A FAST-GROWING STRATEGY FOR COLORADO SELLERS
Real estate auctions have long been associated with distressed properties and desperate sellers. However, celebrities, CEO’s and savvy high-end homeowners have known the benefits of auctioning non-distressed properties since at least the 1990’s. Luxury auctions are nothing new in Australia, California and New York. They have been slow to gain traction in our country’s midsection, Colorado included. The secret is finally out, and we are now seeing an increase in luxury auctions in the Centennial state. Sophisticated Coloradoans are discovering that auction is a fantastic option for many luxury properties.
WHEN IS SELLING AT AUCTION A GOOD IDEA?
1. When the listing process will not attract the right buyers.
The higher the price point and more unique the property, the smaller the local buyer pool. Most listing brokers simply do not have the budget or global reach to find all possible buyers when local buyer pools are limited. The typical traditional real estate scenario: broker lists your property in the MLS, distributes flyers and brochures, holds a few open houses. She creates a single property website, promotes your listing through social media, and might even advertise in a publication or two. But is that really enough to round up all qualified buyers everywhere who may be interested? Global marketing experts like Premiere Estates Auction Company elevate the marketing process to the highest level, bringing every conceivable buyer to your front door through strategic and customized local, national and global advertising campaigns.
2. When time is of the essence.
Luxury auctions allow you to pick the day you sell your home. You may need to sell by a certain date in cases of probate, trust, bankruptcy, divorce, or inheritance. Or you may just be ready to move on with your life and are not interested in watching your Colorado property sit for a long period of time. Luxury properties tend to take much longer to sell than homes closer to the median price. As of 5/8/17, the 10 most expensive homes listed in Denver metro have been on the market an average of 418 days (active listings not yet sold). In 2016, the top 10 properties in Vail sat on the market an average of 735 days; in Telluride 1,057 days. If time is of the essence and you don’t want to see your listing sit too long, auction is a great alternative to a traditional listing arrangement. Properties can often be sold in 60 days or less.
3. To create a sense of urgency.
Auctions create urgency by having a date-specific sale day. A strong sense of urgency accelerates the decision-making and sale process.
4. To create a sense of value.
Today’s buyers are very value conscious. Auctions imply to buyers a potential opportunity. When more buyers see opportunity and compete against each other, true market value is ultimately achieved.
CHOOSING THE RIGHT AUCTION COMPANY
There are a growing number of companies breaking into the luxury auction niche. However, it takes a long time and many, many transactions to develop a strong global network of potential buyers with high net-worth individuals, corporations and investors. Additionally, only companies with years of experience will have perfected the art of multi-faceted strategic marketing campaigns. I would suggest engaging only with a company with a proven track record and years of experience.
For residential luxury auctions, I strongly recommend Premiere Estates Auction Company, headquartered in Los Angeles. As the preeminent independent luxury auction company in North America, they have auctioned more than $1 billion of the world’s finest estates.
For commercial real estate auctions, I recommend Premiere Estate’s sister company Braun, which has been serving clients since 1908. No other real estate firm in North America possesses the experience and portfolio of success as Braun WorldBid and its corporate family of companies.
LEARN MORE AND GET STARTED
If you are interested in learning more about the auction process, give me a call at (303) 250-0804. If you would like to connect with Premiere Estates or Braun, I would be happy to connect you with the right person for your Colorado auction.
If you are considering luxury auction as an option but not sure about it, I am happy to assist you with any of the following options for your Colorado property. I am able to assist you in any area within the state of Colorado.
- Traditional Brokerage – I am always happy to list your property in the traditional manner, as many luxury properties sell perfectly well this way.
- Hybrid Brokerage – I can list your property in the traditional manner, and at any point you decide, we can flip the switch to accelerate the sale and start the auction process. This works well for sellers who want to first try offering their property on the regular market, but want the option to accelerate the sale through auction if it doesn’t move fast enough.
- Auction – If you are interested in auctioning your luxury property, as your listing agent I will work with Premiere Estates to bring you the most buyers and highest price in a defined period of time. If you already have a listing agent you are working with, that’s ok. You continue to work with her and I will connect you both with the Premiere Auction Sales Director to get you started on the process.