Luxury Real Estate Auction Blog by Gary Gilbert, Principal Real Estate Auction Options, LLC
Real Estate Auction Options Principal Gary Gilbert discusses luxury real estate auctions for both sellers and purchasers.
When it comes to real estate auctions, comps and appraisals don't mean much.
Comps and appraisals are a key metric in trying to determine market value in the traditional real estate world. When it comes to real estate auctions however, they really don't mean much. I often have sellers ask me what I think their home is worth based on current comps and appraisals. I tell them that in the luxury property auction world, they really don't mean that much. A luxury home selling at auction is usually very unique with little or nothing to compare it to. The only way to determine true, fair market value is to conduct a real estate auction and let bidders with the ability to purchase cash, contingency free determine what that number is.