Chad Roffers, Concierge Auctions Executive, Dispels Luxury Real Estate Auction Myths
According to Chad Roffers, Concierge Auctions Managing Director, the auction process for luxury real estate can be extremely beneficial to buyers, sellers, and agents, which makes it a popular alternative to the traditional real estate process.
However, Chad Roffers revealed that luxury real estate auctions, are surrounded by misconceptions and he encourages looking further to into these myths so see them just as they are; myths.
Chad Roffers, Concierge Auctions Managing Director, on Luxury Real Estate Auction Myths You Should Ignore
According to Chad Roffers, of Concierge Auctions, following are some prevalent myths that need to be debunked:
1. Luxury Real Estate Auctions Result in Low Sale Prices
Chad Roffers says a major myth when it comes to luxury real estate auction is that the properties do not sell at their market value.
A July 2013 study by YL Chow, titled "Auction versus Negotiated Sale: Evidence from Real Estate Sales," backed Chad Roffers’ point; the study revealed that houses sold via auctions generate a higher relative price than negotiated sales.
Data has shown that real estate auctions are anything but a tiny part of the real estate market; in fact, data from the National Auctioneers Association (NAA) has revealed that the real estate auction sector is the fastest growing segment of the real estate industry; this segment recorded a 46% growth between 2003 and 2007.
2. Only Distressed Properties are Auctioned
Concierge Auctions Managing Director, Chad Roffers also says the myth that only distressed properties are auctioned needs to be dispelled. Chad Roffers and Concierge Auctions disprove this by consistently selecting the finest properties in top tier markets.
In fact, it has been revealed that in countries like New Zealand and Australia auctions are one of the most common ways to sell real estate. Auctions are also the fastest growing method for selling luxury houses in North America, so instead of it being an approached used by distressed sellers it is a fast growing option that serious sellers from all walks are embracing.
3. Auctions Eliminates the Need for an Agent
Chad Roffers, Concierge Auctions Managing Director, also says that contrary to most people's belief that there is no need for agents when luxury houses are auctioned, the knowledgeable broker is an important part of the process. They can help the buyer to understand the process and the value of the property. Since inception, Concierge Auctions has consistently worked with top tier brokerages and listing agents and as a result sellers who work with Concierge benefit from a tremendous amount of goodwill within luxury real estate brokerage community.
4. Luxury Real Estate Auctions are Complicated
Chad Roffers says luxury real estate auctions are less complicated than traditional real estate sales, and that it is important not to just take everything at face value.
According to Chad, if due diligence is done before the auction, and if the sales process and bidding instructions are included in a contract, the process could be very straightforward once the high bid has been received.
5. Buyers in a Luxury Real Estate Auction Have to Pay Cash
Chad Roffers, Concierge Auctions Managing Director, says that while this is a preference for most buyers who win a luxury house auction, it isn't required. According to Chad, the winning bidder in a luxury house auction can choose to finance the house purchase however they choose.