If you have ever participated in an auction before, you know the thrill. You place your bids, wait to see what happens, the suspense is growing, and finally, in the last minutes, the flurry of offers comes in, the action happens, and you win! How exhilarating!
Auctions are often associated with foreclosures and selling distressed properties in real estate. However, Luxury Real Estate auctions are a whole different cup of tea. They are an effective marketing tool ideal for selling one-of-a-kind, incomparable properties.
When Should You Use a Luxury Auction?
Let's face it, the traditional model for buying and selling high-end real estate has limitations. The world's finest art, classic cars, yachts, and antiquities are sold at auction - so, why not your home?
According to Concierge Auctions, the largest luxury real estate auction marketplace in the world, "every market has a threshold above which homes are more difficult to monetize, and the typical tools of price reductions and prolonged advertising and PR exposure can hurt more than help the outcome of a sale. Especially when it comes to $5 million, $10 million, and $20-plus million homes, the price often has no bearing on interest level, and price reductions are ineffective." These properties need the right type of buyers.
For sellers, luxury auctions make sense when an objective is selling a unique luxury property to the highest bidder in a reasonable amount of time. A typical seller is well-capitalized and not in a distressed situation. Instead, they are choosing auctions to help accomplish their goals within their timeframe.
In luxury real estate, the buyer pool is limited, and properties are not that liquid. The most significant factor in determining the price you will get for your home is how many days it has been on the market. When your property has been on the market for a prolonged period of time, not only does it suffer from negative perception, but there's an inherent cost associated with those days. Using luxury auctions eliminates this cost.
The sellers name the timing and terms of the sale with a transaction generated in as little as 60 days. The auction is not a traditional listing replacement but an additional listing and buyer agent tool. For some properties, the results are better when you combine traditional and auction approaches.
My Auction Sale
My latest sale is a great example. This magnificent beachfront estate was sold at a luxury auction conducted by Concierge Auctions, the leader in the luxury real estate market with a 90%+ market share and the most comprehensive database of high-net-worth property connoisseurs on the planet. We took part in the auction, and my client won!
The property is located at " Waima Point", where legend has it that the Puna Princess Puako traveled across the lava fields until she came to Waima Point and met her future husband Lalamilo, a renowned fisherman in the area. It was love at first sight, plus he could provide her with enough fish and octopus to satisfy her inordinate love of them.
Puako means either "the tassel of the sugar cane" or Puakou, "the flower of the Kou tree".
Waima means "the changing color of the water as it evaporates", which is what happens in the process of salt making - an important enterprise in Puako.
There is a beautiful little book called "Puako, An Affectionate History" that is incredibly well researched and interesting, if you would like to learn more about the area and how it was settled.
This extraordinary property is situated on one of the largest oceanfront lots in Puako and seamlessly combines modern luxury and old Hawaiian charm.
With 350+ft of beach frontage and ocean views from every room, this unique and meticulously maintained home is an entertainer's dream. The main "hub" of the home boasts a luxurious principal bedroom suite, plus a second junior bedroom suite and irresistible living spaces.
A covered bridge leads guests to and from the guest wing, where two more spacious suites provide a private space for visitors. You can make the most of your ocean views from the lanai, perfectly positioned to watch the surf crash below or look out over the lush landscape enveloping the property.
Three anchialine pools provide natural irrigation to the mature trees, including coconuts, Lauhala, and rare Loulou palms.
This resort-like property in laid-back Puako is perfect for getaways or everyday living and boasts an STVR registration for added income potential.
Congratulations to Bob & Jovan, the new owners, on their purchase! It is such a rare find!
If you are considering selling your property and are unsure if a luxury auction would work for you, please get in touch with me for a free consultation. I'll be happy to help you find the right selling strategy for your home.
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