Categorized | Residential

Wealthy Look to Auctions to Sell Multimillion Dollar Mansions

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The real estate market for multimillion-dollar mansions hasn’t exactly been thriving as of late in most areas in the country. It is for that reason that many of nation’s most wealthy are opting to sell their homes in auctions to avoid what could be months of trying to sell with no offers.

While auctions are usually reserved for foreclosures, it has also become a popular venue for the sale of mansions. Wealthy homeowners see the option as the fastest way to sell a home. For many of these homeowners, it is the speed of the sale that is more important than the price for which it is sold. Furthermore, many auctions do allow for reserve bids, making it permissible for homeowners to decline those offers which do not meet their desired selling price.

Many auction houses are reporting a massive increase in the number of mega mansions being put up for auction. Auctions have becoming more popular among both sellers and buyers, as many traditional home listings go without offers for months. The auctioning off of a house expedites the selling process, and often provides a highly desirable price for buyers. Housing sales through auctions has risen nearly thirty percent in the past year, and the number of buyers has more than doubled in the same timeframe.

As the number of mega-mansions being put up for auction increases, so, too, does the opening bid price. The average opening bid has thus increased at many auction houses. For example, a property in Malibu, California is soon set to go up for auction, and will start at twenty-two million dollars. However, that is a bargain considering its normal listing price hovers around sixty-five million dollars.

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About Ella Jourgeson

Ella was recently an intern who checked all the articles for grammatical and spelling errors. She is now an all purpose writer filling in wherever we need help.

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