real estate is often, if not primarily, sold at auction.
Over the past decade, more and more luxury homes are being sold at auction. Recognizing this trend, Sotheby’s and Realogy Holdings Corp. (the parent company of Sotheby’s International Realty — now known as Anywhere) formed a strategic partnership to acquire Concierge Auctions, the leading global luxury real estate auction marketplace. That partnership has been fully realized and now Concierge Auctions are a fully integrated capability of Sotheby’s International Realty. As your local Sotheby’s Realtor®, I can serve as your guide to this option. Listen to these seller testimonials and I think you’ll hear that there are compelling reasons to consider an auction sale.
The auction route offers a number of advantages compared to a traditional real estate transaction, with special relevance to “ultra luxury homes” (more than $5 million in value):
Speed: The Sotheby’s Concierge Auctions process is designed to expedite the sales process. Properties typically sell within a fixed timeframe, usually around 30 days, which allows sellers to achieve a quick sale and avoid the delays associated with traditional listings.
Transparency: Sotheby’s Concierge Auctions provide a transparent and competitive bidding platform. All interested buyers participate in a live auction, ensuring a fair and open process. Sellers can see real-time bidding activity and final sale prices, which enhances transparency and trust.
Global Reach: Sotheby’s Concierge Auctions has a vast network of high-net-worth buyers and agents worldwide. This global reach allows sellers to access a larger pool of potential buyers, increasing the chances of achieving a higher sale price for their property.
Customized Marketing: Sotheby’s Concierge Auctions creates tailored marketing campaigns for each property, leveraging their expertise in luxury real estate marketing. These campaigns utilize various channels, such as digital advertising, social media, and direct outreach, to generate maximum exposure and attract qualified buyers.
Targeted Auction Date: Sellers have the flexibility to choose the auction date that best aligns with their timeline and goals. This targeted approach helps create a sense of urgency among buyers, increasing the likelihood of competitive bidding and a successful sale.
Non-Contingent Sales: Sotheby’s Concierge Auctions typically operate on a non-contingent basis, meaning buyers are responsible for conducting their due diligence before the auction. This reduces the risk of deals falling through due to financing or inspection contingencies.
Market Validation: The auction process provides market validation for a property’s value. By attracting multiple bidders, the auction reveals the true market demand and allows the property to sell at its highest achievable price.
Sotheby’s Concierge Auctions – The Process
The Sotheby’s Concierge Auctions process for selling a home involves several key steps:
First, there is an initial consultation between the seller and Sotheby’s Concierge Auctions. During this discussion, the seller’s objectives, timeline, and property details are assessed to determine if the auction platform is a suitable option.
Next, Sotheby’s conducts a thorough evaluation of the property. They take into account its unique features, location, and market potential to determine its auction value and expected market demand.
Once the property evaluation is complete, Sotheby’s develops a customized marketing strategy. This strategy utilizes their expertise in luxury real estate marketing and employs various channels such as digital advertising, social media, and targeted outreach to attract qualified buyers.
The auction date is set based on the seller’s preferences and goals. This targeted approach creates a sense of urgency among buyers, increasing the chances of competitive bidding and a successful sale.
Leading up to the auction, Sotheby’s facilitates property previews and inspections, allowing interested buyers to thoroughly evaluate the property and conduct their due diligence. This non-contingent approach ensures that buyers are prepared to proceed with the purchase.
On the day of the auction, interested buyers participate in a live bidding event. This transparent and competitive process allows sellers to witness real-time bidding activity and final sale prices, promoting transparency and trust.
Once the auction concludes, the highest bidder is deemed the winner, and the sale is finalized. Sotheby’s Concierge Auctions assists with the closing process, ensuring a smooth and efficient transition.
Might this be the way to sell your luxury home? Contact me for a consultation.