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Real Estate Auction Options Principal Gary Gilbert discusses luxury real estate auctions for both sellers and purchasers.

Bogus Luxury Absolute Home Auctions and the No Sale Fee.

By Gary Gilbert on
Gary Gilbert
I have been involved in multi-millions of dollars worth of luxury real estate au
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Jul 09 in UNCATEGORIZED

Well it seems like the latest bait and switch being used out there in our luxury home auction world is that of the absolute auction with the no sale fee.

The bogus absolute auction has been around forever in varying degrees.  The basic premise is that a luxury real estate auction company advertises the sale as "absolute" or "selling without reserve" only to cancel the auction a couple of days prior to the event should interest not be as strong as they promised.  Cancelling the auction is bad for a couple of reasons.  One, it never gives the auction a chance to work.  Two, it often ends up with litigation between a disgruntled buyer, the auction company and it's seller.

The new spin that you or you and your real estate agent need to be aware of is that in which the luxury home auction company wants you to agree to a no sale fee should the so-called absolute auction never be held and cancelled.  Beware of any firm that agrees to pay the upfront marketing costs for you only to be owed a no sale fee should the auction never occur.  In some cases, that no sale fee could be up to $200,000.

This is a lose-lose situation for everyone.  Don't be a victim whether you are a private seller or an agent representing an affluent client.

Questions?  I'm here to help.  Reach out anytime.

Gary Gilbert

404.784.5759

Tags: luxury home auctions, absolute home auctions, luxury real estate auctions

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