Category: Luxea

The Psychology Of Why An Auction Is The Best Way To Sell Luxury Property

By Jeff Manning

When you’ve decided to sell your luxury property, there’s one emotion you likely don’t want to feel—lack of control. After all, this piece of real estate is something you’ve invested your time, money, and energy into—and you want to see a return on that investment. So, feeling uncertain about the home’s time on market or final sale price is less than desirable.

While a traditional sales process can leave a luxury property on the market for years and leave the seller feeling out of control, a high-end auction can do just the opposite. A luxury real estate auction creates a situation that gives sellers more certainty and control. Ultimately, it’s the best way to sell a unique property, which is why auctions are being used as a marketing tool to drive up demand and increase visibility, according to Forbes.

Specifically, leveraging a customized live and online auction can help sell a luxury property more effectively in three key ways:

Auctions change the psychology of the sale

Luxury real estate auctions come with definitive end dates—the day of the auction. This forces the market to make a decision and act on their interest. When combined with a qualified buyer pool attracted by targeted marketing efforts, this deadline generates more value and control for the seller.

Transparency is key to selling a luxury property

When you really think about it, traditional real estate listings with multiple offers create a silent auction environment. In this scenario, buyers don’t know if they will be successful in purchasing the home, which can cause them to look elsewhere or lose interest. Conversely, an auction creates a transparent process, which allows both the bidders and sellers to understand precisely what’s happening, and when it’s happening.

More competition benefits luxury property sellers

The transparency created by an auction also generates excitement and a healthy sense of competition. When buyers see that they are vying for a property in real-time, it can appeal to their ambitious natures and result in faster decisions and higher bids.

When these three factors come together and are combined with an effective marketing program and advanced technology, it’s truly a recipe for success. By marketing a luxury property in a condensed time with a pre-determined sale date, sellers can attract more qualified buyers and take back control.

At Luxea Global Auction, we help sellers take control of the sale of their unique property by creating customized live and online auctions. To learn more about selling your luxury property with us, click here.