You have a great deal of options to choose from when you are looking to sell your home. You can list as For Sale By Owner (FSBO), hire a real estate agent and brokerage, or accelerate your sale with a luxury real estate auction with Supreme Auctions. As you can see, you have many options available to you, so let us break them down for you.
For Sale By Owner
As the name implies, For Sale By Owner (FSBO) means you, the luxury homeowner, are selling your property without the help of a licensed real estate agent. The key benefit to that is that you are not paying a commission to the listing agent, which can save you up to 6% of the final agreed upon sales price. Weigh the odds however, as listing a home FSBO can be very time consuming and you will need to keep your home show ready in a moments notice for buyers as they drive by.
If you are not experienced in selling real estate, FSBO may not be your best option. From pricing and marketing to mistakes in paperwork, not to mention legal compliance, FSBO can have serious financial and legal repercussions if handled incorrectly.
You will also have to invest in marketing. Buyers will not contact you or look at your luxury home if they do not know it is for sale. The probability of a quick sale are further reduced if you are not prepared and do not have your home “Show Ready” when a ready, willing and able buyer knocks on your door.
If you are planning to utilize FSBO, be sure you have experience in selling and marketing real estate, a wide range of contacts to help you prepare, update, market, and have your home show ready. Be aware of your state’s laws regarding disclosure and documentation needed for the transaction as well.
Using A Real Estate Agent
Hiring a professional real estate agent, or listing agent, is the most common way homeowners choose to sell their home. Agents have a fiduciary responsibility to their client meaning they are legally obligated to put your interests first.
A real estate agent is not always a realtor. “Realtors” is a trademarked term that applies only to members of the National Association of Realtors.
A reputable real estate agent is invested in selling your luxury home and will be familiar with the latest market trends. They will have photographs taken and create a marketing plan that can increase your property’s chances of being seen by motivated buyers.
A home that is poorly marketed and priced incorrectly has a higher probability of lingering on the market, thus costing you more in holding costs. For example, a $3 million luxury home can cost you at least $200,000 in accrued fees per year, so make sure that your real estate agent is providing you with the latest sales figures in your area. If your home is not priced correctly, buyers will not be motivated to view and purchase it. Buyers are patient, and with other luxury homes on the market, they will wait and watch for price reductions.
When selecting a real estate agent, seek out an experienced agent, as they are well versed in negotiation tactics that can save you money and increase the probability of selling your home. Further, as being part of a brokerage, agents ensure all of the documents are in order, thus having the resources that the sale is in compliance with the law.
While listing through an agent is a common choice, it is not the only choice for luxury home owners. In the first quarter of 2019, the sales of luxury homes on the traditional market priced above $2 million fell 16%, which is the sharpest decline since 2010. Prices also dropped 1.6% on average.
Selling Through A Luxury Property Auction Company
A reputable luxury real estate auction company will not only expedite the sale of your high-end home, it will know the importance of marketing your home to the correct pool of motivated buyers and even have their own database of qualified buyers.
There are many different types of auction firms, and not all auction companies are the same, so be sure and take your time to do your research. First and foremost, select an auction firm that only sells real estate, and one that specifically handles luxury real estate auctions. Some auction companies do not market your home correctly, (and we have already shared that a luxury home that is not seen is one that does not attract buyers) and your luxury home inevitably does not sell. Some auction firms often sell properties well below current fair market value and others specialize in selling homes that are distressed or in foreclosure. Make sure that the luxury property auction firm you select has an excellent reputation, check its website, view testimonials, and speak to previous clients that have used their auction services.
Headquartered in Scottsdale, Arizona, the luxury property auction firm Supreme Auctions has never sold distressed homes and only works with motivated homeowners of luxury properties that understand the time and value of money. In doing so, we ensure that we are making only the best properties available to our qualified buyer database and growing international audience. The high-end homes we offer at auction sell at or above market value.
At Supreme Auctions we utilize our exclusive Accelerated Marketing Program, which is backed by decades of experience as well as client testimonials. Our program maximizes the exposure in getting your luxury property sold at or above market value in an expedited time frame as compared to others in the auction industry.
Some properties we have auctioned had been on the traditional market for months or years with little to no buyer activity until the homeowners or their listing agents contacted Supreme Auctions. Take a look at the property Montclair Manor in Colleyville, Texas, which was previously on the traditional market with little buyer activity for over a year. The seller contacted us, and by utilizing our Accelerated Marketing Program, the luxury home closed in 30 days and marked the highest record sale Colleyville had seen in four years.
All of our bidders are qualified and registered and able to tour the home prior to the auction date. All of our auctions are conducted live onsite. This is not always the case with other auction companies — many prefer online bidding, which takes away the transparency of knowing who is bidding on your luxury home.
Due to there being no negotiations and no contingencies in the auction sale, our closing process is completed in 30 days or less. Both sellers and real estate agents value this process as it avoids lengthy potential haggling over inspections and other pitfalls that can occur traditionally.
As a luxury homeowner, you have options for selling your luxury property. You can list it as For Sale By Owner (FSBO), use a listing agent, or sell it at an auction. If you are considering selling your high-end home or maybe your property is already for sale and it has been lingering on the market for some time, consider giving us a call today at 888-660-6465 or contact us online for a complimentary consultation.
Supreme Auctions Accelerated Marketing Program is proven to maximize your property’s exposure to the market, and selling your luxury home at or above market value. We highly recommend you do your research before you take the next step in making your decision. Learn more about how we can get your property sold in 45 days or less by visiting our website and reading our client testimonials.