Steve Koerber, Ray White Remuera
Steve conducted his first auction in 1997 and has never looked back, listing more than 1000 auctions since, mostly in the prestigious Auckland suburb of Remuera.
What made you decide to start conducting auctions for prestige listings?
My wife Nila and I figured that if auctions work in lower price ranges, there is no reason they won’t work in the higher ranges too (in our market the median price is about $2.3m and a premium auction is anywhere from $5m to $30m). A key objection to overcome with potential premium auction vendors is their concern that their property might be judged as inferior or defective in some way if it doesn’t sell under the hammer for a good price. This is a common concern potential vendors have in all price ranges, so we utilise case studies to show how successful and unsuccessful auction vendors have fared with us. We explain that there is always a risk that the right buyer won’t be searching/buying in the month that the vendor chooses to sell. A nervous vendor must appreciate that their auction program is a concentrated high-stakes survey of the market value of their home. If the auction program is conducted thoroughly and professionally, with bespoke and far-reaching marketing, and careful handling of price questions, by an experienced salesperson backed by a good auctioneer, the chances of success are much higher.
How do you make them work for you?
We approach every auction program by attempting to build a pyramid of bidders. For example, if a home was to sell at auction for $15,000,000, the final block at the top of the pyramid is the $15,000,000 block. Once that block is placed, our job is done, but there’s a lot of work to be done beforehand. It is estimated that a typical Egyptian pyramid took 15-30 years to construct. The key of course was to start with a very solid and stable base. Getting the highest block in place required precise planning and a gargantuan physical effort. The foundation blocks of a $15,000,000 sale might be found in the $7,500,000 to $12,500,000 range. It doesn’t matter at what level they are found, but it does matter that we find them. If there is no base, there is no pyramid and the highest block will be at a lower level. Typically if we collect enough foundation blocks, the pyramid should be strong enough to rise higher and complete. Emotion is a really important factor that acts initially like mortar between the building blocks, and then works its magic to cause the individual blocks to jostle for the top position. Without emotions, the pyramid may not complete, and the blocks will be less inclined to stretch and strive to reach the top.
What are the benefits for your clients/why should they take their properties to auction?
Prestige properties, like many of those in Remuera, are usually pretty special and unique. The best artworks go to auction because a lot of people want them. The best homes are no different. If our clients want to ensure they leave no stone unturned and give themselves the best chance to achieve the highest possible price within a one to six week timeframe – the auction method of sale is head and shoulders above any other sale method available.
What has been your best auction to date?
Two of them stand out. Nila and I sold our own home at 33 Market Road, Remuera, in August 2022 and brought our auction forward to create an exciting 11 bidder experience and a $7M+ sale, well above our bottom line reserve. Another was the auction sale of 48 Seaview Road, Remuera, in May 2023. Eight bidders competed for this luxury home and it sold just below $8 million. It was our suburb’s highest auction sale for the entire year. I always say that the market is always great at the right price. Auction is the best way to determine how the market is performing, and at what price level. This year we hope to break the New Zealand price record for an under the hammer auction sale. Watch this space.
Media contacts:
Cassandra Glover
Senior Media Advisor
Ray White Group
+61 447 000 472
cglover@raywhite.com