“I recently saw an amazing luxury vacation home coming to auction, but I know nothing about the auction process. Where do I begin?”
If this sounds like you, you’re not alone. Many of our buyers have the same fear – that real estate auctions are complicated. This is one of many luxury real estate auction myths. Particularly with high-end real estate auctions, buyers are concerned about investing time and money into a process that they don’t fully understand. And I don’t blame them.
But the fact is that real estate auctions are very straightforward — only three easy steps:
1. Conduct your diligence. Auction purchases are as-is, so bidders must complete their research ahead of time. Auction firms typically allow access to the property for a number of weeks prior to the auction, so there’s plenty of time for inspections. And the Auction Terms and Conditions and Auction Purchase Contract are also available for review prior.
2. Register to bid. The Auction Terms and Conditions and Bidder Deposit must be submitted prior to Auction Day.
3. Raise your paddle. Whether you’re participating in person or remotely via the internet or telephone, submitting bids is easy. The beauty of a live auction is that you’re able to witness the bidding in real time. And if you’re the high bidder, you can feel confident in your price — only one increment above the next highest bid.
Only one final piece if you’re the lucky winner: Execute the contract. You’ve already had time to review the contract prior to bidding (and, if you’d like, to have an attorney or other representative review it too), so you understand clearly what you’re signing.
Luxury house auctions may seem daunting at first, but they are actually less complicated than a traditional real estate sale. There’s no negotiating, and there are no contingencies. The sale is as-is where-is. The bidding instructions are clearly defined in the auction terms and conditions, and the purchase contract is ready. Once the gavel goes down, the price simply needs to be written into the contract, and the buyer and seller sign.
And the icing on the cake? Bidding at a luxury real estate auction is FUN! We will walk you through the process with auction advice, top-of-the-line marketing materials, personalized private tours, and white glove service all the way.
For more on upcoming auctions click below for an Auction Alert™. Or leave us a comment below.