Are Auctions a Better Alternative for Buying and Selling Luxury Homes?

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7 Montagel Way

7 Montagel Way

7 Montagel Way in Alabama will soon be up for auction

The world’s finest art, cars, and antiques are sold at auction––so, why not real estate?, thought Laura Brady, an award-winning real estate agent, back in 2004.

At that time, she approached Sarasota, Florida-based broker Chad Roffers to discuss a more efficient method for buying and selling luxury homes.

The problem was that the number of homes coming into market was increasing, but sales were not. According to Brady, “The inefficiencies of traditional sales methods were accentuated. It was very difficult for sellers to stand out among the other homes for sale, and there was no certainty as to when they would sell, or for what price.”

The beginning was tough. It was 2008, after all: the core of the recession. But 2008 also propelled Concierge Auctions, which the the real estate duo’s launched in order to help distressed clients who needed to monetize their real estate holdings. Later, as the market solidified, they transferred their attention to clients who chose to auction high-end homes instead of sell on the market.

This past summer, the company’s total sales topped $1 billion. The property must be in an A-plus location, photogenic, beautifully constructed, move-in ready, and “remarkable” in Brady’s words. The seller should be looking to sell as a business decision, rather than out of financial need in order to be able to choose the highest bidder. A four to six weeks marketing pitch follows, after which the property is typically auctioned off at the property itself or at a nearby venue.

Sellers benefit from the control that Concierge Auctions offer them. They’re able to control date and terms of the sale, and benefit from the company’s global marketing spread and public relations platform.

Buyers benefit from the ease of bidding at auctions. Concierge Auctions helps buyers bid easily from anywhere in the world via its “Instant Gavel” app, on which they’re able to watch the live bidding and feel confident in the price they’re paying.

Current offerings range from a modern palazzo residence in Venice, to a 23,000-square-foot compound with a spectacular sports complex in California, to a Pennsylvania home built in 1755.

Not bad for a company that aimed to give buyers and sellers of luxury property more options,” says Brady.

Image courtesy of Concierge Auctions

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