Many luxury homes are sold through auctions. Choosing to sell your home by auction may get it sold faster.
Many luxury homes are sold through auctions. Choosing to sell your home by auction may get it sold faster. | Source
Auctions Are Fun But They Get the Job Done!
I’ve never been to an auction that wasn’t filled with fun, food, and lots of people scurrying around having a good old time. Yes, auctions are fun, but the main purpose of auctions is to sell the product. Buyers are there to buy and sellers are there to sell. There’s no rule that says you can’t have fun in the meantime.
Unusual homes, such as luxury homes, resorts, exotic, and historical homes are ideal types of homes to be sold at auctions. Celebrities typically have homes that fit into the unusual, luxurious, or exotic category. Because of the uniqueness of the home, and the need to attract unique buyers to the home, REALTORS® who serve celebrities may choose to sell the home using the auction method of selling.
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Deion Sanders – Sports AnalystDeion Sanders – Football PlayerDion Sanders – Baseball Player
Deion Sanders – Sports Analyst
Deion Sanders – Sports Analyst | Source
Celebrity Deion Sanders Sells House at Auction
Celebrity Deion Sanders’ 29,000 Square Foot home sold at auction for almost $4 Million in a no reserve auction. Imagine the excitement at an opportunity to purchase this home located on over 100 acres. Deion Sanders is a Hall of Fame football player and baseball star who also works as an analyst for CBS Sports and the NFL Network.
The auction was handled by Concierge Auctions and Briggs Freeman Sotheby’s International Realty. According to attendees, there were eight registered bidders. For more information and to get the genuine scoop on the details, visit Candy Evans’ blog. Cindy Evans is a real estate news specialist and comments on interesting news happening in the state of Texas where Deion Sanders’ home was located.
Before the Auction
Auctions are heavily marketed to bring buyers to the property so that by the time a home has made it to the auction block, the hard work has been done. The marketing material has been handed out, the ads have been posted, the radio announcements have been aired, the television commercials have been played. Yes, by the time auction day arrives, all the hard work leading up to the auction has been completed. The buyers are in place, ready to bid on the house they came to buy.
No Reserve – Absolute Auction as Applied to Deion Sanders’ Auction
A no reserve auction is an auction where the owner sells the house to the highest bidder without stating a minimum acceptable price. What this means is that if one bidder shows up and bids $1 for the property, and if there are no other bidders, then that bidder would, in essence, be the highest bidder and win. It could happen! But, the very nature of auctions prevent most homes from selling at such ridiculously low prices. Think about it… if you could get a 29,000 square foot house for only $2 why wouldn’t you outbid the last bidder. So, bidders continue bidding until the highest bid wins. In Deion Sanders’ case, the highest bid was somewhere just under $4 Million.
Types of Auctions
There are three distinct types of auctions that sellers may use to sell their property.
With an absolute auction, the property is sold to the highest bidder, regardless of price. The absolute auction is also known as a “no reserve” auction. This type of auction generates the highest level of excitement because no matter what the final price ends up being, the bidder who places the highest bid wins.
Minimum Bid Auctions
With a minimum bid auction, the minimum acceptable bid is stated up front so bidders know that if they want the property, they must at least bid the minimum price listed in the brochures and advertisements for the property. This minimum price is also announced at the beginning of the auction.
With a reserve auction, the price is not announced. Only the seller and the auctioneer know what the seller’s minimum acceptable offer is. The seller reserves the right to accept or reject the highest bid (within a specified time following the auction).
The bidding starts and if the minimum acceptable offer is reached through the bidding, the sale then becomes an absolute auction because at that point, the sale now goes to the highest bidder (with the acceptance and confirmation of the seller).
Going once, going twice… Sold!
Going once, going twice… Sold! | Source
The Benefits of Auctions
The National Association of Realtors (NAR) describes a real estate auction as an “innovative and effective method of selling real estate”. NAR also considers auctions to be a win/win proposition for buyers, sellers, and REALTORS alike.
The following table of The Benefits of Auctions is a compilation of information used with permission from the National Association of REALTORS.