Agents light up luxe auctions
BY CASSANDRA GLOVER
33 Market Road , Remuera , attracted 11 registered bidders and sold under the hammer for more than $ 7 million .
33 Market Road , Remuera , attracted 11 registered bidders and sold under the hammer for more than $ 7 million .
STEVE KOERBER RAY WHITE REMUERA , NZ
Steve conducted his first auction in 1997 and has never looked back , listing more than 1,000 auctions since , mostly in the prestigious Auckland suburb of Remuera .
What made you decide to start conducting auctions for prestige listings ?
My wife Nila and I figured that if auctions work in lower price ranges , there is no reason they won ' t work in the higher ranges too ( in our market the median price is about $ 2.3m and a premium auction is anywhere from $ 5m to $ 30m ). A key objection to overcome with potential premium auction vendors is their concern that their property might be judged as inferior or defective in some way if it doesn ' t sell under the hammer for a good price . This is a common concern potential vendors have in all price ranges , so we utilise case studies to show how successful and unsuccessful auction vendors have fared with us . We explain that there is always a risk that the right buyer won ' t be searching / buying in the month that the vendor chooses to sell . A nervous vendor must appreciate that their auction program is a concentrated high-stakes survey of the market value of their home . If the auction program is conducted thoroughly and professionally , with bespoke and far-reaching marketing , and careful handling of price questions , by an experienced salesperson backed by a good auctioneer , the chances of success are much higher .
How do you make them work for you ?
We approach every auction program by attempting to build a pyramid of bidders . For example , if a home was to sell at auction for $ 15 million , the final block at the top of the pyramid is the $ 15 million block . Once that block is placed , our job is done , but there ' s a lot of work to be done beforehand . It ' s estimated that a typical Egyptian pyramid took 15-30 years to construct . The key of course was to start with a very solid and stable base . Getting the highest block in place required precise planning and a gargantuan physical effort . The foundation blocks of a $ 15 million sale might be found in the $ 7.5 million to $ 12.5 million range . It doesn ' t matter at what level they are found , but it does matter that we find them . If there is no base , there is no pyramid and the highest block will be at a lower level . Typically , if we collect enough foundation blocks , the pyramid should be strong enough to rise higher and complete . Emotion is a really important factor that acts initially like mortar between the building blocks , and then works its magic to cause the individual blocks to jostle for the top position . Without emotions , the pyramid may not complete , and the blocks will be less inclined to stretch and strive to reach the top .
What are the benefits for your clients and why should they take their prestige properties to auction ?
Prestige properties are usually pretty special and unique . The best artworks go to auction because a lot of people want them . The best homes are no different . If our clients want to ensure they leave no stone unturned and give themselves the best chance to achieve the highest possible price within a one to six week timeframe - the auction method of sale is head and shoulders above any other sale method available .
What has been your best luxury auction to date ?
Two of them stand out . Nila and I sold our own home at 33 Market Road , Remuera , in August 2022 and brought our auction forward to create an exciting 11 bidder experience and a $ 7 million plus sale , well above our bottom line reserve . Another was the auction sale of 48 Seaview Road , Remuera , in May 2023 . Eight bidders competed for this luxury home and it sold just below $ 8 million . It was our suburb ' s highest auction sale for the entire year . I always say that the market is always great at the right price . Auction is the best way to determine how the market is performing , and at what price level . This year we hope to break the New Zealand price record for an under the hammer auction sale . Watch this space .
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