Mr. and Mrs. Clagg, luxury home builders, owned a magnificent 3,000 square foot residence situated on a third of an acre. After building their dream home and living there for just two years, they decided to build an even more luxurious home for their family. The Claggs built and sold many homes, so they reasoned they'd just put their property in multiple listing, do a bit of advertising, hold some open houses and sell it quickly. Sadly, they had their property on the market for over 10 months without an offer, even though the price was reduced 3 times. They wanted desperately to move on with their lives. When they heard about the auction method of selling real estate, they decided to give our company a try. After 30 days of intense marketing, their beautiful property was sold at auction in a "9 minute feeding frenzy." The elated buyer who was the highest bidder wanted this gorgeous home so her grandchildren would visit her more frequently. To make her dream a realtiy, she made sure noone else bid higher at the auction. The auction event created competition and stimulated the emotional drives and desires we all have. In this case, a loving grandmother got a home with a custom pool so her grandchildren could go swimming and an incredible back yard that would fascinate any youngster. The sellers, on the other hand, got their property sold so they could move on with their lives!
This scenario is a classic case of a stale listing we frequently see with more expensive properties. This typically happens when a property is overpriced when it is initially listed. In order to get a listing and a chance to make a nice commission, some realtors will tell the prospective sellers their property is worth more than it is. It is also quite common for homeowners to price their property higher than the market is willing to pay. A well marketed auction, brings the serious qualified buyers to the fore front. The price is determined by the free market system and not a price that was determined by a guesstimate of value (i.e. realtors or appraisers opinion). The job is accomplished quickly and efficiently when a well marketed auction is used to sell property.