Dallas-based Heritage Auctions, the third largest auction house in the world, now has another category in its auction arsenal: luxury real estate.
“Real estate auctions are a new, savvy way to market and sell,” says Nate Schar, director of luxury real estate at Heritage Auctions. Schar has a 13-year history of selling multimillion-dollar properties by auction with partner Scott Foerst.
Schar and Foerst will handle single-family homes with a minimum home value of $2.5 million, in locations throughout the United States, Caribbean and other international destinations. Essentially, if it’s a nice property in a good location, they’ll take it. However, they will not represent commercial, industrial or distressed properties, and Schar told Candy Evans of Candy’s Dirt that he expects “vacation properties about 80 percent of the time.”
Not to be confused with a foreclosure, a real estate auction is an accelerated way to sell unique, high-end properties. Sellers control the sale by setting the terms — from open and close dates to marketing strategies and down payments. The process takes 60 to 90 days from beginning to closing, creating a sense of urgency for buyers — all of whom are fully qualified. Schar also believes the auction process helps buyers better achieve fair market value.
Because it’s a quick turnaround, ultimately Heritage can save sellers a lot of time and money. In a traditional sale, properties can sit on the market for years while the list price takes a dive. Case in point: the famous Champ d’Or, which was once listed for $72 million and sat on the market for a decade until the owners finally wised up and sold it at — you guessed it — auction.
Schar thinks the “sky is the limit” with an auction house like Heritage. In addition to selling your first, second or third home without the hassle, Heritage can help sell your art, furniture and collectibles within those homes, because the company boasts experts in every field. Plus, the company’s client base comprises more than 750,000 people in more than 150 countries worldwide.
“That’s a luxury that no other auction company has,” Schar says.