Luxury Home Auctions Hit Full Stride

. March 16, 2007

While most home sellers in the national real estate market struggle to find willing buyers. Luxury home sellers find an eager audience at auction.

Luxury homes are the fastest growing segment of the real estate market in the United States. Even while the rest of the housing market is in a slump and heading for rougher territory the luxury home market is vibrant.

A robust market for luxury properties does not guarantee overnight success for sellers of million dollar homes however. The number of homes priced at over 1 million or more in the United States is approaching 500,000. With the highest concentration of luxury real estate found in Massachusetts, Florida, U. S. Virgin Islands, and California.

Selling a luxury property can often be a long and expensive process. Knowing your buyer and creating a unique selling proposition for your property can shorten the sales cycle and reduce expenses significantly. This is why real estate auctions conducted by a professional and knowledgeable auctioneer are becoming the preferred method among luxury home sellers.

Winning bidders at luxury home auctions pay with cash.

And exactly who are these luxury home buyers. Let’s take a look: first of all they can be recognized by their financial influence. A third are cash buyers, not affected by interest rates or fluctuations in the economy. Of those who use a mortgage, nearly half placed a 50% or more down payment. And despite paying top dollar for their home purchase 40% will invest more money in major home renovations.

These buyers can afford multi million dollar homes for a reason; they are the best negotiators in the housing market. As far as negotiating style goes, 62% provide minimum divulgence playing it “close to the vest” while 24% “play hardball”, and only 13% say “money is no object”. The auction method of selling real estate levels the playing field resulting in a fair selling price and acceptable terms for both buyer and seller.

Most luxury home buyers are “Baby Boomers”.

How would you recognize a luxury home buyer on the street? Well to begin with
two-thirds are of the “baby boom” generation (between the ages of 43 and 67), but many do not buy their first luxury home until they reach retirement in their early 60’s. They are nearly always married and two-thirds are “new money” as opposed to inherited wealth.

For an occupation the vast majority refer to themselves as large corporation business executives, closely followed by entrepreneurs who own their own business. This is rounded out by doctors, lawyers, inventors, professional athletes, stock broker, actor and musician. One in three buyers will come from over 500 miles away.

Luxury home buyers spend more time at home.

Entertaining in style is very important to this group of buyers. They want party rooms for their children as well as outdoor living rooms with fully equipped kitchens, grills and fireplaces. Media rooms with the latest in technology and sports bars where they and their quests can cheer on favorite teams.

Having the energy for all this entertaining requires good fitness so extensive exercise space is a requirement; multiple workout rooms, indoor lap pools, and indoor courts for basketball and tennis are in demand.

While fun and fitness is important, luxury home buyers are also practical and looking for spaces to reflect this sensibility. His and hers office space, computer work stations located in the kitchen. Even the laundry room is more significant; pulling double duty as a second pantry, storage area away from prying eyes or gift wrapping center.

And the entire package must be wrapped in security which is a top priority. A luxury property should have color video/audio cameras which can be viewed from any TV as well as the internet. Buyers want panic buttons and secure bullet proof rooms, and of course safes for valuables and important documents.

For more information, contact Tower Auction Company at 317-333-6977, or by visiting them on the web at www.TowerAuctionCompany.com .

Category: Auction News

Comments are closed.