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Selling your luxury home in a down market? Try an absolute auction without reserve!

January 16th, 2012 · 3 Comments

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Maui estate to be sold at exclusive absolute auction

By Jeffrey Jolson-Colburn Maui, HI (Hollywood Today) January 16,2012 –  What has been described as a Balinese-inspired luxury estate is to be sold tomorrow, January 17. Yes, specifically tomorrow January 17. How can we be so certain? Let us explain.  This property is not only attracting a lot of attention because of its most sought-after premium oceanfront property in Maui but also because of the way it is sold, by an absolute auction without a reserve bid. The absolute auction  is to be held by Grand Estates Auction Company in Maui on January 17, 2012 at 11:00 a.m. This approach to selling luxury homes offer prospective home buyers what could be  the rare opportunity to purchase a dream home at what one could say the market believe its worth to be. Grand Estates Auction company, a company based in Charlotte, North-Carolina  is no stranger to marketing and handling absolute auctions. This one is their second one in a year in Hawaii. Their spokesperson told us, “The appeal of an absolute auction is three folds: the property is sold at what could be considered the true market value of the property; the home is sold rapidly; and the marketing of the property is handled by Grand Estates Auction company. The owner of the house leaves it up to Grand Estates Auction to sell their house rapidly at a good and fair price.” The previous Maui auction resulted in the sell of the property for $4,500,000 after having languished on the market for over two years. The original seller of the house was not available for comments.  The Grand Estates Auction company states in a press release,”“The seller has chosen to sell their property in this manner because they like the certainty a no minimum, no reserve sale like this brings. They are confident that whatever value the home fetches at auction is the fair market value.  Buyers have the opportunity to get an incredible value and shouldn’t miss the chance to bid on a home like this, because opportunities this golden only come around once in a lifetime,”  said Scott Kirk,executive vice president, Grand Estates Auction Company. The property may be sold at an auction without reserve, which is what makes it absolute, but is it not without risks.  There is one date only to sell the house, and that is it. In this case the auction is January 17 and if it doesn’t sell tomorrow, it’s back on the market.   Participants at the auction must give a check of $100,000 to simply attend, which will be fully refunded if they walk out without the winning bid on the property. Kirk added,”Absolute auctions are already quite popular in Europe but are a relatively new phenomena in North-America. We believe that with this downturn economy that it makes good business sense for a seller to consider an absolute auction as an option to sell their property. Our success rate {of selling the property on the auction date} hovers around 90%, while the industry average in the luxury segment is about 35%. Quite high considering that so many of our properties have been listed for months or even years with an agent without a successful sale.” The next auction following tomorrow’s  is taking place in Scottsdale, Arizona on February 7 and is already garnering a lot of speculations. The  Wall Street Journal featured it last week as the House of the Day. Ladies and Gentlemen, may the auction begin. Aloha everyone!

3 responses so far ↓

  • 1 Stacy Kirk // Jan 16, 2012 at 8:15 pm

    I have visited the house and it is gorgeous! The homeowner did a great job of melding contemporary finishes with Asian antiques. It’s a serene home where you can watch the the sea turtles feed and the whales spout and jump. I loved it!

  • 2 leslie paul farkas // Jan 17, 2012 at 4:44 am

    Yes tomorrow is going to be an exciting day for the winning bidder who has realized the extraordinary opportunity which this property and process presents. I can’t wait!

  • 3 Edward Donahue // Jan 19, 2012 at 3:03 pm

    Great value for Buyer & Seller.

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