A Strategic Selling Approach for Coloradans
When people think of real estate auctions, they often think of distressed properties. However, the real estate market is constantly evolving and many luxury, commercial and multifamily properties are utilizing the auction platform. Selling real estate via auction is a common practice in cities like LA, New York, Miami and is quickly picking up traction in markets like Denver. I've partnered with Premiere Estate and Braun to bring auction and hybrid brokerage to the Colorado market for both residential and commercial properties.
When Is Selling at Auction a Good Idea?
1) When The Listing Process Will Not Attract The Right Buyers
The higher the price point and more unique the property, the smaller the local buyer pool. Most listing brokers simply do not have the budget or global reach to find all possible buyers when local buyer pools are limited. The typical traditional real estate scenario: broker lists your property in the MLS, distributes flyers and brochures, holds a few open houses. She creates a single property website, promotes your listing through social media, and might even advertise in a publication or two. But is that really enough to round up all qualified buyers everywhere who may be interested? Global marketing experts like Premiere Estates & Braun elevate the marketing process to the highest level, bringing every conceivable buyer to your front door through strategic and customized local, national and global advertising campaigns.
2) When Time Is Of The Essence
Luxury auctions allow you to be in control of the day your property will sell. You may need to sell by a certain date in cases of probate, trust, bankruptcy, divorce, or inheritance. Or you may just be ready to move onto the next chapter of your life and don't want to sit back and watch your Colorado property sit on the market. Luxury properties take much longer to sell than average priced homes due to the limited buyer pool. As of March 2018, the 10 most expensive homes listed in Denver metro have been on the market an average of 418 days (active listings not yet sold). In 2017, the top 10 properties in Vail sat on the market an average of 735 days; in Telluride 1,057 days. Properties can often be sold in 60 days or less.
3) To Create A Sense of Urgency
The accelerated marketing plan through auction creates urgency with buyers and accelerates their decision making process. The seller picks a date-specific sale day.
4) To Create a Sense of Value
Today’s buyers are very value conscious. Auctions imply to buyers a potential opportunity. When more buyers see opportunity and compete against each other, true market value is ultimately achieved.
This is the sellers stated minimum price they will sell at. At the auction the seller is committed to selling at or above the reserve price, however, the seller always retains the right to sell below the reserve.
There is no reserve price, the property will sell to the highest bidder on Auction day. Sellers reserve the right to accept early offers if they deem them acceptable. More buyers are attracted to these types of auctions and final sale prices are often higher because of the increased interest.
A combination of brokerage and auction - the best of both worlds! Ability to utilize the power of the brokerage process and the Auction platform. If at any time, the property isn't sold, you can convert to the Auction platform, ensuring the property is sold by the date of your choosing.