How can you set realistic auction goals in real estate?

Selling luxury is more difficult than selling a standard property because setting a realistic value for a one-of-a-kind property is hard. In traditional real estate, the broker typically releases a CMA taking into account the local market trends and comparable properties, and identifies a price expectation that is as realistic as possible. The luxury auction generates an authentic "snapshot" of the real market instead. The volume, size and consistency of real bids leaves no doubt as to what the market is truly willing to pay. Furthermore, by expanding the pool of potential buyers to the entire Nation, the data are more extensive. That’s why luxury sellers may prefer to rely on auction houses to assess a real price and set realistic goals.

Assess Your Property Value #PropertyValuation Begin by obtaining an accurate and up-to-date valuation of your property. Leverage professional appraisals or market analyses for a comprehensive understanding. Factor in market trends and recent comparable sales to determine a realistic starting point.

Start with a comprehensive analysis of the current real estate market. Look at recent sales data, market trends, and economic factors that might influence property values in your area. This analysis provides a foundation for setting realistic expectations.

To set realistic auction goals in real estate, conduct a detailed market analysis, assess the property's unique features, define clear objectives, seek expert advice, understand buyer behavior, consider financial obligations, develop a robust marketing strategy, establish a realistic reserve price, adapt to market conditions, and ensure legal compliance. Flexibility is key, allowing adjustments based on changing circumstances in the real estate market.

Set Your Reserve Price #ReservePrice Establish a reserve price that aligns with your property's value and your financial expectations. Consider market conditions and potential buyer interest in determining a competitive reserve. Be strategic in setting a reserve that ensures a satisfactory outcome without deterring bidders.

Conduct a thorough valuation of the property to be auctioned. Consider factors like location, property condition, size, unique features, and comparable sales in the area. A professional appraisal can provide an objective estimate of the property’s market value.

Define Your Ideal Outcome #AuctionGoals Clearly outline your objectives for the auction, whether it's a specific sale price or other favorable terms. Understand your priorities, such as a quick sale or maximizing profit, to guide your decisions. Communicate your goals with your real estate agent to align strategies and expectations.

Prepare for Different Scenarios #AuctionStrategy Anticipate various auction scenarios, including different bidding levels and buyer behaviors. Develop contingency plans to adapt to changing circumstances during the auction. Ensure flexibility in your approach to navigate unexpected developments with composure.

Manage Your Emotions #EmotionalResilience Stay composed and rational throughout the auction process, irrespective of outcomes. Acknowledge that auction dynamics can vary, and results may not always meet initial expectations. Focus on the bigger picture and the ultimate goal of selling your property successfully.

Review and Learn from Your Auction #PostAuctionAnalysis Conduct a thorough analysis of the auction's outcome, considering both successes and areas for improvement. Gather feedback from your real estate agent and potential buyers to gain valuable insights. Use this information to refine your future real estate strategies and enhance your auction approach.

The most successful people that I have witnesses in relation to auctions did two additional steps that really made the difference. 1. After all research and planning, set a maximum price and stuck to it. 2. They had accountability partner(s) with them to ensure that they did not stray from #1 above. An accountability partner can be anywhere from someone they trust to be with them throughout the auction to (for those really lacking impulse control), fully giving the purse-strings and bidding rights to that person so there is no way the individual's impulses can sabotage the plan. No one deal is a "must have" and it's best to ensure you can walk away from something that no longer makes sense to eventually invest in something that does.