Frequently Asked Questions
Q: WHY SHOULD I CHOOSE TO AUCTION OVER TRADITIONAL METHODS OF SELLING REAL ESTATE?
A: An Auction may be preferable to the traditional method of selling depending on the seller. An auction puts more focus on your property and creates urgency in the marketplace. It allows you to sell your property “As Is”, which limits the seller’s liability and can greatly reduce fix up costs. An auction is the only method that forces all bidders to come together at one place and time to compete for the highest offer for the seller.
Q: WHY DO LUXURY REAL ESTATE SELLERS PREFER TO AUCTION?
A: High Net Worth Owners of real estate are people of action. They prefer to make things happen versus waiting on things to happen. An Auction accomplishes their goals of selling their valuable real estate at market price on a timetable that works for them. They usually have very high equity in their real estate and they would prefer to convert that equity into other forms of investment that will work better for them.
Q: HOW DO I MAKE A DECISION IF AN AUCTION WILL WORK FOR ME?
A: The best place to start the process is to allow Luxury Estates Auction Company staff to do a market analysis of your property. This is a No Obligation analysis that allows them to determine a range of market value that you may expect your property to sell within. The real estate market not unlike other markets is constantly changing depending on many factors such as supply and demand, interest rate markets, etc. Our team will analyze the market for your property then meet with you to discuss how an auction will work for you.
Q: MAY I SET A MINIMUM PRICE THAT I WILL ACCEPT?
A: “Yes, you may” is the short answer. However, you may want to consider selling without setting a minimum. Selling without a minimum is known in the industry as selling “Absolute”. Selling Absolute always brings more attention and more bidders who are more committed to buy your home. Many High Net Worth Sellers like selling Absolute since they know with all certainty that the property will sell on a certain date and this allow them to make plans for moving forward.
If you decide that you only want to sell at auction if you may set a minimum, our team will work with you to set the “Reserve” or minimum at level that both you and the auction team are comfortable with. The Reserve number is a “secret” number and is never revealed to the public. Our goal is to set a number that is achievable in the current market while protecting you from selling below what you just would not want to sell for.
Q: HOW LONG DOES THIS PROCESS TAKE?
A: Typically, from the date the auction agreement is signed until the auction date is about six weeks. The first two weeks are spent gathering all the information, taking high quality professional photography including 3D virtual tours, and preparing the marketing campaign. The Property is marketed for three to four weeks which includes several dates for Preview or Private Showings.
Q: WHERE DOES THE ACTUAL AUCTION TAKE PLACE?
A: Normally the auction will be held on site at the property. In order to gain admittance to the auction, Bidders are required to produce a cashier’s check that is typically set at an amount equal to about ten percent of the value of the property. Auctions are serious business and we only want serious bidders to attend.
Q: IS THERE AN OPPORTUNITY THAT MY PROPERTY MAY SELL PRIOR TO AUCTION?
A: Yes. We encourage buyers to view the property and if they want to make an offer prior to the auction to do so. We work with the buyer’s broker to make their highest and best offer, then the seller may consider accepting it if it is a high enough offer. The seller will say yes or no, but we do not want to get into a lot of price negotiating prior to the auction.