Buying a Luxury Home at Auction

I attended my first Luxury Home Auction with a client last week, which was very interesting. This auction advertised Absolute, No Minimum, No Reserve. After preparing our strategy for 2 weeks, I still left the auction with an uneasy feeling. Not about the results, but about the Auction Company. I reminded myself that the Auction Company’s primary objective is to generate the Highest Return for……..you guessed it, the Auction Company.

I do believe that all parties involved achieved their objective, so the auction was a success.

Buyer

• purchased their dream home at a reasonable price, well below replacement cost and market value

Waddell Realty

• successfully represented their client

Auction Company

• generated a commission

Sellers

• sold their property and drastically reduce the amount of days on market and monthly expenses to maintain a large luxury home

Tips for attending a Luxury Home Auction

1. Don’t trust the Auction Company
2. Read all documents 3-4 times
3. Bring your REALTOR
4. Don’t trust the Auction Company