You may have heard about the news from the West Coast, all the way over here in Fort Lauderdale, about the recent attention-grabbing real estate transaction that took place right before New Year’s Day 2013. A luxury property in an exclusive San Francisco Bay neighborhood went under contract for $25 million through a rarely-used process known as an online auction.
While technically-savvy real estate agents know how to leverage the digital age we are living in to reach buyers and sellers across the globe, using online auction tools to sell luxury homes is the latest foray into the digital world that might be gaining credibility. But, is an online auction really a must-have tool for selling luxury homes?
The attraction of using online auctions to sell luxury properties is the shortcut the auction companies, which usually work in tandem with a listing agent, claim to provide. It’s promoted as an alternative to what the auction companies characterize as a painfully slow-moving traditional channel, which generally includes a lot of back and forth negotiations. Also claimed is how the hoopla surrounding a major auction is said to create marketing buzz around luxury properties.
The online auction concept hasn’t reached mainstream yet, probably because of the fear shared by many sellers: what if a low bidder wins and my home sells for less than it would have commanded on the traditional market? There is also the possibility that a home on the auction block may not sell at all. A notable online auction agency reports that 45% of properties on the auction block are never sold. That means the three months it took marketing an auction while the luxury property was off the market is lost. It is important to note that the home referenced earlier was said to have cost around $35 million to build, and was originally listed in the $45 million range. So you have to ask: was that auction truly a success?
At Luxury Living Fort Lauderdale, we pride ourselves on knowing the Fort Lauderdale luxury real estate market inside and out. Selling luxury properties in Fort Lauderdale presents a unique set of challenges. Each luxury property is unique, requiring a custom marketing plan in order to achieve results. If you are considering selling a Fort Lauderdale luxury property this year, contact us so we can determine the best strategy and develop a custom marketing plan that will sell your home for the best price possible and in the least amount of time.
