Property Auctions Are the Ideal Platform to Buy and Sell Some of the World's Most Spectacular Real Estate
Sure the tried and true methods of prepping and staging, listing, and touring helped sell billions of dollars worth of property every year. But unique, one-of-a-kind properties demand a different approach.
At this level of luxury, the buying pool is smaller, more discerning about how, where, and when they choose to conduct business. They're not necessarily buying a home but very much investing in a lifestyle, leveraging their status to acquire life's great treasures.
Concierge Auctions was founded on the belief that the world's finest, most sought-after assets are often bought and sold through auction. Prized pieces from the world of art and jewelry and automobiles. Why should high-end real estate be treated any differently?
After all, once it reaches a certain threshold of opulence, or possesses a distinctive historical lineage, or represents the finest in design and craftsmanship, a home is every bit a work of art as a masterpiece hanging in a museum.
Whether you or a client is seeking to divest an extraordinary residence or pristine parcel of land or aiming to acquire either as a personal residence or addition to your real estate portfolio, consider the auction as an ideal approach to either endeavor.
Below we offer a guide to luxury home concierge auctions.
Is a Property Auction Right for You?
As we noted, high-value transactions for high-value assets occur every year through the auction process. For sellers, auctions are often a preferred method for dealing with unique assets, where traditional forms of marketing fail to reach the desired client base.
When buying, auctions offer a secure, private channel for acquiring assets, or in the case of Concierge Auctions, properties of interest. There's also a level of exclusivity that buyers appreciate.
Sure, you're potentially bidding against other motivated owners and investors. But the narrower pool of qualified bidders provides a better opportunity for acquisition without the concern of grossly overpaying for a desirable asset.
In both circumstances, the property auction process taps into two critical ambitions for those transacting real estate—buying and selling investments on your terms and within your timeframe.
Property auctions are not an either-or proposition compared with traditional real estate listings. The approach gives potential buyers more direct access to the lucrative properties they seek. For the seller, it's an additional avenue to give your property exposure and place it front and center to those buyers most likely to purchase the property.
Benefits of the Auction Process
Sales and acquisition through auction is a time-tested process. Considering that the sale of some of the world's most priceless art pieces is entrusted to the process, it only makes sense that residential (and commercial) real estate would follow.
Sellers appreciate total control over the sales process. Auctions allow you to dictate both the terms of the sale and when the property is to be sold. Transactions may occur in as little as two months compared to six months or longer of a traditional real estate listing.
Beyond specific terms, unique, high-end properties require exposure to unique, high-end buyers. A considerable portion of those individuals eschews more common paths to property acquisition. Listing your asset at auction, and in particular, an online auction, opens your property up to a world of potential buyers, literally. Effectively a personal audience of qualified patrons for your multi-million property.
Buyers are keen on that last point. A seller gains a qualified marketing target, buyers gain exclusive, first-look access to a carefully curated selection of global properties.
While private and secure, the bidding process is also transparent and promotes a straightforward transaction.
For those brokers and agents who help facilitate the auction's "listings," they're rewarded with the same qualified pool of focused, motivated buyers, sales and marketing support, and the ability to earn their commissions.
Qualifying Properties
The real estate that appears on Concierge Auctions represents the most sought-after properties from every corner of the globe. There are no distressed assets on offer, nor are our sellers acting in desperation to offload an undesirable property.
Sellers who auction with Concierge do so to fulfill investment or property ownership goals. Their divestitures are strategic and present lucrative opportunities to our buyers.
The site hosts genuine high-end real estate. Featured properties typically range from $2 million to near $50 million, though select properties may exceed that top threshold. Vacant land also features prominently within the Concierge Auctions offerings.
Our vetting process is comprehensive and guarantees the ongoing integrity of the auction process, and secures our buyers the most sought-after properties on which to bid. We accept only 5% of homes submitted for auction consideration.
The Concierge Auctions Process
If you've ever listed or bought an asset through a conventional auction house or website, then the idea of auctioning off or bidding upon a home or piece of the property won't be too much of a leap.
In what is arguably a far more straightforward process than a standard physical listing, properties that clear the vetting process are marketed four weeks prior to the asset's auction date.
A dedicated, on-site project sales manager allies with the listing agent through every step of the auction process. They assist with creating awareness of the auction with would-be bidders and managing registrations for the bid process.
In addition to an asset's online listing, which includes high-resolution photos, 3-D tours, documentation, and a short property film, the property remains physically accessible throughout the marketing window.
Properties are sold as-is and without contingencies. During this timeframe, buyers are encouraged to conduct their own due diligence through previews and property inspections.
Auction formats include:
- Without reserve: Where there is no minimum bid to exceed to secure the property. The highest bid wins the asset.
- Reserve: here to secure the asset, the winning bid must exceed a minimum preset price during the auction
As a key factor in ensuring the success of our online auctions, we include listing agents as part of every transaction and offer commissions to buyer agents.
Beyond the Bid
As we noted, the entire process from initial conversation to property vetting and marketing to the auction and final sale is streamlined and easy to navigate. However, additional considerations and outside factors can influence the outcome of an auction, all of which are commonplace within the auction industry.
Reserve Bids
First, in reserve auctions, we may employ counter bids placed by a representative from Concierge Auctions to promote bids closer to the reserve. Upon reaching the reserve, the counterbids cease.
Pre-Auction Offers
Buyers have the opportunity to present pre-auction offers. These offers are submitted to the seller for their consideration. In addition, a seller may decide to set a buy now price for their property sale.
As it suggests, the seller agrees to sell the property at the stated buy now number without contingency before the auction begins. The buy now price includes all commissions and fees and the buyer premium (see below).
Fees
There are no costs associated with a seller choosing to auction their property. There is no engagement fee, and their only responsibility is for the title search, title insurance, and broker commission in accordance with their listing agreement.
Buyers are assessed on a premium on the high bid and are responsible for any transfer fees.
Where to Bid
Concierge Auctions provide multiple avenues to participate in an auction. Foremost among these is Concierge's online marketplace. Accessible anywhere in the world, buyers can participate in the bidding process in real-time including viewing bids live or utilizing a proxy while logged into the auction.
"Live" On-Site auctions may also occur at either the subject property or a nearby locale. Many times, a cocktail hour precedes the auction. Portfolio Sales follow a similar setup and feature the auctioning of property in conjunction with other assets.
In both the On-Site and portfolio auctions, bidding can take place online alongside in-person events. Each property page will feature details on how and when the auction will occur and the opportunity to register for the event.
Ready to Get Started?
Are you a seller ready to submit your luxury property or strategic parcel of land for consideration with the Concierge Auctions platform? Please contact us at 212.202.2940 to start the conversation with one of our regional sales managers. They will discuss our vetting process and review what options may be available for your asset. You can also visit our website for detailed information and review past auctions and current properties up for bidding.
Should you find yourself in a position to buy, please visit our website and "Register to Bid" directly through our property page. Registration is straightforward and includes:
- Completion and submission of the Terms & Conditions of Sale Agreement.
- Wiring of the bidder deposit, most often $100,000, which is credited to your purchase should you secure the winning bid. If you are not the top bidder, the deposit is returned the next business day.
- Provide a reference letter from your banking or financial institution.
Should you have any questions or require more direct service for your bidding inquiry, please contact Chad Roffers’ team at (212) 202-2940.