Home auctions bring the highest market driven price for a property on auction day, and also do it with a time certain outcome for closing. That is the first thing that every agent should know about luxury home auctions. But the secret of auctions is that they accomplish these goals, while also simplifying the sales process.
Some auctions can be complex. Perhaps a lot of 8 commercial properties or a high-end estate auction with lots of parties involved could present challenges. But a single house auction is a straightforward process, even in the ultra-high end arena. Each home auction is governed by a contract and the terms and conditions of that auction are spelled out in the contract clearly, at the start of the auction process. Agents, along with buyers and sellers, know the rules of the sale, so there are no questions.
We work with a lot of first time agents. Many have misgivings about auctions. Whether agents get cut out of the commission is one of the main questions on the mind of most. As it should be. Nobody wants to work for less than they are worth, nor should they. Along with the detail of how you as an agent receive your commission, here are a few other pointers that every agent should know about luxury home auctions.
You as the seller’s agent should not be daunted by the auction process. The real estate auction company should be there to guide you through the process. We present each new agent a Broker Partner Guide and walk them through each step of the auction. One of our main strategies: let the listing agent answer inquires into the property and the market, and let the auction company handle auction related questions.
In many cases you and your client know the opening bid amount. Is the auction without reserve? Then that is the opening bid amount and the lowest amount the seller would be willing to take. Even at a no reserve auction you should know a good opening bid price range and be ready to bid come auction day.
Most home auctions, especially in the high-end market, are as-is where-is sales, meaning that the property sells to the highest bidder as it lays. The real estate auction company and the listing agent should make the property available for any diligence, such as inspections, for days or weeks prior to the auction. That way, you know what you are bidding on and do not have to go through diligence after the auction.
The ‘money’ question! Yes, your commission is included in most luxury home auctions, and that includes each and every auction conducted by Concierge Auctions. Local brokers and agents are our most important partners, so we make sure that a competitive co-broke commission is included for each of our auctions. Like the entire process, this amount is governed by the auction contracts.
Now you can tell your clients about real estate auctions. For more on the process, click below for 7 Steps in the Real Estate Auction Process or leave us a comment.
