Luxury Real Estate Auctions Return to the Space Coast
When it comes to marketing and selling luxury residential properties, there are two options. The first is the traditional real estate listing, an industry standard that most people use and are familiar with. The second is one that is being increasingly utilized around the country and, by and large, becoming the preferred method for moving luxury digs is the auction.
It is with this second method, which links qualified buyers to motivated sellers who are seeking an efficient and expedient timeframe in which to sell, that Ellingson Properties of Rockledge is beginning to stand out.
Within the auction realm, there are likewise two approaches: An absolute auction — the type Ellingson Properties most recently employed — is an auction where the sale is awarded to the highest bidder. There is no minimum bid, nor is there a final price, so bidding continues until the auction closes. The seller has less control over the final price than in a reserve auction, where they can choose to accept or deny a final bid.
Because the final bid in a reserve auction wins the auction outright, absolute auctions are often used when there is immediate demand for the sale and when the property is considered unique or “high valued,” where the property price point may not be supported by the current local market conditions. There are many upsides to the sellers who chose an absolute auction.
Since auctions require a minimum marketing timeframe, homeowners are guaranteed that the property will sell within 90 days, or less. In a slower market, this creates a sense of urgency among buyers and becomes an incentive for the home sales process. The seller controls the schedule of the home’s marketing plan, including all the terms and conditions (e.g., earnest money deposits, closing time frames, etc.).
Greg Ellingson commented on why this option is attractive:
“Value is created by demand, utility, scarcity and transferability. Without these in sync, ultimate value is not optimized. With the proper marketing and pressure, the demand is created, which gets our client the best result.”
From Months to Minutes
Auctions offer a degree of exclusivity within the market. Instead of a typical home listing, which is shown to potentially dozens of buyers in the market, an auctioned home is exclusively showcased throughout a web-based marketplace, providing maximum visibility among the target market. Since absolute auctions have no minimum bid, bidders may be able to purchase a property for a premium price, depending on the competition at each specific auction.
Companies like Ellingson Properties have a well-established reputation for helping buyers evaluate a property, so the client can become an informed and confident bidder. Additionally, they have all the tools to help sellers understand the process and to analyze the value their property can command.
The advantages of an absolute auction were recently demonstrated on a beautiful private estate property on South Tropical Trail in Merritt Island. In spite of the growing concerns over the coronavirus at the end of March, Realtor Jack Jeffcoat guided the process that led to a successful bidding experience that dropped the gavel just 15 minutes after the bidding started.
Jeffcoat, a Florida native who grew up in Key West and the son of a successful realtor, moved Brevard for both independence and opportunity. Since that time his agency, Jack Jeffcoat & Co., which operates under Ellingson Properties, has established a reputation for moving high-end estate properties along with expertise in auctions in Orange and Brevard counties.
This particular auction started precisely at 11am, with 16 registered bidders entering the process with a $25,000 cashier’s check as earnest payment. The bidding opened at $1 million, and, amazing as it may seem, by 11:15 am the property had been sold for $1.66 million.
On a property of this caliber, even Jeffcoat was astonished at the briskness of the sale. “For 3.41 acres of land, featuring a 220 feet of river front to sell in under 15 minutes was unprecedented,” he commented. The home had been listed for $2.3 million prior to the auction.
“Someone really got a great deal today, Jeffcoat said, adding “The land value alone could easily be over $1.25 million. These types of properties only hit the market every decade and are a rare find.”
A Unique Choice for A Unique Property
The home has been described as ‘Art created with bricks & mortar.’
Beautifully situated on 220-feet of river to river waterfront, it was constructed in 2001 by custom home builder David Charroux and designed by award-winning Palm Beach architect, Raphael Saladrigas. The stunning, two-story home sits on a bluff at the end of a seashell-and-gravel driveway on a bountiful 3.41-acre lot, and boasts 3,700 sq. ft. of interior space, with three bedrooms, four baths, living room, dining room, and game room. Captivating views of the surrounding waterways can be enjoyed from nearly every room in the house. A luxurious West Indies design is featured throughout the home with the appointment of exotic wood and bamboo flooring.
Like most sellers who chose this option, the owners of this tropical estate were highly motivated and did not want to wait while their home lingered on the market. Recently retired, the sellers were ready to move on to the next chapter in their lives.
Identifying and Meeting Client Needs
“Admittedly, an absolute auction of this type appeals to a smaller client population, but it is one in which traditional real estate techniques may not adequately serve our client best. As the popularity of the Space Coast’s unrivaled real estate options become known and appreciated, the demand will only increase.”
This is another example of how Ellingson Properties is steadily evolving to meet client’s needs — by continually expanding their portfolio of customer-centric offerings, including Echelon Title Services, Echelon Real Estate Services and Echelon Builders.
To Jeffcoat, auctions are a popular trend in other markets whose time has come in Brevard.