Concierge Auctions targets high end homes that are hard to sell
Australian and New Zealand rich listers struggling to sell mansions can now call in Sotherby’s premium six-week sales concierge service to seal the deal.
Australian and New Zealand rich listers have a new tool to help expedite the sale of their multimillion-dollar properties.
Sotheby’s Concierge Auctions, which has sold close to $US4bn worth of property since it started operating in the United States in 2008, continues its expansion in the Australia and New Zealand marktes.
According to Australian and New Zealand business development manager Dominic Longcroft, local Australian agents like the idea.
Under the arrangement the listing agent retains the listing and Concierge Auctions executes a collaborative further four-to-six-week marketing and subsequent auction campaign.
The first five weeks are devoted to more marketing of the property tapping into Sotheby’s Concierge Auctions international database.
In the final week the property is auctioned over three to five days using a live internet auction.
If the property sells, the buyer pays commission of 6-12 per cent of the sale price to Concierge Auctions. The listing agent earns their full commission.
“So far we have had positive feedback from agents once the process has been explained to them,” says Mr Longcroft, a worldwide expert in luxury property.
He says the process works well on highly priced properties that have failed to sell via private treaty and expression of interest campaigns.
“This is mainly attractive to properties that are being sold via expressions of interest or private treaty campaigns and generally we would get involved towards the end of the existing listing agreement,” he said.
“The original listing agent remains on the listing and retains their agreement with the seller all through the process.”
For No Reserve auctions, Concierge Auctions offers a 6 per cent starting bid incentive to encourage buyers to submit a starting bid prior to the start of the auction. The winning bidder receives this discount on their buyer’s premium on this starting bid.
Under the arrangement Sotheby’s Concierge Auctions cover the cost of marketing, the provision of the in house auctioneer, the cost of the project marketer and the auctioneering process out of the buyer’s commission.
“But the main thing for the listing agent is that whatever agreement they have made with the seller, they still get paid by the seller at the end of the process,” Mr Longcroft said.
“People assume I will be a competitor, this is simply not the case with Sotheby’s. We are there as an add on to the traditional real estate process.
“With these extremely prestigious properties the buyer pool can be extremely small. We can be of help because we have world wide reach and that is what we are giving to them.
“There is such a potential to link Australia to the rest of the world, people don’t realise what a great opportunity it is to buy property in Australia.
“I am hoping to raise the profile on the beautiful estates that are sold around Australia. There is a place here for Sotheby’s Concierge Auctions to help with these auctions, and helping that property get a bigger reach.”
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