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Luxury property auctions becoming common in SW FL real estate

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Luxury real estate received multiple offers on a regular basis throughout 2021 in the Sarasota area as demand exploded.

But that deluge of interest has apparently faded some. Luxury properties across the region have been sitting longer than last year, with fewer offers, according to some real estate experts.

Peter G. Laughlin, Founder of the Peter G. Laughlin Group of Premier Sotheby’s International Realty, said: “Real estate is staying in the market longer than it used to be.”

While many realtors point to a slowdown in the second half of 2022, the luxury market is still posting strong sales.

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In July, the Harbor Acres property sold for $17.5 million. This is a record for single-family homes in Sarasota County.

A Sarasota-based development group has embarked on a speculative residential project listed for $17 million.

Chris Jones, an economics professor at the University of South Florida and founder of the consulting firm Florida Economic Advisors, previously told the Herald Tribune that even with an economic slowdown, luxury sales will follow suit. Said I didn’t have to. General economic trends.

“The reality is that when you hit those price points, you don’t follow the general trend path,” Jones said.

Still, Laughlin said he’s noticed a significant slowdown in the luxury market, even from the first four months of 2022. Buyers are less “enthusiastic” and more inclined to bargain, Select more properties for information.

This has led some owners to use auctions without deposits to sell their properties.

One of the first property auctions to be conducted by Sotheby’s Concierge Auctions will begin Friday for the property represented by Laughlin.

But this won’t be the only luxury property to be auctioned along this region of Southwest Florida in the coming weeks, as sellers begin to consider alternative selling methods.

Naples-based Elite Auctions will auction the 6,500-square-foot Siesta Key Bayfront Mansion at 8347 Midnight Pass Road on September 24th, and plans to sell the Naples Mansion at auction on October 1st.

The Siesta Key property last sold for $6.5 million in June 2021 and went public in late August for $7.5 million. In August, he was priced at $7.9 million, according to listing data available on Realtor.com.

The property at 29641 State Road 70 East represented by Laughlin was first listed at $9 million in December 2021, but has undergone two price reductions and now has an asking price of $7 million.

Laughlin said the auction has generated a lot of interest in the property because people are already flying to see it.

One of the reasons we go the auction route is because this method not only creates urgency, but also increases the visibility of the property to potential buyers.

Auctions “can attract a wider range of customers and often generate higher selling prices,” Laughlin said.

Randy Haddaway, CEO of Elite Auctions, says people auction real estate for the same reason people auction works of art.

“We can create urgency,” he said. “We can get people involved and competing.”

Buyers love auctions, he said. They know the buyer will be selling on a particular day and can plan accordingly.

Haddaway said there is no doubt that the luxury market is slowing not just in Southwest Florida, but nationwide.

Still, Laughlin never believes the market has turned into a seller’s market.

“The right properties sold the right way still sell fast,” he said.

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