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Times are changing and so is the market...

Two luxury real estate auctions in Santa Barbara Earlier this month , 706 Park Lane was auctioned through Concierge Auctions following an unusual strategy - after years on and off the market, the sellers hired Concierge who started the auction in the usual way promoting the opportunity of the no reserve auction on a set date. Buyers were encouraged to register and make their opening bid. When the response was lackluster, and this 3+ acre Montecito estate only received one registered bid at $4.250M , they dropped the price online from $8.9 to $4.250M and that got people's attention.  The property sold a week later for around $5m.  Then over the weekend , another auction was held live and hosted by DeCaro auctions for an estate in Hope Ranch.  This property, 4558 Via Esperanza , had recently undergone an extensive remodel but was struggling to sell.  Even after being offered as a no reserve auction, the response was tepid and there were only a handful of bidders on-site.  With over $10M invested in this property, the highest bid was $6.2M and the buyer will be paying an additional 10% buyer’s premium making the price $6.82M. "There is no doubt that auctions are exciting and create sales - however for both of these properties, the local knowledge will tell you, the market price was right in line with the auction prices and a realistic pricing strategy would have achieved the same result , most likely with lower costs to the buyer and seller."

Times are changing and so is the market...
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