Though most luxury real estate professionals treat real estate auction companies as a last resort after a home has sat on the market for a while, it’s certainly not the only way (or even the best way) to use them.
In fact, using real estate auction companies to sell your more unique luxury listings can be a fast track to a successful sale.
What’s more, a well-executed real estate auction creates a sense of urgency around a listing, positioning it as a limited “opportunity” rather than just another piece of inventory to mull over at a buyer’s leisure.
And, there can be an appealing sense of certainty for some buyers who appreciate the price negotiated among other buyers, without the seller involved.
To learn more about the benefits of using real estate auction companies as part of a well-rounded real estate marketing strategy, the Institute sat down with Jennie Heal and Maverick Commins of Supreme Auctions.
Supreme Auctions is the industry leader in accelerated marketing, which brings buyers and sellers together in a smooth, swift, and transparent transaction through a luxury real estate auction.
In our latest Estate of Mind podcast episode, Diane Hartley, President of The Institute for Luxury Home Marketing, interviews Jennie and Maverick to zero in on the intricacies of a successful luxury real estate auction, and talks about the process from the perspective of a luxury real estate professional.
Specifically, this podcast episode discusses:
The Power Shift: Where sellers are in control and how to use marketing to put the seller in charge
The Transaction Process: How to figure out who’s motivated and who isn’t
Why you shouldn’t fear “No Reserve”
The Last 4 Weeks: What the agent’s role is and where the most money for buyers is
The Included Inspection: the due diligence packet
Buyers In The Room: Live auctions and how the process works
Preferred Luxury Agent Benefits
The full episode covers a lot of great information, but here are the main highlights:
How the Supreme Auctions Marketing Method Creates Urgency for the Buyer to Act
Traditionally, the buyer is in control of sale. This is true in real estate, antiques, art, or truly any other buyer-seller relationship. In the luxury market, this can create long stalls for luxury listings to sit and wait for a buyer who is willing to pay what the seller believes is a fair price, especially if there is a surplus of inventory.
In the world of Supreme Auctions, the seller is in control. Jennie and Maverick decided to create a situation in which buyers automatically feel a sense of urgency to act by positioning homes as a “limited time opportunity” rather than just another property to choose from in a sea of other homes.
Further, the competitiveness of the auction and the definitive end date of the auction are also not typically seen in the upper tier market, adding yet another few layers of urgency to the transaction.
Exploring the Listing Agent’s Role In the Luxury Real Estate Auction Process
One unfortunate myth about using real estate auction companies is that the listing agent is often left out of the loop.
While that may be true of some real estate auction companies, Supreme Auctions gives listing agents a clear role during the four weeks of auction prep time and during the transaction.
In the beginning, the listing agent is responsible for getting the home staged, and bringing in a team of roughly four to six agents to help show the home.
Meanwhile, their real estate auction company acts as a resource to accelerate the process and get them their sale.
Other Benefits of Listing a Home With Supreme Auctions
Beyond helping speed up the selling process, Supreme Auctions will also hand over all the unrepresented buyer leads to the listing agent at no referral fee.
At the same time, because homes are nearly guaranteed a quick sale typically quite near the seller’s original asking price, listing agents set themselves up for referrals from their clients.
In the episode, Maverick mentions that about half of the homes listed with Supreme Auctions were never publicly listed because more agents are simply giving their sellers the choice up front to sell by auction.
Want More Resources Like These to Grow Your Luxury Real Estate Practice?
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Visit your Membership Portal for brand new training sessions, as well as our book, Rich Buyer Rich Seller: The Real Estate Agents’ Guide to Marketing Luxury Homes, which is available for free to all Institute Members and also available on Amazon.