Some have probably never considered the possibility of selling their luxury real estate at auction. They may not even be aware that such an option exists, and could even be forgiven for thinking a property auction is not something one chooses but is forced to turn to following financial hardship. They would probably be surprised to learn that the average price for the top 10 properties sold through Sotheby’s Concierge Auctions in 2023 was US$18.2 million. The year before it was US$20.3 million.
“It’s a great way to arrive at market value,” says Chad Roffers, co-founder and chief executive officer, Sotheby’s Concierge Auctions. A case in point is the Southampton, New York property La Dune, which sold at auction for US$88.48 million in March 2024. The historic estate on Gin Lane was once the most expensive listing in the Hamptons.
The first property to be sold live alongside art at Sotheby’s, La Dune received bids from seven individuals based in New York, Connecticut, Georgia, and the Caribbean, competing in the room and via telephone. A single buyer, based in New York, eventually secured the full property for more than twice his opening bid.
“Our partnership with Sotheby’s Concierge Auctions is a great benefit for our clients,” says Philip A. White Jr., president and chief executive officer, Sotheby’s International Realty. “The buyer pool for luxury properties is small, so for sellers who want to move quickly, the auction route allows them to sell a property—anywhere in the world—in just five weeks. Using this approach, we can target buyers who have the means and interest in luxury properties, enabling them to achieve fair market value.”
As part of the auction process, over a period of 35 days, Sotheby’s Concierge Auctions usually fields nearly 500 inquiries per home listed for auction. This number is quickly winnowed down, and after 25-50 in-person visits to the property, each lot ends up with five to seven bidders, on average.
According to Frank Aazami, real estate associate, Russ Lyon Sotheby’s International Realty in Arizona, the Sotheby’s Concierge Auctions platform “expands the buyer pool for our sellers,” and that when it comes to managing a diverse portfolio of luxury properties around the world, “expediency is crucial.” Aazami adds that the auction format “allows us to move through the process efficiently.” In September 2024, his firm is collaborating with Sotheby’s Concierge Auctions to offer a significant guard-gated residence in the exclusive Saguaro Forest Community of Desert Mountain, in Scottsdale, Arizona.
Luxury homes also tend to have less quantifiable features, such as bespoke architecture or customized amenities. “These are unique assets, but they can be difficult to price,” Roffers says, “and you’re looking for a very specific kind of buyer who doesn’t always come along at the same time you are selling.”
He adds that many buyers are shopping for a third or even fourth home, which means geography and the type of home ranks behind their first priority, which Roffers describes as “lifestyle.” Sotheby’s Concierge Auctions bidders can browse its properties and mentally picture the lifestyle they might pursue there.
“Maybe they want to spend time in a warm place on the beach, or maybe they want to buy in a city with all the attendant museums and culture. They are constantly on the lookout for unique situations,” Roffers says. “We auction exceptional properties in interesting communities. Moreover, buyers get the opportunity to pay a truly market-driven price.”
This could mean that a person bidding on a Hamptons compound might not have even been shopping for a beach house when they checked out Sotheby’s Concierge Auctions. “We just sold a property in the ski resort of Vail for US$20 million,” says Roffers. “The buyer also spent US$3.5 million with us on a house in Texas.” Roffers estimates that three out of 10 bidders have not seen the property they are bidding on. They might have sent a representative to examine it before the auction but have not necessarily stepped through the front door until move-in day.
Most of the company’s auctions take place online, but there have also been live components at the headquarters of Sotheby’s auction house in New York, London, and Hong Kong, which is exciting to witness. “I remember one person was there in the room and she had her paddle raised the whole time,” Roffers says. “She was on the gas out of the gate and didn’t stop until she won.”
Roffers emphasizes that Sotheby’s Concierge Auctions is a good choice for a broad range of sellers. “The main thing I’d tell sellers is the sooner they decide to use us the better,” he says. “If the property hasn’t sold within 90 days, that’s the best time to get us involved.”
2019
US$11,480,000 2150 S Highway A1A, Vero Beach, FL 32963
2020
Price: Confidential 5300 N Prince Place, Jackson, WY 83001
2021
US$20,524,000 19575 Collins Ave, Penthouse 43, Sunny Isles Beach, FL 33160
2022
US$12,656,000 900 West Stafford Road, Thousand Oaks, CA 91361
2023
Price: Confidential 3017, 3009, 3003 N St NW Washington, D.C.
This one-of-a-kind, architect-designed home in California is majestically perched in one of the most exclusive neighborhoods in Palos Verdes Estates, with the most coveted view in the entire South Bay.
Vista Sotheby’s International Realty
Number of properties sold through Sotheby’s Concierge Auctions each year.
