This was a split screen discussion on luxury foreclosures. Note my two titles in the video.
A few thoughts about auction properties:
- The discount achieved is usually based on an unrealistic list price, suggesting a wildly large discount.
- When a listing is sold through an auction, the discount, if any, is the result of a short marketing period. In other words, the property is exposed to a specific buyer for a very short period of time. The advantage to an auction sale is that sellers to whom “time is of the essence” get a reprieve and unload the property sooner. Its not a discount for the sake of a discount. They are essentially paying for a shorter marketing time.