At Concierge Auctions, we know luxury real estate. Our principals have touched every aspect of the business. In fact, we were born out of the brokerage community. As a result, our combined efforts have produced over $1B in sales — spanning 32 U.S. states and 14 countries — and our global Rolodex includes over 370,000 contacts.
We maintain a pulse on the top luxury markets worldwide.
Our expertise has earned us the “Best Overall Marketing” award from Who’s Who in Luxury Real Estate, named one of America’s fastest-growing companies by Inc. Magazine for the past three consecutive years, and Inman News’ selection of our President, Laura Brady, as one of the 100 Most Influential Real Estate Leaders.
This seven-part blog series details how to develop a successful strategy for winning at a luxury real estate auction. In the past four weeks, we discussed how to narrow your search area, the importance of knowing the market, considering auction, and the terms and conditions of a sale. This week, we discuss doing due diligence. We hope you find it useful.
7 STEPS TO WINNING AT AUCTION PART FIVE OF SEVEN: AT AUCTION: DO YOUR DUE DILIGENCE
Knowing the terms and conditions gives you a look at the expectations at auction and could leave you with one of two reactions: “Let’s get in and figure out my game plan,” or “Oh my gosh, I need to run for the hills.” That is, assuming the hills aren’t where you are looking for your next home.
In a regular home transaction, a set of coaches would draw up your game plan. An agent or attorney would write up an offer, typically containing contingencies like financing, home inspections, surveys, a review of Home Owners Association agreements, and so on. Those same coaches are able to help generate a game plan for auctioned properties, but only by taking greater planning measures.
Start by determining what concerns you most when purchasing a property. Most second-home buyers can prioritize needs. For example, Mike Russo, our Regional Vice President, places value on conducting a home inspection. “I want to know what I don’t know about the house itself,” he says.
While some Concierge Auctions properties have had a preliminary inspection completed, some potential buyers will hire their own inspector, while some don’t. It’s a personal choice, but one that must come before the auction date.
Your opportunity for any diligence you want to complete is prior to the auctioneer’s first call for bids. To put it frankly, once the auction starts, your only input is raising your paddle on what you are willing to spend for the property.
Next week, we discuss developing a strategy after completing due diligence.