How to sell a luxury property by reverse auction

Keller Williams' team owner, Dan Polimino claims the luxury home he sold through reverse auction found its true value.
  • Reverse auctions may best suit a big luxury property that can attract significant interest on social media.
  • To successfully manage a reverse auction, you need a commitment from the agent to invest in extensive marketing.
  • Make it easy for buyers by giving them as much information as possible up front so they feel they can make a non-contingent offer.

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It's never a fun conversation: Your seller has an elevated idea of the price at which the property should list, and your job is to give them a realistic expectation of what people will pay. Dan Polimino, owner of Keller Williams DTC’s high-end Colorado Dream House Team, felt the time had come to have a chat with his client. He was seven months into marketing an eye-catching, architecturally designed home in Genessee, in the Rocky Mountain foothills near Denver. And he was the second agent to list the house. The seed of a reverse auction Given directions in July last year to sell by Christmas, Polimino took it a step further. He suggested auctioning the home -- at the time priced at $4 million -- but dropping the price by $150,000 every three days in what he called a "reverse auction." The agent of 10 years had first come up with the idea in 2008, but he had never found the house or climate ripe for experimentation. "I said: 'We have a pretty unconventional, out-of-t...