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

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Bogus Luxury Absolute Home Auctions and the No Sale Fee.

by Gary Gilbert
Gary Gilbert
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Sunday, 09 July 2017 Category 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

Downsizing Continues to be the Trend for Large Luxury Homes.

by Gary Gilbert
Gary Gilbert
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Sunday, 21 May 2017 Category Auction a Luxury Home

Just as I wrote about last year, downsizing continues to be the dominant trend in our business of luxury home auctions.  My upcoming auction event is for an 18,000 +-  square foot home.  My sellers, just like many others, are simply done with the upkeep and the huge amount of energy and money required to continue maintaining their property.  They have had the home listed for an extended period of time with no results and are simply ready to move on with their life.  I have heard recently more than once "We just use two or three of the rooms in the entire home"

Does this sound like your seller client or someone you know?  Are you or is your client non-distressed?  Have you had a long listing with no results?  Are you or is your client downsizing or are there health issues?  If so, you may be a good candidate for our program.

Take the first step by contacting me. I'm happy to guide you through the process of selecting the best luxury real estate auction company.

Gary Gilbert

404.784.5759

Tags: downsizing a luxury home, luxury home auctions, luxury real estate auctions

Passing on Luxury Home Auction Sellers who are not Ready.

by Gary Gilbert
Gary Gilbert
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Sunday, 22 May 2016 Category Auction a Luxury Home

So you've heard all about how a non-distressed luxury home auction may be a good fit for you or your client. You or your client meets all of the criteria I often discuss (non-distressed, may be downsizing, probably has experienced a lengthy listing).  But how good of a candidate are you or are you and your seller really?

It all comes down to how realistic one is regarding the true value of their luxury home they are considering auctioning.  The reason that something is not selling almost always comes back to price.  For example, if you or your client have had your property  listed for at least one year at $2.9m and your reserve price at auction has to be $2.4m, I can't help you.  No one can help you.  Back in 2007 when things were artificially booming, perhaps, but today no way.

In many cases, it is best for all parties to simply continue to market the home traditionally while the seller becomes more realistic on the true value of their home.  Many times, I will have clients come back to after a year who have gone through the process of price reductions only to still be stuck with the home they are trying to sell so they can close this chapter of their life cutting the anchor of never-ending maintenance and expenses.

Are you or are you and your client ready and realistic to chat regarding a possible luxury real estate auction?  If so, reach out to learn more.

Gary Gilbert

404-784-5759

Tags: luxury real estate auction companies, auction a premier home, luxury real estate auctions, auction a luxury home

Waterfront Luxury Home Auctions Very Popular at the Moment.

by Gary Gilbert
Gary Gilbert
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Wednesday, 02 March 2016 Category Uncategorized

Ask me what my favorite real estate asset class to sell via auction is my answer will always be waterfront.  I've been doing this a long time and have always experienced that waterfront homes typically do very well via non-distressed auction.  People love the water.  Add a luxury home to the water and one has a highly desirable  commodity.

Currently, I am involved in two upcoming waterfront luxury home auctions. I have already received numerous inquiries and discussion of a pre-sale for one of those whose advertising has not even begun.  This home had been listing for a long period of time with few, if any serious inquiries.  I can only imagine how much activity will be generated once the advertising begins.

Regarding the pre-sale concept, the power that the date-certain event an auction creates forces buyers to act, sometimes in advance of the scheduled auction event.

Whether you or your client has a waterfront home or not, let's chat if this sounds like you:

Non-distressed and doesn't have to sell.

Has experienced a long listing.

Is downsizing or there may be health issues.

Contact me anytime to learn more.

Gary Gilbert

404-784-5759

Tags: waterfront luxury home auctions, premier home auctions, luxury real estate auctions, waterfront luxury home auctions, luxury re, waterfront luxury houme auctions

Spring Selling Season for Luxury Home Auctions is Here.

by Gary Gilbert
Gary Gilbert
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Tuesday, 09 February 2016 Category Uncategorized

As most of you know, my favorite season for the luxury home auction business is here.  Well, not technically, but based on our model of a 60-70 day advance marketing program, it is.  Those sellers and their agents that understand the power of a date-certain event are taking advantage of the April and May time period by scheduling their events for those months.

I am currently working with non-distressed sellers who have experienced long listings with both waterfront and city homes.  They, like all of the sellers I work with, do not have to sell.  They have experienced a lengthy listing and are downsizing.  They like the idea of using a date-certain event forcing affluent, end-user buyers to a point of action.

Does this sound like you or your client?  If so, let's have dialogue.  Reach out to me anytime with questions.

Gary

404-784-5759

 

Tags: luxury real estate auction companies, luxury real estate auctions, luxury home auctions

Pre-Selling a Luxury Home Offered at Auction.

by Gary Gilbert
Gary Gilbert
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Friday, 22 January 2016 Category Uncategorized

Today, let's touch on the subject of the pre-sale as it relates to luxury home auctions.  Just like it sounds, a pre-sale occurs when a property offered at auction sells prior to it's scheduled auction.

So, why would this happen?  In most cases, it happens when someone who is very interested in a property offered at auction prefers to negotiate pre-auction instead of bidding at the auction itself.  In many cases, one does not want to get into a competitive bidding situation on sale day and has a personality that would rather purchase in a more traditional way.

The magic the auction method offers that the traditional method of sale does not is the date-certain event which forces buyers to a point of action.

So, how often does a property pre-sell?  In my many years of experience in the field, I would estimate that this happens about 10-15% of the time.

What other questions do you have regarding non-distressed luxury real estate auctions?  I'm happy to answer them for you.  Reach out anytime.

Gary

404.784.5759

Tags: pre selling a luxury home, luxury real estate auctions, luxury home auctions, pre selling a luxury home

April is a Favorite Month for Luxury Real Estate Auctions.

by Gary Gilbert
Gary Gilbert
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Monday, 14 December 2015 Category Auction my Luxury Home

What is the best month of the year to conduct a non-distressed luxury home auction? In my last post, I wrote about Spring luxury home auctions.  A few of you have asked me what I feel is the best month of the year to conduct luxury real estate auctions.  It really depends on where one lives but generally speaking, I tend to favor the month of April.

In most regions of the US, April is a great weather month.  Things are greening up and the warm winds of Spring seem to put many in a good mood.

That being said, any of you considering a non-distressed high-end real estate auction event in April need to commit to such by the end of January or the first part of February.

Ready to get started?  Reach out to me anytime for expert advice.

Gary

404.784.5759

Tags: luxury real estate auction companies, luxury real estate auctions, luxury home auctions

How Common are Luxury Real Estate Auctions? More Common than One Would Think.

by Gary Gilbert
Gary Gilbert
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Tuesday, 27 October 2015 Category Ranch Auctions

Even after doing this for many, many years, I am still surprised at the amount of people who are not aware of the luxury real estate auction concept.  Not surprisingly, many that hear the word auction still affiliate it with distress, fire sale or foreclosure.

When I run across someone that is not familiar with the non-distressed high end real estate auction concept, I often ask them to think about how an exotic, vintage car or a multi-million dollar piece of art is sold.  Do they list it at an inflated price, reduce the price over time and deal with contingencies from buyers?  No, they set a date, promote the sale and auction it to an affluent buyer in a cash, contingency-free manner.

So, how common are luxury home auctions here in the US?  Probably more common than one would think but still somewhat of a foreign concept to most.

Want to learn more?  I'm here to educate you.  Reach out anytime.

Gary

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Tags: auction a luxury home, luxury home auctions, luxury real estate auctions

Non-Distressed Luxury Home Auctions Gaining in Popularity.

by Gary Gilbert
Gary Gilbert
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Sunday, 16 August 2015 Category Luxury Real Estate Auction Companies

I have been doing this for a long time and can't remember a time when so many non-distressed luxury home auctions were taking place.  Are we here in the USA going the way of some countries where auction is the preferred way to sell real estate?  Probably not. However, the concept certainly is trending here.

Why is that?  I think a lot of it has to do with the fact that sellers are becoming more educated and aware of the benefits a high end real estate auction can offer them.  Benefits like selling for full market value in a 60 day window with a 30 day cash, contingency-free closing allowing them to close a certain chapter of their life, something the traditional method of sale has not been able to accomplish.

Would you like to learn more? Who is the best luxury real estate auction company for you or your seller?  Contact me anytime to learn more.

Gary

404-784-5759

Tags: luxury home auctions, luxury real estate auctions, luxury real estate auction companies, premier home auctions, masion auctions

Two Identical Luxury Home Listings, Two Very Different Results. Auction vs. Traditional

by Gary Gilbert
Gary Gilbert
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Sunday, 02 August 2015 Category Luxury Property Auction

I can't tell you how many times I have been asked by a luxury home seller "We have done all of the same advertising that you are proposing, Wall Street Journal, etc.  What makes your program different?" The answer is simple- the date.  By using a date-certain event, affluent, end-user buyers are much more likely to engage in the process because they now have a deadline, something they do not have in a traditional listing.  With a traditional listing, there is no end date or deadline that forces these buyers to a point of action.

Put your buyer's hat on.  What would make you react? You, like most of our buyers and sellers are probably a successful, busy person who understands deadlines.

Do you want to learn more about the non-distressed luxury home auction process?  I am happy to help.  Reach out to me anytime to discuss this or any topic related to high-end real estate auctions.

Gary

404.784.5759

Tags: high end home auctions, luxury real estate auction companies, luxury real estate auctions, luxury home auctions

Luxury Real Estate Auction Companies and Your Best Interest.

by Gary Gilbert
Gary Gilbert
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Sunday, 28 June 2015 Category Luxury Real Estate Auction Companies

Other than the question "Is there a reserve" that I touched on recently, another very common question I receive is "who is the best luxury real estate auction company for me or for me and my client?"  Without getting into the specific models of each firm out there competing for your business, let's focus today on the fact that each is similar, yet different, in their own way.  Similar in the fact that the business model is pretty much the same and different in that some have your or your client's best interest in mind while others may not.

The best firms are very selective on what high-end properties they take to auction, passing on business that may not be in the seller's or the auction company's best interest.  Others take a different stance, one in which they will take most anything to the market, often times advertised misleadingly as "absolute" or "selling without reserve" only to suffer a no sale which is in nobody's best interest, especially the seller's.

So, who is a good candidate?  A good seller candidate is someone with the right property in the right location with realistic expectations on the true fair market value for their property.  They are also someone who if considering a legitimate absolute auction will actually sell and close the property, not someone who has the option to cancel the auction last minute via a pre arranged agreement with the auction company who many times spins the true results in the media.  Again, remember, sold and closed are two different things. Of course like all of the sellers I work with they are likely not distressed and are downsizing, allocating some assets, moving, or there may be health issues.

Questions?  I am here to help.  Reach out anytime

Gary

404-784-5759

Tags: luxury real estate auction companies, high end home auction, luxury real estate auctions

The Two Types of Reserve Auctions

by Gary Gilbert
Gary Gilbert
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Sunday, 14 June 2015 Category High End Home Auctions

Thanks for all of the comments and questions about my last post which discussed the reserve auction.  Those comments and questions deserve a bit more explanation for all so let's just jump in.

To recap, a reserve auction is one in which the seller decides to accept or decline the high bid price on sale day.  There are a couple of types of reserve auctions- an unpublished or "straight" reserve and a published reserve or published minimum bid.  The least effective, in my opinion, is the unpublished reserve in which no where is there any mention of a number.  I can't tell you how many times I have heard this question when someone calls or emails to learn more about an upcoming auction which is "What is the seller's reserve?"  An unpublished reserve can send a signal to potential buyers that the seller is not serious about selling but instead may just be "testing the waters".  A better option would be a published reserve- one in which a number is disclosed on all marketing collateral.  Under this umbrella, the number may be a suggested opening bid or could state "selling to the highest bidder above a number of..  Both of these use the same psychology behind a legitimate absolute auction which is the creation in bidders' minds of a bargain.  My recommendation as a general rule of thumb is that if one publishes a number, it needs to be very aggressive.  I like to see that number 50% of the highest listing price.  It takes something like this to engage buyers and rarely sells for that published number.

Questions about this or any other topics regarding luxury real estate auctions?  I'm here to help, just ask.

Gary

404-784-5759

Tags: reserve auctions, published minimum bid auctions, luxury real estate auctions

So, is there a Reserve?

by Gary Gilbert
Gary Gilbert
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Sunday, 07 June 2015 Category Auction a Luxury Home

By far the most common question that I am asked initially when it comes to luxury real estate auctions is "Is there a reserve?"  Most people are not that familiar with auctions in general, especially auctions of high end properties which is somewhat of a niche market here in the US.  Of course the simple answer is yes, there are auctions with reserve as well as auctions without reserve or "absolute" auctions.

It is human nature that most people considering an auction of their personal residence would prefer to conduct an auction with reserve.  For more auction-savvy individuals, a no reserve or "absolute" auction may not seem as daunting as they understand the psychology of auctions and realize that a legitimate no reserve sale almost always generates better results.  Why do I use the word legitimate?  Because one needs to be very cautious when working with a firm who promotes every one of their auctions as "absolute" or "selling without reserve".  See more on this very, very important subject here.

So, how long has your luxury property been listed?  Are you downsizing?  Would you like to use a date-certain event to force affluent buyers to a point of action?  Have you ever considered a non-distressed auction event?  If so or if this is an entirely new concept to you, a good place to start would be here with me.  I am happy to advise you, steering you in the right direction.  Just ask.

Gary

404-784-5759

Tags: luxury home auction companies, luxury real estate auctions, luxury home auctions, absolute auctions, reserve auctions, reserve auctions

I've Heard About non-Distressed Luxury Home Auctions. Tell Me More.

by Gary Gilbert
Gary Gilbert
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Saturday, 02 May 2015 Category Sun Valley Real Estate Auction

Did you know that luxury homes, much like high-end art, are sometimes auctioned?  I'm not referring to foreclosures but instead a niche marketplace where the affluent elect to auction their property as an alternative to the traditional method of sale.

The typical client I work with considering such is not distressed, has little if any mortgage, has had an extended listing period with price reductions, and is ready to close a chapter of their life.  An auction, by using a date-certain event forces affluent buyers to a point of action by providing them something they understand- deadlines.

Think about it as it relates to the art world- how is a Dali or Picasso sold?  What about a rare Ferrari?

How does it all work?  Who is the best luxury real estate auction company?  Learn more by contacting me anytime to discuss.

Gary

Tags: luxury home auctions, auction a luxury home, luxury real estate auctions, high end home auctions, premier home auctions, sun valley home auction

High End Home Auctions Work Well in Hot Markets Too

by Gary Gilbert
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Sunday, 12 April 2015 Category Auction my Luxury Home

Several of you asked me regarding my last post to explain what I meant by certain markets like I live in here in Austin or San Francisco being unique.  These markets, including New York are like islands in a huge ocean of the norm.  They are being fueled by technology, financial services and a steady stream of international buyers.

So, from a luxury home auction standpoint, what does this mean?  It basically means that non-distressed auctions don't occur as often as they do in other markets, but they do occur and can work well.  Why?  Auctions are all about creating urgency and excitement on behalf of buyers.  By offering an asset in a competitive bidding environment, buyers are faced with the fear of loss element, something that auction method uses to it's advantage.

Without going into too much detail, non-distressed real estate auctions work well in any marketplace when one is working with the right, most ethical luxury real estate auction company and has the right property in the right location.

How long has your or your and your client's home been listed?  How many price reductions have there been?  Are you ready to downsize and/or close this chapter of your life?

Want to learn more?

Gary

404-784-5759

Tags: high end home auctions, premier home auctions, best luxury real estate auction companies, Austin Luxury Home Auctions, luxury real estate auctions

Luxury Homes and Art Auctions

by Gary Gilbert
Gary Gilbert
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Wednesday, 08 April 2015 Category Auction a Luxury Home

I read recently here about an upcoming art auction for a Picasso piece.  The auction house mentioned that the valuation of about $140m would be one of the highest estimates ever put on a piece at auction.  So, why doesn't the owner just advertise the piece traditionally and sell it that way?  Because the owner knows that an auction will create the ultimate interest on behalf of international, affluent buyers forcing them to react on the seller's terms.  Egos and emotions will come into play and buyers will compete fiercely for the right of ownership paying top dollar.

Many people don't realize that the same auction concept works well with non-distressed sellers of high-end real estate.  While most properties are not valued in the $140m range, thousands and thousands of them are valued in the $2m - $20m plus range.  What better way to showcase one property than to use a date-certain event to force buyers to a point of action?

How does all of this work?  Who is the best luxury home auction company?  How is the commission structured?

How long has your luxury home been listed?  Are you ready to close this chapter of your life and move on? If so, I am happy to educate you on the process and answer all the question you may have.  Please reach out anytime.

Gary

404-784-5759

Tags: luxury real estate auction companies, luxury real estate auctions, luxury home auctions, art auctions

How Long Has Your Luxury Home Been Listed?

by Gary Gilbert
Gary Gilbert
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Sunday, 29 March 2015 Category Auction a Luxury Home

So, how long has your high end home been listed?  Unless you are located in a market like San Francisco or the one I live in here in Austin, your answer is probably a long time.  Let's take a look at possible reasons:

Location?  Price?  The home itself?  Your agent?  Maybe, but more than likely not.  How many other homes in a similar price range are actively listed within say 20 miles?  I bet a numerous amount of inventory is out there competing with your home.

Have you ever considered working with someone like myself and conducting a non-distressed luxury home auction event?  By using a date-certain event, you would be able to force end-user buyers to react by giving them a deadline.  You would also be able to elevate your home for sale above all of the other competing for attention by focusing all of the attention on your property.  Believe it or not, your auction event could literally "freeze the market" in your area.  Why would someone buy anything comparable in your area prior to your event occurring when the feel like they may be able to purchase yours?

I realize that this may be a foreign concept to many of you but with the right property, it can, and does, work well.

Want to learn more? I am happy to have a dialogue.  Please contact me anytime to discuss.

Gary

404-784-5759

Tags: luxury real estate auction companies, high end home auctions, luxury real estate auctions, auction a luxury home

Auction my Luxury Home? An Option One May Want to Consider.

by Gary Gilbert
Gary Gilbert
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Friday, 13 March 2015 Category Auction a Luxury Home

Auction my luxury home.  Really?  Yes, really.  Many don't realize that this option even exists but it does.  Most people associate the word auction with distress or "fire sale" but don't realize that auctions can also be non-distressed.  Think about a fine art auction or a high-end car auction.  How are those assets offered?  They are often auctioned.  The same concept applies to high-end home auctions.

So, how does all of this work?  What is the commission? Can I set a reserve?  I am the listing agent, how do I remain involved with my client?  These are just a few of the questions that I answer on a daily basis.

Are you wondering where to start? Please reach out to me anytime with questions.

Gary

Tags: luxury real estate auction companies, high end home auctions, luxury real estate auctions, auction my luxury home

What Defines Ready for a Luxury Property Auction Seller?

by Gary Gilbert
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Wednesday, 03 July 2013 Category High End Home Auctions

Nick Saban Home Auction. Good enough for Nick, Good Enough for You or Your Client?

by Gary Gilbert
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Thursday, 09 May 2013 Category Luxury House Auctions

Well, unless you're living under a rock somewhere here in the South and haven't heard about the University of Alabama's head football coach Nick Saban's luxury home auction, then let me be the first to tell you about it.  For the rest of you out there not living in the South who haven't heard, it has been a big story here in the last couple of days, especially in Alabama and Georgia, where a couple of his homes are located.  Did Nick act on my recent blog post "$ 1 Billion in Art Heading to Auction.  Why not Luxury Homes?" ?  Probably not, because I just composed that post this past weekend...

The point of my post was that when non-distressed, affluent sellers like Saban and those mentioned in the Wall Street Journal article linked in my post (Microsoft's Paul Allen and pop icon Madonna) understand that an auction creates a date-certain event which forces affluent, end-user buyers to a point of action, something that is just not possible with a traditional sale.

How many times have you heard me mention here the profile of our typical seller? Does this sound like Saban?

They are probably not distressed and don't have to sell.

They have had the property listed for an extended period of time probably with few legitimate offers that may have included contingencies.

They are selling because they are downsizing or just don't use the property as much as they once did.

They like the idea of taking control of the sales process by using a date-certain event to force credible buyers to a point of action utilizing a 30 day cash, contingency-free closing.

Does this sound like you or your client?  If so, I would be happy to discuss how a luxury home auction could allow you or your client to accomplish whatever it is you or they are trying to achieve.  Reach out anytime for my expert advice.

For any of you out there who would like to bid on Saban's Lake Burton home on June 6th, I would be happy to offer my complimentary bidder representation services.  Just ask.

Gary

http://www.realestateauctionoptions.com/

 

 

 

Tags: lake burton home auction, nick saban home auction, lake rabun home auction, luxury real estate auctions, luxury home auctions, luxury real estate auction companies, luxury homes, high end home auctions
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