The Rise of Quiet Wealth: Wealthy Individuals Turn to Private Sales to Avoid Attention

The rich are embracing “quiet wealth” by engaging in private sales of luxury goods such as mansions, art, and classic cars. Auction companies and luxury real estate brokers have noticed a growing trend among wealthy buyers and sellers to avoid public auctions and listings in order to maintain privacy. While public auction sales in the art world have declined, private sales have actually increased, with Sotheby’s seeing a 4% increase and Christie’s seeing a 5% increase in private sales last year. These private sales accounted for a total of $2.4 billion across the two auction houses.

The shift towards private sales is not limited to art; classic cars are also experiencing a similar trend. RM Sotheby’s, a classic car auction company, has seen its private sales division’s revenue quadruple over the past four years. Private sales now account for nearly a third of the company’s revenue. According to Shelby Myers, global head of private sales for RM Sotheby’s, people are increasingly interested in discreet transactions where they can buy without attracting attention.

One of the driving factors behind the rise in private sales is social media. When a work of art or a classic car goes up for auction, the results and sometimes even the seller become highly publicized on social media and blogs. Sellers are now hesitant to risk putting their treasured items up for auction, fearing that a public stumble could affect their reputation. Previously, auction prices were not widely known, but with the advent of social media, prices are now splattered all over the internet.

Collectors who like to showcase their cars at events and award shows are also turning away from auctions. The car enthusiast community used to be relatively small and tight-knit, but now major collectors’ cars are widely publicized online, making it easier for viewers to figure out how much the owner paid for a particular car.

Real estate is another market where private sales are gaining popularity. Many of the biggest deals in prime locations like Manhattan, Malibu, Aspen, the Hamptons, and Palm Beach are now happening through private or off-market sales. These properties are not listed on public websites but are instead quietly marketed among a select group of brokers and buyers. Off-market sales have become so popular that Los Angeles is considered the birthplace of this trend, starting in the 1980s and 1990s when celebrities wanted to avoid unwanted attention.

Off-market listings appeal to both famous and non-famous wealthy sellers who value privacy and avoid media intrusion. They don’t want their homes publicly shown or their personal details easily accessible to potential burglars. Technology has played a significant role in this shift, making it harder to keep personal information private.

While off-market listings make sense for high-end properties priced over $20 million, some brokers argue that sellers may not get the highest price by limiting their pool of potential buyers. By going private, sellers are leaving money on the table. However, for sellers who prioritize privacy and discretion, the premium they pay for going off-market is worth it.

In conclusion, the increasing popularity of private sales among the wealthy can be attributed to a desire for privacy and discretion. Social media and technology have made public auctions less appealing, as sellers fear negative publicity or the exposure of personal information. Private sales offer a way for wealthy buyers and sellers to transact discreetly, away from prying eyes. While there may be a premium associated with going off-market, many high-end sellers find it worthwhile to maintain their privacy.