I spoke with Kelly Burt, who just sold his multimillion dollar Strand home in a live auction last weekend.
A developer for 25 years, Burt studied the auction process for a year first and interviewed the top four auction companies in the game to choose the company to sell his homes, he says.
He even flew out to Hawaii to watch the auction of singer Cher’s home, which sold for $8,720,000 in February.
“I know what down markets are like. When the market starts turning, you need to stay ahead of it,” he says of deciding to sell both his homes – 7 and 9 White Water Lane – through auction, which can be risky.
Burt says the real estate industry is just now starting to feel the impact of the Internet’s influence, “The Internet has disrupted almost every field, from how we date to how we elect political candidates,” he said. “We need to figure out a way to sell more quickly, more efficiently, and to reach a broader audience.”
This is the first time Burt used the auction platform to sell a home. The final bid price of the home auctioned by Concierge Auctions is not being released, upholding a confidentiality agreement signed by both Burt and the buyer.
“The benefits are pretty obvious, we’re in the throes of negotiating putting another one (house) on,” he said. “I’m very pleased with how things went, pleased with the number of participants, pleased that it was an all-cash buyer that can close in less than 30 days.”
The published reserve – or even the opening bid – for the auction that just passed was $6.9 million. Both 7 and 9 White Water Lane were up for grabs to the highest bidder, who got to select their personal favorite (and 7 White Water Lane was chosen by the highest bidder).
Burt raised the published reserve to $7.9 million to sell the remaining 9 White Water Lane listing by auction May 20. Why?
“I feel that the market will bear it,” he said. “That’s a steal. The history and this process would suggest that we should be successful.”
“We have to find new techniques and new ways of exposing the market,” he said. “The consumer is the big winner on this.”