Concierge Auctions Estates Sale 2010 Results Wrap-Up

Reader Comments (Page 1 of 1)

1-06-2011 @ 8:34AM

trayor said...

The media is a funny thing, and perception is reality. Concierge knows this, and so they use statements like "Previously offered to $9 million, now selling at or above $2.5 million," because they know it creates a tremendous perception of value differential for prospective buyers (aka "a great deal!").

The truth, however, is although the property was once offered for $9 million (e.g. in 2006 or 2007), it may be currently listed for $4 million. If this was considered, the sale-to-list ratios shown above would be much better. This is true for most well-executed (emphasis on "well-executed") luxury auctions.

The media, however, does not want to consider this, and rather goes for the more sensational and negative approach. If not sold at auction, most of the properties above would have languished on the market for another 18-24 months, been reduced at least 25%-50%, and then sold at a discount to those reduced prices on the open listing market. That's how clearing inventory and how markets work.

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