THE AUCTION ALTERNATIVE – GRAND ESTATES AUCTION COMPANY

Posted on September 25, 2010

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The coastal home market has been admittedly challenging for sellers in the last few years.  Increasingly, sellers are turning to the expertise of luxury auction houses to get the job done.  One of the best companies with a great success rate of selling luxury coastal properties is Grand Estates Auction Company based in Charlotte, North Carolina.  Here’s some important information about them if you’re interested in exploring the auction route –

Grand Estates Auction Company’s mission is to provide their clients with a swift, strategic, marketing process that will achieve top dollar value for their properties with no contingencies and to execute an aggressive, global marketing campaign to engage qualified local, national, and international buyers of luxury real estate.   Their vast networking capabilities enable them to generate large, well qualified potential buyer pools, and when teamed up with their superior marketing team, they can ensure only the best results. Represented by distinguished professionals who are trained to help with any questions or concerns clients may have, they take pride in giving their clients first class service whether they are buying or selling.

Grand Estates Auction Company is renowned for its world class marketing materials designed to thrust their client’s property into the spotlight. They work with some of America’s most prestigious photographers and advertise in distinguished national and international publications.

CASE STUDY#1

THE CHALLENGE

A group of investors purchased an oceanfront property in Naples, FL with the intention of remodeling the home and selling it in a rapidly appreciating market. The investors, who ultimately wanted to receive fair market value for the home, found it increasingly difficult considering the rate of appreciation in the Naples market. They were fearful that overvaluing the property would increase the time it would take to sell, and they didn’t want their investment to occupy their portfolio for an extended period of time. They sought the help from Grand Estates Auction Company® to provide a viable solution to the problem of how do you sell a property with a time sensitive seller in a rapidly appreciating market, while being assured to receive fair market value?

THE SOLUTION

Grand Estates Auction Company® presented the seller with a dynamic marketing proposal that sought to capture the interest of individuals who traveled to Naples from different parts of the world. By marketing to these individuals in their home markets they could increase the overall effectiveness of bringing forth qualified bidders on auction day. With the seller motivated to sell his property, he chose the absolute method of auctioning, which means that the high bid on auction day is what the property will sell for.

THE RESULT

As a result, Grand Estates Auction Company® was able to draw interest in the property from around the world. The auction produced 13 bidders and the property was sold at auction for $3,332,500.00 The seller and buyer were both thrilled with the transaction and closed in 30 days making the total time from marketing to auction close in just under 75 days!

CASE STUDY#2

THE CHALLENGE

The developer of Mariner’s Club Key Largo, a premier mid-size oceanfront community and resort in Key Largo, FL, had experienced a tremendous slowdown in real estate sales. The community, consisting of approximately 110 units of luxury townhomes and oceanfront villa condominiums, had a remaining inventory of 14 units and outstanding debt owed to the bank. The goal of the developer was to sell the remaining units in the community to allow for them to turn over the association to the homeowners, cover their debt obligations to their lender, and move onto other, more profitable ventures, all while further shielding themselves from continuing market decline. The on-site sales manager of the community had experienced difficulty in getting buyers to purchase in a time where there had been no recent comparable sales and it was suspected that there would be a growing number of foreclosures. Rather than continuing the same failed tactics to try and produce sales, they turned to Grand Estates Auction Company® to provide a solution for their needs.

THE SOLUTION

Grand Estates Auction Company® evaluated the development to determine how best to attract end-user buyer interest to maximize the market value of the properties to best achieve both the developer’s and the bank’s needs. An international marketing plan was created and implemented with the purpose of attracting buyers from across the world by utilizing the auction process. The Grand Estates auction would be an application of expertise, creating urgency amongst contemplative buyers, and motivate them to act for this time sensitive sale. Grand Estates’ proposal included methodology on how to prevent buyers from withholding bids as a means of  expecting to secure later property offerings at lower prices. This methodology is essential to protecting the developer’s return and the market value of the units.

THE RESULT

Throughout the promotional campaign interest for the properties continued to grow. The properties that GEA represents are ultra-luxurious, and the Mariner’s Club Key Largo is a renowned Keys resort destination. Grand Estates Auction Company®, in a 30 day period, received over 500 inquiries due to the extensive marketing, advertising, public relations and sales efforts. Additionally, 35 Property Purchase Packages™ were sold, on-site sales staff previewed the development to over 200 groups of people during the 4 day preview period, and registered over 50 bidders for the auction. Buyers’ demand exceeded the initial offering of 7 units being auctioned and resulted in a total of 10 units being sold along with 6 boat slips totaling over $9,000,000 in sales in a single afternoon. The developer, as a result of GEA’s efforts, was able to sell a greater than expected number of units and cover their note in full to the bank. Lastly, the influx of new comparative sales energized activity and stabilized the community, which allowed for other lenders to re-evaluate current loan obligations for other owners that resulted in reduced foreclosures.

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To contact Grand Estates Auction Company for a consult, call: 800.552.8120 or 704.529.0026 | www.grandestatesauction.com