5 Myths About High-End Real Estate Auctions

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High-end real estate auctions are an attractive platform for smart sellers. In addition to eliminating many anxieties tied to traditional luxury real estate sales, luxury real estate auction houses ensure a timely and worthwhile transaction.

The problem is, real estate auctions often get a bad rap when compared to traditional sales routes. In particular, there are various misconceptions leading agents, brokers, and other sellers away from selling real estate through auction. In reality, these myths surrounding luxury real estate auction houses couldn’t be further from the truth.

Therefore, Luxury Estates Auction Company wants to set the record straight once-and-for-all!  That’s why we’re debunking five of the most common myths about high-end real estate auctions.

Myth #1: Auctions are only for distressed properties.

Many people believe auctions serve to hedge losses of properties in foreclosure by banks and lenders. Although this may be true for the rest of the market, properties auctioned by Luxury Estates Auction Company are far from distressed.

Together with other high-end commodities, like artwork and jewelry, high-end real estate auctions often represent the most desirable property in the market. So, even though many consider auctions to be the end of the road, high net worth owners of real estate understand high-end real estate auctions as a practical way to fetch the highest prices for valuable equity.

Myth #2: Real estate auctions near me are the last resort.

If auctions were a last resort, you wouldn’t see million-dollar mansions setting record-high prices at luxury housing auctions. The confusion about auctions being a last-ditch effort stems from the unrealistic expectations of many inexperienced sellers. For instance, many sellers set out listing their property far above fair market value. Incidentally, they only consider auction after their home sits on the market for months on end.

Of course, if these same sellers were to go with an auction as their first choice to sell, they could make much more money. After all, auctions create a sense of urgency and competition which can drive prices up in ways unseen in traditional real estate sales.

Myth #3: High-end real estate auctioneers are not official brokers.

Auctioneers of luxury homes require licensure as brokers/agents in nearly all jurisdictions. Then again, some states may only require that someone holding a real estate license stands officially associated with the auction to hold the event.

Furthermore, in the state of Florida, every sale needs to be led by an auctioneer holding an active license or by an individual holding a valid apprentice auctioneer license. In the latter case, the state of Florida also requires the apprentice auctioneer to receive written consent from their sponsor. Lastly, Florida requires a business to carry an auction license from the state to hold an auction.

At Luxury Estates Auction Company, we stay up-to-date on all professional and occupational regulations nationwide.

Myth #4: Selling via auction costs more in commission when compared to hiring a Realtor.

OK. It’s true. Sellers who prefer using agents or brokers frequently gripe about the marketing and ad costs linked to high-end real estate auction houses. Moreover, these concerns are not entirely unfounded. All things considered, marketing a million-dollar mansion can cost thousands of dollars. However, are these same sellers considering the additional costs which often accompany hiring a Realtor?

With traditional Realtor-based sales approaches, homes tend to sit on the market for extended periods. Meanwhile, sellers end up shouldering pricey carrying-costs like mortgages, property taxes, and basic upkeep. In effect, you risk losing more money hiring a real estate agent than from up-front expenses common to auctions. For this reason, Luxury Estates Auction Company uses aggressive marketing and creative sales techniques to ensure a timely and worthwhile sale.

Myth #5: If I sell at auction, I lose control over my sale.

Don’t let the fast-paced selling environment created by luxury real estate auction companies fool you. One of the primary reasons sellers choose auctions is because the amount of control gained over a sale. Not only can sellers choose a timeframe that works best for them, but they can also set a minimum price if they wish.

Nevertheless, sellers should always consider selling their luxury estates without a set-price. Without a doubt, “Absolute” selling, or selling without setting a minimum, generates the most buzz among committed buyers. Likewise, absolute auctions remain popular with high net worth sellers for a variety of reasons. For one thing, they can set the date of sale.  Meanwhile, high net worth sellers prefer to avoid tying up money in equity whenever possible.

Are you interested in sidestepping the pitfalls presented by traditional sales methods?

Contact Us

Luxury Estates Auction Company can always show you how luxury real estate auction houses provide more than just a helpful way to sell your high-end home in a hurry.