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Discusses the options sellers and buyers of luxury real estate have when it comes to luxury property auctions.

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Gary Gilbert

Gary Gilbert

I have been involved in multi-millions of dollars worth of luxury real estate auction transactions advising both sellers and buyers.

Will Your Luxury Home be Sold and Closed in the First Quarter of 2013?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Tuesday, 11 December 2012 Category Luxury Home Auction

As we get closer to Christmas and the New Year, many of you are probably focused on celebrating, winding down and spending time with others.  For those of you owners or agents with a luxury home that has been listed for an extended period of time, the thought of finally selling the home may have been put on hold.  However, on January 2nd, I bet the thought comes roaring back.

Let's get a head start by beginning the dialogue now about how something like a non-distressed luxury home auction may be just what you are looking for.  A typical luxury real estate auction campaign can take anywhere for 60-75 days with a cash, contingency-free 30 day closing. What better way to showcase your property in a crowded marketplace than to use a date-certain event to force affluent, end-user buyers to react?

We realize that you have several choices when it comes to selecting the best luxury real estate auction company.  Let us do the work for you. Our services are complimentary and our advice priceless.  Please reach out anytime.

Tags: luxury home auction companies, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, best luxury real estate auction companies, top luxury real estate auction companies

Luxury Homes Sold at Auction Just Like Art

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Thursday, 06 December 2012 Category Luxury Home Auction

Many people realize that luxury homes are sold at non-distressed auction but not as many realize this is an option as one would think.  Let's think about it- how are collectible cars, jewelry and high-end art items most often sold?  They are usually auctioned.  For example, take a look at this link discussing a single piece of art selling for $47.8mm this week.  By creating a date-certain event forcing affluent buyers to respond and putting them in a competitive bidding situation, the frenzy was able to generate a significant price.

The same concept applies to luxury home auctions.  With all of the other similar homes in the area for sale competing for attention, what better way to showcase your or your client's home than to make it stand out from the rest?  By using a date-certain event, you are forcing affluent buyers to focus all of their attention on your home and creating a sense of urgency on their part.  Quite simply you are taking control of the sales process by forcing buyers to react on your terms, not theirs.  How does a cash, contingency-free 30 day closing sound?

Are you or is your client ready to close this chapter of their life?  Could it be downsizing, retiring, moving or perhaps health issues? Please contact us to discuss the non-distressed high-end property auction method including an analysis of the luxury real estate auction companies competing for your business. Our advice is complimentary and our advice priceless.

Tags: best luxury real estate auction companies, luxury property at auction, exclusive property auction companies, luxury real estate auction, luxury property auction, luxury real estate auction company, luxury property auction company, luxury home auction company

The Prospect of a Deal Brings Out Buyers Every Time

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Wednesday, 28 November 2012 Category Luxury Property Auction

Earlier this week I wrote about the similarities between luxury home auctions and Black Friday/Cyber Monday with the concept that the prospect of a deal can force a buyers to sometimes do interesting things.  Those things may include camping out at a retail location or paying more than one was planning to at an auction.

Last night, I witnessed this same phenomenon at a very interesting, very low-end auction.  Four different sellers offered their items at auction which ranged from bags of beef jerky to used children's toys.  Many of these sellers had purchased bulk amounts of these items and sold the initial lot to the high bidder (who thought they were getting a real deal).  After that, the auctioneer announced that the seller had suddenly found more of the same items and asked if any bidders wanted the same item at the same "great" price.  Others, not wanted to feel like they too missed out an a deal, took an item as well until all of the seller's inventory was sold.  These same items could probably be purchased at the same or better price at a place like Wal-Mart but when caught up in the frenzy of bidding, often bidders don't think about things like such.

From a low-end auction like this to a high-end luxury real estate auction, the concept can be the same as can the results. There is a lot of psychology involved in auctions, something that we would be happy to educate you on.  Don't think that high end property auctions are cookie cutter events, they are not.  And don't think that all luxury real estate auction firms are the same as they too are not.

We are here to help should you be considering a premiere real estate auction.  Take control of the sales process by contacting us anytime for complimentary, expert advice.

Tags: luxury real estate auction deals, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, best luxury real estate auction companies, top luxury real estate auction companies

Black Friday, Cyber Monday and Luxury Home Auctions

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Sunday, 25 November 2012 Category Luxury Property Auction

I hope everyone had a nice Thanksgiving holiday.  Next stop- Christmas.  Today I want to talk about the similarities between auctions and what we all witnessed last week with Black Friday and will witness tomorrow with Cyber Monday.  Unless you were hiding under a rock somewhere, you probably couldn't help but hear all of the media coverage surrounding the frenzy of shoppers.  You may have even experienced the phenomenon yourself.  I took one look at the two Wal-Mart parking lots in my area as well as my K'Mart and decided I would be better off purchasing from the comfort of my office computer.

So, what does all of this have to do with luxury real estate auctions?  The common bond is the mechanism that forces  buyers to do something they wouldn't normally do (like camping out and/or standing in line hours or even days before a store opens).  That mechanism is the possibility in their mind of getting a "deal" and losing an opportunity to purchase something at a discount.  While the difference being that the retail consumer knows what the fixed price will be, the bidders at something like a luxury home auction do not have a fixed price to choose from.  However, the date-certain event and fear of loss, just like the pre-Black Friday and pre-Cyber Monday events use, are the catalysts that force them to react or miss out.  Another difference is that those lucky (or crazy) enough to buy their retail item early in a retail location does get a "deal".  With a premiere home auction, more often than not, the buyer, thinking they will get a "deal" does not but instead pays a higher price due to the competition he or she may have from other affluent, end-user buyers. Have you ever paid more for something than you should have at an antique, art or collectible car auction?  If so, you know how easy it is to get caught up in the frenzy when you see something you really want.

How long has your home been on the market?  Would you like to take control of the sales process and crate your own Black Friday or Cyber Monday frenzy in your living room?  If so, we are here to help.  Our advisory services are complimentary and our advice priceless.  Please contact us anytime to discuss the non-distressed auction method, your property, and the luxury real estate auction companies competing for your business.

Tags: black friday auctions, cyber monday auctions, top luxury real estate auction companies, high end real estate auctions, best luxury real estate auction companies, luxury property auctions, luxury real estate auction companies, luxury home auctions

Spring Luxury Ranch Auctions

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Monday, 19 November 2012 Category Ranch Auctions

By request, let's talk today about something other than luxury home auctions, something that I advise on often.  Let's take a look at luxury ranch auctions.  They, like homes, are also sold via high-end auction, just not as often.  So, why is that?  The obvious reason is that are so many more premiere homes for sale than there are ranches.  Other reasons may include location and seasonality.

The business model is no different for a ranch auction than it is for a home auction.  The primary difference is the buyer profile.  The luxury ranch auction buyer profile is typically not someone that is planning to operate it agriculturally but instead is purchasing it as a "trophy property".  Many of these type properties are located in Colorado, Texas, Wyoming and Montana.

Are you a ranch seller or do you know a ranch seller that may be a good candidate for one of these type of events?  If so, please contact us to discuss the process, the companies best suited for your sale and any other questions you may have.

Tags: luxury ranch auctions, luxury ranch auction companies, Colorado ranch auction companies, Montana ranch auction companies, wyoming ranch auction companies, texas ranch auction companies

Prices Achieved at Luxury Home Auctions

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Thursday, 15 November 2012 Category Luxury Property Auction

At least a few times a week I hear the question "You're the expert, what will my property bring at a luxury home auction?"  That is often followed by "It recently appraised for x amount" and "With all of the upgrades we have made, I know it is worth at least x amount".  My answer every time?  "I don't know what price your luxury home will achieve.  Affluent, end-user buyers forced into a competitive bidding situation by a date-certain event are the only ones who can determine that".  While that may not be the answer a potential seller is hoping for, I like for them to be realistic on the true value of their property. Otherwise, it doesn't benefit anyone to move forward with an auction.  Buyers determine the true market value for anything, not sellers.

On the subject of comps and appraisals, I don't put a whole lot of faith in those valuation techniques when it comes to auctions. Most of the properties of the sellers I advise are unique in nature and are difficult to comp with appraisals being simply one person's opinion of worth. 

Let's discuss your property and the luxury real estate auction process.

Reach out anytime.

Tags: luxury property auction companies, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, best luxury real estate auction companies, high end real estate auctions, top luxury real estate auction companies

Typical Attendees of a Luxury Home Auction

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Tuesday, 13 November 2012 Category Luxury Home Auction

Have you ever wondered what the attendance at a typical luxury home auction looks like? I ask that question to many of the potential sellers I speak with weekly and am surprised at the variety of answers I receive.  Many of them feel that the attendees are for the most part "bottom feeders" or investors when in reality, the opposite is true.  Sure, there are usually investor buyers but there are also affluent, end-user buyers.  It takes the investor buyer to push the end-user buyer to push the next end-user buyer and so on.  It's not where you start the bidding, it's where it ends.

Think about it- when a collector sells a piece of art or an exotic car, how do they typically sell that asset? Put an ad in the newspaper or magazine?  No, they typically use a high-end auction to sell their luxury asset.  The same concept applies to a non-distressed seller of something like a luxury home which creates urgency and excitement.  The date-certain event forces affluent buyers to a point of action.

Would you like to learn more about the process including the pros and cons of the luxury real estate auction companies competing for your business?  Let's get started here.  This video answers some of the more commonly asked questions.  Contact us anytime to access our complimentary advisory services.

Tags: top luxury real estate auction companies, high end real estate auctions, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, luxury property auction companies, luxury estate auctions

Elections are Over, Let's Focus on that Luxury Home Auction

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Thursday, 08 November 2012 Category Luxury Home Auction

Well, the elections are over and we now have clarity so let's start focusing on that luxury home auction you have been contemplating.  Like the financial markets that hate uncertainty, so do affluent real estate sellers.  At least that's what I've been hearing from many of you.  Don't let the upcoming holidays of Thanksgiving, Christmas and New Years get in your way of a mid-January or later event.  A good high-end real estate auction campaign takes 60-90 days so it is time to get started.

So, where to start?  Well, you have come to the right place.  Whether you are an agent with a luxury property seller or an owner with a luxury home, we are here to help.  Our services are complimentary and our advice is critical when it comes to selecting the best luxury real estate auction company to handle your sale.  Please reach out anytime.

Tags: top luxury real estate auction companies, high end real estate auctions, best luxury real estate auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, luxury property auction companies

Will Your New Year's Resolution be to Finally Sell Your Luxury Home?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Monday, 05 November 2012 Category Luxury Property Auction

Is it too early to talk about New Year's resolutions?  Based on what I'm hearing from many of you, it may not be, especially if selling your luxury home is one of those resolutions.  As I have discussed here before, a typical luxury real estate auction campaign can take 45-75 days.  Do the math, factor in the upcoming holidays of Thanksgiving, Christmas and New Year's and one is probably not going to make good on the same resolution this year.

However, it is not too early to begin planning a 2013 luxury home auction.  I prefer to see more time to market the event than less with a 75-90 day campaign working well.  Do that math and you will see that it is not too early to begin planning an event to be held in late January or beyond.

So, where does one start?  Well you have come to the right place.  We provide complimentary advisory services regarding the high end auction process helping you make your best decision.  Please reach out anytime.

 

Tags: top luxury real estate auction companies, high end real estate auctions, best luxury real estate auction companies, luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury real estate auction companies, luxury property auction companies, luxury home auction companies, luxury real estate auction sites

The Presidential Election, Winter and Luxury Home Auctions

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Friday, 02 November 2012 Category Luxury Property Auction

Well, here we are, just 4 days until the Presidential election.  I can't tell you how many people I speak with weekly that are considering selling at luxury home auction that tell me that they are waiting to see what happens with the election.  As I've written about here before, when it comes to a purchaser of a luxury property being offered at auction, I don't really think who wins has an impact on what they are willing to pay for a luxury asset.  When an affluent person sees something they want, they buy it, especially if they are in a competitive bidding situation with someone else.  Think about it, if you were a bidder at a luxury real estate auction and really wanted the property being offered, would you really let the opportunity get away just because you weren't able to predict the winner of the Presidential election?  For many, I feel that is is just an excuse and they just aren't ready (or realistic on price) yet.

Regarding another comment I hear every time of this year is that Winter is coming and people do not make big real estate purchases in Winter. While that may be true in some markets, it is not for most.  Other than the immediate periods of Thanksgiving, Christmas and New Years, luxury auction sales occur and do so successfully.

Have a great weekend everyone and contact me anytime with questions regarding high end property auctions.  My services are complimentary and my advice priceless.

Tags: top luxury real estate auction companies, high end real estate auctions, best luxury real estate auction companies, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, luxury property auction companies, luxury home auction companies

How Do I Select a Luxury Real Estate Auction Company?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Monday, 29 October 2012 Category Luxury Real Estate Auction Companies

The process of selecting a luxury real estate auction company may seem like a simple task.  Go online, conduct a search, make a few phone calls, make a decision.  However, a decision as important as this requires much more due diligence and using an advisor such as someone like us is highly recommended.

As I have written about here before, there is a lot of psychology involved in a high-end real estate auction, something that someone who is not in the business would not be knowledgeable of.  To publish or not publish a reserve amount? If published, what amount and why?  A legitimate absolute auction or a reserve auction?  A live, outcry event or a telephonic/online event only?  Are you or is your client even the type of seller that an auction would benefit?  These are just a few of the questions that need to be asked.

As I tell my Las Vegas sellers, "Don't gamble with the firm you select to conduct your event"  Our advice is complimentary and our experience is critical.  Please contact us anytime to discuss.

Tags: process of selecting a luxury real estate auction company, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, luxury property at auction, best luxury real estate auction companies

Help Me Understand How a Luxury Home Auction May Benefit Me or My Client

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Friday, 26 October 2012 Category Luxury Home Auction

How could a luxury home auction benefit me or my client?  It is a question I hear often and would be happy to explain the benefits.  How does this sound?

Allows you to be in control of the sales process instead of buyers.

Uses a date-certain event to force out of area or local affluent, end-user buyers to react.

Requires bidders to tender a significant deposit to bid with the winning bidder being required to put down a significant non-refundable down payment.

Requires a cash, contingency-free 30-45 day closing.

If you like the sound of this, then let's talk.  Our advice is complimentary and our experience priceless.  Let us help you or your client close whatever chapter of their life that needs to be closed whether it is downsizing, moving, retiring or something else.  Please contact us anytime to begin the dialogue including an analysis of the luxury real estate auction companies competing for your business.

Tags: best luxury real estate auction companies, luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, luxury property auction companies, luxury auction process

Why Would I Consider a Luxury Home Auction?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Thursday, 18 October 2012 Category Luxury Property Auction

Why would someone like you be considering something like a luxury home auction?  Well, if you are like most of the potential sellers I talk to daily, you are probably fed up with the lack of activity the traditional sales method is generating.  You may have had offers but they were insulting and/or probably included contingencies.  You are probably trying to close a chapter of your life which may include downsizing, moving, or there may be health issues.  You probably don't have to sell and are not distressed.

If this sounds like you, then you are probably a good candidate for a luxury real estate auction. How does a cash, contingency-free 30-45 day closing sound?  Out of area, end-user, affluent buyers are out there.  They just need something like a date-certain event to force them to react.

So, where do you start if you haven't already?  I would be happy to work with you.  My advice and our services are complimentary.  Please contact me anytime.

Tags: best luxury real estate auction companies, luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, luxury property auction companies, luxury home auction companies, luxury estate auctions, luxury real estate auction sites

One of My Clients May be a Luxury Real Estate Auction Candidate. What is my Next Step?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Tuesday, 16 October 2012 Category Luxury Home Auction

Has one of your clients asked you about the possibility of going the luxury home auction route?  Have you considered running the concept by any of your non-distressed sellers?  If so, you probably have questions about the process including an analysis of the luxury real estate auction companies competing for your business.  Well, you have come to the right place.  I would be happy to provide complimentary advisory services to you and your client doing the homework for you.

One of the first questions you as an agent probably has is that of how you are compensated should you work with an auction firm.  Personally, I like to the agent compensated fully while staying very involved in the process.  We can talk one-on-one regarding this topic and all others.

In the meantime, you may want to view one of my videos which addresses some of the more commonly asked questions that sellers have.  That video can be viewed here.

Please reach out anytime to begin the dialogue.

Tags: luxury property auction companies, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, luxury property at auction, best luxury real estate auction companies

Take Control of the Real Estate Sales Process

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Friday, 12 October 2012 Category Luxury Home Auction

How long has your property been on the market?  Months? Years? Do you feel like you are in control of the sales process or that buyers are control?  I'm guessing that most of you feel like buyers are in control.  Have you received ridiculous offers?  Have offers included contingencies? The mindset of buyers in this day and age is one in which they know that they have the upper hand.  "I will just wait them out until they lower the price" is a common tactic used.  Has your agent asked you to consider a price reduction?

Let's think about it- in a marketplace where multiple properties are competing for buyers, what makes yours stand out from all of the others?  Probably not much if anything.  Have you ever thought about using something like a luxury real estate auction to turn the tables on buyers by taking control of the sales process?

With a non-distressed real estate auction, the seller is in control.  The seller dictates when the sale will occur, how much of a cash, non-refundable deposit will be required and how long the buyer has to close the transaction contingency-free (usually 30-45 days).  The date-certain event forces affluent, end-user buyers to react by giving them a deadline, something the traditional method of sale is not able to produce.

So, are you ready to take control of the process or are you going to go through another year or more of price reductions?  If so, let's talk.  Our advisory services are complimentary.  Please reach out anytime.

Tags: luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction company, luxury home auctions

Educate Me on the Luxury Home Auction Process

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Wednesday, 10 October 2012 Category Luxury Property Auction

Are you or is your client seeking more information on exactly how a luxury home auction may work?  Well, if so, you have come to the right place.  Daily, I have conversations with folks like you who have questions about luxury real estate auctions.

Can I set a minimum or does the property sell regardless of price?

I am currently working with an agent, how are they involved?

When I think of auctions, I think of distressed sellers and bottom feeders, is this the case with "high-end" auctions?

How is the commission structured?

What are the advantages of using one firm over another?

What is my next step?

Rather than answering these questions here, I am going to direct you to a video which addresses these topics and others.  That video can be found here.

Feel free to contact me directly anytime with questions.  My services are complimentary and the advice priceless.

Tags: luxury home auction companies, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, luxury property at auction

Who Says Real Estate Auctions Are Only for Distressed Sellers?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Sunday, 07 October 2012 Category Luxury Home Auction

So, who says that real estate auctions are only for distressed sellers?  Actually, many still feel that way but more and more are discovering that things like luxury home auctions are not just for distressed sellers.

What do you think of when you hear the word "auction"?  I ask this question of all of the people who contact me that are seeking more information on luxury real estate auctions.  Without exception, all of them say "deal".  As I have written about here often, there is a lot of psychology when it comes to auctions with the word "deal" being a big part of the psychology.

By creating the "illusion of a bargain", out of area or out of country buyers are much more likely to participate if they feel like they may get a "deal".  The goal is to use this carrot to engage "deal" seekers.  Sure, there will always be the investor and bottom feeders which I want to see engaged in the process.  The auction needs the $1mm investor bidder to push the $1.5mm end-user bidder to push the $1.8mm end-user bidder to push the $2.1mm end-user bidder and so on.

Like my father, an auctioneer, says, "It's not where you start the bidding but where it ends".

Are you or is your client ready to take control of the sales process?  If so, let's talk.  Please contact me anytime to discuss this topic or any other topics related to real estate auctions.

Tags: luxury home auction companies, luxury property auction companies, luxury real estate auction companies, luxury property auctions, luxury real estate auctions, exclusive property auction companies, luxury property at auction
by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
User is currently offline
Wednesday, 03 October 2012 Category Luxury Home Auction

So, you or your client is considering a luxury home auction?  Well, you've come to the right place.  Have you already begun the initial process of investigating the luxury real estate auction companies competing for your business?  Most of the people I talk to on a daily basis have while a few have not.  No matter what stage you or your client may be in, we are ready to help. Our services are complimentary and our advice priceless.

Don't be fooled into believing that the high-end auction process is cookie cutter in nature and that all luxury property auction companies are the same.  They are not.  Don't make the mistake of working with the wrong firm who does not have your best interests in mind.

Please contact me anytime to begin the dialogue.

 

 

Tags: luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, best luxury real estate auction companies

Is There Still Time to Sell and Close My Home by Year-End Using a Luxury Home Auction?

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Monday, 01 October 2012 Category Luxury Home Auction

Thanks to all of you owners and agents for all of your questions regarding my recent post regarding selling your luxury home at auction and closing by year-end.  Yes, it is still possible but we would need to get the process of selecting a luxury real estate auction company started soon.

To recap- regarding the timing, I like to see a 45-60 day advertising/marketing and due diligence campaign with a 30 day or less closing.  You do the math and if your goal is to close by year-end, then there is still be time but I wouldn't wait much longer.

Some of you have personal reasons why you would like to close a chapter of your life (moving, downsizing, retiring) and move on in 2013 while others' reasons may include financial planning or tax obligations.  Whatever your reason, whether it is doing something this year or next, we are here to help in this most important decision.  Please contact me anytime with questions.  I will be happy to guide you through the process.

Tags: luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury home auctions, luxury real estate auction companies

The Psychological Element of an Absolute Luxury Home Auction

by Gary Gilbert
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Wednesday, 26 September 2012 Category Luxury Home Auction

Psychology plays a huge role in that of auctions, especially luxury home auctions.  What do potential bidders think when they see the word "auction"?  Most think "deal", something all auction companies want them to think.  I like to use the phrase that a "high-end" auction creates the "illusion of a bargain".

Now let's take a look at the role an absolute auction plays when it comes to the psychological element.  A legitimate absolute auction is one in which the property is sold to the high bidder regardless of price.  A non-legitimate absolute auction is one in which the event is advertised as selling to the highest bidder but is cancelled on sale day due to lack of interest or insufficient bid prices.  Consider this a red flag and proceed with caution if this tactic comes up. We can dig into this topic in another post but for now let's focus on legitimate absolute sales.

Put yourself in a buyer's shoes.  You live in Texas, for example, and are interested in a Colorado luxury real estate auction that is selling absolute.  You are going to be much more likely to travel up for a property tour and come back again on sale day if you feel that if you are the high bidder, you will be the new owner.  Many others feel the same way and are not local buyers in Colorado either.  On sale day, bidders know that if they are the high bidder, they will be the new owner.  Other than engaging more bidders in the process, the absolute concept consistently generates more active bidding and higher bid prices than would that of an auction with a reserve, either with a published number or without.

I am happy to discuss this topic with you in more detail. Please reach out anytime.

Tags: luxury property at auction, exclusive property auction companies, luxury real estate auctions, luxury property auctions, luxury real estate auction companies, absolute real estate auctions
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