Clients, personal contacts, media members, social media friends and fans have all approached us for years asking what are the strategies involved with winning at house auctions. The first thing I would say is that each auction is different. Bidders sometimes win a house auction with just an opening bid, though that is a rare case. Other bidders have to fight off a whole field of bidders to win a house auction. And sometimes there is a back and forth between two bidders that both really want the property. You have all seen the auction shows on television.
The fact is that every auction is different. What is guaranteed is that there will be competition. What is also guaranteed is that auctions are exciting, even if they can sometimes be nerve-inducing.
Many of the steps involved in winning an auction can be applied to other high-end auctions of cars, jewelry, or art work. But others a real estate auction are unique to the real estate industry. This blog post (and the accompanying white paper) walks you through purchasing a luxury property, from research to auction day buying strategy.
1. Narrow your search area: Many luxury home hunters know what they want – a scenic view highlighting the peaks and valleys of a mountain range or the idyllic calm that comes from lakefront living. But the detail often stops there, as property buyers often place a higher intrinsic value on the luxury property lifestyle over where the property is. Spend some time in the city where you want a vacation home, and get to know the different neighborhoods and niches of that city.
2. Know the market: Successful buyers know that ongoing research reaps big rewards in second home buying. Many buyers at auction have been looking at a property in the subject market for years. The hunt doesn’t have to be complicated. Use an established real estate site like Zillow to keep an eye on homes in your price range in the market that you are looking. And consult a local real estate salesperson; they are the ones that know the local markets best. This way, when your dream home does go to auction, you are ahead of the other bidders- the property is going to be sold in four weeks.
3. Tour the property: in researching your market, you’ve likely seen the property in question listed. Or, in good circumstances, at least driven by it. Even better is a walk though of the property. Before Concierge Auctions brings a luxury home to market, a senior member of our team has made a personal visit and inspection. You should do the same. Nothing can replace a personal visit in your decision process – it can solidify whether your head and heart are ready to move at the auction block.
Download our white paper for ALL seven steps to winning a house auction, including knowing the terms and conditions of the auction sale, doing your due diligence, and developing an auction strategy and sticking to that strategy.