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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.

How Many Bidders Typically Attend a Luxury Real Estate 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, 25 July 2012 Category Luxury Home Auction

I am often asked by potential sellers how many registered bidders typically attend a luxury real estate auction.  It really depends on what type of asset is being sold and where the asset is located.  The number may range from two or three or 10 plus for a single property to more than one hundred for a multi-property auction like a condominium event.  There are times when there may only be one registered bidder or even none at all.

So, what factors increase the amount of registered bidders?  A legitimate absolute auction is the ultimate factor.  By legitimate, I mean that if the property is advertised as absolute (selling to the highest bidder at any price) it actually sells and the auction is not cancelled if the price is not acceptable to the seller.  Bidders know that if they are the high bidder they will own the property.  This mentality tends to force bidders to compete harder and bid more aggressively ultimately resulting in higher final bid prices.  In addition, if I published minimum bid is used, the number published must be very aggressive, creating the same sense of an illusion of a bargain that an absolute auction conveys.  Finally, location and the property itself are very important factors.

Feel free to contact us anytime to discus this topic or any others including luxury real estate auction companies in more detail.

 

Tags: luxury real estate auction, luxury real estate auctions, luxury property auction, luxury property auctions, luxury real estate auction company, luxury real estate auction companies, luxury property auction company, luxury property auction companies, luxury estate auctions

The Profile of a Good Luxury Real Estate Auction Candidate

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, 22 July 2012 Category Luxury Home Auction

I'm constantly asked what I feel is the most important component of a successful luxury real estate auction event.  Without hesitation, I always answer the question the same way.  The most important component is working with the right seller.

So, what is the "right" seller?  That person is someone who is realistic on the true value of their property.  They do not rely on comps or appraisals but instead understand that end-user buyers determine the true, market value of their property, not sellers.  In addition, the seller needs to have some type of motivating factor which may include, but is not limited to, things like downsizing, moving, retiring or possibly health issues.  They understand that selling at today's true, fair market is likely better than dragging out the sales process and suffering through a series of price reductions.

What type of seller or you or is your client?  Let's visit to determine the answer to this very important question.  We are here to help.  Please contact us anytime to get started.

Tags: luxury real estate auction sellers, luxury home auction sellers, luxury real estate auctions, luxury property auctions

The Luxury Real Estate Auction Evaluation 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, 20 July 2012 Category Luxury Real Estate Auction Companies

When it comes to the evaluation process for deciding to conduct a luxury real estate auction or not, at first glance it may
seem that the only one doing the evaluating is the potential seller.  However, just as much, if not more, evaluating should
be going on by any credible luxury real estate auction company.

The typical seller considering a luxury real estate auction firm probably follows pretty much the same pattern regarding
the selection process.  They probably conduct a Google search for luxury real estate auction companies or something similar, contact the companies and go from there.  A better option may be for them to contact an expert like Real Estate Auction Options and let us do the homework for them.  Either way, at some point, they will certainly have a phone conversation with an auction company representative and possibly may have a face-to-face meeting. 

At either level, just like the potential seller is evaluating their options when it comes to auction, a good auction company is
evaluating their options when it comes to the potential seller.  The question "Is this seller realistic on the true value of
their property" should be the single most important point in the auction company's model.  If the seller is not realistic, it
does not do anyone any good to move forward with an auction. 

Are you or is your seller someone who is realistic on the true, market value for their property and considering the high end auction method?  If so, we would like to help by offering expert advice.  Please reach out to us anytime to discuss.

Tags: luxury real estate auction, luxury real estate auctions, luxury property auction, luxury property auctions, luxury real estate auction company, luxury real estate auction companies, luxury property auction company, luxury property auction companies

Hello Luxury Home Seller, Is It Me You're Looking For?

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, 18 July 2012 Category Luxury Property Auction

I thought I would throw  a little humor out there this morning referencing a line from the 80's pop smash by Lionel Richie "Hello".  Some of you may have gotten the reference while others not so much..  Regardless, if you are an owner of a luxury property considering something like a luxury home auction or if you are an agent representing a luxury home seller I ask "Is it me you're looking for?"

My business, Real Estate Auction Options and I are not a luxury real estate auction company that actually conducts auctions but instead provide advisory services to those considering selling their property via luxury real estate auction.  We take a look at what type of property you have and make a recommendation as to our opinion of the auction company best suited for your specific needs.

Let us do the homework for you.  We understand the ins and out of the luxury property real estate auction world and are happy to share our extensive expertise with you.  Please contact us anytime to begin the dialogue.

 

 

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Is Auctioning My Luxury Home Risky?

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, 16 July 2012 Category Luxury Home Auction

It is not uncommon to hear potential sellers ask whether or not conducting a luxury home auction is risky.  This is a valid question which should be asked so let's address the answer here today.

So, when is the real risk taken- when the seller built or purchased the luxury home or when they sell it?  It really depends on who you ask.  Of course, a seller will say that it is when they attempt to sell the home via luxury real estate auction while I've seen numerous cases where in my opinion the biggest risk, by far, was when they built or purchased their home. Regardless, today we are considering the later so let's take a look at that.

If I am working with the right seller (one who is realistic on the true value of their home and doesn't get too hung on things like comps and appraisals), then I think the real risk is not trying something like a "high-end" auction, especially if they are like most of the sellers I work with who are not distressed and are selling due to downsizing, retiring, moving or allocating assets.  Do they really want to go through another year or more waiting for something to happen, something that likely includes contingencies and price reductions?  Why not use a date-certain event which eliminates the unknown, something that by many is considered the true risk?

So, where do I or my client and I start?  A good place to start would be by contacting Real Estate Auction Options.  We have the experience and knowledge to advise you on all things luxury real estate auction-related.  Don't risk selecting the wrong luxury real estate auction company to handle your event.

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Luxury Real Estate Auctions and the Agents That Refer Them

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, 13 July 2012 Category Luxury Property Auction

Happy Friday to all.  I want to close out the week by writing about luxury real estate auctions and the agents that refer them.  I chose this subject today because I have noticed a big uptick of late in the amount of inquiries I am receiving from agents.  For some, their client has asked them to look into the auction concept while for others, the agents themselves are mentioning the concept to their client.

Who are these agents?  Are they only those that specialize in multi-million dollar luxury homes?  Not really.  I guess it really depends on the market-specific definition what qualifies as a luxury home.  In general, I would say that a luxury home could have an asking price of $750,000 or more with one qualifying for a stand alone outcry event having an asking price of $1.5mm or more.  What about those priced less than $1.5mm?  They could be candidates for either a multi-property event or an online/telephonic event only.

One thing I wanted to mention again to all of you agents out there who may not have a luxury home auction candidate yourself but may know another agent nationwide who does- I recently became aware of a luxury real estate auction company who offers an agent-to-agent auction referral program.  Please contact us for more details about this or any other questions you may have regarding auctions including assisting you and your client in the auction firm selection process.

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Luxury Home Auctions Conducted Live, Online and Via Phone

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, 11 July 2012 Category Luxury Home Auction

I was asked yesterday by a potential luxury home auction seller whether an online only auction for their luxury home would be recommended.  The home was located here in a non-remote area of the US so my initial reaction was no.  Had the home been very remote, I may have thought differently.  "What about online only?", the seller asked and again my initial reaction was no.  I like to see online and telephonic bidding used in conjunction with a live, outcry event but rarely used exclusively.  Why?  There's just something about being there at a live, outcry event where emotions and egos can run high, something necessary to create excitement and aggressive bidding at a luxury real estate auction.

In addition, the ability to conduct hard core one-on-one negotiations on sale day is eliminated in an online/telephonic only event should that be necessary.

I don't want to see any potential bidder eliminated and like to include them if there is no way they can be there live, in attendance.  However, if there is any way bidders can attend live, I want to see them there.

Are you or is your client considering a luxury house auction?  What better place to start than here?  We are happy to advise you on this most important decision and are here to do the homework for you when it comes to selecting the best luxury real estate auction company to handle your event.  Please contact us anytime to begin the dialogue.

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I Am Considering Auctioning My Luxury Home. What Should My Next Step Be?

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, 09 July 2012 Category Real Estate Auction Companies

So, you're thinking about selling your home via luxury real estate auction?  Congratulations for thinking outside of the box.  You probably have grown tired of waiting for something to happen and like the idea of taking control of the sales process.  There's nothing like a few low ball offers with contingencies combined with a series of price reductions that makes one take a look at other options.  Does this sound like you?

I'm not a distressed seller.

I don't have to sell but I would like to so that I can close a chapter of my life.

I'm moving, downsizing, retiring, allocating assets or I may have health issues.

I'm ready to take control of the sales process by forcing affluent buyers to react by using a date-certain event.

If so, a luxury home auction may be for you.  In addition, you need to be able to answer this question with a "yes":

Am I realistic on the true, fair market value for my home without placing too much emphasis on comps or appraisals?

What is my next step?  Contact Real Estate Auction Options for expert advice regarding luxury property auctions in general as well as luxury real estate auction companies, their business models and the one that may be best suited for your needs.

 

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What Percentage of Properties Taken to Luxury Real Estate Auction Sell?

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, 06 July 2012 Category Luxury Real Estate Auction Companies

A happy Friday to all on this holiday-shortened week.  To close out the week, let's take a look at a question that someone asked me just yesterday, one I hear often.  The question is "what percentage of properties taken to luxury real estate auction actually sell?

The answer really depends on the luxury real estate auction company conducting the event and their business model.  A good one should be in the 90% plus range while others could be significantly lower.  So, why would many firms' closure rate be lower than others?  I like to call it the "throw it up against the wall and see what sticks" mentality.  The auction firm will take on most any deal, hope for the best and move on to the next market if things don't go well.  Sadly when this happens, the luxury property auction method gets a bad name with the possibility of another auction event going on in that market in the near future slim.  Agents and owners may experience a failed event and think that luxury auctions simply don't work when in reality, they do work and work well given the presence of the most important component which is working with the right seller.

The right seller is realistic on the true market value of their property and understands that when the market speaks, the market speaks (assuming there is a sufficient amount of end-user bidders competing for ownership of their property).

Owners and agents:  Don't make the critical mistake of working with the wrong auction firm who doesn't care if you or your client is the right type of seller or not.  Sellers:  Don't be the seller whose auction taints your market/neighborhood.

Please contact us anytime for expert advice regarding whether you or your client is a good candidate including the luxury property auction company selection process.

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My Client Has Asked About the Luxury Real Estate Auction Concept. 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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Wednesday, 04 July 2012 Category Luxury Home Auction

I have seen a big uptick lately in the amount of agents who are telling me that their clients are asking them to look into the possibility of conducting a luxury home auction.  Are you one of those agents?  If so, you may have already begun to investigate the concept or you may have it on your to do list.  Either way, a good place to start would be by contacting us here at Real Estate Auction Options.  We can save you a lot of time and a lot of potential grief should you recommend that your client use the wrong luxury real estate auction company.  Our services are complimentary and our advice could be critical to the success of any future auction event.

Without getting into too much detail here, let's take a look at the first thing most agents ask me which is "How am I paid?"  That varies greatly from firm-to-firm.  A few firms typically want to involve the agent as little as possible compensating them as little as possible as well with one in particular wanting the agent to be extensively involved and paying them their full commission that they were at prior to the auction company becoming involved.

I see the brokerage community as a huge part of the success of a luxury property auction and like to see them involved and compensated as much as possible.

There are several other items to consider such as the critical one regarding the commission arrangement between the auction company and your seller which we can discuss one-on-one.  Please contact us anytime to discuss.

 

 

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How is a Luxury Real Estate Auction Typically Advertised and Who Pays for It?

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, 02 July 2012 Category Luxury Property Auction

One of the questions I receive often by owners and owners' agents considering a luxury property auction regards how the event is advertised and who pays for that component.  Let's start by taking a look a how something like a luxury home auction is typically advertised.

A standard campaign conducted by a good luxury real estate auction company will include most, if not all, of these advertising components:  newspapers, magazines, brochures or postcards, a public relations campaign and internet advertising.  The advertising and marketing campaign makes up the majority of the budget with due diligence items making up the balance.

So, who pays for this advertising and marketing campaign?  Most auction firms will require the seller to pay for this upfront in advance with that being the total commission required of the seller.  However, I am aware of a couple of firms who are asking the seller to pay for the advertising and marketing campaign in addition to paying a few points of commission based on the high bid price.  Call me anytime to discuss this item as there are much better options for you as a seller or for your client.  A net commission of 8% plus can be excessive, especially for an asset selling for $1mm plus.

Reach out anytime to discuss the advertising and marketing subject or with questions regarding anything luxury real estate auction-related.  We are here to help.

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Agent-to-Agent Luxury Real Estate Auction Referrals

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, 28 June 2012 Category Luxury Home Auction

While you as an agent may not have any candidates for a luxury real estate auction, you may know another agent who does.

If so, I recently became aware of an agent-to-agent auction referral program that one of the groups I work with is offering.  In the case where an existing listing agent does not have any seller candidates for an auction but may know another agent who does, the referring agent is eligible to earn a fee should a successful auction event occur. 

There are basically two levels based on the property's asking price. For those listed at more than $1mm, a stand-alone event, either a live outcry one or via online/phone, may make sense.  For those listed for less than $1mm, either an online/phone bidding only event or possibly a multi-property event may make sense.

Feel free to contact us anytime for more information. We will be happy to answer your questions and/or provide additional information.

Tags: suncadia auction, sun valley home auction, Telluride real estate auction, See Forever Village Auction, Pa Gomo auction, park city luxury property auction, luxury house auction luxury real estate auctions online, luxury home auctions colorado, luxury home auctions arizona, luxury home auctions california, luxury home auctions florida, luxury real estate auction costs, luxury real estate auction commission, luxury property auction sites, luxury real estate auction sites, luxury estate auctions, luxury home auction companies, luxury home auction company, luxury property auction companies, luxury property auction company, luxury real estate auction companies, luxury real estate auction company, luxury property auctions, luxury property auction, luxury real estate auctions, luxury real estate auction

Does My Home Justify a Stand-Alone Luxury Real Estate Auction Event?

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, 27 June 2012 Category Luxury Home Auction

I've been asked a lot lately by both owners and their agents whether their home should be offered in a stand-alone luxury real estate auction event or whether there are other options.  It really depends on the value of the property.

Generically speaking, a property that is a candidate for a stand alone luxury home auction event would probably have a value of $1mm plus.  The reason for this has to do with the financials which most times include the seller advancing the cost associated with an extensive advertising and marketing campaign.  In most cases, this will be the total commission paid by the seller.

For a property with a value of $1mm or less, there are a few options.  One could do a stand alone event conducting the event online and/or via phone only.  One could also participate in a multi-property auction event in which all sellers share in the advertising and marketing expense with the auction taking place in a central location like a hotel ballroom.

What method would be best suited for your or your client's property?  Please contact us anytime to determine the answer to this question.  We are happy to advise you.

 

Tags: Telluride real estate auction, See Forever Village Auction, Pa Gomo auction, park city luxury property auction, luxury house auction luxury real estate auctions online, luxury home auctions colorado, luxury home auctions arizona, luxury home auctions california, luxury home auctions florida, luxury real estate auction costs, luxury real estate auction commission, luxury property auction sites, luxury real estate auction sites, luxury estate auctions, luxury home auction companies, luxury home auction company, luxury property auction companies, luxury property auction company, luxury real estate auction companies, luxury real estate auction company, luxury property auctions, luxury property auction, luxury real estate auctions, luxury real estate auction

Financial Planning and Luxury Real Estate 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, 25 June 2012 Category Luxury Property Auction

I hope everyone had a nice weekend.  Let's kick the week off by discussing one of the primary reasons people often decide to use a luxury real estate auction.  As you may have seen on my video discussing frequently asked questions or as you have probably seen me write about here often, the typical seller usually is not distressed and is selling due to one of a few common reasons.  One of those reasons is what I often refer to as allocating assets or simply put, they are doing some financial planning.

They may have met with their financial planner or determined on their own that they need to generate cash to diversify.  Something like their luxury home that has languished on the market that may have substantial equity may need to be sold in a concentrated, date-certain time frame.  With the traditional real estate sales method not able to accomplish this, something like a luxury home auction could.  An auctioned property could be sold and closed within 90-120 days of engaging a good luxury real estate auction company.  With year-end financial planning and a presidential election looming (something we can discuss at another time), it may be time to begin the dialogue with us regarding selecting an auction company to handle your or your client's event.

Tags: Telluride real estate auction, See Forever Village Auction, Pa Gomo auction, park city luxury property auction, luxury house auction luxury real estate auctions online, luxury home auctions colorado, luxury home auctions arizona, luxury home auctions california, luxury home auctions florida, luxury real estate auction costs, luxury real estate auction commission, luxury property auction sites, luxury real estate auction sites, luxury estate auctions, luxury home auction companies, luxury home auction company, luxury property auction companies, luxury property auction company, luxury real estate auction companies, luxury real estate auction company, luxury property auctions, luxury property auction, luxury real estate auctions, luxury real estate auction

The Importance the Brokerage Community Plays in a Luxury Real Estate Auction Event.

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, 22 June 2012 Category Luxury Property Auction

A happy to Friday to all.  Let's wrap up the week with a discussion about the important role the brokerage community plays in a a luxury real estate auction event.  Many of the calls and emails I receive are from brokers and agents who are either thinking about running the auction concept by their seller or their seller has asked them to look into the idea.  I have certainly seen an uptick in the volume of inquiries in the past couple of years as many higher-end listings are just not moving and need something like a luxury home auction to create excitement and urgency on behalf of buyers.

Once an auction has been confirmed, the referring broker plays a critical role in the process depending on the luxury real estate auction company.  A good one will involve the agent extensively and rely on their expertise in their marketplace.  They are usually expected to conduct open house events as well as meet with potential buyers who may want to tour the property by appointment.  Their commission varies depending on the auction firm with a good one paying the agent the same percentage arrangement they had in place with the client prior to engaging an auction firm.  Agents, please contact us to discuss this topic in more detail.

On the buying side, the brokerage community is usually represented well at auctions.  Generically speaking, I am seeing successful bidders represented by agents more than half of the time.

Agents and brokers: please contact us anytime to discuss your client's situation.  We will be happy to take a look at your situation and make our best recommendation including an analysis on the models of the handful of luxury auction firms that compete for business.

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Luxury Real Estate Auctions Gaining in Popularity

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, 20 June 2012 Category Luxury Home Auction

Luxury real estate auctions, especially luxury home auctions, are gaining in popularity.  That is according to the article below but of course we have been discussing this as well for some time now.  Some of the increased popularity is due to the fact that sellers are seeing auctions working in their marketplace.  Also a reason may be the fact that sellers are feeling some pressure to try something new in a stagnant, crowded marketplace.

Let's take a look at what the article from RSMedia has to say:

As if real estate needed more hurdles, a tough credit market has made a monster of the already lengthy and sometimes nerve wracking financing subject. On a good day, the process can delay or derail a deal, to the agony of the seller, the buyer and their agents.

While solid traditional and alternative financing options remain, savvy agents can widen their marketing scope to skip the financing concern altogether.

Skip the Financing Hurdle

To go from ‘lead to sold’ on the fast track, market your listing where buyers are ready and looking, financing and cash already in hand.

Professionals around the world have figured that to maximize asset value and save valuable time and resources, they must cut to the chase by focusing their marketing on buyers who are ready to execute.

The National Association of REALTORS® (NAR) forecasts that within four years, one in every five properties in the United States will be sold at auction.

Last year in the U.S., over 58 billion dollars of real property exchanged hands at auction, with 52 percent being non-distressed, luxury homes and estates. Many of those are multi-million dollar deals that closed in as little as 30 days. These numbers can skyrocket as new, Web-based platforms enable mass participation by REALTORS® and consumers alike.

Focus on Committed Buyers

Buyers at auctions are significantly more likely to go through with a deal, mainly because they are funded and ready to engage. Most online auction platforms and traditional auction houses also impose penalties to help maintain auction flow and process integrity.

The Free Model and Mass Participation

Early and typical auction models impose registration or participation fees, penalties and buyer premiums.

The future of online real estate sales does away with such prohibitive fees,including the buyer premiums, which can be up to 10 percent of the value of the transaction. This shift, powered by highly intuitive technologies are set to attract mass participation, revolutionize real estate buying and selling, and put the traditional sales process in North America on the fast track.

Are you or is one of your sellers a candidate for a luxury property auction?  If so, let's talk.  We are happy to advise you when it comes to selecting the best luxury real estate auction company for your specific needs.

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How Many People Typically Attend a Luxury Real Estate 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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Sunday, 17 June 2012 Category Luxury Home Auction

I was asked several times last week the question "How many people typically attend a luxury real estate auction".  So, what do you think?  Five, ten, twenty, fifty or more?  For something like a luxury home auction, the number really depends on whether or not the event is open to anyone or if it is a private event.  As most of you probably know, I am a big fan of the live, outcry event, especially an open event.  Why an open event?  With just a handful of bidders in a room on sale day joined only by the auctioneer and the luxury real estate auction company's staff, the environment can be a bit cold and intimidating.  An open to the public event, on the other hand, tends to loosen up the enviornment up a bit not to mention the fact that sometimes bidders may not know who their competition is, something that may cause them to bid more aggressively.

I would say that for the typical open luxury home event, there may be twenty plus in attendance with fifty plus not being unheard of.  Most of those are a combination of other potential sellers, brokers and agents and the ones we care about most, the registered bidders.  Generally speaking, I am seeking an average of five or six registered bidders of late for something like a luxury home. That may not sound like a lot but when you think about it, it really only takes two to battle it out for ownership of anything.

Would you or your seller like to see cash, contingency-free end-user buyers standing in your living room competing for ownership of your luxury property?  If so, Real Estate Auction Options would be a good place to start regarding expert advice and what your next step should be.  Please contact us anytime to begin the dialogue.

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Luxury Real Estate Auction 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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Friday, 15 June 2012 Category Luxury Property Auction

A good Friday to all.  Let's end the week with a discussion about why certain sellers of luxury real estate sold through the
high end auction auction are more likely to have a successful event than others.  You've heard me discuss it many times
here before- the importance of working with the right seller, one who is market sensitive, not price sensitive.  To recap,
the price sensitive seller is hung up on things like comps and appraisals and often times is not realistic on the true
value of their property.  The market sensitive seller, on the other hand, is fine with the price achieved assuming that there
are several end-user buyers competing for the right to own their property.  All sellers always want to achieve higher prices
but the market sensitive seller understands that when the market speaks, the market speaks.

So, what is a luxury real estate auction company to do when they feel like they may have a price sensitive seller on their
hands?  A good one will pass on the business keeping the seller's, and their, best interests in mind.  Sadly, others too many times will take the property to auction only to have an unsuccessful auction.  These failed events are a lose lose for all parties involved including the real estate auction business in general.

So, what kind of seller are you or is your client?  A quick call with us at Real Estate Auction Options should be able to
determine the answer to this most important question.  Please contact us anytime to discuss this topic or any others that
may be on your mind.

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The Importance of the Published Opening Bid Amount for Luxury Real Estate 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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Wednesday, 13 June 2012 Category Luxury Home Auction

Today let's take a look at the importance of the published bid amount for properties sold via the luxury real estate auction method.  You may have seen the terminology "suggested opening bid" or simply "minimum bid" on advertising and marketing collateral distributed by a luxury real estate auction company.  Either term refers to an auction with a reserve in which the seller has the right to sell or not sell depending on the highest bid achieved.  The goal of any good published bid auction is to entice buyers by creating the illusion of a bargain.  For example, you may see the concept used in which an original listing price is stated and the minimum bid is substantially less than that.  That psychology is used to engage buyers.  In their mind, they think, "If I could  buy it for that, I would". In reality, this tool is simply a way that the auction firm creates in the minds of bidders the illusion of a bargain.  When many potential buyers feel this way, the number of registered bidders increases.  When the number of registered bidders increases, so do the bid prices.

A critical key to the success of publishing a minimum or suggested opening bid is what number is published.  It can't be too high or it will deter potential buyers.  It can't be too low either.  However, it needs to be low enough and aggressive enough to create the illusion of real deal.  So, how is the perfect number to use determined?  Is it a percentage?  It really depends on the property and the seller. Generically speaking, I like to see the number at least 50% of the original asking price.  However, some sellers may not be comfortable using such an aggressive percentage.  Each situation and each seller is different so finding the perfect solution is critical and not to be left to chance.

We are happy to advise you on this strategy or any others you may have questions about as they pertain to luxury property auctions. Please contact us anytime to discuss.

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The Importance a Date-Certain Event Plays in a Luxury Real Estate 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, 12 June 2012 Category Luxury Home Auction

I often hear potential sellers say to me "I can do the exact same market campaign myself or through the traditional sales method as a luxury real estate auction company is proposing, so what is the difference?"  While on the surface, there may not seem to be much difference, the difference is actually huge.  The same exact home using a traditional listing with the exact same marketing campaign is really just another listing, usually one of many in the same asset class and price range.  An owner or an agent simply lists the property for sale just like all of the other properties do which are all competing for attention.  Without any type of date-certain event, the mindset of buyers is simply one of trying to wait out the seller, usually through a series of price reductions.  The luxury property auction event, on the other hand, uses a date-certain event which creates urgency on behalf of affluent buyers.  The property is now thrusted into the spotlight with all of the attention focused on it while the others competing for attention are simply sitting there with nothing special,like a date-certain event, differenciating them.

Would you are would you client like to use a date-certain to capture the attention of buyers forcing them to react?  If so, contacting
Real Estate Auction Options
would be a great place to start.  We have the experience and knowledge to guide you through the world of luxury property auctions including advising you on the firm best suited to handle your event.

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