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Auctions Used to Sell RE Quickly

With a price of $141 including broker and other fees, Bel Air mega mansion The One has shattered records for the priciest home sold at auction.
The sale, which recently received bankruptcy court approval, is leading some local real estate experts to believe that more extremely high-priced homes will be sold at auction.

Agents agree that a lot of the reason we are seeing more mansions sell at auction is that properties are simply listed too high and in some cases, sellers want to offload the properties quickly. Another major reason for some of the high-priced auctions we’ve seen, such as The One, is that the developer or company that owns the property has filed for bankruptcy.

“I suspect that these unique properties will use auctions as a clearing mechanism given the frothiness of this market. There are very few assets available for sale and there are more buyers in the market. Those high dollar assets, what the auction allows you to do is shorten that time frame on the market so you have an exit strategy or a time frame where you know you will sell the property,” said Hilton & Hyland’s Stuart Vetterick, one of the agents who represented the buyer of The One.

 

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