Online Auctions: Increasingly Seen as Viable Option for Any Builder or Developer

Online real estate auctions are losing their stigma as a last ditch effort by sellers who are either desperate to sell new inventory or are trying to sell distressed properties that very few people actually want. Increasingly, builders and developers who are financially sound are reconsidering their previous assumptions regarding auctions and are now viewing the online auction platform as an effective way to expedite sales.

Our two newest campaigns offer examples that may surprise people. Both builder closeouts of upscale new homes, the campaigns shatter all expectations that auctions are for the struggling or defeated.

The first auction is of remaining inventory in the Tuscan-style community of Brava in Palm Desert. The 16 luxury townhomes are set within a community built to uphold exceptional standards. ‘Toscana’ paved roads, stone detailing on the units’ exteriors, and amenities such as an fitness center, clubhouse, and two pools, are all evidence that Brava offers residents the country club lifestyle. Located in the heart of Palm Desert—at the prestigious intersection of Country Club and Monterey—Brava brings the class and old-world charm of Italy to the serene desert landscape.

Above: The exterior of a unit at Brava in Palm Desert

The second auction is of remaining homes spread over three communities in Denver, Colorado. Of the eight homes, four are upscale multilevel Brownstones located in the Westerly Creek neighborhood of the master-planned community of Stapleton; three are large estate homes in the Eastbridge community of Stapleton; and one is a ranch style custom home in the charming town of Golden. All the homes are over 3000 square feet, with views of the surrounding mountains and access to both the city center and the great Colorado outdoors. Built with amenities such as a private elevator and rooftop terrace (Denver Brownstones), a Jacuzzi spa and large yards (Urban Estates), and a large ranch lot with access to trails and hiking (Golden), these homes are the perfect match of luxury and functionality.

Above: One of the penthouse terraces at the Denver Brownstones

Above: The exterior of one of the Urban Estates for auction in Stapleton

In both cases, the developers—well known and highly regarded in their respective regions—chose LFC to auction the properties on our residential real estate website Freedom Realty Exchange, FRE.com, so that sales could occur quickly and efficiently, while still promising reasonable prices, even in the midst of difficult housing markets.

With minimum bids half of the suggested retail prices, these auctions give buyers the authority to push the prices as high as they are willing to go, giving a good indication of what the market value truly is. Sellers don’t have to drive prices lower until buyers bite but can instead watch prices organically rise to the natural level.

Builders, developers, and buyers are all looking beyond the taboo of “auctions” and realizing that online auctions offer a technology-driven, convenient and transparent means of buying and selling real estate that is unmatched by any other method. The accelerated marketing platform makes sense in bad times and good, a solution for sellers in every situation in the market.

The builder closeout auction of homes in Palm Desert launches at FRE.com/265R4 on December 17, while the builder closeout of homes in Denver, Colorado launches at FRE.com/284R4 on December 19.