Do you have a high-end, totally unique property on the market? Do you have a relationship with a listing agent, and are you committed to that relationship? Are you a top agent representing a client with a luxury property? Or, are you planning to participate in a luxury real estate auction as a buyer or a buyer’s agent?
In these cases or any other, we are here to work with you, not against you. Unlike many other firms in the industry, our luxury real estate auction process relies heavily on both the listing agent and the buyer’s agent. The majority of our company managers and sales team had previous careers in the real estate brokerage industry. We know and understand the importance of representation to high-end clientele. The buyers and sellers involved in our transactions are used to relying on (and paying for) those they know and trust, be it attorneys, financial advisors, architects, designers, and yes… real estate agents.
The Listing Agent and Luxury House Auctions
We partner with a local listing agent or broker on every property we represent. First of all, it is not only unfriendly but also unethical to try and push an agent out of the deal. In many cases, the listing agent is the one who suggested the luxury house auction process to their clients. It was their innovation and creative thinking that lead the client to this proactive approach. They deserve to be compensated.
In other instances, sellers approach us directly. If their property is currently listed with a broker, we discuss the importance of their continued involvement. If they are not currently on the market, and if they haven’t hired a broker, then we can help guide them through the interview and selection process.
We value the local market knowledge of our listing brokers greatly. Most of our broker partners are in the top 1% of agents in their particular market. So, they are constantly up-to-date on the local market trends, sales in the price range in question, and market absorption rates.
We are well versed in national and international luxury real estate trends, and we know how to market luxury properties and identify all the right buyers. But we lean heavily on our local listing agents to identify all the pertinent local real estate trends as well as the top agents and buyer prospects in the area.
The Buyer’s Agent and Luxury House Auctions
From the other end of the transaction, luxury home buyers are generally committed to their agent. Buyer’s agents devote tons of time and effort to their clients without even being guaranteed a transaction (aka payday). If a buyer is already represented by an agent, we certainly suggest that they continue that relationship through the auction process.
There is a level of trust inherent in the buyer-agent relationship. Buyer’s agents know their client’s interests both personally and professionally. And like the listing agents, they know the local market trends and can advise their clients as to an appropriate price point. The agents will help the buyers through their inspections prior to the auction, advise them on the contracts, and add to their knowledge and confidence in the market value as they bid.
To sum it up…
We are happy to work closely with the buyer and their luxury real estate agent to take them through the auction process and successfully bid at auction. Both the listing agent and the buyer’s agent should be an integral part of any luxury house auction. The auction itself is simply a tool to bring all of the parties together and produce the highest and best market-driven price.
As a seller, buyer, or luxury real estate professional, what are your thoughts or misgiving about the luxury house auction process?
