Hammer Time

Indeed, one of the key takeaways from the Sotheby’s Concierge Auctions’ Luxury Home Index, last published in 2023, is that buyers looking for luxury properties are a select few, which means these homes can take longer to sell. “In our experience, if you don’t sell your property within 90 days of it coming on the market, it’s probably going to take you much longer,” says Roffers, adding that in some cases that can mean as long as three years.

As part of the auction process, over a period of 35 days, Sotheby’s Concierge Auctions usually fields nearly 500 inquiries per home listed for auction. This number is quickly winnowed down, and after 25-50 in-person visits to the property, each lot ends up with five to seven bidders, on average.

According to Frank Aazami, real estate associate, Russ Lyon Sotheby’s International Realty in Arizona, the Sotheby’s Concierge Auctions platform “expands the buyer pool for our sellers,” and that when it comes to managing a diverse portfolio of luxury properties around the world, “expediency is crucial.” Aazami adds that the auction format “allows us to move through the process efficiently.” In September 2024, his firm is collaborating with Sotheby’s Concierge Auctions to offer a significant guard-gated residence in the exclusive Saguaro Forest Community of Desert Mountain, in Scottsdale, Arizona.

Luxury homes also tend to have less quantifiable features, such as bespoke architecture or customized amenities. “These are unique assets, but they can be difficult to price,” Roffers says, “and you’re looking for a very specific kind of buyer who doesn’t always come along at the same time you are selling.”

He adds that many buyers are shopping for a third or even fourth home, which means geography and the type of home ranks behind their first priority, which Roffers describes as “lifestyle.” Sotheby’s Concierge Auctions bidders can browse its properties and mentally picture the lifestyle they might pursue there.

“Maybe they want to spend time in a warm place on the beach, or maybe they want to buy in a city with all the attendant museums and culture. They are constantly on the lookout for unique situations,” Roffers says. “We auction exceptional properties in interesting communities. Moreover, buyers get the opportunity to pay a truly market-driven price.”

This could mean that a person bidding on a Hamptons compound might not have even been shopping for a beach house when they checked out Sotheby’s Concierge Auctions. “We just sold a property in the ski resort of Vail for US$20 million,” says Roffers. “The buyer also spent US$3.5 million with us on a house in Texas.” Roffers estimates that three out of 10 bidders have not seen the property they are bidding on. They might have sent a representative to examine it before the auction but have not necessarily stepped through the front door until move-in day.

Most of the company’s auctions take place online, but there have also been live components at the headquarters of Sotheby’s auction house in New York, London, and Hong Kong, which is exciting to witness. “I remember one person was there in the room and she had her paddle raised the whole time,” Roffers says. “She was on the gas out of the gate and didn’t stop until she won.”

Roffers emphasizes that Sotheby’s Concierge Auctions is a good choice for a broad range of sellers. “The main thing I’d tell sellers is the sooner they decide to use us the better,” he says. “If the property hasn’t sold within 90 days, that’s the best time to get us involved.”