Behind The Scenes Of A Luxury Home Auction On The Big Island Of Hawaii
The process of selling a property is a stressful one for most homeowners, but it’s especially true for property owners in the world’s most exclusive markets. At the top of the market, in the most desirable areas, it can be extremely difficult to find comparable prices, making the traditional sale process an unpredictable one. Because of this, homeowners who want to sell their properties quickly are increasingly looking into the luxury real estate auction process because it offers unrivaled flexibility, access to an exclusive buyer pool, and other advantages over traditional methods.
Carrie Nicholson, a top-producing real estate agent with Hawaii Life, shares a behind-the-scenes look at her $7.75-million listing, which hit the digital auction block via Concierge Auctions on Friday, January 21. The 5-plus-acre estate and working coffee farm on the Big Island of Hawaii will be up for auction with no reserve until January 26, according to Nicholson. The property, which includes a 6,825-square-foot main house, “will be sold to the highest bidder regardless of price,” the agent adds.
Successfully selling unique Big Island properties through Concierge Auctions isn’t new to Nicholson. “The seller side benefits because they know the exact date the property will trade and close. There is exceptional marketing done through Concierge Auctions with their extensive book of buyers looking for these unique properties,” Nicholson explains. Everything happens in a short period of time on these transactions. All the due diligence on the buyers’ side is done upfront before bidding, including seller disclosures, inspections, and surveys.
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“I have successfully done quite a few sales with Concierge Auctions marketing and selling unique properties this way. Sellers must be comfortable with the process. Most own the property free and, clear and the buyers are all cash with no financing contingency. So, it’s a very clean process,” Nicholson notes.
Most parts of the auction process are generally standard. Buyers register to bid online on the digital auction house’s website. From there, they go through a rigorous vetting process.
More nuanced aspects of the luxury auction process include the buyer’s premium, which is a fee associated with bringing the property to market (for the Kona Coast property, the premium is 12%). There is a starting bid incentive to the high bidder of 6% in the form of a credit to help offset the total auction price. There is a 2.5% co-broker commission paid by the seller to any “property registered sales associate or broker whose client is the successful buyer at the auction and whose client completes the purchase of the property.”
Everything is handled online. The process is completed in five days, from opening to closing bids. Bidders must make a $100,000 initial refundable deposit made to escrow when registering as a bidder.
“Concierge Auctions know how to position high-end luxury in a great way and go above and beyond in marketing these truly special properties,” Nicholson said. The resort-style 9-bedroom (all with private lanais) estate is located within the exclusive gated community of Keolani. It’s just minutes to downtown Kailua-Kona and Holualoa Town. Situated on the Holualoa slopes, coastline and ocean views are unending. An abundance of coffee trees, fruit orchards, and one of the largest private hibiscus plant varieties collections make this property unique.
The targeted buyer for this property could be a family interested in acquiring a multi-generational, legacy-type estate. “I think the buyer will be from the west coast of the mainland who are looking for the perfect multi-generational compound. It could also be bought as a corporate retreat,” Nicholson adds.
The main house features a large primary suite, private office, media screening room, gourmet kitchen, and a spacious dining and living room that faces the outdoor lanai, lap pool, and spa. Three guest suites connect to the main house with a covered walkway adjacent to Koi ponds and two waterfalls.
Since this is a working coffee farm with 1,500 plus coffee trees, think of the cachet of having your own organic branded coffee to serve house guests.
If that wasn’t enough space, steps away is another structure featuring five additional bedroom suites and a separate laundry room. A detached spacious 3-car garage with a storage/equipment room completes this grand estate.
Hawaii Life is an exclusive member of Forbes Global Properties, a consumer marketplace and membership network of elite brokerages selling the world’s most luxurious homes.