I
n the rarefied world of ultra-luxury real estate, a chasm often exists between sellers' lofty expectations and buyers' willingness to pay. Real estate auctions offer a swift solution to bridge this gap, typically outpacing traditional listings by several months.

    Concierge Auctions' 2025 Luxury Homes Index reveals that while median-priced homes sell within 60 days, luxury properties languish on the market for an average of 319 days. The report categorizes luxury home sales into two groups: those sold within 180 days and those that took longer to sell. Notably, among homes sold in 180 days or less, the average time on the market was a mere 89 days, whereas properties that spent more than 180 days for sale averaged 514 days.

    "The data unequivocally shows that if you haven't sold your property within 90 days, you're in it for the long haul," says Concierge Auctions CEO Chad Roffers. With over a decade of studying the luxury market's ebbs and flows, Roffers notes that his findings are remarkably consistent: selling a rare property is challenging, even in the best market conditions.

    The shift in consumer perception is attributed to the proliferation of online property data platforms like Zillow. Buyers now scrutinize a property's history, assuming there must be something amiss if it remains unsold for an extended period. This psychological factor can lead to a significant price reduction, as seen in the Luxury Homes Index: luxury homes sold within 180 days achieve 94% of their original asking price, whereas those that take longer sell at 81%.

    Roffers attributes this phenomenon to emotional attachment and aspirational pricing. Homeowners often set prices based on sentimental value rather than market reality. Real estate brokers face a dilemma: they need inventory to sell but may compromise on listing prices to secure listings.

    To mitigate these challenges, Roffers advises sellers to interview multiple top brokers and choose the one with whom they have the best chemistry. He also recommends using the lowest suggested list price as the most likely achievable sales price. Early offers should be seized upon, as time is still on the seller's side. Waiting too long can lead to a loss of negotiating leverage due to the perception that the property has been on the market "forever."

    For truly unique and irreplaceable properties with no comparable sales, pricing can be particularly challenging. Concierge Auctions offers an alternative to price reductions: hosting an auction to reestablish urgency and attract multiple buyers simultaneously.

    A recent example is La Dune, a 4-acre oceanfront compound in Southampton Village that sold for $88.48 million after being listed for $145 million in 2017 and $150 million in 2022 with no takers. The winning bid was 121.2% higher than the opening bid, demonstrating the effectiveness of Concierge Auctions' strategy.

    Roffers acknowledges that auctions are not suitable for every seller but notes that his company can offer results within 60 days, along with a range of likely price outcomes. However, some sellers may prefer to wait six months to five years to see where the market goes and hope for a buyer willing to pay their desired price.

    The ultra-luxury market is characterized by a shallow buyer pool: there are approximately 30,000 individuals worldwide worth more than $100 million, with only about 3,000 billionaires. Location also plays a significant role in the sale of these properties, as buyers must be drawn to the community and willing to spend time there.

    For bidders, Roffers advises being curious and open-minded: "You never know what's going to happen at an auction." Concierge Auctions' process allows for ample time for viewing, inspections, and bidding, with a transparent and predictable outcome. The company's auctions have a reserve price, known as the market reserve, which ensures sellers receive their minimum price.

    In conclusion, navigating the ultra-luxury real estate market requires a deep understanding of consumer psychology, market trends, and the nuances of high-end sales. By leveraging auctions and strategic pricing, Concierge Auctions helps sellers bridge the gap between their expectations and buyers' willingness to pay, often achieving remarkable results in a relatively short timeframe.