Recently, REthink Tokyo spoke to Daniel Sparkman, Vice President of Auction Operations for Concierge Auctions about the company’s unique approach towards auctioning these  luxury properties and what entering the Japan market means to the company moving forward. 

Concierge Auctions is currently promoting two luxury developments; the AMOMA Hiroo in Tokyo and the AMOMA Atami.

Bidding for both properties opens on March 25th, 2022.  Inquiries for bids should contact Robert Crane at Solid Real Estate Japan and register on Concierge Auctions’ online platform.  Contact details are found at the end of this article.

Daniel Sparkman.  Photo courtesy of Concierge Auctions.

How did Concierge come to see auctions as a more attractive way to sell property than operating a traditional brokerage firm?

Concierge Auctions is an additional tool for luxury real estate agents and sellers when the buyer pool is extremely limited – particularly at the highest tier price point for ultra-high-end homes.  Auctions create urgency around a sale because we work towards a set date of auction. Every auction we produce is in direct partnership with the property’s agents and our marketing power helps to collaboratively spread the word around the world, drumming up interest for bidding.  This is especially true for high-end and unique homes, which have such a small pool of potential buyers in the first place.  Auctions allow buyers to determine what the property is worth in real time, showcasing a property’s true market value. 

AMOMA Atami courtesy of Concierge Auctions 

What types of residential property are Concierge’s auction services available for?  Condos versus Freestanding homes?  Over 5 or 10 million USD for example?

Concierge Auctions specializes in auctioning incomparable properties. Specifically, we focus on properties for which the true value is difficult to establish without testing the market.  On average, Concierge Auctions accepts one in every 20 properties submitted for consideration.  The process works best for properties originally listed between $2 million to $100 million plus. 

What are the benefits of Concierge Auctions for buyers, sellers and agents?

Buyers gain access to a curated selection of the finest properties available from across the globe. They receive total transparency that they are paying a fair market-driven price and can seamlessly bid via a straightforward bidding process online from anywhere in the world with a smooth and simple transaction.  

Sellers gain unmatched reach, speed and certainty. They can control the timing and terms of the sale with a transaction generated within 60 days as well as gaining global exposure with targeted marketing, PR and sales campaigns, and access to an industry-leading database. 

Concierge Auctions has never conducted an auction without a listing agent involved and a commission offered to a buyer’s agent.  The results are simply better through collaboration with real estate professionals.  Agents benefit from the activation of qualified bidders, access to award-winning co-branded marketing, and on-site sales support with protected commissions.

AMOMA Hiroo courtesy of Concierge Auctions

Given the international nature of your business, are many bids submitted via virtual viewing alone?

Long before the pandemic forced traditional real estate companies to get on board with selling sight unseen, Concierge Auctions hosted virtual tours and online auctions with bidders globally.  Since 2015, auctions have been held online through the company’s fully digital bidding platform.  While many buyers opt in to on-site viewings, many of our properties have been sold to those who have only participated in virtual viewing.

Is the winning bid binding for both buyer and seller regardless of whether the on market price is higher than the winning bid?

We estimate that about 75 percent of ultra-luxury homes we represent have no reserve price, which means the property will sell to the highest bidder, regardless of price. The reality of luxury homes and their listings is that the asking price is not mandated to match projected market demand. While that might be the goal, there really is no better way to tell what the property is worth right now than finding out what a qualified buyer is willing to pay for it on auction day.

Are the AMOMA projects the first for Concierge Auctions in Japan?  If the auctions go well, where do you see Japan fitting into the overall business expansion moving forward?

Yes, these properties mark our first-ever auctions in Japan, which means we are now present in 32 countries around the world.  

For additional context, in November 2021, Concierge Auctions was acquired by Sotheby’s and Realogy, leading to an even larger global footprint.  By running a successful auction in Japan, it proves that our model is able to scale, which is a continuous goal when there are properties that match the caliber of our portfolio. 

Our team is working with the development team on the ground in Japan to facilitate showings and we have a full marketing, logistical and PR team working behind the scenes to support the auction process globally from start to finish.  Being able to execute a seamless auction experience anywhere in the world allows us to grow with the world’s most exciting markets – that's our plan.

Those interested in bidding on either or both AMOMA properties should register an account at ConciergeAuctions.com.  

Those seeking more information on the developments should contact Robert Crane at Solid Real Estate Japan below.