Next Up On The Auction Block, This Multi-Million Dollar Home

Real estate companies in Cabo turning to auctions to sell houses

It can be hard enough to sell a home here in Cabo, but it’s even harder when you’re trying to sell a multi-million dollar luxury property that not just any Bunky can afford.

Several real estate companies here in Cabo, including Snell and The Agency Los Cabos, have used real estate auctions to sell some of their more high-end listings. One such property was Casa Bellamar, one of The Agency’s listings, a sprawling oceanfront estate that sits on a one and a half acre lot, with two guest houses, two garages, a tennis court and a pool. It was listed for a cool $3.5 million USD.

millionre.JPGA property like that has a very small pool of potential buyers. And this is where the benefit of using the auction house comes in; they can help market the property to buyers around the world. Concierge Auctions, the New York based auction company The Agency partnered with to sell Casa Bellamar, markets heavily to the richie rich in China. Just a guess here: that would not be the Chinese that assembled those Nikes you’re wearing.

Concierge Auctions sells only high-end properties — typically in the range of $2 million to $40 million — and only accepts one of every 20 properties that are submitted to them for auction.

Another benefit of using a company like Concierge is that it’s a fast and guaranteed sale; it’s an accelerated process that overall takes just about eight to 10 weeks and with no reserve, you know your house is going to be gone.

Auctions can take place one of three ways; the first is on-site, which is a live auction conducted at the property or a nearby venue. Bidders are able to participate via proxy or by phone. Typically, the auction starts with a cocktail hour, followed by the property auction. Sure, get them oiled up first. Smart.

There is also a portfolio sale, where the property will be auctioned off live, alongside other properties, in a process similar to the on-site auctions.

And, in this day of high tech, there’s also the option to bid via an app, so buyers can participate in auctions in real-time from anywhere in the world. Bidders are able to watch bids live, and/or in conjunction with a phone or proxy representative. Bidding may take place solely on the app, or in conjunction with an on-site or portfolio sale.

There is also the option of selling with or without a reserve (which is a stated minimum price the owner will take). Casa Bellamar went up for auction without a reserve. Does that mean that if you’re the only one bidding and you bid a whopping $50, you get the deal of the century on a luxury home? No. While there is no reserve, interested buyers must put down $100,000 refundable deposit so the company knows in advance if qualified, bonafide buyers are participating. If you don’t get the house, you are refunded the money, which is held in n escrow account in a U.S. bank. If are the winning bidder, the money is put towards the cost of the house.

As of the day before the Casa Bellamar auction, there were four potential buyers who had ponied up the money to bid on the property. According to the Concierge website, a sale is pending and the final selling price will be available once the house has closed. So if you’re nosy like us, you’ll have to wait to see how much it went for. 

So what is the advantage for the Realtor? It’s an almost guaranteed immediate sale, since the auction house has extensive contacts with wealthy people. ‘Scuse, the new politically correct term for rich is high net worth, and we all know how the GG strives to stay politically correct.