High-end homes lingering on the market are increasing in volume as buyers wait to see the next price reduction. Traditional sales can take an indefinite amount of time while buyers wait for the right price, with some luxury properties in Florida sitting on the market for over 1,000 days. Give your luxury home a better chance of selling by choosing the accelerated marketing process of a luxury real estate auction through Supreme Auctions.
How Long Will It Take to Sell My Home?
The traditional market is showing no signs of improvement as more luxury properties are left waiting to be purchased. In 2016, Mansion Global reported that Manhattan properties priced over $4 million took, on average, 301 days to sell – 58 days longer than in 2015. In Aspen, homes valued at $3.3 million took an average of 208 days to sell in 2016.
Things did not improve in 2017. Bloomberg reported that 72% of the most expensive properties in the U.S. took longer than 180 days to sell.
In 2018, the time luxury homes spent lingering on the market continued increasing with little relief. CNBC found that sales for high-end homes listed fell 16%, while the inventory of such properties rose 14%.
A majority of luxury houses languishing on the market continue to remain unsold throughout the remainder of the year. SkyAD reported that high-end homes spent an average of 506 days on the market and 23% of the total luxury market spent more than 730 days waiting to be sold.
Location plays a huge role in predicting how long your luxury home will be on the market. High- end homes in California typically sold between 50-100 days in 2018. Meanwhile in Florida’s Sarasota and Manatee counties saw average selling times skyrocket to 1,109 days.
After a buyer does express interest, closing the sale can take 45-50 days longer, on average.
Depreciating Market Values
The longer a home is on the market, the more likely it will sell for a reduced price. The pool of buyers for high-end homes is small and they are in no hurry to pay full price in a traditional market setting. Buyers will wait until the next price reduction before considering an offer because they know there is no rush to purchase a piece of luxury property that has been for sale for hundreds of days, sometimes years.
While your home sits on the luxury market, it is likely that it will depreciate in value. Investopedia reported that all homes depreciate, on average, 3.636% per year. The longer your high-end property is up for sale, the less return you can expect to see.
In 2017, Bloomberg found that when high-end homes did sell, they did so for 71% of their original asking price, on average.
The market saw a small improvement in 2018, with the average luxury property selling for 78% of the asking price.
Skip the Traditional Sale
Traditional sales lack a vetting process where some sellers are often setting their own price with their agents, regardless of what the market sales data is determining. This lack of quality control often causes frustration by homeowners and exponentially long wait times on the market and price reductions.
Avoid these problems entirely by choosing to sell your home through a reputable luxury real estate auction firm, such as Supreme Auctions. Through marketing your home and setting a date for the sale to be achieved at a luxury auction, Supreme Auctions gives you the best opportunity to sell your property and in an expedited time frame.
Traditional sales do not get the most eyes on your property. Supreme Auctions marketing strategy is proven to maximize the exposure of your home to qualified and motivated buyers. The firm does more than market your luxury home online; Supreme Auctions invests time to strategize a unique marketing campaign for their clients to expose their property to the market.
Here are some property sales that resulted from Supreme Auctions Accelerated Marketing process;
A home called Mountain View Acres in Niwot, Colorado was previously on and off the market for two years before Supreme Auctions was contacted to implement their Accelerated Marketing Program. The results were as follows: over 21,400 unique visitors viewed the property website online and Supreme Auctions received 63 inquires on the home in 30 days. It sold at auction and closed in less than 30 days.
Lynbrook House in Houston, Texas was on the market for over a year traditionally with little buyer activity before Supreme Auctions were contacted by the seller. The home brought in 35,946 unique viewers to the property website, and 206 viewings in 30 days. It sold and closed with 6 days.
Supreme Auctions achieved a record-high sale in Wickenburg, Arizona with Hacienda Caballero. After the home had been on the market for a year, the seller and listing agent decided to utilize a luxury real estate auction. The property sold in 30 days after Supreme Auctions marketing received 42,666 unique online viewers to the property website and the property being viewed in person 200 times.
Luxury homeowners can expect their property to sell quickly at or above market value because Supreme Auctions thoroughly vets each home before beginning the auction process. They currently take on 1 in 20 properties that are presented to them. Buyers benefit from this too, as they know the sellers are ready to sell and they are getting a quality piece of real estate at a fair market price.
All bidders are required to register before the auction and are given the opportunity to conduct all of their due diligence ahead of auction day. Detailed property information packets are available, and buyers can preview the home prior to auction day so that they can come to the auction fully informed and ready to buy.
Auctions are hosted onsite by the company with a professional auctioneer. Once the highest bid is approved, the winner is brought into a private room to sign the purchase contract and make arrangements for closing.
Contact Supreme Auctions today to see if your home qualifies for their accelerated marketing auction process.
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